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

Elf, Patrick ORCID logoORCID: https://orcid.org/0000-0001-7420-4434, Werner, Andrea ORCID logoORCID: https://orcid.org/0000-0003-3746-7248 and Black, Sandy ORCID logoORCID: https://orcid.org/0000-0002-6682-7137 (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 . ISSN 0964-4733 [Article] (Published online first) (doi:10.1002/bse.2999)

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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.

Item Type: Article
Research Areas: A. > Business School > Centre for Enterprise and Economic Development Research (CEEDR)
Item ID: 34655
Notes on copyright: © 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.
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Depositing User: Patrick Elf
Date Deposited: 04 Feb 2022 19:08
Last Modified: 14 Feb 2022 09:48
URI: https://eprints.mdx.ac.uk/id/eprint/34655

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