Upscaling circular business models in fashion retail value chains

Upscaling circular business models in fashion retail value chains

The project aims at exploring new, alternative logics underlying value proposition and its configuration that can improve circular business model scaling of Swedish fashion retailers. Empirical research will include case studies of circular businesses, e.g. resell, remanufacture, servitization, followed by a wider cross-sectional survey leading to hypothesis testing. Grounded in the theoretical roots in value and resource-based theories, the project will focus on (1) finding the scaling opportunities and barriers in fashion retailers via value mapping, (2) the resources and capabilities required to successfully address circular business scaling, and (3) the strategic changes needed to sustain scale.

In line with this the project has 3 research questions:

  • What are the opportunities and barriers to scaling up the value proposition in CBMs in fashion retail industry?
  • How can resources and capabilities be formed and committed for scaling the value proposition of CBMs?
  • What strategic changes are needed, and how should these be organized for sustaining scale in CBMs?

The theoretical contribution of this research project is to deepen our understanding of CBM scaling, by:

  • going beyond descriptions of current practices and underlying resource flows in CBMs, to explore novel scaling logics required: network externalities, distributed resourcing, informational returns, technology connectivity that are crucial for scaling up CBMs but are not addressed in-depth
  • going beyond the current efficiency improvement focus of CBMs to include scope for more disruptive CBM changes, where the core logic of maximizing value is addressed
  • anchoring the findings and provide academic relevance by the application of more rigid organizational and strategic management theories.