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This study investigates how microenterprises in Ethical Fashion (EF) retail adopt and make use of social media. Drawing on an explorative case study, supplemented by an action research approach, we first examine the antecedents of a successful Adoption based on the Technology-Organization-Environment (TOE) framework. Subsequently, we shed light on the benefits and drawbacks of social media adoption for the three microenterprises of our case study on the operational and the strategical level. More particularly, we present how they improve value creation through the employment of social media in their value networks and how they overcome the lack of a sophisticated IT infrastructure. Finally, we investigate the reluctance of the three microenterprises to adopt inter-organizational information systems. The findings of our study also reveal a halo effect in the adoption process that may mislead the adopting organization.
Over the past decade, the proliferation of entrepreneurial ventures and small firms with sustainable business models have pushed the sustainability agenda in the fashion industry. Despite prominent success stories, these companies often encounter significant operative challenges that hinder growth or even cause business failure. This paper adopts a qualitative research design and uses data gathered during 18 expert interviews with entrepreneurs and executive managers of 18 firms from 13 countries to identify and explore the dominant challenges that micro- and small-sized sustainable fashion companies struggle with. The results indicate that communicating with consumers is perceived as surprisingly difficult, especially because sustainable brands need to justify higher prices and explain the added benefits of their products. Second, resource constraints lead to operative friction and overburdening of the decision makers and their small management teams. Third, sustainable sourcing and production processes are economically difficult in an industry that continues to occupy a mass and low-cost logic. Against the background of these insights, a range of managerial recommendations are developed and contextualized in the framework of the Business Model Canvas. This novel approach makes the suggestions which are rooted in the resource-based view actionable and supports sustainable businesses to better manage their operations and achieve growth. For example, collaborative approaches with different stakeholders may mitigate constraints across all three identified problem areas.
Social networking technologies such as social media, crowd concepts, or gamification represent key resources for the integration of customers, value network partners, and the community into sustainable business models. However, there is a lack of understanding of how sustainable enterprises apply such technologies. To close this gap, we propose a taxonomy of design options for social networking technologies in sustainable business models. Our taxonomy comprises eight dimensions that deal with relevant questions of the design of social networking technologies. When creating our taxonomy, we built on existing literature and use cases and involved experienced practitioners in the field of sustainable business models for the validation of our taxonomy. In this way, our study contributes to knowledge on the use of social networking technologies in sustainable business models and how such technologies influence the boundaries of sustainable business models. Likewise, we provide practical insights into the use of social networking technologies in sustainable business models.