Innovation for Corporate Sustainability in The Fashion Industry: A Stakeholder Approach

Abstract

This research aims to explore the impact of various stakeholder collaborations in the execution and transformation of business model innovation (BMI) into superior sustainability performance. The objective of this research results in the following research question: What type of stakeholder collaborations are required to translate business model innovation into superior corporate sustainability performance within the fashion industry? To answer this question, 30 surveys and six semi-structured interviews of 1-2 hours are conducted with individuals employed in management positions within the European fashion industry. The analysis shows that, first of all, BMI is a prerequisite for superior sustainability performance. Customers and suppliers are considered necessary stakeholders for the execution of innovated BMs to achieve superior sustainability performance. The effects for sustainability performance are stronger for smaller fashion brands compared to larger brands. This research concludes that innovated BMs do lead to superior sustainability performance of fashion brands and that collaboration with customers and suppliers is required in this internal transition.