TY - JOUR

T1 - 100 Per Cent Organic?

T2 - A Sustainable Entrepreneurship Perspective on the Diffusion of Organic Clothing

AU - Hansen, Erik G.

AU - Schaltegger, Stefan

PY - 2013

Y1 - 2013

N2 - Purpose: This paper analyses the sustainability-oriented transformation of industries from the lens of sustainable entrepreneurship. The authors investigate the co-evolution between pioneers introducing radically more sustainable offerings and (mostly large) market leaders with their responses. While sustainability pioneers introduce new products in niche markets, incumbents advance them into the mass market, together leading to the transformation of industries, markets and consumer habits. Design/methodology/approach: The authors apply the sustainable entrepreneurship perspective to a case study of the German clothing retail industry with a focus on organic cotton. The analysis covers four of the ten largest German textile retailers. Data collection is based on public available sources. Findings: The late 1970s saw the foundation of Hess Natur, which pioneered organic cotton practices and supported the development of sustainability standards in the clothing industry. In the beginning this was largely a phenomenon in niche markets, but to date some organic practices have diffused amongst mainstream retailers. This is counter-intuitive, as theory suggests that incumbents only adopt practices with significantly lower sustainability standards than companies in the niche. Research limitations/implication: The study suggests that more research should focus on the co-evolutionary dynamics between pioneering companies and incumbents and examine whether and how sustainability practices diffuse into the mass market. Practical implications: The findings can help managers to better understand their organisation's role in the transformation of industries towards sustainability and, vice versa, how the transformation may affect them. Leading the transformation challenge by adopting organic and other sustainable supply chain practices can be an important measure for market success. Originality/value: This study is one of the few pieces of research investigating sustainability-oriented industry transformation from a market-based perspective. Actual data on organic cotton diffusion in German retail are presented.

AB - Purpose: This paper analyses the sustainability-oriented transformation of industries from the lens of sustainable entrepreneurship. The authors investigate the co-evolution between pioneers introducing radically more sustainable offerings and (mostly large) market leaders with their responses. While sustainability pioneers introduce new products in niche markets, incumbents advance them into the mass market, together leading to the transformation of industries, markets and consumer habits. Design/methodology/approach: The authors apply the sustainable entrepreneurship perspective to a case study of the German clothing retail industry with a focus on organic cotton. The analysis covers four of the ten largest German textile retailers. Data collection is based on public available sources. Findings: The late 1970s saw the foundation of Hess Natur, which pioneered organic cotton practices and supported the development of sustainability standards in the clothing industry. In the beginning this was largely a phenomenon in niche markets, but to date some organic practices have diffused amongst mainstream retailers. This is counter-intuitive, as theory suggests that incumbents only adopt practices with significantly lower sustainability standards than companies in the niche. Research limitations/implication: The study suggests that more research should focus on the co-evolutionary dynamics between pioneering companies and incumbents and examine whether and how sustainability practices diffuse into the mass market. Practical implications: The findings can help managers to better understand their organisation's role in the transformation of industries towards sustainability and, vice versa, how the transformation may affect them. Leading the transformation challenge by adopting organic and other sustainable supply chain practices can be an important measure for market success. Originality/value: This study is one of the few pieces of research investigating sustainability-oriented industry transformation from a market-based perspective. Actual data on organic cotton diffusion in German retail are presented.

KW - Sustainability sciences, Management & Economics

KW - Sustainable entrepreneurship

KW - Sustainability-oriented innovation

KW - CSR

KW - transformation

KW - textile industry

KW - Supply Chain

KW - Corporate social responsibility

KW - Corporate sustainability

KW - Germany

KW - Integrated production

KW - Organic cotton

KW - Supply chain management

KW - Sustainability-oriented innovation

KW - Sustainable entrepreneurship

KW - Textile industry

KW - Transformation

KW - Entrepreneurship

UR - http://www.scopus.com/inward/record.url?scp=84885041739&partnerID=8YFLogxK

U2 - 10.1108/CG-06-2013-0074

DO - 10.1108/CG-06-2013-0074

M3 - Journal articles

VL - 13

SP - 583

EP - 598

JO - Corporate Governance

JF - Corporate Governance

SN - 1472-0701

IS - 5

ER -