Background – Under the acceleration in globalising tendencies of monopoly capitalism aided by social hyper-connectivity and a supply of cheap international labour, fashion companies struggle to find sufficient agency to manoeuvre their way out of the unsustainable, self-inflicted problems. Since fashion companies' rhetoric on sustainability matters is often far ahead of corporate action, it requires further development and engagement by all actors.

Purpose – The purpose is to investigate motivational bases for the engagement in sustainability development (SD) among employees and review the compatibility between management control systems (MCSs) in order to incentivise sustainable behaviour.

Methodology – With the Design Thinking approach as baseline, a single case study design is guided by both the resource-based view as well as institutional theory to explore individuals’ motivation for engaging in SD and identify MCS misalignment inefficiencies from a bottom-up perspective. Primary data is sought through semi-structured interviews with employees of the case company, which is complemented by secondary data documents and a conceptual framework grounded in literature. The data is analysed qualitatively and quantitatively through iterative coding cycles in MAXQDA.

Findings – The data not only reveals the relative importance of different determining variables of sustainable behaviour at three institutional context levels of analysis, but also allows for their categorisation into behavioural progressions in engaging in SD. Even though varying motivational bases respond to different external stimuli depending on the personal interest in sustainability topics, findings on misalignment inefficiencies point towards informal MCSs requiring reinforcement by formal MCSs. Here, a lack of knowledge or perceived incompatibility with conventional business practices hamper transformational change in SD.

Implications – The single case study implies that even though dominant cultural controls have institutionalised sustainability awareness among employees, the fashion SME needs to support the engagement of employees in SD with strong sustainability leadership showing courage behind conviction and assigning clear responsibilities as well as a personal purpose to the corporate sustainability missions. Additionally, MCSs need to be set up that allow for an enhanced learning culture and increase the flow of ideas even beyond corporate walls. Since findings are limited to the single case study as well as to its institutional context, this research refers to general implication of institutional theory with resource-dependent arguments as suggested by Oliver (1997) to incentivise the engagement of employees in SD.

Originality– The novelty of the work lies within the Design Thinking approach, as employee profiles on progressive behaviour for engaging in SD are theorised and crucial MCSs incentivising these specific motivational bases are derived for the case company. In addition, the ideation process leads to the theoretical establishment of an incentivisation network in which social relationships between departments are rewarded that enable collaboration, creativity and productivity in favour of SD based on Social Physics.