Developing dynamic capabilities for the circular economy in the textile and clothing industry in Italy: A natural‐resource‐based view

Abstract

Implementing the circular economy (CE) through the design of a restorative industrial system is a major challenge. This study investigates the capabilities that underpin the circular competitive advantages of firms in the textile and clothing industry in Italy, which is one of the country's most polluting sectors. We have developed a framework of dynamic capabilities needed for circular transition, using the theoretical lenses of a natural‐resource‐based view. Using a multiple‐case study, the strategies of pollution prevention, product stewardship, and sustainable development and the associated capabilities of sensing, seizing, and reconfiguring are investigated. Internal practices, the role of the downstream actors in the supply chain, co‐creation dynamics with external actors, and the social potential of the CE emerge as key factors. Managers may also benefit from our recommendations aimed at increasing the environmental performance of their firms and scaling up their born‐circular businesses.

The impact of dynamic capabilities on circular economy: the mediating effect of the industrial Internet of things

“…The results also confirmed that firms' use of their DC related to SEI plays an important role in transforming new opportunities into a reality that can be leveraged by introducing new and sustainable environmental business models (Coppola et al ., 2023; Khan et al ., 2020b), formulating the firm's strategy in line with the new opportunities, carrying out cooperation and coordination with all partners and departments in these firms, leading to maximizing the economic benefit and providing the information and capabilities required to implement CE practices (Bocken and Konietzko, 2022), which will then benefiting from these capabilities in promoting these sustainable practices (Khan et al ., 2021a, b).…”

“…The study results also supported all direct hypotheses with a relationship between DC, the IIoT and CE. The results showed support for H1, H2 and H3 and are in line with the literature (Belhadi et al ., 2022; Bocken and Konietzko, 2022; Chari et al ., 2022; Coppola et al ., 2023; Marrucci et al ., 2022; Salmi and Kaipia, 2022). The results confirmed that firms use their DC related to SEN by identifying new opportunities in the work environment and also identifying customer needs (Khan et al ., 2020b) will enhance the ability of these firms to research and develop, leading to creating innovations (Khan et al ., 2021a, b).…”

“…H3 was also accepted, which assumes a positive relationship between REC and CE. Firms' investment in new technology and making changes to the organizational structure and organizational culture and conducting continuous training for employees (Coppola et al ., 2023; Salmi and Kaipia, 2022) will make these firms more capable and ready to adopt new business practices, including CE practices such as product recycling, reuse and clean production.…”

What digital‐enabled dynamic capabilities support the circular economy? A multiple case study approach

“…Khan et al (2020b) propose a list of DCs where technological advancement and knowledge are central aspects that provide huge opportunities for CE. Coppola et al (2023), focusing on the textile sector, investigate the DCs needed for properly implement strategies of pollution prevention, product stewardship and sustainable development.…”

An enquiry into competitive value of sustainable manufacturing capabilities

“…PS helps in reducing the environmental burden associated with all the aspects of a product’s life cycle, right from design, to manufacture, to use, post use and final disposal (see Baines et al ., 2012). Few papers discuss clean technology (CT), the most advanced SMC which focuses on developing “low impact technologies of the future”, through breakthrough innovations in sustainable products and processes to serve the masses (see Stefano et al ., 2016; McDougall et al ., 2019; Mishra et al ., 2021; Coppola et al ., 2023).…”