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.

“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.

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.

Building blocks for the development of an IoT business model

2019 ◽  
Vol 13 (1) ◽  
pp. 15-32
Author(s):  
Tatiana Domingues Almeida ◽  
Marianne Costa Avalone ◽  
Diego Castro Fettermann
Keyword(s):  
Literature Review ◽  
Business Model ◽  
Business Models ◽  
Building Blocks ◽  
Extensive Literature ◽  
Model Framework ◽  
Cluster Technique ◽  
Content Type ◽  
Business Model Canvas ◽  
Business Goals

Purpose Previous studies have identified a variety of Internet of Things (IoT) business models and have recognised the complexity related to the application of IoT technologies in business, along with the potential of the modularity concept application in organisational design. The purpose of this paper is to identify the main building blocks for the development of a business model canvas for companies that adopt the IoT in their business. Design/methodology/approach First, the authors carried a systematic literature review to identify theoretical, experimental and practical IoT business model canvas recorded in the literature. Then, the authors identified and analysed the characteristics of the building blocks present in these canvas using a statistical cluster technique. Based on the outcomes, the authors proposed a framework with standard and optional modules to allow flexible arrangements and suit different IoT business goals. Findings The results revealed that the IoT business model canvas recorded in the literature had been grossly designed to attend two drivers: manufacture and service organisations. Therefore, based on the frequency of building blocks present in IoT business model canvas recorded in the literature, it has been proposed two flexible frameworks which can be tailored to accommodate the immense variety of possibilities offered by IoT technologies in manufacture and service business. Practical implications The business model frameworks proposed in this research can support entrepreneurs structuring new IoT businesses or upgrading existing businesses. Originality/value This research offers a comprehensive IoT business model framework with their respective building blocks built from an extensive literature review.

scholarly journals Business models in facilities management value chains

2019 ◽  
Vol 21 (4) ◽  
pp. 307-323 ◽  
Author(s):  
Per Anker Jensen
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Value Chains ◽  
General Level ◽  
Facilities Management ◽  
Model Framework ◽  
Content Type ◽  
Core Business ◽  
Sourcing Strategies

Purpose This paper aims to identify typical sourcing strategies and business models in facilities management (FM) and map archetypes of value chains with complementary sourcing strategies and value chains. Design/methodology/approach The paper is based on literature and case studies from previous research. Theoretically, the paper takes a generic value chain as a starting point together with the recent ISO standard on sourcing process and a business model framework. A conceptual framework is developed and typical sourcing strategies and business models for FM are investigated. Archetypical value chains are established by a combination of sourcing strategies and business models. Findings The paper identifies eight archetypes of FM value chains divided in three groups according to whether the core business organisation occupies rented facilities and owned facilities or has facilities operation as a core business like serviced office providers, etc. Practical implications The results can be used on a general level by everybody who need to get an overview and understanding of the complex structure of the FM sector. Furthermore, the results can help all parties involved in the FM value chain to get a clearer understanding of their position in the chain and help them develop their sourcing strategies and/or business model, depending on their type of organisation. Originality/value While there is a huge amount of literature on sourcing in FM, there has only been limited research on business models and value chains in FM. The paper is original in combining an investigation of sourcing strategies, business models and value chains in FM.

The future of the Internet of Things: toward heterarchical ecosystems and service business models

2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Value Chain ◽  
Large Scale ◽  
Business Models ◽  
The Internet ◽  
Content Type ◽  
Industry Collaboration ◽  
New Business ◽  
The Internet Of Things

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.

Innovative drivers for family business models in tourism

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gabriella Arcese ◽  
Marco Valeri ◽  
Stefano Poponi ◽  
Grazia Chiara Elmo
Keyword(s):  
Literature Review ◽  
Business Model ◽  
Family Business ◽  
Systematic Literature Review ◽  
Business Models ◽  
Extensive Literature ◽  
Family Needs ◽  
Content Type ◽  
Tourism Sector ◽  
Innovation Dynamics

PurposeThe aim of this paper is to verify whether, in the tourism sector, the “family business model” is an important development opportunity and, in particular, if it is an innovation driver for this industry development. In the literature, there is no conclusive evidence of this for the tourism sector. In this context, the authors investigate personal and family needs and preferences alongside the relationship between family business model, growth and profit maximization and the development of tourism businesses through innovation drivers.Design/methodology/approachTo develop this topic, the authors conducted an extensive literature review considering the scientific papers published and contained mainly in database in the last 10 years (2010–2020) and focused the attention on the last five years. The authors ran content and structural analysis on the collected sources by main scientific databases (EBSCO, Scopus, Thomson Reuter, etc.). Based on a systematic literature review, the analysis was conducted using statistical criteria and bibliometric indicators. In detail, the authors used systematic literature review, bibliometric analysis and automatic text analysis (ATA) tools for identified lexicon analysis and strategic keywords and used statistical correlation to classify the different approaches in the literature and to outline the orientations of the various research groups.FindingsFrom this analysis, the correlation between tourism, hospitality, entrepreneurship, life cycle and innovation dynamics was analysed. Important research gaps are identified, and future research priorities are suggested. Implications for both family business and tourism theory are discussed.Originality/valueWhile the intersection between tourism management and family business model has been established in the literature, the number of related publications is still limited. Against this background, a literature review as a total analysis was an adequate and practicable research methodology. This paper proposes a comprehensive literature review and a reflection on the potential developments and applications for family business in the tourism sector. Authors also suggest several research directions that have not been adequately investigated yet. In particular, scholars do not seem to have caught all the implications of innovation adoption, especially for SMEs and family ownerships in tourism.

Developing a generic retail business model – a qualitative comparative study

2019 ◽  
Vol 47 (10) ◽  
pp. 1029-1056 ◽  
Author(s):  
Yvonne Haas
Keyword(s):  
Literature Review ◽  
Business Model ◽  
Systematic Literature Review ◽  
Business Models ◽  
Explanatory Power ◽  
Retail Industry ◽  
Model Framework ◽  
Content Type ◽  
Retail Business ◽  
Core Elements

Purpose Global trends like digitalization and verticalization increase the complexity within the retail industry and decrease the explanatory power of prevailing retail concepts. This paper responds to the call for new ways of understanding retailers’ business activities. The purpose of this paper is to structure and stimulate the emerging conceptual debate about retail business models (RBM) by developing a literature-based and empirically-substantiated generic retail business model framework (generic RBM). Design/methodology/approach The research is based on a systematic literature review and a qualitative study with 16 expert interviews in the German retail industry. Findings The paper identifies six core elements and respective sub-elements of a generic RBM. Contrasting the literature with empirical data, it confirms some common elements (e.g. “value proposition”) but invalidates others (e.g. “organization” or “governance”). The empirical findings add retail specifics like “horizontal integration,” “vertical integration” and “partners and networks” as core elements of a generic RBM. Originality/value The paper is the first to develop a generic RBM based on a systematic literature review and an empirical study across retailers. The resulting generic RBM can be used as a retail concept for systemizing and typifying the appearances of retailers in retailing theory. It can also be used for building, analyzing and comparing RBMs in retailing practice. The paper further provides a guideline for generic business model design with a hybrid approach based on literature and qualitative data.

Cognitive biases of consumers as barriers in transition towards circular economy

2019 ◽  
Vol 57 (4) ◽  
pp. 921-936 ◽  
Author(s):  
Poonam Singh ◽  
Elisa Giacosa
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Cognitive Biases ◽  
Content Type ◽  
Effective Interventions ◽  
Free Transition ◽  
Conceptual Paper ◽  
The Individual ◽  
Practical Implications

Purpose The purpose of this paper is to identify the cognitive biases of consumer and explain how they are creating barriers in transition towards circular economy (CE). Design/methodology/approach This is a conceptual paper which adopts a consumer-centric conceptualization of CE by focussing on cognitive biases as an underlying and unifying mechanism which is creating barriers in the adoption of CE. This conceptualization explains consumers’ non-adoption of circular business model, highlight synergies across disconnected theories and streams of research originating in different disciplines and at the individual, societal and cultural levels of analysis. Findings The findings of this paper suggest that circular business models are not fulfilling the psychological, social and cultural needs of the consumers and that in turn lead to barriers in diffusion of the CE. Consumers have a negative connotation with the different circular business model due to their cognitive biases. Practical implications The paper details about key implications to design effective interventions to modify consumer behaviour in the desired direction for hassle-free transition to CE from the linear economy. Originality/value This paper offers a shift in CE research from a deterministic approach to conceptualising consumers to a positivist approach to conceptualising consumers.

scholarly journals Internet of services-based business model: a case study in the livestock industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jacqueline Zonichenn Reis ◽  
Rodrigo Franco Goncalves ◽  
Epaminondas de Souza Lage ◽  
Irenilza de Alencar Nääs
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
Scientific Literature ◽  
Single Case ◽  
Model Framework ◽  
Content Type ◽  
Internet Of Services ◽  
Present Case Study

Purpose Considering the relevance of innovative business models in the digitally transformed market and the lack of clarity on the internet of services (IoS) contribution for a business model deployment in current literature, this study aims to fill this gap by evaluating a business model that converges to an IoS adoption in a direct sale of free-range eggs from farmers to consumers. Design/methodology/approach From the bibliographical research regarding the IoS and business model, the authors developed an IoS-based model framework. The framework has been evaluated in a real business scenario by using a single case study through an interview with the entrepreneur and documental analysis. Findings As the main result, a framework with the attributes can be considered a tool for an IoS-based business model deployment. The case study concluded that the business is aligned with the IoS adoption, and the framework presents adherence to it. Research limitations/implications The case study was limited to only one company owing to the IoS’s novelty and the lack of correlated business models. Although the case study limits to the agriculture field, the proposed framework may be broadly applied. Originality/value Considering that the lack of a comprehensive business model causes new businesses to face challenges, it is relevant bringing up the present case study of the IoS-based business model, which correlates these two subjects, still poorly explored in the scientific literature: IoS and business models.

Circular economy business model for smart tourism: the case of Ecobnb

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pasquale del Vecchio ◽  
Caterina Malandugno ◽  
Giuseppina Passiante ◽  
Georgia Sakka
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Circular Economy ◽  
Business Models ◽  
Business Model Innovation ◽  
Social Implications ◽  
Content Type ◽  
Tourism Management ◽  
Practical Implications ◽  
Smart Tourism

PurposeThe paper aims to shed new light on the process of value creation and business model innovation resulting from circular economy in the context of smart tourism.Design/methodology/approachThe study embraces a qualitative and exploratory approach related to a single case study. Data have been collected through the integration of web-based desk analysis, interviews and social big data analytics.FindingsFindings are related to Ecobnb, a network-based tourism company, coherent with the principles of value creation and business model innovation in the context of circular economy and smart tourism.Research limitations/implicationsThe study allows understanding of how smart tourism and circular economy can represent two important lenses for managing complexity and driving tourism companies and destinations toward sustainable and smart value creation processes.Practical implicationsPractical implications arise for managers and destination makers in terms of innovation of the tourism management and transition of the business models toward a circular configuration.Social implicationsThe study offers social implications by contributing to the dissemination of a culture of sustainability in tourism management and active involvement of local stakeholders in the growth of a tourism destination.Originality/valueThe study provides an original contribution to the debate on tourism by highlighting the obsolescence of traditional models of management in tourism companies and destinations, seen during the recent pandemic emergence, could be solved through the virtuous integration of digital technologies and sustainable approaches.

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