Organizational Capabilities in Circular Technology Innovation in Textile Ecosystems
Author
Faruqui, Md Faik Hamza
Term
4. Term
Publication year
2025
Submitted on
2025-06-02
Pages
77
Abstract
This thesis examines what shapes the circularity innovation strategies (CIS) of textile supplier firms—that is, how they plan and organize innovations that keep materials in use and reduce waste. It addresses two questions: (1) how internal skills and routines (organizational capabilities) affect whether firms develop circular technology innovations (CTIs) in-house or obtain them externally; and (2) how broader institutional structures—laws, standards, and industry norms—within textile ecosystems influence these strategies. The analysis compares two cases: DBL Textiles in Bangladesh and Fibertex Personal Care in Denmark. The study shows that adopting CTIs is not only about a firm’s intentions or technical know-how. Adoption emerges from the complementarity between a firm’s capabilities and the institutional conditions it operates within. These conditions shape how firms coordinate with partners, learn, and reconfigure their activities, which in turn steers them toward different types of innovation strategies. The findings also indicate that buyer firms (customers) can help supplier firms upgrade their capabilities, enabling strategic shifts. The thesis extends Whitley’s innovation strategy typology by adding institutional complementarity as a mediating factor and by highlighting buyer-enabled capability upgrading as a dynamic mechanism for strategic transformation. Overall, CIS is not a fixed outcome of institutional fit; it can evolve through support between firms across global supply chains.
Mit speciale undersøger, hvad der former leverandørers cirkularitets-innovationsstrategier (CIS) i tekstilbranchen – altså hvordan de planlægger og organiserer innovationer, der holder materialer i kredsløb og mindsker spild. Jeg stiller to spørgsmål: (1) hvordan interne færdigheder og rutiner (organisatoriske kapabiliteter) påvirker, om virksomheder udvikler cirkulære teknologiske innovationer (CTI'er) internt eller anskaffer dem eksternt; og (2) hvordan bredere institutionelle strukturer – love, standarder og branchens normer – i tekstiløkosystemer påvirker disse strategier. Analysen bygger på et komparativt casestudie af DBL Textiles i Bangladesh og Fibertex Personal Care i Danmark. Studiet viser, at CTI-implementering ikke kun handler om en virksomheds intentioner eller tekniske kunnen. Implementeringen opstår gennem komplementariteten mellem virksomhedens kapabiliteter og de institutionelle betingelser, den opererer under. Disse betingelser former, hvordan virksomheder koordinerer med partnere, lærer og omstiller deres aktiviteter, og det påvirker, hvilken type innovationsstrategi de vælger. Resultaterne peger også på, at købervirksomheder (kunder) kan hjælpe leverandører med at opgradere deres kapabiliteter og dermed muliggøre strategiske skift. Specialet udvider Whitleys typologi for innovationsstrategier ved at introducere institutionel komplementaritet som en mellemliggende faktor og ved at fremhæve køber-understøttet kapabilitetsopgradering som en dynamisk mekanisme for strategisk forandring. Overordnet er CIS ikke et statisk resultat af institutionel tilpasning; det kan udvikle sig gennem støtte mellem virksomheder i globale forsyningskæder.
[This apstract has been rewritten with the help of AI based on the project's original abstract]
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