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Sustainability  and  the  fashion  supply  chain:  a  symbiotic  relationship?  

An  explorative  multiple  case  study  research  

               

Name    

 

Emma  Pennings    

Student  number  

10756213  

Programme    

BSc  Future  Planet  Studies  

Specialization    

Business  Administration  

Supervisor  

 

dr.  W.  Dorresteijn  

Date    

 

June  2017  

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Statement  of  originality  

This  document  is  written  by  Student  Emma  Pennings  who  declares  to  take  full  responsibility  for  the   contents  of  this  document.  I  declare  that  the  text  and  the  work  presented  in  this  document  is  original  

and  that  no  sources  other  than  those  mentioned  in  the  text  and  its  references  have  been  used  in   creating  it.  The  Faculty  of  Economics  and  Business  is  responsible  solely  for  the  supervision  of  

completion  of  the  work,  not  for  the  contents.                

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Table  of  Contents  

 

1.  Introduction  

 

 

 

 

 

 

 

 

 

5  

2.  Literature  study  

 

2.1  Sustainability  

 

 

 

 

 

 

 

 

7  

 

2.2  Sustainable  supply  chain  management    

 

 

 

 

7  

 

2.3  Sustainability  in  the  fashion  supply  chain  

 

 

 

 

7  

 

2.4  Sustainable  supply  chain  management  in  the  fashion  industry    

 

8  

3.  Conceptual  model    

 

 

 

 

 

 

 

 

10  

4.  Methodology  

 

 

 

 

 

 

 

 

 

 

 

4.1  Case  selection  

 

 

 

 

 

 

 

 

11  

 

4.2  Data  collection    

 

 

 

 

 

 

 

12  

 

4.3  Construct  of  codes  and  data  analysis    

 

 

 

 

12  

5.  Results    

 

5.1  Sustainable  drivers  

 

 

 

 

 

 

 

13  

 

5.2  Sustainable  practices  

 

 

 

 

 

 

 

16  

 

5.3  Environmental  performance  

 

 

 

 

 

 

20  

6.  Discussion  

 

6.1  Research  question  

 

 

 

 

 

 

 

24  

 

6.2  Implications  

 

 

 

 

 

 

 

 

25  

 

6.3  Limitations  

 

 

 

 

 

 

 

 

27  

 

6.4  Future  research      

 

 

 

 

 

 

 

27  

7.  Conclusion    

 

 

 

 

 

 

 

 

 

29  

8.  References    

 

 

 

 

 

 

 

 

 

31  

9.  Appendices    

 

 

 

 

 

 

 

 

 

34  

             

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Abstract  

Supply  chains  in  the  fashion  industry  are  well-­‐known  for  its  high  environmental  impact,  complexity  and   non-­‐transparency  due  to  subcontracting  of  production  processes.  However,  several  studies  indicated   that   sustainable   supply   chains   provide   business   opportunities   in   product   innovation   and   have   the   potential  to  become  a  competitive  advantage.  This  research  will  investigate  what  sustainable  practices   are   performed   in   Dutch   SMEs   in   the   fashion   industry   when   considering   the   entire   supply   chain.   A   multiple  case  study  through  empirical  research  is  conducted  through  in-­‐depth  interviews.  The  study  is   divided  into  three  sub  questions  to  answer  the  research  question  and  their  main  variables  are:  drivers,   sustainable   practices   and   environmental   performance.   Company   values   and   market   requirements   appeared  as  major  drivers  and  product  design  (organic  fabrics)  and  supply  chain  design  (selection  of   suppliers)  as  major  sustainable  practices.  It  appeared  that  the  SMEs  didn’t  introduced  a  performance   management  system  yet,  but  the  research  indicated  their  green  processes  as  performance  indicators.

 

 

Key  words:  supply  chain  management,  sustainability,  fashion  industry,  multiple  case  study.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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1.  Introduction    

 

Since  Brundtland’s  report  in  1987,  sustainable  development  and  sustainability  have  gradually  been   integrated  in  governmental  policy  and  corporate  strategy.  This  was  defined  as  ‘’a  development  that   meets  the  needs  of  the  present  without  comprising  the  opportunities  of  future  generations  to  meet   their  needs’’.  In  recent  years,  sustainability  has  become  a  key  player  in  planning  and  management   across   supply   chains   and   organizations   have   recognized   the   importance   of   their   supply   chain   in   managing   the   environment   (Golicic   &   Smith,   2013;   Urban   &   Naidoo,   2012;   Vachon   &   Mao,   2008).   Sustainability  is  conceptualized  in  academic  literature  and  consists  of  three  main  pillars:  environment,   social   and   economic   elements   that   together   form   the   ‘’triple   bottom   line’’.   The   triple   bottom   line   shows  the  challenge  in  achieving  a  balance  between  environmental  and  business  needs  in  realizing   sustainability  (Schrettle  et  al.  2011).  

 

Industries   with   significant   environmental   impact   experience   high   pressure   regarding   sustainability   issues  (Seuring  et  al.  2008).  As  shown  in  some  recent  scandals  in  the  fashion  industry,  such  as  C&A,   H&M  and  Nike,  companies  are  held  responsible  for  the  environmental  impact  of  their  suppliers  and   partners’  practices  within  the  whole  supply  chain  (Pedersen,  2009;  Caniato  et  al.  2012).  Supply  chains   in  the  fashion  industry  have  very  high  environmental  impact  and  are  complex  and  non-­‐transparent   due  to  subcontracting  of  production  processes  to  different  companies  scattered  around  the  world  (De   Brito  et  al.  2008).  The  production  activities  make  intensive  use  of  chemical  products  and  cause  a  high   environmental  impact  (De  Brito  et  al.  2008).    Today’s  apparel  consumers  expect  constant  change  for   new  products  on  a  frequent  basis.  This  leads  to  pressure  on  the  apparel  retailers  to  achieve  lower  costs   and  shorter  manufacturing  time,  resulting  in  negative  environmental  and  social  impact  on  the  fashion   supply  chain  (Koksal  et  al.  2017).      

 

This  paper  examines  the  sustainable  supply  chain  management  (SSCM)  of  small-­‐  medium  enterprises   (SMEs)  in  the  Netherlands  instead  of  the  multinational  enterprise.  Little  has  been  said  about  small-­‐   and  medium-­‐  enterprise  management  of  sustainability  in  the  supply  chain  (Ahi  &  Searcy,  2015;  Mitra   &   Datta,   2014).   Although,   of   all   Dutch   companies,   99%   is   in   the   SME   category   and   contribute   immensely   to   employment   creation   and   economic   growth   (CBS,   2015;   Cant   &   Wiid,   2013).   In   this   research,  different  perspectives  within  the  supply  chain  are  investigated  to  give  a  better  overview  of   Dutch  SMEs  and  findings  can  be  applied  over  a  broader  range  of  companies.    

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This  thesis  aims  to  further  research  the  SSCM  concept  in  the  fashion  industry  and  how  it  affects  the   environmental  performance  of  Dutch  SMEs  by  acknowledging  key  sustainable  drivers  and  practices.   Supply  chain  management  (SCM)  attends  two  critical  purposes,  serving  the  business  needs  in  being   competitive  and  acknowledge  the  environmental  commitments  (Caniato  et  al.  2012).  In  the  context  of   supply  chains  in  the  fashion  industry,  few  studies  have   analysed  the  relevance  of  SCM  in  pursuing   environmental   sustainability   (Mafini   &   Muposhi,   2017).   Apart   from   the   operational   advantages   concerned  with  SCR,  sustainable  supply  chains  provide  business  opportunities  in  product  innovation   and  eco-­‐preneurship  (Kirkwoord  &  Walton,  2010;  Mohanty  &  Prakash,  2014).  This  paper  tries  to  fill   this  gap  through  a  multiple  case  study  by  analysing  how  different  SMEs  perform  in  their  sustainable   supply   chain.   The   research   question   is:   What   are   the   sustainable   practices   in   supply   chain   management  in  Dutch  SMEs  in  the  fashion  industry  and  how  does  this  excel  in  their  environmental   performance?   Multiple   Dutch   SMEs   are   interviewed   to   discover   their   main   practices   and   environmental  performance  in  selling  sustainable  products  to  end  consumers.    

 

The  contribution  of  this  research  is  to  give  a  better  insight  in  how  Dutch  SMEs  tackle  environmental   sustainability  issues  in  the  fashion  supply  chain  and  how  this  excels  in  their  performance.  To  answer   the  research  question  three  sub  questions  are  established.  First,  what  are  the  main  drivers  towards   the  adoption  of  sustainable  practices?    Second,  what  practices  in  the  supply  chain  are  used  to  improve   environmental  sustainability?  Third,  how  do  the  sustainable  activities  in  the  supply  chain  contribute  to   environmental  performance?    

 

The   paper   is   organized   as   follows:   in   section   two   a   literature   review   on   sustainable   supply   chain   management   in   the   fashion   industry   allows   the   identification   of   existing   theories.   On   this   basis,   a   conceptual  model  was  developed.  The  model  was  tested  in  an  empirical  study,  whereas  the  results  of   the  analyses  are  discussed  in  section  five.  Finally,  the  discussion  and  conclusions  are  presented  in  the   last  section.    

 

 

 

 

 

 

 

 

 

 

 

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2.  Literature  review    

The  literature  study  presents  the  main  findings  in  academic  literature  to  give  an  overview  of  former   research   about   this   subject.   It   presents   some   definitions   and   exhibits   the   subject   from   a   broad   perspective  to  more  specific  perspective.    

 

2.1  Sustainability  

The  concept  of  sustainability  was  outlined  in  1987  in  Brundtland’s  report  and  mainly  determined  by   the  context  of  natural  resources  and  their  effect  on  life  (Robinson,  2004).  Current  conceptualizations   of  sustainability  identify  the  connection  between  three  principles:  social  equity,  economic  growth  and   environmental  importance  (Bansal  &  Roth,  2000).  These  principles  correspond  with  the  idea  of  the   ‘’triple   bottom   line’’,   which   claims   that   business   performance   should   be   examined   by   the   social,   economic   and   environmental   perspectives   (Schrettle   et   al.   2011).   To   practice   sustainability   issues,   companies  must  integrate  a  long-­‐term  perspective  and  combine  economic  growth  with  social  progress   and   the   conservation   of   the   environment   (Lamming   &   Hampson,   1996).   This   paper   focuses   on   sustainability  in  supply  chains,  therefore  the  next  section  will  explain  the  contribution  of  supply  chain   management  in  the  improvement  of  environmental  sustainability.    

 

2.2  Sustainable  supply  chain  management  

In  recent  decades,  there  has  been  a  lot  of  research  on  the  concept  of  supply  chain  management  (SCM).   Mentzer  et  al  (2001)  defines  SCM  as  ‘’the  systemic,  strategic  coordination  of  the  traditional  business   functions   and   the   tactics   across   these   business   functions   within   a   particular   company   and   across   businesses  within  the  supply  chain,  for  the  purposes  of  improving  the  long-­‐term  performance  of  the   individual   companies   and   the   supply   chain   as   a   whole’’.   In   sustainable   supply   chain   management   (SSCM)  environmental  and  social  issues  need  to  be  accomplished  by  the  partners  of  the  supply  chain,   while  the  competiveness  is  maintained  through  meeting  customer  needs  (Seuring  &  Muller,  2008).   Trust  and  cooperation  between  supply  chain  partners  can  create  strong  cooperative  systems  which   fully  exploit  the  capabilities  of  the  entire  supply  chain  and  lead  to  competitive  advantage  by  sharing   information  to  quickly  adapt  to  marketplace  changes  and  meet  the  consumers’  needs  (Perry  &  Towers,   2013;  Kumar,  1996).  

 

2.3  Sustainability  in  the  fashion  supply  chain  

Developments  in  the  consumer  lifestyle  next  to  the  demand  for  trendy  products  have  put  pressure  on   the   today’s   supply   chains,   since   apparel   consumers   expect   constant   response   to   changing   trends   (Koksal  et  al.,  2017).  Therefore,  it  is  contradictory  that  the  apparel  trends  change  frequently,  while  

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sustainability   is   related   to   a   long-­‐term   perspective   (Gardetti,   2013).   Characteristically,   the   fashion   supply  chain  involves  many  partners  and  is  relatively  long  and  non-­‐transparent  (Koksal  et  al.,  2017).   The  use  of  energy,  water,  and  chemicals  in  the  production  process  and  the  waste  and  pollution  in  the   transport  processes  of  textile  and  garments,  have  major  negative  impact  on  the  environment  (Koksal   et  al.  2017;  Caniato,  2012).  Moreover,  the  unacceptable  working  conditions,  safety  issues  in  factories   and  low  minimum  wages  are  social  issues  as  present  as  environmental  concerns  (Freise  &  Seuring,   2015).  But,  beside  the  contradiction,  fashion  shouldn’t  go  in  conflict  with  sustainability  principles.  It   can  become  a  role  in  marketing  and  realization  of  sustainability  and  even  a  key  element  in  working   towards  sustainable  behaviour  (Gardetti,  2013).    

  In   recent   years,   consumer’s   preferences   have   become   increasingly   complex,   including   expectations   that   go   beyond   quality,   style   and   price   (Borland,   2004).   Recent   trends   show   that   sustainability  is  a  facilitator  to  reach  the  conscious  consumer  and  to  improve  the  overall  brand  image   (Faisal,  2010).  These  entrepreneurs  can  reach  a  new  market  segment  in  the  fashion  industry,  several   studies  have  investigated  the  potential  of  sustainable  fashion  as  a  competitive  advantage  and  show   that  the  majority  is  very  interested  in  ethical  consumption  (Forman  &  Jorgesen,  2004).  However,  there   is   a   joint   thought   that   sustainable   supply   chains   require   high   economic   input   (Ondernemerschapboeken,  2016).    

 

According   to   Beard   (2008),   the   complex   and   extended   nature   of   the   fashion   supply   chain   increases   the   lack   of   transparency.   Therefore,   the   implementation   of   sustainable   practices   in   the   supply   chain   become   inevitable   exercises   for   apparel   companies,   particularly   when   taking   the   unfavourable  publicity  in  mind  (De  Brito,  2008).  Better  cooperation,  collaboration  and  coordination   may  overcome  the  high  presence  of  uncertainty  in  fashion  supply  chains.  Closer  trading  relationships   are  necessary  to  maximize  the  effectiveness  of  the  supply  chain  (Perry  &  Towers,  2013).    

   

2.4  Sustainable  supply  chain  management  in  the  fashion  industry  

Seuring  &  Muller  (2008)  stated  that,  when  addressing  sustainability  issues,  it  is  important  to  not  only   consider  companies  but  also  the  supply  chain  wherein  they  belong.  Therefore,  this  thesis  considers  the   fashion  supply  chain  from  end  to  end  to  gain  an  overview  and  then  focuses  on  the  sustainable  supply   chain  with  the  main  drivers,  practices  and  firm  performance.  

 

The  adoption  of  a  supply  chain  perspective  on  the  fashion  industry,  from  raw  materials  to  the   end  consumer  is  not  a  new  idea,  Sen  (2008)  identified  the  supply  chain  phases  in  the  fashion  industry   (figure  1).  At  the  top  of  the  chain  is  the  fiber  production  of  raw  materials  (e.g.  cotton,  leather  and  wool)   with  agricultural  or  chemical  practices.  The  second  stage  is  the  transformation  from  the  raw  materials   into  fabrics.  These  production  processes  are  regularly  sources  from  distant  locations,  since  companies  

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in  the  fashion  industry  rely  on  their  partners  to  make  their  production  more  efficient  (Caniato  et  al.   2012).  This  is  done  by  subcontracting  parts  of  the  production  process.  The  third  phase  is  the  production   of  garments  in  plants.  In  the  last  stage,  retailers  (sometimes  through  wholesalers)  offer  the  garments   to  the  consumer  (Sen,  2008).  

  Literature   shows   that   it   is   important   for   organizations   to   manage   their   supply   chain   for   sustainability,   since   companies   are   held   responsible   for   the   environmental   performance   of   their   partners  and  suppliers  (Pedersen,  2009).  Vachon  &  Klassen  (2008)  further  underline  the  importance   of  cooperation  with  all  partners  towards  environmental  sustainability  and  the  necessity  for  managers   to   reflect   sustainability   through   the   supply   chain.   The   three   variables;   drivers,   practices   and   performance,  are  identified  to  investigate  the  sustainable  supply  chain  management  (SSCM)  of  Dutch   SMEs  in  the  fashion  industry.  Gimenez  &  Tachizawa  (2012)  recommend  to  distinguish  the  sustainable   supply  chain  into  drivers  and  practices.  Drivers  are  motivating  factors  in  implementing  SSCM  practices   and  practices  can  realize  implementing  SSCM.  

  Sustainability  drivers  can  be  classified  in  two  main  groups,  revised  from  the  straightforward   Porter’s  view  and  the  categorization  offered  by  Golini  et  al.  (2016)  and  Schrettle  et  al.  (2014).    The   exogenous   (external)   drivers   consist   of   environmental   regulation   (current   as   well   as   future   law)   (Sharma   &   Henriques,   2005;   Etzion,   2007),   market   requirements   (consumer   demand   and   retailer   pressure)  (Carter  &  Dresner,  2001)  and  societal  values  and  norms  (e.g.  NGOs,  media,  local  community   groups,   consumer   organisations)   (Bansal   &   Roth,   2000).   The   endogenous   (internal)   drivers   involve   efficiency  objectives  (i.e.  cost  reduction)  (Handfield  et  al.  1997)  and  values  of  the  company/owner   (Caniato  et  al.  2012).  

  These  sustainable  drivers  can  be  translated  into  practice.  According  to  Ellram  et  al.  (2007)  and   Caniato  et  al.  (2012)  the  3DCE  framework  from  Fine  (1998)  is  suitable  for  studying  sustainability  issues,   therefore  three  environmental  practices  are  used  as  indicators  of  environmental  sustainability.  First   product  design  embraces  the  features  of  products,  such  as  the  use  of  ecological  friendly  materials  and   sustainable   packaging.   Second,   process   design   incorporates   the   production   processes,   such   as   the   reduction  of  waste  or  emissions.  Third,  supply  chain  design  includes  the  reduction  of  environmental   impact  outside  their  boundaries,  such  as  supplier  evaluation.  

  The  final  variable  that  is  researched  is  environmental  performance  and  how  this  affected  by   supply   chain   management   practices.   Mitra   &   Datta   (2014)   mentioned   that   sustainable   practices   enhance  the  corporate  image  of  the  firm.  De  Brito  (2008)  stated  that  ‘’well-­‐performing  companies  are   those  who  effectively  manage  internal  and  external  relationships  through  improved  coordination’’.   Environmental   performance   can   be   measured   by   identifying   the   environmental   performance   indicators  (EPI)  to  monitor  the  firm’s  environmental  impact  (Tsoulfas  &  Pappis,  2008).  Until  recently,  

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KPIs   are   used   to   measure   financial   performance,   efficiency,   innovation,   customer   satisfaction   and   quality.   Nevertheless,   with   the   growing   awareness   of   environmental   and   sustainability   issues,   companies   are   recognizing   the   importance   of   enhanced   environmental   (and   social)   performance   (Lamberton,  2000).  Almost  all  previous  studies  have  found  positive  relationships  between  sustainable   practices   and   environmental   performance   (Mitra   &   Datta,   2014).   The   indicators   cover   all   internal,   inbound   and   outbound   supply   chain   practices;   materials,   packaging,   energy,   water,   emissions,   products   and   services,   transport,   collaboration   with   suppliers   and   business   integration   (Tsoulfas   &   Pappis,  2008;  Caniato,  2012).  

 

3.  Conceptual  model  

To  guide  managers  in  the  fashion  industry,  I  derive  a  conceptual  model  (appendix  3)  from  the  supply   chain  literature  and  the  literature  on  small-­‐  medium-­‐  enterprises.  Following  an  in-­‐depth  analysis  of  the   scientific  literature,  the  different  elements  of  the  model  have  been  specified,  as  shown  in  figure  1.  The   model  presents  the  three  variables:  drivers,  practices  and  performance  and  the  relationships  between   drivers  practices  and  between  practices  and  performance  to  support  companies  to  classify  the  most   suitable  practices  given  their  drivers  and  estimated  performance.    

  I  inspired  this  conceptual  model  on  the  framework  outlined  by  Caniato  (2012).  I  included  the   phases  of  the  supply  chain  in  the  fashion  industry  to  gain  an  overview  of  the  chain  wherein  the  case   studies  belong.  Caniato  (2012)  adapted  its  drivers  from  the  classification  presented  by  De  Brito  et  al.   (2008).    The  classification  presented  by  Golini  et  al.  (2016)  and  Schrettle  et  al.  (2014)  seemed  more   appropriate  since  law  can’t  be  considered  as  a  relevant  driver  but  should  be  considered,  therefore  by   attributing  it  to  the  exogenous  drivers  seemed  more  suitable.  Caniato  (2012)  additionally  included  the   relationship  between  performance  and  drivers  but  since  the  research  question  indicates,  the  ‘’end-­‐ station’’  of  this  study  is  the  environmental  performance.  Consequently,  making  it  a  closed  loop  is  not   appropriate  for  this  research.    

 

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4.  Methodology  

The   nature   of   the   study   is   exploratory   as   the   study   aims   to   contribute   to   academic   sustainability   literature  in  the  fashion  supply  chain  in  Dutch  SMEs.  In  this  study,  qualitative  research  is  based  on  a   form  of  argument  called  abduction,  a  combination  of  induction  and  deduction.  Partly  induction  since   multiple  Dutch  SMEs  were  observed  to  discover  patterns  that  can  point  to  theory,  and  partly  deduction   as   a   theoretical   framework   was   composed.   A   well-­‐substantiated   and   well-­‐defined   method   for   performing  this  research  increases  the  validity,  the  extent  to  which  an  investigation  measures  what  it   should  measure  and  the  reliability,  the  degree  to  which  a  test  is  free  of  measurement  errors  (Boeije,   2010;  Walliman,  2011).    

  The  empirical  research  is  based  on  a  multiple  case  study  approach  to  contain  more  in  depth   information  and  reduce  biases  of  using  one  company.  Specifically,  qualitative  research  is  conducted  in   order  to  investigate  how  Dutch  SMEs  manage  environmental  sustainability  in  the  supply  chain  and   how  this  influences  their  performance.  This  section  connects  the  research  question  with  the  collected   empirical  data  and  the  conclusion  (Yin,  1994).  The  fashion  industry  is  an  appropriate  research  setting,   since   the   fashion   industry   has   been   criticized   for   decades   about   their   unsustainable   conduct   that   negatively   impacts   the   environment.   To   address   these   concerns   some   fashion   companies   are   developing  sustainable  products  and  business  practices,  but  a  large  part  is  still  behind  in  this  area  (Han,   Seo  &  Ko,  2017).  

 

4.1  Case  selection  

Cases   have   been   selected   that   are   suitable   to   understand   relationships   among   theories   and   are   a   representative  sample  of  different  types  of  companies  within  the  fashion  industry  (Eisenhardt,  1989).   Therefore,  there  is  chosen  to  select  companies  on  the  base  of  purposive  sampling.  A  heterogeneous   sample  of  Dutch  small-­‐medium  enterprises  (SMEs)  was  chosen  and  presented  in  table  1,  to  explore   different   approaches   to   sustainability   drivers   and   the   adopted   sustainable   practices.   The   sample   includes  five  anonymous  Dutch  SMEs  that  have  identified  environmental  sustainability  as  their  key   element  for  competition  and  survival  in  the  market.  They  were  selected  through  the  website  of  MVO   (Maatschappelijk  Verantwoord  Ondernemen  Nederland)  and  events  linked  to  green  fashion  issues.   The  sample  incorporates  five  companies  that  have  various  roles  inside  the  supply  chain  and  represent   different  ways  of  implementing  sustainability  in  the  supply  chain.    

 

4.2  Data  collection  

The   information   is   obtained   through   in-­‐depth   interviews   and   supplemented   with   literature   study,   because  few  primary  data  were  available.  A  semi-­‐structured  interview  was  developed  to  collect  data  

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presented  in  appendix  1.  Identical  questions  were  asked  to  all  companies,  but  in  a  flexible  way  to  give   interview  subjects  the  possibility  to  freely  describe  their  company.  All  the  questions  are  formulated  to   start  a  discussion  and  get  a  complete  overview  of  the  reasoning  behind  actions  the  firm  takes.      

4.3  Construct  of  codes  and  data  analysis    

The  data  collection  followed  in  a  rich  data  set,  whereby  each  case  is  summarized  in  appendix  2.  To   answer   the   research   question,   the   data   is   redeployed   from   shapeless   data   towards   theoretical   understanding   that   is   not   at   the   expense   of   richness,   dynamism   and   complexity   of   the   data   but   improves  the  understandability  and  usefulness  for  others  (Langley,  1999).    

  Given  the  exploratory  nature  of  the  research,  the  data  is  translated  with  cross-­‐case  analysis   into  conceptual  labels  to  group  concepts  to  the  same  phenomenon  to  form  categories.  Therefore,  the   data  needs  to  be  sorted  by  different  codes.  First,  the  data  is  coded  by  open  coding  of  fragments  that   may  be  important  for  the  research.  The  second  step  is  axial  coding  for  subcategories  and  the  third  step   is  selective  coding  to  extract  the  most  important  codes  for  the  ultimate  selection.  The  combination  of   induction  and  deduction  is  used  to  obtain  useful  sentizing  concepts  from  literature  and  further  extend   them  to  answer  the  research  question.  During  the  coding  process,  I  assume  the  coding  paradigm  based   on  emerging:  a  theory  that  assumes  that  interaction  between  the  data  and  the  researcher  results  in   applicable  theories.    

  The  data  is  aggregated  into  four  main  groups  according  to  the  conceptual  model;  the  company   profiles,  sustainable  drivers,  sustainable  practices  and  environmental  performance.  It  is  important  to   outline  the  company  profiles  to  define  the  supply  chain  wherein  they  belong  and  to  check  the  relation   between  the  background  of  the  company  and  their  level  of  sustainability  in  the  discussion  section.  The   categories   were   further   subtracted   into   subcategories.   The   first   category,   company   profiles,   was   divided   into   product,   number   of   employees   and   company   type.   The   second   category,   sustainable   drivers,  was  divided  into  exogenous  and  endogenous  drivers.  The  third  category,  sustainable  practices,   was   divided   into   product,   process   and   supply   chain   design.   The   last   category,   environmental   performance,  was  divided  into  product/process  design  and  production,  packaging,  transport,  business   integration  and  collaboration  with  suppliers.  

 

Table  1:  The  company  profiles    

  Product     Employees   Type  

Company  1  (C1)   Dresses,  jewelry  and  accessories   1-­‐25     Manufacturer,  label  and  retailer  

Company  2  (C2)   Bags   1-­‐25   Manufacturer,  label  and  retailer  

Company  3  (C3)   Casual  clothing   >  25   Manufacturer,  label  and  retailer  

Company  4  (C4)   Company  5  (C5)   Casual  clothing   Shoes   1-­‐25   >  25   Fashion  platform  

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5.  Results

   

This  chapter  represents  the  findings  that  are  acquired  from  the  empirical  data  analysis.  Based  on  the   codes,   certain   patterns   can   be   described   to   answer   the   research   question.   First,   the   within   case   analysis   describes   the   results   of   each   case   as   independent   research   studies   and   secondly   the   combination  with  cross-­‐case  analysis  enables  to  identify  the  main  drivers  and  practices  that  account   for  the  adoption  of  sustainable  supply  chain  management.    

 

The  analysis  first  describes  the  sustainable  drivers  of  the  selected  cases.  The  analysis  is  based  on  the   codes  derived  from  the  conceptual  framework  from  Golini  et  al.  (2016)  and  Schrettle  et  al.  (2014).   Secondly,  the  sustainable  practices  of  each  individual  case  are  described  according  to  the  analysis  of   the  3DCE  framework  from  Ellram  et  al.  (2007)  and  Caniato  et  al.  (2012).  Thirdly,  the  environmental   sustainability   performance   is   analysed   based   on   the   environmental   performance   indicators   from   Tsoulfas  and  Pappis  (2008).    

 

5.1  Sustainable  drivers    

The  multiple  case  studies  indicate  the  importance  of  the  sustainable  drivers  recognized  in  the  literature   review.  Table  2  summarizes  the  main  findings  acquired  from  the  empirical  research.  The  first  code   analysed  are  the  endogenous  drivers,  which  refers  to  the  internal  forces  that  motivate  to  implement   sustainable  supply  chain  practices.  The  second  analysed  code  are  the  exogenous  drivers,  which  refer   the  external  motivators  in  implementing  sustainable  supply  chain  practices.    

 

Considering   the   endogenous   drivers,   company   one   doesn’t   want   to   be   a   part   of   the   bad   working   conditions,  extreme  water  use  and  waste  in  the  factories  that  have  a  big  impact  on  the  environment.   The   company   stated   that   the   corporate   sustainable   values   of   the   owner,   but   also   welfare   of   the   employees,  are  the  major  drivers  towards  the  sustainable  company.    

  When  considering  the  exogenous  drivers,  the  media  made  the  founder  of  the  company  aware   of  the  fast-­‐consuming  clothing  industry.    ‘’Ik  ben  me  bewust  geworden  door  de  ramp  van  Plaza,  die  ik   in  het  nieuws  voorbij  zag  komen,  waarbij  een  groot  naaiatelier  was  ingestort  waar  mensen  aan  het   werk  waren  die  onderbetaalt  werden.  Hier  werd  kleding  van  fabrikanten  zoals  Primark  en  andere  grote   ketens  geproduceerd,  waarbij  die  mensen  geen  leven  hebben.  Toen  kwam  het  besef  dat  ik  hier  eigenlijk   ook  gewoon  verantwoordelijk  voor  ben’’  (C1).  The  company  discovered  that  there  is  a  big  demand  for   sustainable  clothing  and  there  is  the  possibility  to  reach  a  niche  market.  ‘’Door  mijn  bewustwording   over  de  fast  consuming  in  de  kledingindustrie  ben  ik  begonnen  met  het  kopen  van  duurzame  kleding,  

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maar  kwam  erachter  dat  het  aanbod  daar  gewoon  niet  zo  groot  was.  Hier  zag  ik  de  kans  om  mijn  eigen   kledinglijn  te  starten’’  (C1).    

  The  founder  of  company  two  lived  in  India  for  a  while  and  experienced  the  enormous  waste   on  the  streets  of  India,  and  felt  triggered  to  do  something  about  this.  Therefore,  the  corporate  values   of  the  owner  are  the  major  driver  towards  sustainable  practices.  Besides  this,  the  company  wants  to   contribute  to  the  creation  of  employment  opportunities  in  Indore,  India,  and  create  a  safe  workplace   for  the  employees  and  offer  them  an  appropriate  salary.  ‘’Ik  ben  dit  bedrijf  begonnen  vanuit  de  drive   om  iets  te  doen  aan  de  afvalberg,  ik  werd  toen  ik  in  India  woonde  enorm  getriggerd  door  de  enorme   berg  zooi  die  er  op  straat  lag  om  hier  mooie  producten  van  te  maken’’  (C2).  The  company  made  also   clear  that  their  product  could  reach  a  niche  market  because  their  product  was  unique  with  a  unique   story.  ‘’Ik  was  zelf  zo  enthousiast  toen  ik  dit  product  tegen  kwam  dat  ik  gelijk  dacht  dit  vinden  heel  veel   mensen  leuk  omdat  er  zo’n  uniek  verhaal  achter  de  tassen  zit’’  (C2).    

  The  main  driver  of  company  three  is  an  exogenous  driver,  which  implies  the  responding  to  the   demand  of  the  market.  She  experienced  the  difficult  search  for  basic,  high  quality  clothes,  and  decided   to  fill  in  this  gap  by  establishing  her  own  clothing  brand.  Furthermore,  the  founder  of  the  company   stated  on  her  website:  ‘’Groen  ondernemen  is  vanzelfsprekend  voor  mij,  ik  ben  van  huis  uit  politicologe   en  leef  bewust.  Dus  begon  de  zoektocht  naar  ateliers  waar  oog  is  voor  arbeidsomstandigheden  en  waar   de  mensen  een  eerlijk  salaris  verdienen.  De  materialen  moesten  duurzaam  zijn.  De  textielindustrie  is   enorm   vervuilend   en   daar   wil   ik   met   mijn   bedrijf   niet   aan   mee   doen’’   (C3).   This   implies   that   the   corporate  sustainable  values  of  the  owner  and  employee  welfare  are  important  sustainable  drivers.     The  founders  of  company  four  experienced,  when  looking  for  sustainable  clothing,  there  was   enough  supply,  but  spread  over  the  internet  over  many  small  web  shops.  Therefore,  the  founders  of   the  company  came  up  with  the  idea  to  collect  all  clothing  available  in  the  Netherlands  on  one  web   shop.  This  indicates  the  drive  from  values  of  the  owners,  but  also  the  respond  to  the  demand  of  the   market.  ‘’Het  voelde  voor  ons  heel  oneerlijk  dat  wij  het  hier  zo  goed  hebben,  maar  je  kan  verschil  maken   met  je  aankopen  en  wij  kunnen  dat  voor  andere  mensen  makkelijker  kunnen  maken’’  (C4).    

  Company  five  perceives  sustainability  and  social  involvement  as  a  matter  of  course.  Besides   that,  they  recognize  sustainability  on  their  website  as  their  competitive  advantage  in  today’s  market.   ‘’Duurzaamheid  is  de  reden  dat  wij,  ondanks  de  crisis  en  oorlogen,  nog  bestaan’’  (C5).  In  the  long  run,   you  won’t  succeed  when  you  scratch  the  quality,  so  high  quality  is  for  them  of  explicit  importance.   They   changed   their   business   model   to   reorganize   their   entire   supply   chain   from   begin   to   end   to   implement   sustainability.   Values   of   the   company   and   market   requirements   appear   to   be   the   main   drivers  for  sustainability.  

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Table  2:  Drivers  for  sustainable  practices    

  Exogenous   Endogenous  

Company  1     Market  requirements  &  media   Company  values    

Company  2     Market  requirements     Company  values  

Company  3     Market  requirements     Company  values  

Company  4     Company  5  

Market  requirements  &  media   Market  requirements    

Company  values   Company  values  

 

The  data  reveals  that,  considering  internal  drivers,  all  cases  highlighted  the  company  values  as  the   major  contributor  to  sustainable  objectives.  Company  values  include  the  corporate  values  of  the  owner   and  employee  welfare.  Corporate  values  of  the  owner  are  identified  as  the  commitment  of  the  owner   towards  sustainability  issues  and  employee  welfare  include  good  working  situations  like  fair  salary  and   a  safe  workplace.  Companies  two  and  four  and  five  have  production  processes  outside  the  Netherlands   but  regularly  visit  the  factories  and  monitor  the  working  conditions  of  the  employees,  especially  for   company  two   was  the  major  driver  to  increase  the  employment  opportunity  in  the  manufacturing   area.  Company  one  has  their  production  processes  inside  the  Netherlands  which  has  a  dual  objective   to   maintain   control   about   the   production   circumstances   and   to   reduce   distribution   costs   and   environmental  impact.  The  companies  assign  the  owner’s  norms  and  values  as  the  propelling  factor  of   the  establishment  of  the  company  with  its  sustainable  approach.  Company  three  has  an  exogenous   driver  as  their  major  motivation,  namely  the  requirements  of  the  market.  Company  five  also  seems  to   have  market  requirements  as  the  major  factor  to  reorganize  their  supply  chain.  Efficiency  objectives   like  the  reduction  of  costs  didn’t  seem  to  be  an  endogenous  driver  for  all  companies.    

  In  relation  to  the  exogenous  drivers,  the  requirements  of  a  new  market  niche  appeared  to  be   a  significant  factor  at  all  companies  in  the  sample,  but  is  consequence  of  their  own  drive  to  make   sustainable  choices  regarding  clothing  and  enable  this  for  other  customers.  The  market  pressure  can   be  seen  as  the  companies’  competitive  advantage  to  survive  in  the  market  (C5;  Forman  &  Jorgesen,   2004).   The   target   group   are   people   with   a   strong   green   focus,   that   are   interested   in   sustainable   clothing,  instead  of  the  regular  clothes  in  the  retail  sector.  Company  one  and  four  indicated  the  impact   societal  values  and  norms,  especially  from  the  media.  Media  platforms  can  have  major  influence  on   the   creation   of   awareness   about   (the   absence   of)   green   performance   in   the   clothing   industry.   Additionally,  environmental  regulation  from  the  authorities  is  not  a  relevant  driver  for  all  companies,   the  low  boundaries  set  by  the  government  have  no  effect  on  practicing  green  performance.  Dutch   stimulus  policy  in  the  fashion  industry  for  sustainable  entrepreneurship  is  not  being  conducted  by  the   government.  According  to  the  data,  this  is  mainly  due  to  the  non-­‐transparency  of  the  garment  industry.      

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5.2  Sustainable  practices  

According  to  the  data,  not  all  companies  exercise  the  same  practices,  but  as  the  sustainable  drivers   explain,  are  all  aware  of  the  non-­‐sustainable  environment  that  prevails  around  the  fashion  industry.   Table  3  demonstrates  the  main  practices  of  the  five  case  studies  that  are  derived  from  the  sustainable   drivers.  The  sustainable  practices  are  divided  into  three  subcategories/codes  according  to  the  Three   Dimensioning  Concurrent  Engineering  (3DCE)  framework  (Ellram,  2007;  Caniato,  2012).  The  first  code   analyzed   the   sustainable   product   design   of   the   companies,   which   involves   all   sustainable   features   towards  the  product  and  packaging.  The  second  code  analysed  the  sustainable  process  design  of  all   companies,  which  refers  to  the  production  process  from  raw  materials  to  the  finished  product.  The   third   code   encompasses   the   way   companies   try   to   reduce   the   environmental   impact   outside   their   boundaries.    

 

Company  one  makes  for  its  product  design  use  of  organic  textile  that  is  GOTS  certified,  which  states   requirements   for   factories   concerning   the   use   of   harmful   chemicals.   The   products   are   packed   in   recycled  cardboard  and  ecobags,  made  from  recycled  plastic.  The  company  has  a  partnership  with  a   Dutch  clothing  factory,  where  they  produce  the  clothing  in  limited  amounts.  Making  from  each  product   a  limited  edition,  there  is  more  certainty  that  all  clothing  items  can  be  sold  to  reduce  the  waste.  Since   the  clothes  are  made  in  an  extern  factory,  no  renewable  energy  is  used  during  the  production,  but  the   energy  consumption  is  a  main  point  on  their  agenda  and  will  be  improved  in  the  future.  During  the   production  process,  the  clothing  factory  uses  a  minimum  amount  of  fabric  to  reduce  the  waste.     The  suppliers  of  the  fabrics  are  selected  on  the  environmental  GOTS  certifications  and  are  situated  in   Turkey  and  Germany.  The  GOTS  certification  sets  sustainable  requirements  for  the  manufacturing  of   the  clothing  concerning  the  environment  and  work  conditions  of  the  employees.  The  transport  of  the   fabrics  is  relatively  short  when  comparing  to  the  regular  production  in  the  far  East.  The  products  are   manufactured  in  the  Netherlands,  and  therefore,  due  to  the  local  production  network,  the  supply  chain   is  relatively  short  so  there  is  maximum  control  and  there  are  minimum  shipping  costs  involved  from   other   countries.   The   packages   are   shipped   to   the   Dutch   customers   through   the   regular   shipping   method  from  PostNL,  but  the  owner  of  the  company  wants  to  make  the  shipping  to  the  customer  more   sustainable  in  the  future.  

  The  second  company  uses  recycled  materials  for  their  product  design.  The  raw  material  is  tire,   supplied  by  the  locals  to  reduce  the  waste,  and  is  a  good  alternative  for  leather  since  products  that  are   made  from  leather  are  often  accompanied  with  terrible  circumstances  for  animals.  All  products  are   packed  in  recycled  cardboard  without  any  usage  of  plastic.  During  the  production  process,  there  is  no   use   of   any   chemicals.   The   process   is   designed   and   being   done   by   manual   work   through   local  

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inhabitants,   which   limits   the   energy   consumption   and   additionally   make   use   of   natural   air   conditioning.  The  selection  of  the  supplier  from  India  was  based  on  the  mutual  sustainable  drive  to   reduce  the  waste  in  India  and  create  employment  opportunities.  The  supplier  has  an  Indian  certificate   that   his   production   is   handicraft   approved.   The   company   regularly   visits   to   India   to   check   the   manufacturing   process   and   has   contact   with   them   on   a   daily   basis.   The   work   conditions   of   the   employees  are  essential  for  the  company;  no  exploitation  of  the  workers,  no  overtime  working  and  a   good  reward.  For  the  future,  they  want  to  obligate  a  certificate  that  verifies  their  excellent  working   conditions,  but  is  not  financial  reliable  in  the  present  day.  

  Company  three  makes  for  its  product  design  use  of  organic  cotton,  organic  wool,  Tencel  and   durable  wool  that  are  GOTS  certified.  The  GOTS  certification  indicates  that  minimum  chemicals  are   used  in  the  product  design.  Additionally,  to  sustainable  product  design  activities,  the  packages  of  the   products   are   made   from   sustainable   materials.   The   clothes   are   produced   in   European   and   Indian   factories  with  fair  working  conditions,  a  GOTS  certificate  and  a  SA800  standard.  The  SA800  is  a  social   standard  for  a  decent  working  environment  in  the  industrial  sector  and  is  also  based  on  the  standards   of  the  International  Labor  Organization.  The  selection  of  the  factories  is  a  secure  process.  They  must   be  GOTS  certified  and  work  with  organic  products.  The  rinse  water  resulting  from  the  dying  process  is   purified  in  the  factories  and  reintroduced  into  the  production  process.  The  wastewater  of  all  process   is  also  incorporated  into  a  functional  wastewater  treatment  plant.  To  minimize  the  CO2  emissions,  the   production  process  is  as  close  as  possible.  Currently,  they  produce  in  India  and  Turkey.  Their  code  of   conduct  is  based  on  the  GOTS  and  SA800  certificates,  which  provide  basic  rights  for  their  suppliers   such   as:   no   children’s   work,   no   discrimination,   secure   and   hygiene   workplace   and   no   slavery.   The   clothing   from   Turkey   are   transported   to   the   Netherlands   per   lorry   to   reduce   CO2   emissions.   They   delivery  of  the  packages,  packaged  in  sustainable  materials,  are  transported  CO2  neutral  with  PostNL.   In  addition,  they  consider  the  carriers  route  to  make  it  as  efficient  as  possible  and  train  the  drivers  to   do  this.    

  Company   four   is   an   exceptional   case,   since   they   don’t   produce   their   own   fashion   but   sell   sustainable  brands  on  their  web  shop.  The  company  selects  brands  on  the  use  of  materials  (product   design)  and  how  they  are  produced  (process  design),  but  also  on  their  supervision  on  the  external   design  (supply  chain  design).  If  a  brand  claims  to  be  very  sustainable,  they  will  investigate  this  on  the   basis  of  their  transparency  and  certified  quality  marks  (Ethical  trading  initiative,  Global  organic  textile   standard,   Oeko-­‐tex,   fair   wear   foundation,   fair   trade   international,   SA8000,   world   fair   trade   organization,   soil   association,   B   corp,   better   cotton   initiative,   PETA-­‐approved,   textile   exchange,   WRAP),   but   also   on   labels   that   they   attribute   to   brands:   local   production,   vegan,   environmentally  

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friendly,  fair  trade  and  local  support.    They  attribute  labels  to  brands  because  there  are  a  lot  of  small   brands  that  can’t  afford  to  get  a  quality  mark  but  operates  very  sustainable  

  Company  five  uses  both  chrome  tanned  and  vegetable  tanned  leather  for  its  product  design.   The  origin  from  the  leather  is  a  waste  product  from  the  meat  industry  and  they  don’t  use  exotic  animal   skins,  since  they  are  in  most  of  the  times  bred  and  slaughtered  for  the  leather  industry.  The  company   also   only   processes   imitation   coat   and   fur.   The   leather   complies   with   the   European   ‘’Chrome   VI’’   standard.  The  company  continuously  optimizes  their  process  design.  New  technologies  that  make  it   possible  to  produce  or  reside  more  environmental  friendly  have  continuous  attention.  Glue  and  edge   paint  are  all  on  water-­‐based  and  therefore  free  from  solvents  and  chemicals.  They  reduce  the  energy   consumption   by   insulating   the   factory   with   an   extra   roof   layer.   Every   employee   has   an   individual,   ergonomic  workplace  instruction  set  by  ‘’arbo-­‐arts’’.  Each  production  site  and  supplier,  in-­‐country  and   abroad,  sign  the  Code  of  Conduct.  This  Code  of  Conduct  states  the  requirements  that  the  supplier  must   comply  with,  the  subjects  include:  child  labour,  working  conditions  and  wages  and  the  environmental   conditions.  

 

Table  3:  Sustainable  practices  

  Product   Process     Supply  chain  

Company  1   Low  chemical  substances,  organic  

fabrics,  recycled  packaging   Reduce  of  waste     Short  supply  chain,  environmental  certifications  of  suppliers,  local   production  network,  direct  control  

Company  2   Recycled  materials  through  local  

suppliers,  sustainable  packaging   No  use  of  chemicals,  low   energy   consumption    

Supplier  selection  on  green   practices,  green  projects  with   suppliers,  direct  control,  local   production  network,  environmental   certifications  

Company  3   Low  chemical  substances,  organic  

fabrics,  sustainable  packaging   Low  use  of  chemicals   Environmental  certifications  of  suppliers,  code  of  conduct,  direct   control,  transport  optimization  

Company  4    

 

Organic  fabrics,  sustainable   packaging,  low  chemical   substances  

Sustainable   processes  

Local  production  network,   environmental  certifications  

Company  5   Natural  raw  materials,  low  

chemical  substances,  recycled   packaging  

Low  energy   consumption,  free   from  solvents  

Environmental  certifications  of   suppliers,  local  production  network,   direct  control,  code  of  conduct  

 

Sustainable  supply  chain  related  practices  are  activities  that  are  implemented  by  the  companies  which   had  a  positive  impact  on  sustainability  related  subjects.  In  all  cases,  product  design  practices  are  a   major  component  in  the  sustainable  direction  the  companies  follow.  Specifically,  the  companies  design   their  products  by  implementing  sustainable  options  from  the  beginning  of  the  design  process,  using   organic   fabrics,   recycled   materials   and   low   chemical   substances   and   making   the   packaging   from   sustainable  and  recycled  materials.  For  example:  company  two  uses  old  tires  found  on  the  streets  of  

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