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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.
Sustainable Digital Entrepreneurship : Examining IT4Sustainability as Business Development Path
(2022)
There is an increasing interest within the field of Information Systems as well as political agendas to identify the potential of digital technologies to promote sustainable development. Nonetheless, sustainable entrepreneurship and digital entrepreneurship are widely treated separately within the literature, suggesting that there is little understanding of how entrepreneurs could employ digital technologies to promote sustainable development. Based on an empirical, qualitative research approach, relying on Grounded Theory methodology, this paper identifies characteristics of sustainable digital entrepreneurs. An investigation of the manifestations of the sustainable digital orientation reveals a rather diffuse understanding of the relation and potential synergy effects. In response to this gap, the paper presents examples on how sustainable digital entrepreneurs employ digital and disruptive technologies to tackle sustainability challenges (IT4Sustainability development path), including information and communication technology, such as digital platforms, artificial intelligence, or drone technology. The presented approaches range from second-mover approaches associated with low digital maturity limited to the business level to the development of new business models facilitating the sustainable transition of whole sectors. These insights are summarized in an IT4Sustainability maturity model, which presents different starting points for entrepreneurs. Relevant theoretical, practical, and policy implications are discussed, especially concerning the education on IT4Sustainability, including Corporate Digital Responsibility.