Organizational Capabilities in Circular Technology Innovation in Textile Ecosystems
Author
Term
4. Term
Publication year
2025
Submitted on
2025-06-02
Pages
77
Abstract
My thesis investigates how organizational capabilities, and institutional structures influence the circularity innovation strategies (CIS) of supplier firms in the textile industry. It addresses two research questions: (1) How do organizational capabilities shape firms’ ability to either develop (internally) or acquire (externally) circular technology innovations (CTIs)? and (2) How do institutional structures influence circularity innovation strategies within textile ecosystems? Using a comparative case study of DBL Textiles in Bangladesh and Fibertex Personal Care in Denmark, I show that CTI adoption is not solely a function of firm-level intent or technical capacity but emerges through the complementarity between organizational institutional structures and organizational capabilities. The findings demonstrate that organizational institutional conditions shape how firms coordinate, learn, and reconfigure, which further plays a role in which type of innovation strategy the firm pursues, and that buyer firms can play a role in enabling capability upgrading in supplier firms. The thesis extends Whitley’s innovation strategy typology by introducing institutional complementarity as a mediating force and by proposing buyer-enabled capability upgrading as a dynamic mechanism for strategic transformation. It concludes that CIS is not a static function of institutional fit but can evolve through inter-firm support within global supply chains.
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