scholarly journals Drivers to implement the circular economy in born-sustainable business models: a case study in the fashion industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cristina M. Ostermann ◽  
Leandro da Silva Nascimento ◽  
Fernanda Kalil Steinbruch ◽  
Daniela Callegaro-de-Menezes
Keyword(s):  
Circular Economy ◽  
Quantitative Research ◽  
Business Models ◽  
Fashion Industry ◽  
Sustainable Business ◽  
Content Type ◽  
Theoretical Scheme ◽  
Available Technology ◽  
Internal Drivers

PurposeThis study aims to identify the drivers for adopting the circular economy (CE) in a born-sustainable business of the fashion sector.Design/methodology/approachAn exploratory case study was carried out with a unique and relevant case: the only Brazilian company implementing circularity practices defined through a sectoral commitment, the 2020 Circular Fashion System Commitment.FindingsFrom an analysis of the literature, a theoretical scheme composed of internal and external drivers is proposed. In the case studied, there is a prevalence of internal drivers that led the company to implement the CE. Most of the internal drivers described by the literature were identified in this research, except for two: profitability and available technology. Regarding the external drivers, of the 12 listed, only laws and regulations were identified. Thus, the results suggest that internal drivers are more numerous and may be more prominent than external ones for CE adoption in the born-sustainable business.Research limitations/implicationsDue to its exploratory design and unique case study, the research does not allow generalizations, suggesting replication with a larger number of companies and carrying out quantitative research with born-sustainable companies and incumbent companies, for comparison. Considering that there is a difference between companies that decide for sustainable practices and companies that were already born sustainable, it can be questioned if the drivers for implementing CE for both companies are also different.Originality/valueThis study proposes a theoretical scheme that indicates the main internal and external drivers for companies' CE implementation. Developed from a literature review and applied in an empirical case, this scheme is comprehensive and can be adopted to analyze companies of different sizes and industries. Hence, this paper generates new perspectives for CE literature.

“Enabling circular business models in the fashion industry: the role of digital innovation”

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Phuc Hong Huynh
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Digital Technologies ◽  
Theory And Practice ◽  
Chain Model ◽  
Fashion Industry ◽  
Digital Innovation ◽  
Content Type ◽  
Radical Innovations

PurposeDigital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing, cyber-physical systems, or big data also diverges the applications of digital technologies in circular business models. Given heterogeneous attributes of circular business models and digital technologies, the selections of digital technologies and circular business models might be highly distinctive within and between sectorial contexts. This paper examines digital circular business models in the context of the fashion industry and its multiple actors. This industry as the world’s second polluting industry requires an urgent circular economy (CE) transition with less resource consumption, lower waste emissions and a more stable economy.Design/methodology/approachAn inductive, exploratory multiple-case study method is employed to investigate the ten cases of different sized fashion companies (i.e. large, small medium-sized firm (SME) and startup firms). The comparison across cases is conducted to understand fashion firms' distinct behaviours in adopting various digital circular economy strategies.FindingsThe paper presents three archetypes of digital-based circular business models in the fashion industry: the blockchain-based supply chain model, the service-based model and the pull demand-driven model. Besides incremental innovations, the radical business model and digital innovations as presented in the pull demand-driven model may be crucial to the fashion circular economy transition. The pull demand–driven model may shift the economy from scales to scopes, change the whole process of how the fashion items are forecasted, produced, and used, and reform consumer behaviours. The paths of adopting digital fashion circular business models are also different among large, SMEs and startup fashion firms.Practical implicationsThe study provides business managers with empirical insights on how circular business models (CBMs) should be chosen according to intrinsic business capacities, technological competences and CE strategies. The emerging trends of new fashion markets (e.g. rental, subscription) and consumers' sustainable awareness should be not be neglected. Moreover, besides adopting recycling and reuse strategies, large fashion incumbents consider collaborating with other technology suppliers and startup companies to incubate more radical innovations.Social implicationsAppropriate policies and regulations should be enacted to enable the digital CE transition. Market patterns and consumer acceptances are considered highly challenging to these digital fashion models. A balanced policy on both the demand and supply sides are suggested. The one-side policy may fail CBMs that entail an upside-down collaboration of both producers and consumers. Moreover, it is perhaps time to rethink how to reduce unnecessary new demand rather than repeatedly producing and recycling.Originality/valueThe pace of CE research is lagging far behind the accelerating environmental contamination by the fashion industry. The study aims to narrow the gap between theory and practice to harmonise fashion firms' orchestration and accelerate the transition of the fashion industry towards the CE. This study examines diverse types of digital technologies in different circular business models in a homogeneous context of the fashion industry with heterogeneous firm types.

Crowdsourcing business models that last

2017 ◽  
Vol 38 (2) ◽  
pp. 25-32 ◽  
Author(s):  
Thomas Kohler ◽  
Marco Nickel
Keyword(s):  
Business Model ◽  
Business Models ◽  
Comparative Case Study ◽  
Corporate Value ◽  
Sustainable Business ◽  
Value Capture ◽  
Content Type ◽  
Original Contribution ◽  
Practical Implications

Purpose The purpose of this paper is to discuss how to sustain crowdsourcing business models. Emerging companies are innovating their business model to rely on a crowd of participants and involve contributing users in value capture. While some organizations demonstrate initial success, sustaining a crowdsourcing business model is challenging. Design/methodology/approach The study is based on a comparative case study of the prominent crowdsourcing communities Threadless and Quirky. Participatory observation resulted in over 380 analyzed comments. Findings Seven lessons from Threadless’s success and Quirky’s failure are discussed to derive implications for sustaining crowdsourcing business models. Research limitations/implications Because both cases are integrator platforms build around contests, other crowdsourcing platform types should be studied to enrich the findings. Practical implications Managers receive guidance on how to design a sustainable business model that involves the crowd in creating value and lets the crowd participate in value capture. Originality/value Current research primarily addresses the question of how companies can take advantage of crowdsourcing and mainly considers corporate value capture. The original contribution of this article is a set of strategies to sustain crowdsourcing platforms by taking a platform’s entire business model into account.

scholarly journals From singular to plural: exploring organisational complexities and circular business model design

2019 ◽  
Vol 23 (3) ◽  
pp. 308-326 ◽  
Author(s):  
Esben Rahbek Gjerdrum Pedersen ◽  
Rebecca Earley ◽  
Kirsti Reitan Andersen
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Illustrative Case ◽  
Fashion Industry ◽  
Value Capture ◽  
Content Type ◽  
Fashion Brand ◽  
New Business ◽  
Multiple Challenges

Purpose The purpose of this paper is to discuss how organisational complexities influence the design of circular business models, which have recently been introduced as a new panacea for aligning the interests of business with the needs of the environment. Design/methodology/approach The Service Shirt, a new garment concept, is used as an illustrative case example for demonstrating some of the organisational complexities of making circular business models operable. The shirt was developed through a series of design workshops for the fashion brand Fashion Alpha. Findings The analysis highlights multiple challenges emerging when a fashion product with a significantly extended lifecycle passes through different users, organisations and business models. It is concluded that it is difficult to talk about a circular business model (singular) as circular economy solutions depend on the contributions of multiple stakeholders with business models. Practical implications The findings illustrate how fashion companies interested in the circular economy fundamentally have to rethink conventional approaches to value, organisational boundaries and temporality. Originality/value Drawing on a case example from the fashion industry, the paper demonstrates the organisational complexities linked to the design of new business models based on circular economy thinking, as these require the coordination of actions between autonomous actors driven by different logics regarding value creation, value delivery and value capture.

CIRCULAR ECONOMY: INNOVATIVE AND SUSTAINABLE BUSINESS MODELS IN THE FASHION INDUSTRY

2021 ◽  
Vol 296 (4) ◽  
pp. 25-28
Author(s):  
Olga Garafonova ◽  
◽  
Daria Vietrova ◽  
Olha Marhasova ◽  
◽  
...  
Keyword(s):  
Circular Economy ◽  
Business Models ◽  
Fashion Industry ◽  
Sustainable Business ◽  
Radical Innovations ◽  
Sustainability Strategies ◽  
New Business ◽  
Sustainable Fashion ◽  
The Many ◽  
Key Aspects

Promoting sustainable fashion within the circular economy is an important contemporary topic. Experts in design, consumption, business and industry explain how to approach circularity in fashion production and consumption in different ways. Increasingly, new and existing companies are looking for ways to thrive in a competitive environment through innovative business models, taking into account public opinion and avoiding actions that harm the planet. Trends such as the circular economy, fair trade, and sharing policies are among the many new approaches to business that address these issues, but there is still a gap between the theory that argues for levels of environmental and social sustainability and the implementation of these strategies in practice. That is why the study of the current state of the circular economy is relevant. This article presents the principles of the circular economy in terms of fashion. The key aspects of the integration of sustainable development in the fashion industry are considered. Different approaches of new business models for the circularity of the economy are highlighted. The main directions of implementation of sustainability strategies due to business transformation are identified, which requires the construction of a new level of the system and radical innovations.

Sustainable beekeeping, community driven-development, and tri-sector solutions with impact

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lisa Gring-Pemble ◽  
Germán Perilla
Keyword(s):  
Business Models ◽  
Positive Impact ◽  
Sustainable Business ◽  
Content Type ◽  
Partnership Model ◽  
Stakeholder Partnerships ◽  
Development Approach ◽  
Multi Stakeholder ◽  
Business In Society

Purpose As the Academy for Business in Society considers the theme “Business in Society: Measuring Impact and Creating Change,” one fundamental question emerges and that is how to collaborate with universities to create positive impact and sustainable business models. The purpose of this paper is to address that question and offer one apt illustration for how to collaborate effectively across sectors. Design/methodology/approach This paper offers a case study of the Honey Bee Initiative (HBI) from George Mason University’s School of Business. Findings In this case study, the authors discuss the Initiative’s tri-sector domestic and global partnerships, community-driven development approach and innovative solutions as an exemplar of business as a force for good. Originality/value This paper provides unique insight into how universities can partner with non-profits, business and policy leaders to effect positive change. As such, the HBI program contributes to the growing body of research on the benefits of tri-sector partnership models as a means of addressing global goals and provides a valuable case study to understand better the necessity of multi-stakeholder partnerships. Moreover, the HBI’s tri-sector partnership model offers important insights into what makes these partnerships successful and serves as a replicable model that can be instituted in other regions around the globe.

How smart technologies can support sustainable business models: insights from an air navigation service provider

2020 ◽  
Vol 58 (8) ◽  
pp. 1715-1736 ◽  
Author(s):  
Raffaele Fiorentino ◽  
Francesco Grimaldi ◽  
Rita Lamboglia ◽  
Alessandro Merendino
Keyword(s):  
Business Model ◽  
Service Provider ◽  
Business Models ◽  
Adoption Process ◽  
Sustainable Business ◽  
Content Type ◽  
Sustainable Business Models ◽  
Navigation Service ◽  
Smart Technologies

PurposeAlthough research on smart technologies explains their critical importance in sustainable business models (SBMs) (Mikalef et al., 2017), it remains unclear how organisations can embrace smart technologies to create and/or improve their sustainable business models. The purpose of this paper is to unravel and address the challenges of smart technologies to build and maintain a sustainable business model for organisations.Design/methodology/approachThe research develops an empirical analysis through a case study approach. We have investigated the case of ENAV – an Italian air navigation service provider – and how this firm uses smart technologies in the creation of its successful SBM. After constructing a basic theory, the authors moved to evidence collection. The data analysis has adopted a qualitative approach based on a thematic analysis of the transcripts and related documents.FindingsThe findings from the case study support the idea that the business value and the strategic relevance of smart technologies still remain largely underestimated in SBM adoption (Mikalef et al., 2017). Case study findings suggest that until today smart technologies have played a minimal role in SBM adoption. However, the smart technologies show the potential to inform the SBM adoption process by contributing to corporate communication for external stakeholders and to the main dimensions of SBMs such as safety and security or the respect for social and environmental criteria in the supply chain.Practical implicationsThis study seeks to support organisations and their directors to build and improve sustainable business models through smart technologies to maintain their competitive advantages. Specifically, our findings suggest that smart technologies can help organisations bridge the design–implementation gap of sustainable business models.Originality/valueThis research advances our understanding of the role of smart technologies by explaining how they can enhance sustainable business model adoption. Indeed, we offer a comprehensive view of the integration of insights from three different but related literature streams such as sustainability strategies, smart technologies and change management studies.

scholarly journals Collaborative consumption: business model opportunities and barriers for fashion libraries

2015 ◽  
Vol 19 (3) ◽  
pp. 258-273 ◽  
Author(s):  
Esben Rahbek Gjerdrum Pedersen ◽  
Sarah Netter
Keyword(s):  
Business Model ◽  
Business Models ◽  
Small Scale ◽  
Fashion Industry ◽  
Collaborative Consumption ◽  
Content Type ◽  
New Business ◽  
Multiple Case ◽  
Barriers And Opportunities

Purpose – The purpose of this paper is to explore barriers and opportunities for business models based on the ideas of collaborative consumption within the fashion industry. Design/methodology/approach – The analysis is based on a multiple-case study of Scandinavian fashion libraries – a new, clothes-sharing concept that has emerged as a fashion niche within the last decade. Findings – It is concluded that fashion libraries offers interesting perspectives, e.g. by allowing people to experiment with styles without having to pay the full cost and becoming a meeting place for young designers and end consumers. However, at present fashion libraries remain a small-scale phenomenon with difficulties reaching the mainstream market, not least due to limited financial and human resources as well as conventional fashion consumption patterns. Research limitations/implications – The study is limited to the new phenomenon of fashion libraries and does not cover other types of collaborative consumption within the fashion industry (Swap-parties, etc.). Originality/value – The paper is one of the first attempts to examine new business models of collaborative consumption in general and the fashion library concept in particular. The study contributes to the discussions of whether and how fashion sharing and collaboration holds promise as a viable business model and as a means to promote sustainability.

scholarly journals Assessment of Circular Economy within Portuguese Organizations

2018 ◽  
Vol 10 (7) ◽  
pp. 2521 ◽  
Author(s):  
Luis Fonseca ◽  
José Domingues ◽  
Maria Pereira ◽  
Florinda Martins ◽  
Dominik Zimon
Keyword(s):  
Circular Economy ◽  
Quantitative Research ◽  
Online Survey ◽  
Business Models ◽  
Environmental Management System ◽  
Future Research ◽  
Sustainable Business ◽  
Wide Range ◽  
New Business ◽  
The Status

The move towards a new Circular Economy (CE) economic model has been advocated and supported in Portugal, however, there is limited research on this topic. To address this gap, a quantitative research based on an online survey was carried out among 99 Portuguese organizations, encompassing a wide range of sectors and sizes. The results show that CE is regarded as a strategic and relevant issue for profitability and value creation. Furthermore, the perception that it requires the adoption of new business models in addition to the classical “reduce, reuse and recycle” approach is growing. Moreover, based on the hypotheses raised, results suggest that the level of CE adoption is positively impacted by the status of the EMS (Environmental Management System) certification and the willingness to improve the environmental performance and achieve a sustainable business model. However, CE activities are still relatively modest and a friendlier context (fiscal, legal, organizational, etc.) and the stronger support from supply chain agents and consumers are required. Future research should focus on how to design and shape the transition from a linear to a CE economy and to ascertain if the positive attitude towards CE is materialized in changing the way business is done.

Smart contracts to enable sustainable business models. A case study

2020 ◽  
Vol 58 (8) ◽  
pp. 1601-1619
Author(s):  
Francesca Dal Mas ◽  
Grazia Dicuonzo ◽  
Maurizio Massaro ◽  
Vittorio Dell'Atti
Keyword(s):  
Business Models ◽  
New Technologies ◽  
Smart Contracts ◽  
Sustainable Business ◽  
Content Type ◽  
Blockchain Technology ◽  
Start Up ◽  
Social Proof ◽  
Sustainable Business Models

PurposeThe objective of this study is to deepen how blockchain technology through smart contracts can support the development of sustainable business models (SBMs). Particularly, the authors aim to determine the key elements enabling SBMs by applying smart contracts.Design/methodology/approachThe research context focusses on the case study of SmartInsurance, which is a fictitious name for a start-up in the insurance sector and the real name of which is not to be revealed. The start-up was able to collect 18m euros in 80 s in a crowdfunding operation, using smart contracts and a revolutionary business model. Internal as well as external documents of different sources are analysed and coded to gather information about the company, its values and its business and what it pursues with employing blockchain technology.FindingsThe results show how smart contracts can reduce the costs of transactions, increase social trust and foster social proof behaviours that sustain the development of new SBMs.Originality/valueThis study contributes to both the transaction cost theory and social proof theory, showing how new technologies such as the blockchain can provide a fresh perspective to support the development of SBMs.

The anatomy of circular economy transition in the fashion industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sita Mishra ◽  
Sheetal Jain ◽  
Gunjan Malhotra
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Circular Economy ◽  
Business Models ◽  
Closed Loop ◽  
Phase 1 ◽  
Extensive Literature ◽  
Fashion Industry ◽  
Model Framework ◽  
Content Type

Purpose Unsustainable fashion consumption and wasteful practices have recently garnered attention in practice and academia; however, research in this field is limited. This study is based upon an extensive review of the literature and aims to fill this gap by providing an in-depth understanding of various drivers and actors operating in the closed-loop fashion value chain. The purpose of this study is to develop a framework of transformation from the linear economy (LE) to the circular economy (CE) for the fashion industry based on “transition theory.” Design/methodology/approach This study is conducted in two phases. In Phase 1, a bibliographic compilation on the given subject is done. In Phase 2, data about the case company is collected through trade media and semi-structured interviews with the founder and the designers. Findings The study found that key drivers for the closed-loop fashion value chain are collaboration with partners, innovation, waste management system, customer connect and changing utilization patterns. Based on the extensive literature review and analysis of the case study, it can be concluded that to incorporate CE principles, namely, reduce, repair, reuse and recycle into current business models, redefining existing value propositions and transforming various business model elements is essential. Practical implications A three-level (discrete level, aggregator level and the peripheral level) framework is developed that can help the fashion industry in transition from LE to CE. This study will help fashion houses to understand how they can work in tandem with various stakeholders to develop sustainable business models. Originality/value This paper contributes to research by advancing the understanding of how to further develop and redesign an innovative business model framework for the circular fashion value chain. A three-level framework is developed that can be used for transition from LE to CE, especially in the fashion industry. This study is one of the first research that has tried to analyze the Indian case company for CE practices in fashion.

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