Implementing circular business models in the textile and clothing industry
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A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
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Date
2022-12-10
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Language
en
Pages
9
Series
Journal of Cleaner Production, Volume 378, pp. 1-9
Abstract
Textile companies face high pressure to move towards circular economy. This study investigates capabilities that enable clothing brands to overcome their past in linear economy, and eventually, to shift to CBMs. Previous research has pinpointed that company-level implementation of circular economy is still poorly understood and leaves companies without guidelines about how to make the change happen. To address this gap, two research questions are placed: how past trajectories affect the position of clothing brands in the move towards circular business models, and what capabilities are needed in the transformation process to overcome transformation-related challenges. A multiple case study was conducted in seven fashion brand companies in one country. Product-orientation and dependency on the current product portfolio affect the way the companies can transform the business models. Companies need to develop capabilities to sense opportunities, to break away from a linear business culture and restructure the firm resources accordingly. The position in the global value chain affects the way companies can adopt circularity. Strong position that allows control over the circularity of the value chain can be achieved through ownership, or by allying in business ecosystems. The value of the study is in identifying factors that affect the business model transformation process of incumbent textile companies, and capabilities needed to overcome the inertia by these factors.Description
Funding Information: The authors gratefully acknowledge financial support from the Nordic Innovation, under the Nordic Council of Ministers . Publisher Copyright: © 2022 The Authors
Keywords
Case study, Circular business model, Circular economy, Dynamic capabilities, Path dependency, Textile and clothing industry
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Citation
Salmi, A & Kaipia, R 2022, ' Implementing circular business models in the textile and clothing industry ', Journal of Cleaner Production, vol. 378, 134492, pp. 1-9 . https://doi.org/10.1016/j.jclepro.2022.134492