Advertisement

Sustainability Integration Impact on Fast Fashion Supply Chains

  • Vytautas SnieskaEmail author
  • Ignas Valodka
Conference paper
Part of the Eurasian Studies in Business and Economics book series (EBES, volume 10/2)

Abstract

The main objective of this paper is to define whether sustainable performance (environmental and social) integration in business activity and consequently supply chains of fast fashion industry has a positive impact on financial performance. Sustainability must comprise and balance all three elements: environmental, social and economic. Sustainability is strongest when it is broad, not substitutable and relative. The main sustainability integration drivers are of three categories: internal drivers, market drivers and law related drivers. The main ways for the integration of sustainability into fast fashion supply chains are: integrating sustainability into the values and strategy of the company, investing in long-term relationships with the main partners, collaboration, certification and standards. Consensus definition of sustainable fast fashion supply chain does not exist, but it may be defined as a supply chain incorporated by environmental, social and economic dimensions. The correlation analysis of fast fashion companies data which form the largest part of fast fashion industry, demonstrated that there exist positive link between sustainability and profitability of companies.

Keywords

Sustainability Supply chain Corporate growth Fast fashion 

References

  1. Ahi, P., & Searcy, C. (2013). A comparative literature analysis of definitions for green and sustainable supply chain management. Journal of Cleaner Production, 52, 329–341.Google Scholar
  2. Appelbaum, S. H., Calcagno, R., Magarelli, S. M., & Saliba, M. (2016). A relationship between corporate sustainability and organizational change (part I). Industrial and Commercial Training, 48(1), 16–23.Google Scholar
  3. Ashby, A., Leat, M., & Hudson-Smith, M. (2012). Making connections: A review of supply chain management and sustainability literature. Supply Chain Management: An International Journal, 17(5), 497–516.Google Scholar
  4. Beamon, B. M. (1999). Designing the green supply chain. Logistics Information Management, 12(4), 332–342.Google Scholar
  5. Beske, P. (2014). Putting sustainability into supply chain management. Supply Chain Management: An International Journal, 19(3), 322–331.Google Scholar
  6. Bouchery, Y., Corbett, C. J., Fransoo, J. C., & Tan, T. (2017). Market value implications of voluntary corporate environmental initiatives. Retrieved January 27, 2017, from http://www.springer.com/us/book/9783319297897.
  7. Brundtland, G. (1987). The Brundtland report: Our common future. New York: United Nations World Commission on Environment and Development. Retrieved January 27, 2017, from http://www.un-documents.net/our-common-future.pdf.
  8. Buckley, M. (2007). Environmental programs meet supply chain at staples: Achieving the energy efficient supply chain conference. Orlando, FL.Google Scholar
  9. Caniato, F., Caridi, M., Crippa, L., & Moretto, A. (2011). Environmental sustainability in fashion supply chains: An exploratory case based research. International Journal of Production Economics, 135, 659–670.Google Scholar
  10. Carter, C. R., & Dresner, M. (2001). Purchasing’s role in environmental management: Cross-functional development of grounded theory. Supply Chain Management, 37(3), 12–26.Google Scholar
  11. Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: Moving toward new theory. International Journal of Physical Distribution and Logistics Management, 38(5), 360–387.Google Scholar
  12. Chen, I. J., & Paulraj, A. (2004). Towards a theory of supply chain management: The constructs and measurements. Journal of Operations Management, 22(2), 119–150.Google Scholar
  13. Cline, E. (2013). Overdressed: The shockingly high cost of cheap fashion. Penguin. Retrieved January 04, 2017, from http://www.penguinrandomhouse.com/books/309019/overdressed-by-elizabeth-l-cline/9781591846543/.
  14. Crews, D. E. (2010). Strategies for implementing sustainability: Five leadership challenges. S.A.M. Advanced Management Journal, 75(2), 15.Google Scholar
  15. Delmas, M. D. (2001). Stakeholders and competitive advantage: The case of ISO 14001. Production and Operation Management, 10(3), 343–358.Google Scholar
  16. Elkington, J. (1998). Cannibals with forks: The triple bottom line of 21st century business. Gabriola Island, BC: New Society Publishers.Google Scholar
  17. Elkington, J. (2004). Enter the triple bottom line. In A. Henriques & J. Richardson (Eds.), The triple bottom line: Does it all add up? (pp. 1–16). London: Earthscan.Google Scholar
  18. Ferdows, K., Lewis, M. A., & Machuca, J. A. D. (2004). Rapid-fire fulfillment. Harvard Business Review, 82(11), 104–110.Google Scholar
  19. GAP. (2014). Our futures are woven together. Retrieved February 17, 2017, from http://www.gapincsustainability.com/sites/default/files/Gap%20Inc.%202013%20-%2014%20Report.pdf.
  20. Golicic, S. L., & Smith, C. D. (2013). A meta-analysis of environmentally sustainable supply chain management practices and firm performance. Journal of Supply Chain Management, 49(2), 78–95.Google Scholar
  21. Gonzalez-Benito, J., & Gonzalez-Benito, O. (2006). The role of stakeholder pressure and managerial values in the implementation of environmental logistics practices. International Journal of Production Research, 4(7), 1353–1373.Google Scholar
  22. Hall, J. (2001). Environmental supply chain innovation. Greener Management International, 35, 105–119.Google Scholar
  23. Harms, D., Hansen, E. G., & Schaltegger, S. (2013). Strategies in sustainable supply chain management: An empirical investigation of large German companies. Corporate Social Responsibility and Environmental Management, 20, 205–218.Google Scholar
  24. Herremans, I. M., & Reid, E. R. (2002). Developing awareness of the sustainability concept. The Journal of Environmental Education, 34(1), 16–20.Google Scholar
  25. Hofer, C., Cantor, D. E., & Dai, J. (2012). The competitive determinants of a firm’s environmental management activities: Evidence from US manufacturing industries. Journal of Operations Management, 30(1), 69–84.Google Scholar
  26. Hoffman, A. J., & Bazerman, M. H. (2005). Changing environmental practice: Understanding and overcoming the organizational and psychological barriers. MICHIGAN Ross School of Business Working Paper Series. Working Paper No. 923. Retrieved February 22, 2017, from http://ssrn.com/abstract=663564.
  27. Holt, D., & Ghobadian, A. (2009). An empirical study of green supply chain management practices amongst UK manufacturers. Journal of Manufacturing Technology Management, 20(7), 933–956.Google Scholar
  28. Horvathova, E. (2010). Does environmental performance affect financial performance? A meta analysis. Ecological Economics, 70(1), 52–59.Google Scholar
  29. Izadikhah, M., & Saen, R. F. (2016). Evaluating sustainability of supply chains by two-stage range directional measure in the presence of negative data. Transportation Research Part D Transport and Environment, 49, 110–126.Google Scholar
  30. Jain, V. K., & Sharma, S. (2014). Drivers affecting the green supply chain management adaptation: A review. The IUP Journal of Operations Management, 13(1), 54–63.Google Scholar
  31. Jakhar, S. K. (2014). Performance evaluation and a flow allocation decision model for a sustainable supply chain of an apparel industry. Journal of Cleaner Production, 87, 391–413.Google Scholar
  32. Klassen, R. D., & Vereecke, A. (2012). Social issues in supply chains: Capabilities link responsibility, risk (opportunity) and performance. International Journal of Production Economics, 140(1), 103–115.Google Scholar
  33. Kolk, A., & Pinkse, J. (2004). Market strategies for climate change. European Management Journal, 22(3), 304–314.Google Scholar
  34. Konar, S., & Cohen, M. A. (2001). Does the market value environmental performance? Review of Economics and Statistics, 83(2), 2814–2890.Google Scholar
  35. KPMG. (2005). International survey of corporate responsibility reporting 2005. Retrieved January 03, 2017, from https://home.kpmg.com/xx/en/home/insights/2015/11/kpmg-international-survey-of-corporate-responsibility-reporting-2015.html.
  36. Lankoski, L. (2016). Alternative conceptions of sustainability in business context. Journal of Cleaner Production, 139, 847–857.Google Scholar
  37. Linton, J. D., Klassen, R., & Jayaraman, V. (2007). Sustainable supply chains: An introduction. Journal of Operations Management, 25(6), 1075–1082.Google Scholar
  38. Marshall, J. D., & Toffel, M. W. (2005). Framing the elusive concept of sustainability: A sustainability hierarchy. Environmental Science and Technology, 39(3), 673–682.Google Scholar
  39. Matos, S., & Hall, J. (2007). Integrating sustainable development in the supply chain: The case of life cycle assessment in oil and gas and agricultural biotechnology. Journal of Operations Management, 25(6), 1083–1102.Google Scholar
  40. Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., & Zacharia, Z. G. (2001). Defining supply chain management. Journal of Business Logistics, 22(2), 1–25.Google Scholar
  41. Miemczyk, J., Johnson, T. E., & Macquet, M. (2012). Sustainable purchasing and supply management: A structured literature review of definitions and measures at the dyad, chain and network levels. Supply Chain Management: An International Journal, 17(5), 478–496.Google Scholar
  42. Montabon, F., Sroufe, R., & Narasimhan, R. (2007). An examination of corporate reporting, environmental management practices and firm performance. Journal of Operations Management, 25, 998–1014.Google Scholar
  43. Muller, M., Gomes dos Santos, V., & Seuring, S. (2009). The contribution of environmental and social standards towards ensuring legitimacy in supply chain governance. Journal of Business Ethics, 89(4), 509–523.Google Scholar
  44. Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A metaanalysis. Organization Studies, 24(3), 403–441.Google Scholar
  45. Pagell, M., & Shevchenko, A. (2014). Why research in sustainable supply chain management should have no future. Journal of Supply Chain Management, 50(1), 1–32.Google Scholar
  46. Pagell, M., & Wu, Z. (2009). Building a more complete theory of sustainable supply chain management using case studies of 10 exemplars. Journal of Supply Chain Management, 45(2), 37–56.Google Scholar
  47. Perotti, S., Zorzini, M., Cagno, E., & Micheli, G. J. L. (2012). Green supply chain practices and company performance: The case of 3PLs in Italy. International Journal of Physical Distribution & logistics Management, 42(7), 640–672.Google Scholar
  48. Pil, F. K., & Rothenberg, S. (2003). Environmental performance as a driver of superior quality. Production and Operations Management, 12(3), 404–415.Google Scholar
  49. Plambeck, E. L. (2013). OM forum-operations management challenges for some Cleantech firms. Manufacturing and Service Operations Management, 15(4), 527–536.Google Scholar
  50. Potoski, M., & Prakash, A. (2005). Covenants with weak swords: ISO 14001 and facilities’ environmental performance. Journal of Policy Analysis and Management, 24(4), 745–769.Google Scholar
  51. Pullman, M. E., Maloni, M. J., & Carter, C. R. (2009). Food for thought: Social versus environmental sustainability practices and performance outcomes. Journal of Supply Chain Management, 45(4), 38–54.Google Scholar
  52. Sadler, S. (1990). Sustainable development and water resources management. Alternatives, 3(17), 14–24.Google Scholar
  53. Sarkis, J., Zhu, Q., & Lai, K. H. (2011). An organizational theoretic review of green supply chain management literature. International Journal of Production Economics, 130, 1–15.Google Scholar
  54. Schein, E. (1993). Organizational culture and leadership. New York: Harcourt Brace.Google Scholar
  55. Schoenherr, T. (2012). The role of environmental management in sustainable business development: A multi-country investigation. International Journal of Production Economics, 140(1), 116–128.Google Scholar
  56. Seuring, S., & Müller, M. (2008a). Core issues in sustainable supply chain management – a Delphi study. Business Strategy and the Environment, 17(8), 455–466.Google Scholar
  57. Seuring, S., & Müller, M. (2008b). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699–1710.Google Scholar
  58. Shambu, G., & College, C. (2015). Using the fast fashion supply chain to teach sustainability. Business Education Innovation Journal, 7(1), 1.Google Scholar
  59. Sharfman, M. P., Shaft, T. M., & Anex, R. P. (2009). The road to cooperative supply-chain environmental management: Trust and uncertainty among pro-active firms. Business Strategy and the Environment, 18(1), 1–13.Google Scholar
  60. Shearman, R. (1990). The meaning and ethics of sustainability. Environmental Management, 14(1), 1–8.Google Scholar
  61. Sikdar, S. K. (2003). Sustainable development and sustainability metrics. AIChE Journal, 49(8), 1928–1932.Google Scholar
  62. Skjoett-Larsen, T., Thernøe, C., & Andresen, C. (2003). Supply chain collaboration: Theoretical perspectives and empirical evidence. International Journal of Physical Distribution and Logistics Management, 33(6), 531–549.Google Scholar
  63. Srivastava, S. K. (2007). Green supply chain management: A state of the art literature review. International Journal of Management Reviews, 9(1), 53–80.Google Scholar
  64. Svensson, G. (2007). Aspects of sustainable supply chain management (SSCM): Conceptual framework and empirical example. Supply Chain Management, 12(4), 262–266.Google Scholar
  65. UNGC. (2010). A new era of sustainability in the utilities industry. Retrieved February 17, 2017, from https://www.accenture.com/t20150527T202823__w__/gb-en/_acnmedia/Accenture/Conversion-Assets/LandingPage/Documents/2/Accenture-UNGC-Utilities-Industry.pdf.
  66. Vachon, S., & Klassen, R. D. (2006). Extending green practices across the supply chain: The impact of upstream and downstream integration. International Journal of Operations and Production Management, 26(7), 795–821.Google Scholar
  67. Van Velsor, E. (2009). Introduction: Leadership and corporate social responsibility. Corporate Governance, 9(1), 3–6.Google Scholar
  68. Varsei, M. (2016). Sustainable supply chain management: A brief literature review. Special issue on Dubai Conference held in June 2016. Australian Institute of Business, Australia.Google Scholar
  69. Walker, H., Disito, L., & McBain, D. (2008). Drivers and barriers to environmental supply chain management practices: Lessons from the public and private sectors. Journal of Purchasing and Supply Management, 14(1), 69–88.Google Scholar
  70. Walley, N., & Whitehead, B. (1994). It’s not easy being green. Harvard Business Review, 72(3), 46–52.Google Scholar
  71. World Business Council for Sustainable Development (WBCSD). (2002). The business case for sustainable development. Retrieved January 23, 2017, from http://www.wbcsd.org/work-program/sector-projects/cement/local-impacts.aspx.
  72. World Commission on Environment and Development. (1987). Our common future. New York: Oxford University Press.Google Scholar
  73. Wu, G. C., Ding, J. H., & Chen, P. S. (2012). The effects of GSCM drivers and institutional pressures on GSCM practices in Taiwan’s textile and apparel industry. International Journal of Production Economics, 135(2), 618–636.Google Scholar
  74. Wu, T., Jim Wu, Y. C., Chen, Y. J., & Goh, M. (2014). Aligning supply chain strategy with corporate environmental strategy: A contingency approach. International Journal of Production Economics, 147, 220–229.Google Scholar
  75. Wu, Z., & Pagell, M. (2011). Balancing priorities: Decision-making in sustainable supply chain management. Journal of Operations Management, 29(6), 577–590.Google Scholar
  76. Yusuf, Y. Y., Gunasekaran, A., Musa, A., El-Berishy, N. M., Abubakar, T., & Ambursa, H. M. (2013). The UK oil and gas supply chains: An empirical analysis of adoption of sustainable measures and performance outcomes. International Journal of Production Economics, 146(2), 501–514.Google Scholar
  77. Zailani, S., Eltayeb, T., Hsu, C., & Tan, K. (2012). The impact of external institutional drivers and internal strategy on environmental performance. International Journal of Operations and Production Management, 32(6), 721–745.Google Scholar
  78. Zhu, Q., & Sarkis, J. (2006). An inter-sectoral comparison of green supply chain management in China: Drivers and practices. Journal of Cleaner Production, 14(5), 472–486.Google Scholar
  79. Zhu, Q., & Sarkis, J. (2007). The moderating effects of institutional pressures on emergent green supply chain practices and performance. International Journal of Production Research, 45(18–19), 4333–4355.Google Scholar
  80. Zuckerman, A. (2000). Ford, GM set ISO 14000 requirements. Iron Age New Steel, 16(3), 58–60.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Economics DepartmentKaunas University of TechnologyKaunasLithuania

Personalised recommendations