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Dynamic capabilities for the scaling of circular business model initiatives in the fashion industry
Department of Management and Engineering, Linköping University, Linköping, Sweden.
University of Borås, Faculty of Textiles, Engineering and Business. (Textile Value Chain Management (TVCM))ORCID iD: 0000-0002-7751-4566
2021 (English)In: Journal of Cleaner Production, ISSN 0959-6526, E-ISSN 1879-1786, Vol. 320, article id 128831Article in journal (Refereed) Published
Sustainable development
According to the author(s), the content of this publication falls within the area of sustainable development.
Abstract [en]

The scaling of circular business models (CBMs) plays a decisive role in the transformation toward more sustainable business practices. The purpose of this paper is to explore the microfoundations of dynamic capabilities (DCs) involved in the scaling of CBM initiatives. Based on semi-structured, in-depth interviews with 12 Swedish retail fashion companies, this research outlines a variety of microfoundations involved in CBM scaling practices. The Swedish fashion sector offers a rich empirical basis for further exploration of the microfoundations required for the scaling of CBMs. The study is theoretically grounded in a combination of the three DC classes of sensing, seizing, and reconfiguring, and the three scaling logics of scaling out, scaling up, and scaling deep. This combination provides several new insights with respect to the expansion and growth of CBMs. In particular, the research emphasizes the actual activities and processes involved in efforts toward the scaling of CBM initiatives, which have so far only been researched to a minor extent. Furthermore, the application of different scaling logics offers clarity and a constructive understanding of how circular business practices can be scaled beyond the individual firm or CBM initiative. For practitioners, the combination of DC classes and scaling logics into a 3 × 3 matrix offers a tool for the identification, understanding, and organization of the dynamic capabilities required for different scaling logics of CBMs.

Place, publisher, year, edition, pages
2021. Vol. 320, article id 128831
Keywords [en]
Circular business models, Dynamic capabilities, Microfoundations, Scaling, Fashion, Social innovation
National Category
Business Administration
Research subject
Textiles and Fashion (General)
Identifiers
URN: urn:nbn:se:hb:diva-26297DOI: 10.1016/j.jclepro.2021.128831ISI: 000721711600009Scopus ID: 2-s2.0-85113492533OAI: oai:DiVA.org:hb-26297DiVA, id: diva2:1588385
Available from: 2021-08-27 Created: 2021-08-27 Last updated: 2024-05-03
In thesis
1. Circular business models in fashion retail: Exploring the complexity of scaling
Open this publication in new window or tab >>Circular business models in fashion retail: Exploring the complexity of scaling
2024 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

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.

Place, publisher, year, edition, pages
Borås: Högskolan i Borås, 2024
Series
Skrifter från Högskolan i Borås, ISSN 0280-381X ; 150
Keywords
circular business models, scaling, fashion retail, second-hand, resale
National Category
Business Administration
Research subject
Textiles and Fashion (General)
Identifiers
urn:nbn:se:hb:diva-31729 (URN)978-91-89833-46-3 (ISBN)978-91-89833-47-0 (ISBN)
Public defence
2024-06-05, Vestindien C, Skaraborgsvägen 3A, Borås, 10:00 (English)
Opponent
Available from: 2024-05-13 Created: 2024-03-27 Last updated: 2024-05-13Bibliographically approved

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Publisher's full textScopushttps://www.sciencedirect.com/science/article/pii/S0959652621030286

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Hultberg, Emelie

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