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Scaling circular business models:: strategic paths of second-hand fashion retail
University of Borås, Faculty of Textiles, Engineering and Business.ORCID iD: 0000-0002-7751-4566
2024 (English)In: Journal of Fashion Marketing and Management, ISSN 1361-2026, E-ISSN 1758-7433, Vol. 29, no 2, p. 181-197Article in journal (Refereed) Published
Abstract [en]

Purpose

The purpose of this study is to explore the process of scaling second-hand fashion and how different strategic paths develop over time. This is theoretically grounded in two distinct scaling logics synthesised from the literature: a process that includes strategies for organisational growth (breadth-scaling) and a process that influences change in formal and informal institutions (depth-scaling).

 

Design/methodology/approach

The paper presents a process-based study based on the growth of a second-hand fashion retail organisation over 20 years. Qualitative materials such as interviews, observations and documents were collected and analysed.

 

Findings

The findings illustrate how a circular business model (CBM) can make use of a mix of strategies aiming for both organisational growth and impacting practices and habits within the fashion industry. Strategies building on breadth-scaling logic are found to be a prerequisite for engaging with depth-scaling strategies since they contribute to necessary resources and confidence, while depth-scaling secures future scaling opportunities by changing the conditions for scale.

 

Originality/value

The study contributes to the relatively scant literature on the process of scaling CBMs by exploring how different strategic paths unfold over time. The process-based approach, in combination with the two scaling logics, gives new insights into how CBMs go from niche to mainstream and thus influence the transition to a circular economy (CE).

Place, publisher, year, edition, pages
2024. Vol. 29, no 2, p. 181-197
Keywords [en]
Circular business model, Second-hand, Scalability, Fashion retailing
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hb:diva-34525DOI: 10.1108/jfmm-10-2023-0260ISI: 001303696900001Scopus ID: 2-s2.0-85203131786OAI: oai:DiVA.org:hb-34525DiVA, id: diva2:2010117
Available from: 2025-10-29 Created: 2025-10-29 Last updated: 2025-11-12Bibliographically approved
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: 2025-11-12Bibliographically approved

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Hultberg, Emelie

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