Abstract
This article addresses the dynamics of sustainable fashion from an original perspective, that of a nonprofit organization with entrepreneurial orientation. Combining circular economy, through the re-use of stock of fabrics, and social activities, such as the employment of disadvantaged people, the organization is able to propose fashion items that are sold in traditional fashion retail channels. The article investigates the main components of the business model, pointing out implications emerging from the hybrid nature of the company and the relationships with profit firms. Based on the discussion of four main elements that characterize the business model, the article highlights the emerging opportunities in the fashion system, for actors such as the nonprofit organization analyzed, to be a focal actor in innovative proposals, which considers sustainability as a main driver of value offered to the market.
References
Arenas, D., Lozano, J. M., & Albareda, L. (2009). The role of NGOs in CSR: Mutual perceptions among stakeholders. Journal of business ethics, 88(1), 175-197.
Arrigo, E. (2018). The flagship stores as sustainability communication channels for luxury fashion retailers. Journal of Retailing and Consumer Services, 44, 170-177.
Austin, J., Stevenson, H., & Wei‐Skillern, J. (2006). Social and commercial entrepreneurship: same, different, or both?. Entrepreneurship theory and practice, 30(1), 1-22.
Azuma, N., & Fernie, J. (2003). Fashion in the globalized world and the role of virtual networks in intrinsic fashion design. Journal of Fashion Marketing and Management: An International Journal, 7(4), 413-427.
Bagnoli, L., & Megali, C. (2011). Measuring performance in social enterprises. Nonprofit and Voluntary Sector Quarterly, 40(1), 149-165.
Battilana, J., & Lee, M. (2014). Advancing research on hybrid organizing–Insights from the study of social enterprises. The Academy of Management Annals, 8(1), 397-441.
Battilana, J., Sengul, M., Pache, A. C., & Model, J. (2015). Harnessing productive tensions in hybrid organizations: The case of work integration social enterprises. Academy of Management Journal, 58(6), 1658-1685.
Borzaga C. (2009), Impresa sociale, in (a cura di) L. Bruni e S. Zamagni, Dizionario di economia civile, Città Nuova, Roma.
Beard, N. D. (2008). The branding of ethical fashion and the consumer: a luxury niche or mass-market reality?. Fashion Theory, 12(4), 447-467.
Chan, T. Y., & Wong, C. W. (2012). The consumption side of sustainable fashion supply chain: Understanding fashion consumer eco-fashion consumption decision. Journal of Fashion Marketing and Management: An International Journal, 16(2), 193-215.
Dart, R. (2004). Being “business-like” in a nonprofit organization: A grounded and inductive typology. Nonprofit and voluntary sector quarterly, 33(2), 290-310.
Das, G., Agarwal, J., Malhotra, N. K., & Varshneya, G. (2019). Does brand experience translate into brand commitment?: A mediated-moderation model of brand passion and perceived brand ethicality. Journal of Business Research, 95, 479-490.
De Brito, M. P., Carbone, V., & Blanquart, C. M. (2008). Towards a sustainable fashion retail supply chain in Europe: Organisation and performance. International journal of production economics, 114(2), 534-553.
Defourny J. e Nyssens M. (2010), Conception of Social Enterprise and Social Entrepreneurship in Europe and United States: Convergences and Divergences, Journal of Social Entrepreneurship, 1, 1: 32-53
Di Benedetto, C. A. (2017). Corporate social responsibility as an emerging business model in fashion marketing. Journal of Global Fashion Marketing, 8(4), 251-265.
DiVito, L., & Bohnsack, R. (2017). Entrepreneurial orientation and its effect on sustainability decision tradeoffs: The case of sustainable fashion firms. Journal of Business Venturing, 32(5), 569-587.
Doherty, B., Haugh, H., & Lyon, F. (2014). Social enterprises as hybrid organizations: A review and research agenda. International Journal of Management Reviews, 16(4), 417-436.
Ebrahim, A., Battilana, J., & Mair, J. (2014). The governance of social enterprises: Mission drift and accountability challenges in hybrid organizations. Research in Organizational Behavior, 34, 81-100.
Goworek, H., Oxborrow, L., Claxton, S., McLaren, A., Cooper, T., & Hill, H. (2018). Managing sustainability in the fashion business: Challenges in product development for clothing longevity in the UK. Journal of Business Research, in press
Gupta, M., & Hodges, N. (2012). Corporate social responsibility in the apparel industry: An exploration of Indian consumers’ perceptions and expectations. Journal of Fashion Marketing and Management: An International Journal, 16(2), 216-233.
Han, J., Seo, Y., & Ko, E. (2017). Staging luxury experiences for understanding sustainable fashion consumption: A balance theory application. Journal of Business Research, 74, 162-167.
Henninger, C. E., Alevizou, P. J., & Oates, C. J. (2016). What is sustainable fashion?. Journal of Fashion Marketing and Management: An International Journal, 20(4), 400-416.
Hill, J., & Lee, H. H. (2012). Young Generation Y consumers’ perceptions of sustainability in the apparel industry. Journal of Fashion Marketing and Management: An International Journal, 16(4), 477-491.
Hill, J., & Lee, H. H. (2015). Sustainable brand extensions of fast fashion retailers. Journal of Fashion Marketing and Management, 19(2), 205-222.
Hirscher, A. L., Niinimäki, K., & Armstrong, C. M. J. (2018). Social manufacturing in the fashion sector: New value creation through alternative design strategies?. Journal of cleaner production, 172, 4544-4554.
Holmes, S., & Moir, L. (2007). Developing a conceptual framework to identify corporate innovations through engagement with non-profit stakeholders. Corporate Governance: The international journal of business in society, 7(4), 414-422.
Jamali, D., & Keshishian, T. (2009). Uneasy alliances: Lessons learned from partnerships between businesses and NGOs in the context of CSR. Journal of business Ethics, 84(2), 277-295.
Jang, J., Ko, E., Chun, E., & Lee, E. (2012). A study of a social content model for sustainable development in the fast fashion industry. Journal of Global Fashion Marketing, 3(2), 61-70.
Jay, J. (2013). Navigating paradox as a mechanism of change and innovation in hybrid organizations. Academy of management journal, 56(1), 137-159.
Joergens, C. (2006). Ethical fashion: myth or future trend?. Journal of Fashion Marketing and Management: An International Journal. 10(3), 360-371.
Kapferer, J. N., & Michaut-Denizeau, A. (2014). Is luxury compatible with sustainability? Luxury consumers’ viewpoint. Journal of Brand Management, 21(1), 1-22.
Karaosman, H., Perry, P., Brun, A., & Morales-Alonso, G. (2018). Behind the runway: Extending sustainability in luxury fashion supply chains. Journal of Business Research,in press
Khurana, K., & Ricchetti, M. (2016). Two decades of sustainable supply chain management in the fashion business, an appraisal. Journal of Fashion Marketing and Management, 20(1), 89-104.
Kim, H. S., & Hall, M. L. (2015). Green brand strategies in the fashion industry: Leveraging connections of the consumer, brand, and environmental sustainability. In Sustainable Fashion Supply Chain Management (pp. 31-45). Springer, Cham.
Kim, N., Sung, Y., & Lee, M. (2012). Consumer evaluations of social alliances: The effects of perceived fit between companies and non-profit organizations. Journal of business ethics, 109(2), 163-174.
Kozlowski A., Searcy C., & Bardecki M. (2015). Corporate sustainability reporting in the apparel industry: An analysis of indicators disclosed", International Journal of Productivity and Performance Management, 64(3), 377-397.
Lee, Y. J. (2012). Orgdot: A fashion and social enterprise in South Korea. Journal of Global Fashion Marketing, 3(1), 42-53.
Lee, M., & Battilana, J. (2013). How the zebra got its stripes: Imprinting of individuals and hybrid social ventures. Harvard Business School Organizational Behavior Unit Working Paper, (14-005).
Li, Y., Zhao, X., Shi, D., & Li, X. (2014). Governance of sustainable supply chains in the fast fashion industry. European Management Journal, 32(5), 823-836.
Lueg, R., Pedersen, M. M., & Clemmensen, S. N. (2015). The role of corporate sustainability in a low‐cost business model–A case study in the Scandinavian fashion industry. Business Strategy and the Environment, 24(5), 344-359.
Magnuson, B., Reimers, V., & Chao, F. (2017). Re-visiting an old topic with a new approach: the case of ethical clothing. Journal of Fashion Marketing and Management: An International Journal, 21(3), 400-418.
Moretto, A., Macchion, L., Lion, A., Caniato, F., Danese, P., & Vinelli, A. (2018). Designing a roadmap towards a sustainable supply chain: A focus on the fashion industry. Journal of cleaner production, 193, 169-184.
Pache, A. C., & Santos, F. (2013). Inside the hybrid organization: Selective coupling as a response to competing institutional logics. Academy of Management Journal, 56(4), 972-1001.
Pambianco (2018), Burberry distrugge 32 mln di euro di prodotti, 16 luglio 2018, www.pambianconews.com
Pedersen, E. R. G., & Andersen, K. R. (2015). Sustainability innovators and anchor draggers: a global expert study on sustainable fashion. Journal of Fashion Marketing and Management, 19(3), 315-327.
Pedersen, E. R. G., Gwozdz, W., & Hvass, K. K. (2018). Exploring the relationship between business model innovation, corporate sustainability, and organisational values within the fashion industry. Journal of Business Ethics, 149(2), 267-284.
Phau, I., Teah, M., & Chuah, J. (2015). Consumer attitudes towards luxury fashion apparel made in sweatshops. Journal of Fashion Marketing and Management, 19(2), 169-187.
Picciotti, A. (2017). Towards sustainability: The innovation paths of social enterprise. Annals of Public and Cooperative Economics, 88(2), 233-256.
Pookulangara, S., & Shephard, A. (2013). Slow fashion movement: Understanding consumer perceptions—An exploratory study. Journal of retailing and consumer services, 20(2), 200-206.
Runfola, A., & Guercini, S. (2013). Fast fashion companies coping with internationalization: driving the change or changing the model?.Journal of Fashion Marketing and Management: An International Journal. 17(2), 190-205
Seitanidi, M. M., & Crane, A. (2009). Implementing CSR through partnerships: Understanding the selection, design and institutionalisation of nonprofit-business partnerships. Journal of business ethics, 85(2), 413-429.
Shen B., Wang Y., Lo K.Y. C., & Shum M. (2012).The impact of ethical fashion on consumer purchase behavior, Journal of Fashion Marketing and Management: An International Journal,16(2), 234-245
Siegner, M., Pinkse, J., & Panwar, R. (2018). Managing tensions in a social enterprise: The complex balancing act to deliver a multi-faceted but coherent social mission. Journal of cleaner production, 174, 1314-1324.
Smith, W. K., Gonin, M., & Besharov, M. L. (2013). Managing social-business tensions: A review and research agenda for social enterprise. Business Ethics Quarterly, 23(3), 407-442.
Taplin, I. (2014). Who is to blame? A re-examination of fast fashion after the 2013 factory disaster in Bangladesh. Critical perspectives on international business,10(1/2), 72-83.
Todeschini, B. V., Cortimiglia, M. N., Callegaro-de-Menezes, D., & Ghezzi, A. (2017). Innovative and sustainable business models in the fashion industry: Entrepreneurial drivers, opportunities, and challenges. Business Horizons, 60(6), 759-770.
Wang, H., Liu, H., Kim, S. J., & Kim, K. H. (2019). Sustainable fashion index model and its implication. Journal of Business Research, 99, 430-437.
Arrigo, E. (2018). The flagship stores as sustainability communication channels for luxury fashion retailers. Journal of Retailing and Consumer Services, 44, 170-177.
Austin, J., Stevenson, H., & Wei‐Skillern, J. (2006). Social and commercial entrepreneurship: same, different, or both?. Entrepreneurship theory and practice, 30(1), 1-22.
Azuma, N., & Fernie, J. (2003). Fashion in the globalized world and the role of virtual networks in intrinsic fashion design. Journal of Fashion Marketing and Management: An International Journal, 7(4), 413-427.
Bagnoli, L., & Megali, C. (2011). Measuring performance in social enterprises. Nonprofit and Voluntary Sector Quarterly, 40(1), 149-165.
Battilana, J., & Lee, M. (2014). Advancing research on hybrid organizing–Insights from the study of social enterprises. The Academy of Management Annals, 8(1), 397-441.
Battilana, J., Sengul, M., Pache, A. C., & Model, J. (2015). Harnessing productive tensions in hybrid organizations: The case of work integration social enterprises. Academy of Management Journal, 58(6), 1658-1685.
Borzaga C. (2009), Impresa sociale, in (a cura di) L. Bruni e S. Zamagni, Dizionario di economia civile, Città Nuova, Roma.
Beard, N. D. (2008). The branding of ethical fashion and the consumer: a luxury niche or mass-market reality?. Fashion Theory, 12(4), 447-467.
Chan, T. Y., & Wong, C. W. (2012). The consumption side of sustainable fashion supply chain: Understanding fashion consumer eco-fashion consumption decision. Journal of Fashion Marketing and Management: An International Journal, 16(2), 193-215.
Dart, R. (2004). Being “business-like” in a nonprofit organization: A grounded and inductive typology. Nonprofit and voluntary sector quarterly, 33(2), 290-310.
Das, G., Agarwal, J., Malhotra, N. K., & Varshneya, G. (2019). Does brand experience translate into brand commitment?: A mediated-moderation model of brand passion and perceived brand ethicality. Journal of Business Research, 95, 479-490.
De Brito, M. P., Carbone, V., & Blanquart, C. M. (2008). Towards a sustainable fashion retail supply chain in Europe: Organisation and performance. International journal of production economics, 114(2), 534-553.
Defourny J. e Nyssens M. (2010), Conception of Social Enterprise and Social Entrepreneurship in Europe and United States: Convergences and Divergences, Journal of Social Entrepreneurship, 1, 1: 32-53
Di Benedetto, C. A. (2017). Corporate social responsibility as an emerging business model in fashion marketing. Journal of Global Fashion Marketing, 8(4), 251-265.
DiVito, L., & Bohnsack, R. (2017). Entrepreneurial orientation and its effect on sustainability decision tradeoffs: The case of sustainable fashion firms. Journal of Business Venturing, 32(5), 569-587.
Doherty, B., Haugh, H., & Lyon, F. (2014). Social enterprises as hybrid organizations: A review and research agenda. International Journal of Management Reviews, 16(4), 417-436.
Ebrahim, A., Battilana, J., & Mair, J. (2014). The governance of social enterprises: Mission drift and accountability challenges in hybrid organizations. Research in Organizational Behavior, 34, 81-100.
Goworek, H., Oxborrow, L., Claxton, S., McLaren, A., Cooper, T., & Hill, H. (2018). Managing sustainability in the fashion business: Challenges in product development for clothing longevity in the UK. Journal of Business Research, in press
Gupta, M., & Hodges, N. (2012). Corporate social responsibility in the apparel industry: An exploration of Indian consumers’ perceptions and expectations. Journal of Fashion Marketing and Management: An International Journal, 16(2), 216-233.
Han, J., Seo, Y., & Ko, E. (2017). Staging luxury experiences for understanding sustainable fashion consumption: A balance theory application. Journal of Business Research, 74, 162-167.
Henninger, C. E., Alevizou, P. J., & Oates, C. J. (2016). What is sustainable fashion?. Journal of Fashion Marketing and Management: An International Journal, 20(4), 400-416.
Hill, J., & Lee, H. H. (2012). Young Generation Y consumers’ perceptions of sustainability in the apparel industry. Journal of Fashion Marketing and Management: An International Journal, 16(4), 477-491.
Hill, J., & Lee, H. H. (2015). Sustainable brand extensions of fast fashion retailers. Journal of Fashion Marketing and Management, 19(2), 205-222.
Hirscher, A. L., Niinimäki, K., & Armstrong, C. M. J. (2018). Social manufacturing in the fashion sector: New value creation through alternative design strategies?. Journal of cleaner production, 172, 4544-4554.
Holmes, S., & Moir, L. (2007). Developing a conceptual framework to identify corporate innovations through engagement with non-profit stakeholders. Corporate Governance: The international journal of business in society, 7(4), 414-422.
Jamali, D., & Keshishian, T. (2009). Uneasy alliances: Lessons learned from partnerships between businesses and NGOs in the context of CSR. Journal of business Ethics, 84(2), 277-295.
Jang, J., Ko, E., Chun, E., & Lee, E. (2012). A study of a social content model for sustainable development in the fast fashion industry. Journal of Global Fashion Marketing, 3(2), 61-70.
Jay, J. (2013). Navigating paradox as a mechanism of change and innovation in hybrid organizations. Academy of management journal, 56(1), 137-159.
Joergens, C. (2006). Ethical fashion: myth or future trend?. Journal of Fashion Marketing and Management: An International Journal. 10(3), 360-371.
Kapferer, J. N., & Michaut-Denizeau, A. (2014). Is luxury compatible with sustainability? Luxury consumers’ viewpoint. Journal of Brand Management, 21(1), 1-22.
Karaosman, H., Perry, P., Brun, A., & Morales-Alonso, G. (2018). Behind the runway: Extending sustainability in luxury fashion supply chains. Journal of Business Research,in press
Khurana, K., & Ricchetti, M. (2016). Two decades of sustainable supply chain management in the fashion business, an appraisal. Journal of Fashion Marketing and Management, 20(1), 89-104.
Kim, H. S., & Hall, M. L. (2015). Green brand strategies in the fashion industry: Leveraging connections of the consumer, brand, and environmental sustainability. In Sustainable Fashion Supply Chain Management (pp. 31-45). Springer, Cham.
Kim, N., Sung, Y., & Lee, M. (2012). Consumer evaluations of social alliances: The effects of perceived fit between companies and non-profit organizations. Journal of business ethics, 109(2), 163-174.
Kozlowski A., Searcy C., & Bardecki M. (2015). Corporate sustainability reporting in the apparel industry: An analysis of indicators disclosed", International Journal of Productivity and Performance Management, 64(3), 377-397.
Lee, Y. J. (2012). Orgdot: A fashion and social enterprise in South Korea. Journal of Global Fashion Marketing, 3(1), 42-53.
Lee, M., & Battilana, J. (2013). How the zebra got its stripes: Imprinting of individuals and hybrid social ventures. Harvard Business School Organizational Behavior Unit Working Paper, (14-005).
Li, Y., Zhao, X., Shi, D., & Li, X. (2014). Governance of sustainable supply chains in the fast fashion industry. European Management Journal, 32(5), 823-836.
Lueg, R., Pedersen, M. M., & Clemmensen, S. N. (2015). The role of corporate sustainability in a low‐cost business model–A case study in the Scandinavian fashion industry. Business Strategy and the Environment, 24(5), 344-359.
Magnuson, B., Reimers, V., & Chao, F. (2017). Re-visiting an old topic with a new approach: the case of ethical clothing. Journal of Fashion Marketing and Management: An International Journal, 21(3), 400-418.
Moretto, A., Macchion, L., Lion, A., Caniato, F., Danese, P., & Vinelli, A. (2018). Designing a roadmap towards a sustainable supply chain: A focus on the fashion industry. Journal of cleaner production, 193, 169-184.
Pache, A. C., & Santos, F. (2013). Inside the hybrid organization: Selective coupling as a response to competing institutional logics. Academy of Management Journal, 56(4), 972-1001.
Pambianco (2018), Burberry distrugge 32 mln di euro di prodotti, 16 luglio 2018, www.pambianconews.com
Pedersen, E. R. G., & Andersen, K. R. (2015). Sustainability innovators and anchor draggers: a global expert study on sustainable fashion. Journal of Fashion Marketing and Management, 19(3), 315-327.
Pedersen, E. R. G., Gwozdz, W., & Hvass, K. K. (2018). Exploring the relationship between business model innovation, corporate sustainability, and organisational values within the fashion industry. Journal of Business Ethics, 149(2), 267-284.
Phau, I., Teah, M., & Chuah, J. (2015). Consumer attitudes towards luxury fashion apparel made in sweatshops. Journal of Fashion Marketing and Management, 19(2), 169-187.
Picciotti, A. (2017). Towards sustainability: The innovation paths of social enterprise. Annals of Public and Cooperative Economics, 88(2), 233-256.
Pookulangara, S., & Shephard, A. (2013). Slow fashion movement: Understanding consumer perceptions—An exploratory study. Journal of retailing and consumer services, 20(2), 200-206.
Runfola, A., & Guercini, S. (2013). Fast fashion companies coping with internationalization: driving the change or changing the model?.Journal of Fashion Marketing and Management: An International Journal. 17(2), 190-205
Seitanidi, M. M., & Crane, A. (2009). Implementing CSR through partnerships: Understanding the selection, design and institutionalisation of nonprofit-business partnerships. Journal of business ethics, 85(2), 413-429.
Shen B., Wang Y., Lo K.Y. C., & Shum M. (2012).The impact of ethical fashion on consumer purchase behavior, Journal of Fashion Marketing and Management: An International Journal,16(2), 234-245
Siegner, M., Pinkse, J., & Panwar, R. (2018). Managing tensions in a social enterprise: The complex balancing act to deliver a multi-faceted but coherent social mission. Journal of cleaner production, 174, 1314-1324.
Smith, W. K., Gonin, M., & Besharov, M. L. (2013). Managing social-business tensions: A review and research agenda for social enterprise. Business Ethics Quarterly, 23(3), 407-442.
Taplin, I. (2014). Who is to blame? A re-examination of fast fashion after the 2013 factory disaster in Bangladesh. Critical perspectives on international business,10(1/2), 72-83.
Todeschini, B. V., Cortimiglia, M. N., Callegaro-de-Menezes, D., & Ghezzi, A. (2017). Innovative and sustainable business models in the fashion industry: Entrepreneurial drivers, opportunities, and challenges. Business Horizons, 60(6), 759-770.
Wang, H., Liu, H., Kim, S. J., & Kim, K. H. (2019). Sustainable fashion index model and its implication. Journal of Business Research, 99, 430-437.
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