Global Sourcing in Fast Fashion Retailers: Sourcing Locations and Sustainability Considerations

Unravelling the asymmetric effects of procurement practices on firm performance: A complexity theory approach to complementing fsQCA with NCA

Current economic upheavals and supply chain uncertainty have threatened the profitability and sustainability of business organisations. Procurement has proved to be one of the strategies for enhancing firm performance without necessarily increasing revenue with its attendant increase in costs. However, rather than investigating the complex asymmetric relationship between procurement practices and firm performance (which this study advocates), past research engaged in a symmetric evaluation of the relationship between the phenomena. Accordingly, this study, using complexity theory, employs fsQCA and NCA on a sample of 150 respondents from private universities in Ghana to (a) identify different combinations of procurement practices, namely procurement planning, supplier partnership, contract management, and compliance, that lead to firm performance and (b) explore the necessity of these procurement practices (in kind and degree) for firm performance. Whereas the findings from fsQCA reveal three distinct combinations of procurement practices for high firm performance and further suggest that none of the procurement practices was necessary for firm performance, the NCA results suggest that two out of the four procurement practices investigated are necessary for firm performance and hence must be present in the causal recipes produced by fsQCA to guarantee that they lead to firm performance. The study offers pathways to firm performance through procurement practices and demonstrates how to complement fsQCA with NCA to ensure that causal recipes produced by fsQCA can produce the outcome.

The effect of supplier sustainability risk management strategies on supply chain performance

Purpose

This study aims to evaluate the adoption of four types of supplier sustainability risk management (SSRM) strategies, namely, risk avoidance (RA), risk acceptance (RAC), collaboration-based risk mitigation (CBM) and monitoring-based risk mitigation (MBM) in Sri Lankan apparel and retail industries, and to investigate their effect on supply chain performance (SCP).

Design/methodology/approach

This study uses the dynamic capability view (DCV) to develop its hypotheses. Data collected from 89 firms were analysed using partial least square (PLS) structural equation modelling and PLS-based multiple group analysis.

Findings

Sri Lankan apparel and retail firms adopt RA and MBM strategies relatively more than CBM and RAC strategies, whereas there is no significant difference between the two industries in terms of the use of SSRM strategies. The path analysis revealed significant effects of RA and RAC strategies on SCP of both industries. The effect of CBM strategy on SCP is moderated by industry, while MBM has no significant impact.

Research limitations/implications

While managing supplier sustainability risks effectively, RA and RAC strategies provide more opportunities for managers to improve SCP. In achieving SCP, CBM strategies are proven to be more effective for retail industry compared with the apparel sector. Although MBM strategies offer sustainability advantages to firms, their contribution to improving the performance of apparel and retail supply chains is not significant. This research is limited to only two industries (apparel and retail) in Sri Lanka, where the evidence for the effects of SSRM strategies is not available for other contexts.

Originality/value

Either the effects of the four types of SSRM strategies on SCP or the moderating effect of industry on these effects have not been empirically confirmed in the literature. Evaluating the extent to which different strategies are implemented in Sri Lankan apparel and retail industries is another significant contribution of this research. Furthermore, this study contributes by using DCV to a sustainability-based supply chain risk management research.

Information Transparency, Location, and Stakeholder Pressure on the Socially Responsible Partner Selection

ABSTRACT Objective: the purpose of this paper is to explore the effect of information transparency on the selection of a socially responsible partner, taking into account the role played by signal send by the location of the partner and stakeholder pressure. Theoretical approach: this study is based on the premise that information transparency is a central element in the buyer-supply relationship and can play a key role in the selection of a socially responsible partner. The location of a partner can also affect the feeling of transparency if the country where the partner is located is not recognized for its reputation. The stakeholder pressure for socially responsible practices can also affect the decision to choose a business partner. Methods: we employed a 2 x 2 full-factorial between-subjects, scenario-based role-playing experiment. In Study 1, we simulated a situation in which the buyer is asked about their likelihood of selecting a socially responsible supplier, while in Study 2 we simulated a situation in which the socially responsible supplier is asked about the likelihood of selling products to a buyer. Results: the results indicate that information transparency affects the decision to select socially responsible partners. Stakeholder pressure partially moderates this relationship, while location does not moderate this relationship in either study. Conclusion: we conclude that information transparency throughout the supply chain is a relevant factor in negotiations within a socially responsible context. Information transparency is a key aspect for both the buyer and the supplier when selecting a socially responsible partner.

A systematic review and future research agenda for sustainable fashion in the apparel industry

Purpose

The objective of this paper is to synthesise the published literature on consumer awareness and acceptance of Sustainable Fashion (SF) and highlight that sustainability decisions taken across procurement, designing, manufacturing and retailing must include the consumer perspective of SF.

Design/methodology/approach

Systematic Literature Review (SLR) on sustainable fashion combined with consumer behavior was conducted. The study approach involved descriptive analysis, content analysis and theoretical analysis in the first section. The later sections focus on sustainability practices across the apparel supply chain that can foster acceptance of sustainable fashion.

Findings

In this review paper, five solutions that are typically used for leveraging consumer awareness and acceptance towards sustainable fashion are identified from the latest research papers: (1) attention to micro-sensitive factors (2) shared responsibilities (3) repositioning sustainable fashion for larger audience (4) positioning conscious fashion and (5) unified approach. These solutions are proposed as most important for achieving success in sustainable production and sustainable consumption (SPSC) for the fashion industry. Further, suggestions for how to embed sustainability related business decisions across sourcing, designing, manufacturing, distribution and recollection and retailing are also provided.

Practical implications

Through this research, a clear view emerges of the progression of publication and where future research should be directed to popularise sustainable fashion among consumers. Research findings and proposed solutions will be valuable inputs for brand managers, marketers and retailers as they conceive new plans and make decisions about addressing sustainability challenges in textile and apparel manufacturing firms.

Originality/value

This is a first of its kind of study on sustainable fashion that highlights the importance of understanding consumer behaviour in influencing sustainability decisions required across sourcing, designing, manufacturing and retailing to achieve substantial economic advantages in the fashion industry. End-to-end supply chain processes (i.e. procurement, design, manufacturing, marketing and retailing) are considered to identify several factors that influence consumer behavior in favor of sustainable fashion throughout the supply chain.

Responsible innovation and ethical corporate behavior in the Asian fashion industry: A systematic literature review and avenues ahead

Fashion firms have transferred their manufacturing processes to Asia, seeking minimum labor costs, supported by the academic literature’s proposals for alternative supply chain configurations to maximize profits. Fashion industry has undergone public analysis, facing demands for greater transparency about environmental and social sustainability. The growing public awareness of sustainability issues has led firms to declare their commitment to sustainable resources, but few changes have been registered. United Nations Economic Commission for Europe listed technological innovation as a key tool for making the fashion industry transparent and traceable regarding sustainability and circularity. The research and responsible innovation framework indicate appropriate ways to manage innovation from a responsible and ethical perspective, according to ethical corporate behaviour (ECB), particularly in the industries characterized by productive phases processed in more countries, such as the fashion industry. However, the linkages between responsible innovation, ECB towards innovative and sustainable business models, and their conceptualization, are still unclear in the fashion industry, achieving the goals included in the UN 2030 Agenda. This study draws on bibliometric analysis and systematic review of the literature on 114 articles published between 1990 and 2021 allows to identify the above issues in the research domains, and outline the evolutionary trajectories, as well as to explore the literary corpus about responsible innovation (RI) in the ethical corporate behaviour (ECB) of the fashion industry and its Asian suppliers. The results highlight that fashion brands strive to develop RI and ECB along their supply chain. Still, the misalignment of corporate ethics and cultural values represents a significant obstacle to the adoption of business models, especially to achieve the goals of UN 2030 Agenda. To the best of our knowledge, this is the first study that discusses RI as enabling driver in the ECB for fashion companies also defining a future research agenda including RI, ECB, iSBMs towards SDGs.

Can Fashion Be Circular? A Literature Review on Circular Economy Barriers, Drivers, and Practices in the Fashion Industry’s Productive Chain

Circular economy (CE) principles have gained prominence in the fashion industry since it is a highly polluting industry and requires sustainable changes. Even though there are several CE initiatives already in place within the fashion production chain, changes towards CE are still slow. This study seeks to identify the drivers, barriers, and practices that influence implementing circular economy concepts in the fashion industry production chain using a systematic literature review. The results show that some more barriers and criteria keep consumers away from circular fashion concepts than drivers. These barriers include fast fashion consumer culture, even though more consumers are environmentally conscious. This is because awareness has not reached large-scale populations, despite the world being more aware of social and environmental issues. Consumers still do not see ethical and ecological problems associated with the fashion industry and continue to be targeted for large fast fashion retailers that sell a misguided version of consumerism. This study contributes to both academia and new fashion business models that seek to become more sustainable since it presents opportunities for investments and the obstacles that must be overcome for reaching CE within this sector.

Towards Sustainable Textile and Apparel Industry: Exploring the Role of Business Intelligence Systems in the Era of Industry 4.0

Industry 4.0 is a new era of industrial revolution in which textile and apparel (T&A) companies are adopting and integrating advanced technologies to achieve sustainability and a competitive edge. Previous studies have just focused on the perspective of big data utilization in Industry 4.0 and neglected the role of business intelligence systems (BIS), especially in the T&A industry. The current study is one of the first to investigate the determinants of BIS adoption with an eye towards understanding how BIS can resolve sustainability issues in T&A companies with Industry 4.0 technologies. Methodology: A qualitative research approach is applied with 14 semi-structured in-depth interviews from 12 of the world’s high-end T&A companies. The snowball and purposeful sampling strategy is used to select the participants. The qualitative content analysis technique is used to analyze the interview data. Results: The findings revealed various themes, such as sustainability issues in T&A companies, improved value creation processes with leading BI solutions, and perceived difficulties in the adoption of BIS. Major improvements are perceived in the apparel retail business because apparel companies are more prone to adopt the Industry 4.0 technologies with advanced business intelligence (BI) solutions. The results prove the pivotal role of economic sustainability in the adoption of BIS and Industry 4.0 technologies in T&A companies.