The textile industry is currently operating in an unsustainable manner that is based on overproduction and wasteful, resource-draining practices. Therefore, recently, the concept of circular economy has been presented as a possible solution and a way forward. Changing linear economy business practices and basing them on the circular economy concept is anticipated to solve social and environmental problems while maintaining economic growth. However, fashion retail value chains essentially depend on the logic of mass production, fast fashion, and linear take-make-dispose models. Presently, circular initiatives in this context are rather limited. This thesis posits that circular business model (CBM) scalability is an important factor in the transition to a circular economy in the fashion retail value chain, and thus, a more sustainable fashion industry.

Therefore, the purpose of this thesis is to further the understanding of CBM scalability in the context of fashion retail value chains. This includes expanding the notion of scalability to cover a more holistic perspective that goes beyond increasing production output solely for economic gains. Additionally, this involves enhancing the understanding of the required specific resources and capabilities that CBMs must have or develop to overcome challenges and increase their potential for scalability. Accordingly, this thesis covers three papers that utilise qualitative methods wherein archival material, such as peer reviewed journal articles and industry reports, as well as interviews with practitioners are used.

Moreover, the extension of the notion of business model scalability goes beyond the boundary of the organisation and encompasses three different perspectives, namely, efficiency, adaptability, and altruism. In addition to this, three areas that challenge CBM scalability are identified. These challenges stem from different business model design themes and can be described as (i) inefficiency, (ii) lack of know-how and out-of-the-box solutions, and (iii) unfamiliarity resulting in scepticism and dissonance with current practices and policy. Finally, the thesis contributes to the CBM literature by utilising the theoretical lenses of resource-based theory and dynamic capabilities theory to identify resources and dynamic capabilities that are strategically important for scaling CBMs. This thesis expands the notion of scalability by going beyond the boundary of the single organisation as well as including a triple bottom line perspective, thus providing an important addition to the understanding of the scalability of CBMs. 

Textilindustrin verkar för närvarande på ett ohållbart sätt som bygger på överproduktion och resurskrävande metoder. Cirkulär ekonomi som koncept, har därför nyligen presenterats som en möjlig lösning på de problem som industrin står inför. Genom att frångå linjära praxis och istället bygga affärsmetoder på cirkulär ekonomi förväntas sociala och miljömässiga problem kunna lösas samtidigt som den ekonomiska tillväxten bibehålls. Modeindustrins värdekedjor bygger dock fortfarande huvudsakligen på massproduktion, fast fashion och linjära take-make-dispose-modeller. Cirkulära initiativ är i detta sammanhang ganska begränsade. Denna avhandling framhäver därför, att skalbarhet av cirkulära affärsmodeller är en viktig faktor i övergången till en cirkulär ekonomi, och därmed en mer hållbar modeindustri.

Syftet med denna avhandling är följaktligen att öka förståelsen för skalbarhet av cirkulära affärsmodeller inom modebranschens värdekedjor, med fokus på detaljhandeln. Innefattat i detta är ett utvidgat begrepp av skalbarhet, som inkluderar mer än enbart ökad produktion för ekonomisk vinst. Till detta hör även en ökad förståelse av de specifika resurser och förmågor som cirkulära affärsmodeller måste ha eller utveckla för att övervinna utmaningar och bli mer skalbara. Avhandlingen omfattar tre artiklar som använder kvalitativa metoder där arkivmaterial, såsom refereegranskade journalartiklar och branschrapporter, samt intervjuer med personer verksamma i branschen, används.

Resultatet påvisar att cirkulära affärsmodellers skalbarhet går bortom organisationens gränser och omfattar tre olika perspektiv: effektivitet, anpassningsförmåga och altruism. Utöver detta identifieras tre områden som speciellt utmanande för skalbarheten. Dessa utmaningar härrör från två olika designteman av affärsmodeller och kan beskrivas som (i) ineffektivitet, (ii) bristande kunskap och brist på färdiga lösningar, och (iii) obekantskap som resulterar i skepsis och dissonans med nuvarande praxis och policy. Slutligen bidrar avhandlingen till litteraturen om cirkulära affärsmodeller genom att använda resursbaserad teori och dynamiska förmågor-teori för att identifiera resurser och dynamiska förmågor som är strategiskt viktiga för skalbarhet av cirkulära affärsmodeller. Avhandlingen bidrar således till kunskapen om cirkulära affärsmodellers skalbarhet genom att utvidga begreppet till att även innefatta aktiviteter som sträcker sig utanför den enskilda organisationen, samt inkludera ett triple bottom line-perspektiv. 

Circular business models (CBMs) have gained much attention in the fashion retail industry as a solution and opportunity for transitioning to more sustainable practices. Resale (i.e., second-hand) has proven to have an especially high growth potential in fashion retail. However, for CBMs to play an important role in the transition to a more sustainable fashion retail industry, they must be able to scale and displace linear consumption. What this means is currently obscure. Consequently, the purpose of this thesis is to theoretically and empirically explore and describe the scaling of fashion retail CBMs. This is addressed through qualitative research detailed in five appended papers. Using different theoretical perspectives and methods, such as literature reviews, interview studies, and a case study, the thesis and its sub-studies examine how the scaling of CBMs can be described, as well as which strategies are used in the fashion industry. Based on the interplay between theoretical frameworks, from both general management literature and social innovation literature, and empirical material, the thesis suggests a synthesis of three general perspectives on how the scaling of fashion retail CBMs can be described: firstly, as a phenomenon that mainly concerns the focal organisation; secondly, as a phenomenon that concerns both the focal organisation and its impact on the external environment; and finally, as a process that is formed and shaped over time. Additionally, seven main strategies employed by fashion retail CBMs in their efforts to scale were also identified. The findings also show that, depending on the perspective, CBMs can have different objectives when it comes to scaling. If scaling is perceived as mainly concerning the focal organisation, then strategies, for example, will focus on internal improvements for organisational efficiency. If it is perceived using a wider perspective, also including impacts on the external environment, then strategies that focus on changing formal and informal institutions will also be employed. The process perspective views these strategies as they connect over time in order to achieve scale. Understanding that scaling can be described in different ways and have different strategic foci is an important contribution to both theory and practice. The different perspectives influence how both managers and researchers approach the issue of CBM scaling, and what challenges and strategies they include in their analysis. By articulating and systematically describing different perspectives on CBM scaling, this thesis brings clarity to a complex concept.