Exploring paradoxical tensions in scaling circular business models within the textile and clothing industry

Abstract

The Textile and Clothing (T&C) industry is increasingly adopting circular business models (CBMs) to promote sustainable production and consumption. However, scaling CBMs within this sector remains challenging, mainly due to conflicts in organizational objectives, product designs, and value chain structures, resulting in paradoxical tensions (PTs). The purpose of this study is to explore PTs that hinder the scaling of CBMs in the T&C industry. The methodology adopted a two-stage approach: first, through a critical literature review, seven key PT categories affecting CBM scaling were identified, and secondly, semi-structured interviews were conducted with T&C industry actors for in-depth exploration. By applying paradox theory, this study revealed that PTs are more prevalent at the product and process levels. At the product level, PTs impacted scaling CBMs both within inner loops (repair and reuse) and outer loops (recycling), driven by socio-environmental and economic conflicts, classified as performing paradoxes. Scaling recycling is hindered due to trade-offs in technology selection for higher market uptake, lack of infrastructure, and challenges in choosing between local and global value chains, classified as organizing PTs. Our findings emphasize the importance of inter-class organizing-performing paradoxes, which obstruct the scaling of sequential loops like reuse-recycling. Furthermore, implicit belonging and learning PTs became apparent alongside other paradoxes, such as performing-belonging and organizing-learning. While belonging PTs arose at the stakeholder level due to identity tensions, learning PTs stemmed from insufficient data, knowledge, and technology. Based on the findings, this study contributed to developing four propositions explaining the impact of PTs in scaling T&C CBMs. These findings provide valuable insights for T&C actors to strategically plan and scale CBMs while understanding and navigating PTs. This is of crucial significance for policymakers in formulating effective policies supporting the scaling of CBMs within the T&C industry.