Advancing the circular economy through dynamic capabilities and extended customer engagement: insights from small sustainable fashion enterprises in the UK

Article


Elf, P., Werner, A. and Black, S. 2022. Advancing the circular economy through dynamic capabilities and extended customer engagement: insights from small sustainable fashion enterprises in the UK. Business Strategy and the Environment. 31 (6), pp. 2682-2699. https://doi.org/10.1002/bse.2999
TypeArticle
TitleAdvancing the circular economy through dynamic capabilities and extended customer engagement: insights from small sustainable fashion enterprises in the UK
AuthorsElf, P., Werner, A. and Black, S.
Abstract

The circular economy holds the potential to significantly reduce resource use. However, attempts to fully utilize its potential have fallen short so far. Based on a longitudinal interview-based study, we examine how micro, small and medium enterprises (MSMEs) in the UK fashion industry advance the circular economy (CE). Whereas the dynamic capabilities framework is mostly used for medium and large businesses, our findings advance the current literature, demonstrating how the distinctive development and use of dynamic capabilities enable MSMEs to act in agile ways, allowing them to introduce, test and advance CE solutions, while providing them with more resilience during times of crises. Our study further shows that fashion MSMEs adopt circular economy business models (CEBMs) by going beyond conventional, technology-focused approaches currently dominating business thinking. The research highlights MSMEs' ability to engage in circular practices through an extension of existing business models in the form of close interactions with their customers demonstrating the importance and potential of extended business-customer engagement in businesses' attempts to adopt CE practices.

Keywordscircular economy; consumers; dynamic capabilities; entrepreneurship; sustainability; sustainable fashion
Research GroupCentre for Enterprise, Environment and Development Research (CEEDR)
PublisherWiley
JournalBusiness Strategy and the Environment
ISSN0964-4733
Electronic1099-0836
Publication dates
Online04 Feb 2022
Print07 Sep 2022
Publication process dates
Submitted28 Feb 2021
Accepted22 Sep 2021
Deposited04 Feb 2022
Output statusPublished
Publisher's version
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Copyright Statement

© 2022 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.
This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

Digital Object Identifier (DOI)https://doi.org/10.1002/bse.2999
Web of Science identifierWOS:000750917600001
LanguageEnglish
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