Collaboration in achieving sustainable

solutions in the textile industry

Mônica Cavalcanti S
a de Abreu and Fabiana Nogueira Holanda Ferreira
Department of Business, Federal University of Ceara, Fortaleza, Brazil
João F. Proença
Faculty of Economics, University of Porto, Porto, Portugal, and Advance/CSG, ISEG, University of Lisbon, Lisbon, Portugal, and
Domenico Ceglia
Business and Accountability Graduate Program, Federal University of Ceara, Fortaleza, Brazil

Abstract
Purpose – This paper aims to investigate how sustainable solutions in the textiles and clothing industry are decided through business-to-business
collaboration.
Design/methodology/approach – A qualitative and inductive study of the Brazilian textiles and clothing industry is carried out, an industry in
which sustainable denim products are increasingly being recognized as subject to competition. The paper adopts a focal net perspective to
understand the collaborative arrangements through which firms combine the products they offer as a sustainable solution. Documentary data were
collected and in-depth interviews conducted with the top managers of one of the world’s largest denim-manufacturing companies present in the
Brazilian market, which is involved in providing sustainable solutions in cooperation with its partners.
Findings – The authors describe the factors that reflect the conditions for generating a sustainable business performance, including a corporate
policy that assumes and articulates the responsibility for social interest, core-business stakeholders and regulatory requirements; a sustainable
product-service system (S.PSS) based on innovative interactions between the stakeholders in the value production system; relations between
stakeholders that promote business sustainability through a dependable value chain characterized by a sense of collaboration and collective actions;
and a business model for sustainability that combines economic with social and ecological value creation. These factors help a business establish a
more strategic position in the value network, enabling it to capture more value.
Practical implications – Sustainable solutions are developed dynamically and collaboratively within an S.PPS. Managers need to focus not only on
tangible products but also on intangible services designed and combined so that they are jointly capable of fulfilling customer’s needs and creating
social and ecological value. Managers within the solution provider must develop business models for sustainability that are continually evolving to
satisfy the interest in resource-efficiency by actors in civil society, business and government.
Originality/value – The research contributes to the existing literature by applying approaches involving corporate social responsibility (CSR) and
strategic nets to the study of the implementation of an S.PSS. Sustainable initiatives and offers developed by an S.PSS are not isolated phenomena
but result from collaboration in finding solutions among different actors linked in a strategic net. In this sense, companies need to adjust their
business models for sustainability to generate positive economic, social and ecological value and gain credibility for their missions.
Keywords Stakeholders, Corporate social responsibility, Business network, Business model for sustainability, Sustainable product-service system
Paper type Research paper

1. Introduction achieve success in business-to-business (B2B) arrangements

Embracing sustainability is one of the most significant
challenges for businesses (Johnsen et al., 2017), being evident
in widespread economic hardship, social inequality and a
deteriorating natural environment (Ferro et al., 2017). It
requires firms to act beyond the traditional profit focus to deal
with multiple and interdependent objectives, as well as a variety
of stakeholders, for whom a firm’s performance must benefit
society (Matten and Moon, 2020; Schneider and Clauß,
2019). Sustainability initiatives as a strategic imperative to
The current issue and full text archive of this journal is available on Emerald
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can be leveraged using the concept of corporate social
responsibility (CSR) (Blenkhorn and MacKenzie, 2017). CSR
establishes a way of doing business that combines success and
the creation of environmental and social value through a
respectful and proactive attitude towards stakeholders (Abreu,
The authors would like to express their sincere thanks to the editor and the
anonymous reviewers for their constructive and detailed comments on
earlier drafts of this paper. They are also grateful for the financial support
provided by CNPq/Brazil (National Council for Scientific and
Technological Development) through research grant #305913/2014–0,
Coordination for the Improvement of Higher Education Personnel
(CAPES) for PNPD scholarship and FCT- Fundação para a Ciência e
Tecnologia (Portugal) through research grant #UIDB/04521/2020.

Received 21 January 2020

Revised 18 June 2020
Journal of Business & Industrial Marketing 7 September 2020
© Emerald Publishing Limited [ISSN 0885-8624] 15 October 2020
[DOI 10.1108/JBIM-01-2020-0041] Accepted 16 October 2020
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Mônica Cavalcanti S
2015). The CSR in B2B has been seen as consisting of a
continuum of motivations (i.e. meeting legal requirements,
seeking competitive advantage and behaving altruistically), as
well as being a factor in the product’s physical life-cycle.
Manufacturing companies try to reduce their impact and
avoid commoditizing their product by offering a product-
service system (PSS) (Reim et al., 2017). PSS is defined as “a
mix of tangible products and intangible services designed and
combined so that they are jointly capable of fulfilling final
customer needs” (Tukker, 2015, 76). PSS has positive effects
on improving environmental and economic sustainability and
constitutes a minor social benefit (Yang and Evans, 2019). It
has been subjected to various theories, such as systems theory,
resource-based view and resource dependence theory, viable
systems theory and network theory (Chiu et al., 2020), but not
theory related to CSR.
A promising way of beginning to address CSR is by using the
sustainable product-service system (S.PSS) (Vezzoli et al.,
2015). S.PSS uses schemes such as renting, upgrading,
redesigning and lending to reduce reliance on natural resources
while concurrently increasing product quality and longevity
and customer satisfaction (Heiskanen and Jalas, 2003; Tukker,
2004). Nevertheless, there is a need to identify a win-win S.PSS
that secures competitiveness and sustainability simultaneously
(Azarenko et al., 2009; Beuren et al., 2013). Despite all the
knowledge and experience that has been accumulated, there
remain gaps in how S.PSS knowledge could be transferred and
implemented (Annarelli et al., 2016).
One of the main characteristics of S.PSS lies in the
development of innovative partnerships and stakeholder
interactions (Laperche and Picard, 2013). Vezzoli et al. (2015)
have argued for the importance of understanding the
partnership networks and strategic stakeholder interactions
that make S.PSS successful. Similarly, Johnsen et al. (2017)
have pointed out that a network-based perspective on activities
promoting sustainability is still required. Cova et al. (2020) add
that a precise understanding of how inter-firm dynamics
support the development of a strategic net to develop a solution
for a customer is still not clear.
The transition toward an S.PSS guided by CSR needs to
support companies in implementing partnership-based
collaboration between social players (Krucken and Meroni,
2006). The relevance of developing cooperative ties with
stakeholders increases a firm’s resources and legitimacy
(Crespin-Mazet and Dontenwill, 2012). Thus, developing
solutions in the direction of sustainability requires different
types of network, such as focal or strategic nets, combined with
collective actions in the entire constellation of networks (Möller
and Halinen, 2017; Möller and Rajala, 2007; Salmi, 2000).
Given the above, our study is guided by the following
research questions:
RQ1. What factors can help us understand how companies
can succeed in S.PSS development when guided by
considerations of corporate social responsibility?
RQ2. How can a strategic net change to develop sustainable
solutions?
As there is a limited body of knowledge about S.PSS design in
low- and middle-income contexts, it is crucial to deepen
Journal of Business & Industrial Marketing
understanding of it as a promising approach not only for its
economic and environmental benefits but also in respect of its
socio-ethical dimensions (Vezzoli et al., 2014). Building on this
idea, we analyze one of the world’s largest denim-
manufacturers and its interactions with stakeholders in an effort
to understand the provision of sustainable solutions. Textiles
and the clothing industry in Brazil have reacted to its
international competition by establishing an adaptive industrial
structure. New forms of competition and cooperation have
emerged in the country’s domestic textiles market, where firms
concentrate on their core competencies, externalizing fewer
value-added functions (Rocha and Abreu, 2018).
It is crucial to explore the potential synergies between S.PSS
and other interwoven sustainability concepts (Vezzoli et al.,
2015). Thus, we integrate S.PSS with CSR, which can enable a
better understanding of the factors and inter-firm dynamics
involved in being socially responsible. In addition, we present a
framework that reflects the conditions whereby a sustainable
business performance can be achieved. We argue that
sustainable initiatives and offers developed by an S.PSS are not
isolated phenomena but result from collaboration in finding
solutions among different actors linked in a strategic network.
In this sense, companies need to adjust their business models
for sustainability to generate positive economic, social and
ecological value.
The article begins in Section 2 by identifying the theoretical
importance of the S.PSS and the essential elements required to
build it. We then present our methodology and the results of
our analysis in Sections 3 and 4, taking a focal net perspective.
Empirically, we interviewed 30 individuals in 18 organizations
with varying sorts of experience with sustainable denim
production. We then move on to present our empirical findings
and discuss in Section 5 the key factors affecting the
implementation of S.PSS through the lenses of CSR, as well as
how strategic nets may change to develop sustainable solutions.
The paper concludes in Section 6.
2. Theoretical background
2.1 Driving corporate social responsibility efforts within
a network
Sustainability efforts to address significant social and ecological
crises require altering awareness, behavior, and networks to
catalyze change in society and the market and thus reward co-
created innovations by firms (Sulkowski et al., 2018). The
impetus for firms to become socially responsible comes from
many directions, but includes regulatory bodies’ attitudes
toward climate change effects, consumer demand for
sustainable products and services and investors’ awareness of a
firm’s sustainability initiatives and long-term profitability
(Blenkhorn and MacKenzie, 2017).
According to Matten and Moon (2020), CSR encompasses
society’s expectations that companies should reconcile their
search for profit with respect for the natural environment and
social issues, thus achieving legitimacy. There are three sorts of
legitimacy: with the societies’ firms operate in, with their core
stakeholders and with the regulators they are subject to. Core-
business stakeholders (i.e. shareholders, owners, employees,
customers, suppliers and communities) share an underlying
interest in the corporation’s existence and prosperity. CSR can
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manifest itself through different strategies and respond to
different objectives depending on the business model. Lüdeke-
Freund (2010) defined “business model” as the means
whereby companies profit when attending to issues related to
their stakeholders, whether economic, social or environmental.
These issues should be integrated into the firm through
philanthropy, innovation, self-/mutual regulation, standards
and partnerships to be a vehicle for social responsibility.
Schneider and Clauß (2019) point out that business models
can provide an integrative approach to adapt and redesign firms
so they can combine profit with sustainability concerns. A
business model increases credibility in the community and
directly generates social and ecological value.
Thus, the emergence of a firm’s credibility is an interim
achievement along the road to the goal of creating social and
ecological value. To some extent, credibility comes from
behavioral consistency. It also originates in a firm’s partnering
community and often improves its reputation. Interactivity and
relationships are structural aspects promoting the dynamic
exchange of resources between firms and stakeholders in a
complex network, which aims to help companies deal with
systemic sustainability issues, such as climate change, the
erosion of biological diversity, water scarcity and toxicity from
production and consumption systems (Sulkowski et al., 2018).
2.2 Understanding a sustainable product-service system
The integration of products and services can produce
significant innovative potential, ensuring competitiveness while
simultaneously allowing companies to address environmental
and social concerns and bring more sustainable offerings to
market (Annarelli et al., 2020). The concepts of solutions
(Kapletia and Probert, 2010) and integrated solutions (Davies
et al., 2006) both envisage combining goods and services to
meet a customer’s business needs. Regarding sustainable
products and offers, we take into account a combination of
products and green services (i.e. operations, processes related
to reducing, recirculating, recycling, redistributing, reframing
and renewing), as described by Guyader et al. (2019).
The textile and clothing industry is product-focused.
According to Armstrong et al. (2015), PSS may provide this
industry with a mechanism to increase product quality and
longevity while also developing alternative models that decrease
excessive consumption of resources, thus making firms more
eco-efficient. This can be achieved by becoming a product-
oriented service selling a product together with a product-
related service, such as maintenance, financing, take-back
schemes and consultancy, that adds value to the sale.
The success of S.PSS implementation is constrained by
various contextual conditions, which companies need to better
understand when choosing appropriate sustainable development
strategies (Ceschin, 2013). Vezzoli et al. (2014) define an S.PSS
as a model offering an integrated mix of products and services
that can fulfill a particular customer’s demands, thus delivering a
“unit of satisfaction”. The S.PSS is based on innovative
interactions between the value production system (satisfaction
system), where the providers continuously seek new solutions
that are environmentally and socio-ethically beneficial.
Vezzoli et al. (2015) added that in an S.PSS the producer or
provider’s economic and competitive interest is in fostering
continuous innovation to reduce environmental impacts and
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improve social equality and cohesion. Therefore, when
building an S.PSS, firms should maintain operations and aim
for business synergies in self-generated innovative and high-
quality products and services through collaboration over
product and service innovations (Tseng et al., 2018). All S.PSS
result in certain levels of improvement to firms’ sustainability
performances. Yang and Evans (2019) pointed out that
different PSS archetypes may affect a firm’s sustainability
performance differently, the main reasons for the difference
being the level of integration between product-maker, owner
and user.
2.3 Collaboration in a network of actors to develop
sustainable solutions
Multiparty interactions in an actor network are typically the
core of formal and informal participatory processes in resource
management (Pahl-Wostl et al., 2007). Social and relational
issues are inextricably linked to dealing with problems and tasks
because managers must explicitly take into account whose
issues are being solved and how they are framed. The objectives
of the actors in the network may be simultaneously compatible
and contradictory, which means that companies sometimes
adopt cooperative forms of behavior and occasionally
conflictual ones. Interactive processes of joint learning and
mutual adjustment create routines and implicit rules that
generate stability, facilitating the resolution of potential conflicts
and coordinating the activities of the networks in which different
parties are interested (Håkansson and Ford, 2002).
Olson’s (1965) seminal work on collective action was
recently used and analyzed by Proença et al. (2018) to study
how collaborative and managed networks deal with and solve
social problems. These authors uncovered relationships
between nonprofit organizations involved in collective action in
the fight against poverty and social exclusion and in favor of
local social development. In this context, the actors involved
may perceive more advantages in joint efforts than in isolated
action. Collective action depends on the ability to mobilize
converging interests through any sort of agreement and can
include economic as well as non-economic connections (Brito,
2001). Both formal and informal agreements can result in
cooperation, conflict, interdependence and/or proximity
(Hakansson, 1982; Håkansson and Ford, 2002).
Cooperation implies the mobilization of actors, which
requires bonds between them (Håkansson and Shenota, 1995),
created when actors acquire a shared vision and goals and have
strong commitments to one another (Brito, 2001; Wilkinson
and Young, 2002). Trust, commitment and social standards
developed in successive interactions reinforce the bonds
forming these relationships and are linked to the collective
interest (Proença et al., 2018). Thus, networks based on
collective action affect organizations’ strategies and influence
processes, relationship structures and the balance of power
between them.
Möller and Halinen (2017) point out that the network
constellation or organization and its governance can be
described by the notions of network membership, the nature of
the ties between network members and the arrangements for
network governance. The constellation of a network in terms of
its membership can vary from open to closed. Open
constellations are typical in the early construction of complex
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ecosystems involving extensive networks with fluid 3. Methodology

membership without any formal criteria of inclusion or
exclusion or guiding rules. Semi-open systems are similar, but
may have different types of membership, potentially a core
strategic net with an established organization and outer layers
of more loosely connected actors.
Finally, closed systems are strategic nets or focal ecosystems
with negotiated membership and partnership roles that create a
governance system. A focal net is defined in terms of the direct
and indirect inter-organizational relationships that the focal
firm perceives as affecting its business in specific markets
(Möller and Halinen, 2017; Möller and Rajala, 2007; Salmi,
2000). Jussila et al. (2016) describe focal or strategic nets as
having dense, reciprocal and long-term relationships. The
parties involved share a value system that defines their roles in
the provision of the solution. According to Cova et al. (2020), a
focal net should be understood as dynamic and capable of
devising an effective way of organizing the development of
value systems and solutions. Similarly, Möller et al. (2005)
argue that collaborative arrangements facilitate the provision of
complex solutions mainly because the creation of a strategic net
enables some form of control.
3.1 Understanding the case being investigated and
selecting the interviewees
This research is exploratory, qualitative and adopts a case-
study approach (Yin, 2008). We collected and double-checked
our findings using multiple sources and modes of evidence to
improve understanding of the Brazilian textile and clothing
industry. Preliminary research using websites, news clippings
and other information was conducted for each company or
organization in advance. This was used to focus the interview
on insightful questions tailored to the individual actor, and later
to corroborate the evidence and to avoid personal bias and poor
recall by interviewees. Data were initially collected through
interviews (Table 1) with the president of the Ceara State
Textile Industry Union and four managers from the National
Textile Industry Association (ABIT). In these interviews, the
manufacturing firm, garment factories, retailers, suppliers and
consulting firms were identified.
Responsible for 40% of denim production in Brazil, the
specific textile-manufacturing firm (called here MF) and its
integrated solution approach provide an overview of
relationships and interactions across the stakeholders involved

Table 1 Characteristics of firms and organizations interviewed

Firm/organization Characteristics Interviewee position
MF One of the largest textile manufacturers in the world. Operations, Supply Chain and New Business Executive Director
Responsible for 40% of the production of denim in Chief Marketing Officer
Brazil Industrial Manager
TQM & Lean Corporate Manager
Total Quality Manager
Environmental Manager
R1/G1 Large garment factory and one of the largest Industrial Manager
retailers in Brazil. Customer of MF
R2 One of the largest retailers in Brazil Corporate Social Responsibility Director
Leader of Compliance, Supplier Management and Sustainability
R3 One of the largest global retailers Supply Chain Manager
G2 Garment factory and famous mono-brand store Marketing and Sustainability Director
selling sustainable products. Customer of MF
G3 Large jeans garment factory and laundry. Customer Chief Financial Officer
of MF
G4 Large garment factory. Customer of MF Environmental Manager
G5 Large garment factory. Customer of MF Research Process Manager
Public Relations Manager
S1 Large supplier of cotton yarn to MF Operations Manager
S2 Sustainable chemicals supplier to MF R&D manager
S3 Government-owned company responsible for Ombudsman
supplying water to MF Metropolitan basin manager
Project Supervisor
GS1 Small Green Service company Owner
GS2 Small Green Service company Owner
GS3 Small Green Service company Owner
O1 Ceara State Textile Industry Union President
O2 National Textile Industry Association President
Industrial Policy and Economy Manager
International Relationship Manager
Innovation Manager
C1 International textile consulting firm President
C2 National textile consulting firm Designer of the concept of the platform “Fashion for Water”
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in sustainable denim production. In our examination, MF
produced yarns and fabrics to the clothing supply chain (i.e.
garments factories and retailers) but did not reach the final
consumers. In this sense, their perceptions of the purchasing
and final disposal of sustainable denim products were not part
of our research narrative. We interviewed six top managers
from MF, namely, the Operations, Supply Chain and New
Business Executive Director; the Chief Marketing Officer; the
Industrial Manager; the TQM & Lean Corporate Manager; the
Total Quality Manager; and the Environmental Manager.
We collected data by asking MF’s core-business stakeholders
to identify the different network arrangements and collective
actions involved in the provision of sustainable denim. As for
garment factories, we interviewed the Industrial Manager of a
large garment company that supplies a leading Brazilian
retailer; the Marketing and Sustainability Director of a leading
garment factory for sustainable products; the Chief Financial
Officer of a large laundry and garment manufacturer of denim
products; the Sustainability Manager of a large garment
factory; and the Research Process Manager and Public
Relations Manager of a large fashion garment factory which has
over 120 stores in Brazil.
For retailers, we interviewed the Supply-Chain Manager of a
global retailer, and the Director of Corporate Responsibility
and the Leader of Compliance, Suppliers, Management, and
Sustainability in one of the largest retailers in Brazil. As for
suppliers, we interviewed the R&D Manager of a significant
supplier of chemicals; three Managers from the Ceara state
government water company (i.e. where MF has its industrial
plants); the Industrial Manager of a large supplier of cotton
yarn; and the individuals in charge of three small green services
companies. We also interviewed an Italian Consultant for
fashion design and the Lead Designer of the concept of the
platform “Fashion for Water” (www.portalecoera.com.br). In
all, we interviewed 30 individuals in 18 organizations.
Interviews lasted between 45 and 90 min and were recorded in
their entirety, resulting in a total of 21 h of audio, which were
transcribed and coded.
3.2 Developing an interview protocol
A semi-structured interview guide was drawn up comprising
three sections. The questions gathered information on the
S.SPS and their BMFSs, interlocutors’ views on actors’
networks, and their perceptions of the role and impact of
leadership, collective action and collaboration in respect of
sustainable denim production. In the first section, “S.SSP and
BMFS”, interviewees were asked to outline the resources
needed to deliver sustainable products and services associated
with production. We also asked about abilities and knowledge
regarding the development of sustainable products and
services, what could be done to bring about improvements and
whether the problems involved in developing sustainable
products and services change over time.
In the “Network of Actors” section, interviewees were asked
to explain how the relationship is built among actors.
Interviews focused on identifying direct partners in delivering
sustainable products, how customers press for the development
of sustainable products and services and the role of
government. In the “Collaboration” section, interviewees were
asked to explain how organizations become engaged, the role of
Journal of Business & Industrial Marketing
collaborative leadership, the rules to be followed, the barriers to
collective action, tensions in the decision-making process,
negotiation strategies and how to deal with asymmetries of
power, resources and specialization.
3.3 Analyzing interview data
As our study involved a wide range of interviews, the analysis
was characterized by an interactive process that gradually
deepened and connected the insights. We performed a
qualitative rigorous inductive study, based on Gioia et al.
(2012), as this methodology lets us remain open to new concept
development through creative imagination and systematic
rigor. The data were organized into first- and second-order
categories to facilitate their later assembly into a more
structured form.
In this first-order analysis, we tried to adhere faithfully to
informants’ terms and identified categories that seemed
influential in shaping sustainable denim production. These
provided us with a rough idea of aspects of interaction between
MF and its stakeholders and their experiences in building an
S.PSS. In the second-order analysis, we start seeking similarities
and differences among the many categories, a process that
reduces the categories to help us describe and explain the
phenomena we are observing. We focused particular attention on
the nascent factors that lead to theoretical saturation. Then, we
distilled the emergent second-order themes into aggregate
dimensions to build a data structure (Figure 1).
To improve reliability, we used several sources of
information, namely, documents and historical records, and
developed desk research to collect secondary material, like
documented news on the firm’s websites. As suggested by Yin
(2008), we triangulated the data from key informants in
multiple focal net points (i.e. from managers of MF, garment
factories, suppliers, retailers, consulting firms, green service
companies, unions and trade associations). We also referred
back to the MF managers to adjust and validate this commonly
organized interpretation.
4. Results
Following the inductive approach proposed by Gioia et al.
(2012), the research gives a voice to informants, further
interpreting and structuring the statements in light of both
contextual factors and data from companies’ sites and
documents. Following them, we outline the factors that facilitate
inter-firm dynamics and support collaborative sustainable
solutions, as summarized in the data structure given in Figure 1.
Thus, building sustainable business solutions over time
requires actors to work “to secure credibility and responsibility
of business”, “to increase [the] capacity for developing a
sustainable product-service system”, “to establish a business
model for sustainability” and “to develop collective actions
emphasizing collaboration”.
4.1 Securing credibility and responsibility of business
Textile firms operate in a business climate of uncertainty and
extreme competition with low margins. The more society
understands the relevance of their social attributes and
environmental impacts, the more it will demand sustainable
solutions. Interviewees from the National Textile Industry
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Figure 1 Data structure

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Association and the Local Textile Union emphasized the need
to cooperate with the Federal Government to guarantee
additional protection, such as a more business-friendly tax
regime to provide better health and safety conditions.
Simultaneously, the mass production of lower quality products
such as T-shirts, uniforms and underwear has been moved
entirely to lower-income countries.
Essential clothing is now mainly imported from other
developing countries, as this segment is unprofitable if
produced locally. The logistical operations involved in
importing products makes it difficult to follow the fashion
market’s ever-changing demands, constituting a barrier to
imported products with better quality and higher prices.
Therefore, Brazilian producers are becoming traders in
essential clothing, leaving local firms to concentrate on higher
value-added products at their production sites. Sustainable
products can be developed nationally or by importing fashion
products produced in countries with more restrictive
environmental legislation.
Based on the interviews, it seems that the media are giving
more importance to the social aspects. For instance, the
Operations Manager of a substantial cotton-yarn supplier we
interviewed stated that they support about 180 children from
the local community who spend some time at the company’s
foundation, where they receive meals, have computer classes,
play sport and are given dental care. Economically successful,
they nonetheless considering the social and environmental
aspects as well.
In this context, the role of social media and international
non-governmental organizations (NGOs) seems crucial,
especially in European markets, given that C&A and other
companies were responsible for the Rana Plaza disaster in
Bangladesh. This incident was a milestone that began to
change awareness of sustainability issues and transformed the
sector while demonstrating transparency, ethics and
responsibility. In Brazil, some issues, such as employing child
labor, act as a force driving responsible behavior. The
Corporate Social Responsibility Director of a large Brazilian
retailer, we interviewed pointed out that in 2010 they, like other
big retailers, had to face accusations that they were using slave
labor. A subcontractor had hired illegal Bolivian workers who
were exploited for more than ten hours a day, were exposed to
the threat of expulsion and were living in unsafe conditions.
The legal and media repercussions for the retailers provided
them with an incentive to take measures to meet the legal
requirements and social demands, thus adopting a business
model oriented to ethical values.
The international textile consultant we interviewed pointed
out that sustainable products depend on the values perceived
by consumers. The process integrates two dimensions, one a
“material value” (i.e. the product per se), the other an
“immaterial value” consisting of the cultural and ethical
aspects. MF, as well as the garment companies and retailers we
interviewed, support the platform “Fashion for Water” a
meeting point for players in the fashion market. Companies
that sign up commit themselves to the conscientious use of
water throughout the supply chain. This platform encourages
discussion of the theme and provides an “action arena” in
which companies and institutions can share information about
water-saving practices. Through newsletters and reports,
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consumers registered on the platform have access to
information and can participate with questions, ideas,
criticisms and complaints to the textile companies.
4.2 Increasing the capacity for developing a sustainable
product-service system
Manufacturing a sustainable denim product requires inputs
like water, cotton, indigo and other specific components. MF is
a B2B multinational with significant influence over the supply
chain and has several sustainable products within its portfolio,
so-called “eco-textiles”, which mix raw cotton with recycled
cotton. The company has developed a sustainable product-
service system, including green services such as reducing,
reframing, renewing and recycling. In 2001, MF acquired
equipment capable of breaking cotton thread, but it needed to
create a reverse logistics department just to organize the burlap
supply chain. One of the green service companies we
interviewed stated that it has a partnership with garments
factories to redistribute out-of-date products, while another
reworks leftover rolls of fabric. The defibrating fabric
representative we interviewed produces yarn, which extends
the life-cycle and adds value to pieces that would otherwise be
discarded.
MF operates in a semi-arid region of northeast Brazil which
has frequent droughts, requiring the implementation of water-
security programs. In this context, product design is being
developed in the direction of creative, technical, legal and
economically viable solutions. Water-resource management
programs involve solutions for reducing water consumption,
increasing recycling and collecting and reusing rainwater. MF
had contacted suppliers, garment factories, laundries and
retailers to participate in launching the “water footprint”
project to understand the connection between consumption
activities and pressures on hydrological resources, and then
establishing a clear representation of flows along the supply
chains. The primary purpose is to identify water use in every
cycle so that MF and its stakeholders can model the average
water consumed in manufacturing its denim products.
Annually, MF captures and uses an average of 140 million liters
of rainwater, but it saves about 2.1 million liters of water per
month by reusing the treated wastewater. MF used reverse
osmosis technology to treat water and use it in its boilers, thus
saving 1.5 million liters of water per month.
Besides its efforts to become more resource-efficient, MF
also works with its clients to develop zero-discharge products.
For instance, MF launches two collections annually, for which
sales representatives supply partners with four to six cuts of
fabrics, free of charge, to be tested at the clothing production
and garment assembly. If the garment factories want to
produce a “clear piece”, the technical staff will discuss with MF
researching products and processes until a solution is reached.
MF manufactures a lighter product with less aggressive dyeing,
which the client can wash without harming the fabric, and it
substantially reduces the use of chemicals, energy, and water.
Thus, MF and its clients are working together to develop a
portfolio of product-services from a network of potential
partnerships. Critical success factors included an integrated
customer-service provider team, understanding customer-
service and inventory ordering patterns and effective contract
design. This relationship is not confined to the moment the
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Mônica Cavalcanti S
product is sold, but is a more sustained relationship which
produces higher levels of client loyalty and unique knowledge
about clients, leading to a greater potential to innovate.
The CFO of a large jeans garment factory and laundry
explained in interview that a sustainable denim product reuses
water and fabric, and uses chemicals with lower environmental
impacts. The chemicals supplier promotes safer chemicals and
drives innovation by developing textile aids from agribusiness
waste and natural dyes. The firm works in direct contact with
manufacturing companies to reduce their environmental
impacts. In this sense, the interviewed companies are
committed to the Zero Discharge of Hazardous Chemicals
(ZDHC) and the Manufacturing Restricted Substance List
(MRSL) for the apparel and footwear industry.
Regarding its social responsibilities, retailers have worked
together to establish a traceability system. ABVTEX (Brazilian
Textile Retail Association) certification is considered a
breakthrough in tackling slave and child labor in the fashion
retail value chain. This initiative seems to be a better way of
dealing with actors’ mutual dependence and system
complexities. Attempts by retailers to discuss the issue
encountered much suspicion, and nobody wanted to reveal
details of their supply chain. However, by becoming involved,
they understand how vital it is to foster accountability and
disclosure, and to build network-based sustainable solutions
that promote dignified work in the fashion production chain.
The companies that have signed up to the ABVTEX program
commit themselves to monitoring 100% of their supply chain
and to buying products only from audited and certified
companies, which is ensured through collective action based on
transparency and disclosure.
According to the Marketing and Sustainability Director of a
garment factory and famous mono-brand store selling
sustainable products, transparency regarding the social and
environmental impacts of the supply chain appeals to “natural
lifestyle consumers”. The CMO of MF pointed out a
significant question for final consumers, who, despite their
awareness, cannot differentiate between the various products.
To increase efficiency in this regard, manufacturers, garment
factories, retailers and suppliers must increase awareness of
how to make “sustainable choices” among final consumers of
their products. The Public Relations Manager of another
garment firm reinforced the importance of disclosure and
accountability, including publishing sustainability reports,
meetings and factory visits, and supporting novel networks of
stakeholders (i.e. digital influencers, stylists and fashion
bloggers) in the co-production of social and ecological values.
4.3 Establishing a business model for sustainability
The textile firms we interviewed pursue business models for
sustainability that explicitly consider, jointly, the economic
contributions to value along with the social and ecological
contributions. MF, as one of the largest textile manufacturers
in the world, has to comply with international market demand,
which means respecting labor conditions and controlling its
environmental impacts. MF has modified its business model to
become more flexible by investing in equipment, acquiring
other companies, and establishing links with the supply chain to
increase both productivity and quality. Government and social
demands have forced incumbent producers to intensify MF’s
Journal of Business & Industrial Marketing
innovation processes, improve quality and seek legal protection
for its trademarks.
MF reinforces the importance of building an organizational
culture aligned with its sustainability goals and values. MF is
the holder of an Oeko-Tex certificate, which provides the
company with international recognition confirming its
excellence regarding products that do not harm health or the
environment. Sustainability is genuinely included in the firm’s
business model. Its environmental policy is firmly committed to
reducing waste, and the company has incorporated
sustainability into its organizational culture. Since 2001, MF
has an environmental management system certified by ISO
14001, but its managers emphasize that that is not enough to
deliver a sustainable denim product. Instead, it is necessary to
incorporate long-term change in the business model, which
may have to be brought about in a stepwise and incremental
manner.
A business model for sustainability is also found in other
companies we interviewed. The Research Process Manager of
one garment firm reinforced the owner’s values of preserving
the natural environment. In Brazil, the company pioneered the
use of laser technology and ozone machines, which allowed an
Eco line of products made with “zero water disposal” to be
launched. The laser machines lighten the denim without
rinsing, promoting a “destroyed effect” in less than a minute
and thus saving energy. The ozone machine is responsible for
accentuating the denim-cleaning process without using
chemical products; the equipment has an Eco-Technology
certificate, provided by Instituto Tecnol ogico Têxtil (AITEX)
for performing without emitting toxic substances into the
atmosphere or consuming water or chemicals, and for reducing
energy consumption.
The managers we interviewed expressed concerns about
their company’s image. The CFO of a laundry pointed out that,
since 2000, they have emphasized consistency in behavior and
actively engaged in being more ethically oriented. The
Marketing and Sustainability Director of a garment factory
emphasized that they can lose clients if a subcontractor
commits any environmental or social misconduct. Both firms
decided to reject business opportunities that did not allow them
to act in accordance with their values. When it comes to
transparent dialogue with the final consumers, it is crucial to
show them the real costs of production. The CMO of MF
added that there is a challenge in combining “sustainability
speech” with production costs in negotiations. MF builds
communications with brands to guide them in understanding
that sustainability is a significant force in marketing and sales.
4.4 Developing collective actions emphasizing
collaboration
Collaborative initiatives require trust to be built among
participants by learning to work together. Multiparty
interactions in actor networks are fundamental to the
participatory processes in the textile supply chain. MF builds
on the insight that complex issues and integrated management
approaches need to take into account stakeholders’ information
and perspectives and their collaboration. Therefore,
“continuous improvement groups” regularly interact to deepen
knowledge by sharing information and seeking solutions based
on the practice of social interaction.
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In the case of wastewater, MF has developed a joint project
with Maracanaú municipality and the Ceara state
environmental agencies, the state-owned water company and
surrounding manufacturing firms. In this project, “an artificial
river” consisting of almost thirty kilometers of pipe was built to
collect wastewater and dilute it with domestic sewage. This
operation equalized the water’s pH, temperature and turbidity
before sending it to the government’s wastewater company.
Another project developed by MF in conjunction with a
technology supplier involves reducing greenhouse gas
emissions (GHG). This project involves taking CO2 emissions
from boilers, compressing them and inserting them into the
wastewater treatment system to reduce the pH. The system
bubbles up at the bottom of the tank and saves energy used in
the wastewater treatment plant’s aeration system.
Direct relationships are established with suppliers, designers,
consultants, garment manufacturing and retailers to develop
collections of sustainable products. Regarding the use of raw
materials, interviewees from garment factories pointed out the
challenges involved in reducing solid waste when designing a
collection. They emphasized the importance of creating a
network of suppliers to source sustainable raw materials and
inputs. Thus, the MF provides its customers with technical
support, material support, operational support, training
programs and technical publications.
The Research Process Manager of a large garment firm
explained the collaborative arrangements with MF to combine
their offering into a coherent, customer-aligned solution. To
operate the laser and ozone system, they needed to look to their
suppliers to provide suitable fabrics, but the collaboration with
MF led them to work together in a long-term relationship with
constant interactions. In this way, MF offers packaged services
that meet the requirements of sustainable textile and clothing
and go beyond the usual forms of supply chain management. In
addition to reinforcing the brand’s commitment to the natural
Figure 2 Framework of the dynamics and factors that facilitate collaboration in achieving sustainable solutions
Journal of Business & Industrial Marketing
environment, by being part of the “Fashion for Water”
platform, retailers, garment factories and MF reinforce
collaborative movement to generate transformative results.
This draws attention to the fact that the movement is
collaborative and has partners from different sectors of the
fashion industry.
5. Discussion
In this section, we revisit our findings and discuss them in
relation to the proposed analytical framework (Figure 2) and
the research questions posed at the outset. Our research
contributes to the existing literature by applying the CSR and
strategic net approaches to the study of the implementation of
an S.PSS. Taking the case of the Brazilian textile and clothing
industry, we provide key factors to understand the development
of S.PSS and show how sustainable solutions are not solely an
issue of unilateral or bilateral adjustments between MF and the
garment factory or retailer, but one that entails collaborative
arrangements within the strategic net.
5.1 Key factors in sustainable product-service system
development through the lenses of corporate social
responsibility
Figure 2 sheds light on the key factors in S.PSS development in
relation to CSR requirements. Our analytical framework
consists of three key articulated factors to promote S.PSS,
including responsibility of business; collaboration; and business
model for sustainability. Moreover, we identified four elements
essential for running an S.PSS: traceability, disclosure,
accountability and transparency. These factors reflect the
conditions under which a sustainable business performance can
be achieved.
We can begin to examine our framework in relation to the
way “Responsibility of Business” is built. Our findings take into
account social interest and regulatory requirements, as
 Sustainable solutions in the textile industry
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proposed by Matten and Moon (2020), in addition to core
business stakeholders demands. As emphasized by Ferro et al.
(2017), market, social and focal company stakeholders are
taken into account more than upstream and downstream
stakeholders in supply chains when it comes to companies’
efforts to establish CSR. Actions are fostered by social
responsibility, which fuels legitimacy, trust and consistency in
the value chain (Biggemann et al., 2014). In Brazil, weak
enforcement of regulations has allowed more discretionary
attitudes by companies (Abreu et al., 2015). As a consequence,
responses to CSR by the textiles and clothing industry are
driven by the behavior of the various actors involved in social
governance.
The second key factor involves “Collaboration”, addressed
by “trust building”, which “strengthens common goals
concerning sustainability” and enhances the “learning
perspective”. Kumar et al. (2016) showed that a collaborative
culture and relationship strengthens the roles in supply
chain collaboration, which our findings corroborated. Trust
among companies is characterized by open and honest
communication, entering into agreements and coordinating
tasks (Currall and Judge, 1995), which our interviewees
stressed as determining factors. Our data suggest that a
collaborative decision-making process is fundamental to social
learning, as its participants contribute to mutual perceptions of
problems. Pahl-Wostl et al. (2007) proposed that social
learning can provide empathy, trust, shared understandings
and consensus throughout the negotiating process. Vezzoli
et al. (2015) stressed that developing and delivering an S.PSS
requires strong collaboration to be built among the actors
involved. Thus, the solution network’s common goal is to
provide a dedicated solution for a customer (Cova et al., 2020).
Turning to the roots of the analytical framework, the third
factor involves a “Business Model for Sustainability”. MF, the
garment companies and the retailers are continually shifting the
form and content of their respective business models to adapt
to their counter-party’s needs and the market context. How this
process evolves depends on context, thanks to the flexibility of
internal and external configurations, not only for suppliers and
buyers but also market-wide (Spencer and Cova, 2012).
According to Schneider and Clauß (2019), the business model
for sustainability needs managers to keep their behavior
consistent, search for like-minded partners, and increase the
creation of social and ecological value. Our findings
corroborate those of Zott and Amit (2010) in that they
conceptualize a firm’s business model as a system of
interdependent activities that transcend the focal firm and span
its boundaries.
In the center of Figure 2, an S.PSS is shown that is involved
in physical goods and business-to-business services, attending
to different expectations regarding business responsibilities. We
found that traceability, transparency, disclosure and
accountability are essential factors in guaranteeing a
sustainable product. Our data showed that the fear of sharing
sensitive information about companies’ processes, products
and technologies had been overcome by fostering
accountability and disclosure in the supply chain. This finding
is in line with those of Burritt and Schaltegger (2010), who
argue that the management challenges connected with
accounting for corporate sustainability are in designing an
Journal of Business & Industrial Marketing
information management approach. This is linked to the
relevant sustainability issues the company is confronted with
and clearly shows the relevance of the information for corporate
success.
We noticed that retailers have to develop systems for
monitoring and managing the product’s condition at suppliers’
and subcontractor’s sites, as well as on their own, through an
auditing process such as ABVTEX Certification. MF holds an
Oeko-Tex certificate and ISO 14001, widely used to verify the
sustainability aspects of raw materials or final products to other
supply-chain members and end-users. The “water footprint”
assessments developed by MF are an example of the
participation of all supply-chain actors, alongside an efficient
traceability system to monitor and analyze several aspects of
industrial water consumption. In line with Kumar et al. (2017),
our research showed that retailers are expected to be the
primary beneficiaries of traceability, as the consumer associates
the whole supply chain with the brand’s identity. However,
they stressed that most of the above initiatives are incomplete or
inappropriate without transparency in the supply chain.
To the right of Figure 2, we assume that S.PSS improves the
business’s credibility as a mediator for sustainable value,
stemming from three sources: social legitimacy, business
performance and regulatory approval. Social legitimacy
emerges when the company acts in accordance with the “right
thing to do” and, through network collaboration, persuades
other actors to aim to achieve the same outcome. Business
performance is the result achieved by companies when their
product-oriented business model changes in the direction of an
S.PSS business model and reflects the efforts of all the actors
involved in the network. Thus, companies obtain a “social
license to operate” by observing the regulatory requirements.
Schneider and Clauß (2019) pointed out that credibility may
result from a firm’s consistency of behavior, the recognition and
reputations of its partners, and the ecological and social value
the firm has already created.
5.2 Strategic network changes that develop sustainable
solutions
The dynamics of the relationships we observed in the Brazilian
textile and clothing industry show that sustainable solutions
require diverse types of network and governance levels.
Collaboration and collective actions to reach sustainable
solutions occur not just in the layer of firms in the supply chain
but also in the strategic net. These interactions seem to confirm
MF’s critical ability to effectively engage in a long-term
commitment and relationship, in line with the suggestions of
Huikkola and Kohtamäki (2017).
The different combinations established and managed by MF
translate in turn as strategic nets to handle raw materials,
inputs, processes and services in the form of a “Eco Recycle”
line. The solution provider plays the role of the architect in
shaping product development, technology or processes to
reuse, reduce and optimize resources. Based on efforts to
establish ABVTEX Certification, we found that MF, suppliers,
garment companies and retailers are developing focal or
strategic nets with different control levels to promote
sustainable fashion, as proposed by Jussila et al. (2016) and
Möller and Halinen (2017). ABVTEX encourages dialogue
 Sustainable solutions in the textile industry
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Mônica Cavalcanti S
throughout the fashion value chain and promotes initiatives
regarding compliance, responsible supply and dignified labor.
Direct and indirect influence on network constellations to
deal with social and environmental issues already exists. For
example, MF has designed a network arrangement for treating
wastewater, which interacts with local government and
surrounding manufacturing companies as critical partners in
building an artificial river. In this network, the local
government can be a member (i.e. as a government wastewater
treatment company) of one of MF’s strategic nets or act as a
“network driver” enforcing the legal requirements. In the
“Fashion for Water” platform, social media, consulting firms,
MF, garment factories and retailers can directly or indirectly
influence the demand for low-water jeans, thus reinforcing
customers’ awareness and interests. They work collaboratively
to draw attention to water scarcity. The common goal of the
solution net is one of providing a sustainable fashion, as
highlighted by Möller and Rajala (2007).
While providing sustainable solutions, firms, as parties to a
focal net, also shape the market and are influenced by it (Spencer
and Cova, 2012). External factors relating to inter-firm
dynamics, such as the types of interaction developed, accessibility
to resources and capabilities, and sources of competitive
advantage, continuously influence relations between MF and its
stakeholders. Following Cova et al. (2020), our results show that,
by combining the elements of product and support services, firms
in the textile and clothing industry are increasingly becoming
solution integrators. The focal nets for sustainable solutions
should also be understood as dynamic and capable of change.
6. Conclusion
This paper has demonstrated the inter-firm dynamics and
factors that support collaborative, sustainable solutions. For
this purpose, we studied business relationships that build an
S.SPS through the lenses of CSR, focusing not only on tangible
products but also on intangible services designed and
combined so that they are jointly capable of fulfilling
customer’s needs and creating social and ecological value.
Thus, we propose a framework based on mutual commitment
and the interdependence of relationships between the
manufacturing firm and its stakeholders that reflects the
conditions required to achieve sustainable business
performance.
Managers within the solution provider must develop
business models for sustainability that are continually evolving
to maintain the external fit with the firm’s core business
stakeholders, society and government. The external fit is not
unidirectional but rather a reciprocal fit between the multiple
actors involved in the S.PSS, which is subject to constant shifts
over time and can highlight different network arrangements for
handling sustainable solutions.
This research is not without its limitations. First, it relies on
self-reports provided by company managers, but it also
attempts to confirm their practices, asking for evidence,
analyzing documents and making site visits. Another limitation
is that the investigation was conducted only in the context of
the Brazilian textile and clothing industry. Further research
might be undertaken in other industries and/or countries to
provide a deeper understanding of how collaborative
Journal of Business & Industrial Marketing
arrangements can be developed to produce more sustainable
solutions.
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Corresponding author
a de Abreu can be contacted at:
Mônica Cavalcanti S
mabreu@ufc.br