Understanding supply chain orchestration mechanisms to achieve sustainability-oriented innovation in the textile and fashion industry

Abstract

To establish a Circular Supply Chain, companies must instigate transformative changes at the supply chain level, engaging various stakeholders both within and beyond their organisational boundaries. However, existing literature lacks successful examples of companies implementing circular economy principles and practical guidance on the strategies they should employ to effectively coordinate resources and capabilities for Sustainability-Oriented Innovation within Circular Supply Chains. To address these gaps, this study conducts a longitudinal field study with embedded cases, focusing on a sustainable fashion company as the main unit of analysis and 27 Sustainability-Oriented Innovation initiatives as sub-units of analysis. The investigation delves into the Resource Orchestration mechanisms employed to successfully implement four types of Sustainability-Oriented Innovation initiatives (i.e., B2C collections, B2B partnerships, Circular Service and Social Impact projects). The results provide valuable insights into strategies and practices conducive to achieving triple-bottom-line outcomes and introduce a novel process model for Sustainability-Oriented Innovation in Small-Medium Enterprises. Ultimately, the findings underscore the significance of tailoring Resource Orchestration mechanisms to different Sustainability-Oriented Innovation initiatives. This research contributes to the accumulation of knowledge at the intersection of Circular Economy, Sustainability-Oriented Innovation, and Resource Orchestration Perspective and offers practical implications for companies seeking to orchestrate their networks to achieve a Circular Supply Chain.