Overcoming Growth Challenges of Sustainable Ventures in the Fashion Industry: A Multinational Exploration

Kay H. Hofmann (), Axel Jacob and Massimo Pizzingrilli
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Kay H. Hofmann: Faculty of Business Management and Social Sciences, Osnabrück University of Applied Sciences, Caprivistr. 30a, 49076 Osnabrück, Germany
Axel Jacob: Faculty of Business Management and Social Sciences, Osnabrück University of Applied Sciences, Caprivistr. 30a, 49076 Osnabrück, Germany
Massimo Pizzingrilli: Independent Scholar, 64027 Sant’Omero, Italy

Sustainability, 2022, vol. 14, issue 16, 1-22

Abstract: Over the past decade, the proliferation of entrepreneurial ventures and small firms with sustainable business models have pushed the sustainability agenda in the fashion industry. Despite prominent success stories, these companies often encounter significant operative challenges that hinder growth or even cause business failure. This paper adopts a qualitative research design and uses data gathered during 18 expert interviews with entrepreneurs and executive managers of 18 firms from 13 countries to identify and explore the dominant challenges that micro- and small-sized sustainable fashion companies struggle with. The results indicate that communicating with consumers is perceived as surprisingly difficult, especially because sustainable brands need to justify higher prices and explain the added benefits of their products. Second, resource constraints lead to operative friction and overburdening of the decision makers and their small management teams. Third, sustainable sourcing and production processes are economically difficult in an industry that continues to occupy a mass and low-cost logic. Against the background of these insights, a range of managerial recommendations are developed and contextualized in the framework of the Business Model Canvas. This novel approach makes the suggestions which are rooted in the resource-based view actionable and supports sustainable businesses to better manage their operations and achieve growth. For example, collaborative approaches with different stakeholders may mitigate constraints across all three identified problem areas.

Keywords: small-business management; sustainability; venture growth; ethical fashion; entrepreneurship; resource-based view; business model canvas (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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