IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i18p10202-d634213.html
   My bibliography  Save this article

Transition to the Circular Economy in the Fashion Industry: The Case of the Inditex Family Business

Author

Listed:
  • Karina Nicolle Esbeih

    (Department of Management, University of Granada, 18071 Granada, Spain)

  • Valentín Molina-Moreno

    (Department of Management, University of Granada, 18071 Granada, Spain)

  • Pedro Núñez-Cacho

    (Polytechnic School of Linares, University of Jaén, 23071 Jaén, Spain)

  • Bruna Silva-Santos

    (Polytechnic School of Linares, University of Jaén, 23071 Jaén, Spain)

Abstract

Society is increasingly concerned about aspects of work related to sustainability. This leads organizations to reflect on the economic, environmental, and social problems that affect both current and future generations. When companies identify an environmental problem, they try to respond to it through changes in their environmental policies, aiming at the transition towards sustainability. In this context, the circular economy appears as a regenerative industrial system that replaces the concept of “end of life” with that of “restoration”. It is oriented to the use of renewable energies, eliminating the use of toxic chemicals, which are harmful to reuse. The theory of socio-emotional wealth describes the behavior patterns of family businesses in response to the environmental changes that occur and the reasons derived from the family character that make them move towards the circular economy model. This article studies the case of the Spanish textile manufacturing and distribution multinational Inditex, analyzing the information collected in its environmental balances in the period 2013–2018. The analysis allows us to observe the speed of Inditex’s transition to the circular economy. For this, transition speed indicators were formed in each of the dimensions of the circular economy model. The results of the study indicate areas in which the company is moving faster and those in which more effort is needed. Finally, a collection of good practices related to the CE used by Inditex is provided.

Suggested Citation

  • Karina Nicolle Esbeih & Valentín Molina-Moreno & Pedro Núñez-Cacho & Bruna Silva-Santos, 2021. "Transition to the Circular Economy in the Fashion Industry: The Case of the Inditex Family Business," Sustainability, MDPI, vol. 13(18), pages 1-18, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:18:p:10202-:d:634213
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/18/10202/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/18/10202/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pedro Núñez-Cacho & Valentín Molina-Moreno & Francisco A. Corpas-Iglesias & Francisco J. Cortés-García, 2018. "Family Businesses Transitioning to a Circular Economy Model: The Case of “Mercadona”," Sustainability, MDPI, vol. 10(2), pages 1-19, February.
    2. Caniato, Federico & Caridi, Maria & Crippa, Luca & Moretto, Antonella, 2012. "Environmental sustainability in fashion supply chains: An exploratory case based research," International Journal of Production Economics, Elsevier, vol. 135(2), pages 659-670.
    3. Isabelle Maignan & David A Ralston, 2002. "Corporate Social Responsibility in Europe and the U.S.: Insights from Businesses' Self-presentations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 497-514, September.
    4. Carmelo Cennamo & Pascual Berrone & Cristina Cruz & Luis R. Gomez–Mejia, 2012. "Socioemotional Wealth and Proactive Stakeholder Engagement: Why Family–Controlled Firms Care More about their Stakeholders," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1153-1173, November.
    5. Suocheng Dong & Zhe Wang & Yu Li & Fujia Li & Zehong Li & Feng Chen & Hao Cheng, 2017. "Assessment of Comprehensive Effects and Optimization of a Circular Economy System of Coal Power and Cement in Kongtong District, Pingliang City, Gansu Province, China," Sustainability, MDPI, vol. 9(5), pages 1-16, May.
    6. Cristina Cruz & Martin Larraza–Kintana & Lucía Garcés–Galdeano & Pascual Berrone, 2014. "Are Family Firms Really More Socially Responsible?," Entrepreneurship Theory and Practice, , vol. 38(6), pages 1295-1316, November.
    7. Debicki, Bart J. & Kellermanns, Franz W. & Chrisman, James J. & Pearson, Allison W. & Spencer, Barbara A., 2016. "Development of a socioemotional wealth importance (SEWi) scale for family firm research," Journal of Family Business Strategy, Elsevier, vol. 7(1), pages 47-57.
    8. Breton-Miller, Isabelle Le & Miller, Danny, 2016. "Family firms and practices of sustainability: A contingency view," Journal of Family Business Strategy, Elsevier, vol. 7(1), pages 26-33.
    9. Schembri, Joe & Tang, Yee Kwan & Fletcher, Margaret & Dimitratos, Pavlos, 2019. "How do European trade promotion organisations manage their stakeholders?," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    10. William S. Schulze & Michael H. Lubatkin & Richard N. Dino & Ann K. Buchholtz, 2001. "Agency Relationships in Family Firms: Theory and Evidence," Organization Science, INFORMS, vol. 12(2), pages 99-116, April.
    11. Eddleston, Kimberly A. & Kellermanns, Franz W., 2007. "Destructive and productive family relationships: A stewardship theory perspective," Journal of Business Venturing, Elsevier, vol. 22(4), pages 545-565, July.
    12. Thomas M. Zellweger & Robert S. Nason & Mattias Nordqvist & Candida G. Brush, 2013. "Why Do Family Firms Strive for Nonfinancial Goals? An Organizational Identity Perspective," Entrepreneurship Theory and Practice, , vol. 37(2), pages 229-248, March.
    13. Olson, Patricia D. & Zuiker, Virginia S. & Danes, Sharon M. & Stafford, Kathryn & Heck, Ramona K. Z. & Duncan, Karen A., 2003. "The impact of the family and the business on family business sustainability," Journal of Business Venturing, Elsevier, vol. 18(5), pages 639-666, September.
    14. Núñez-Cacho Utrilla, Pedro & Grande Torraleja, Félix Ángel, 2013. "The importance of mentoring and coaching for family businesses," Journal of Management & Organization, Cambridge University Press, vol. 19(4), pages 386-404, July.
    15. Manuel Vallejo, 2008. "Is the Culture of Family Firms Really Different? A Value-based Model for Its Survival through Generations," Journal of Business Ethics, Springer, vol. 81(2), pages 261-279, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Osmud Rahman & Dingtao Hu & Benjamin C. M. Fung, 2023. "A Systematic Literature Review of Fashion, Sustainability, and Consumption Using a Mixed Methods Approach," Sustainability, MDPI, vol. 15(16), pages 1-37, August.
    2. Víctor Fernández & Elena Laborda & Felipe Del-Busto & Carmen Bartolomé, 2023. "Social Perspectives towards Biobased Products and Textiles," Sustainability, MDPI, vol. 15(3), pages 1-24, January.
    3. Elena Laborda & Felipe Del-Busto & Carmen Bartolomé & Víctor Fernández, 2023. "Analysing the Social Acceptance of Bio-Based Products Made from Recycled Absorbent Hygiene Products in Europe," Sustainability, MDPI, vol. 15(4), pages 1-38, February.
    4. Garusinghe Dewa Ayesha Udari Garusinghe & Balasooriya Arachchige Kanchana Shiromi Perera & Umesha Sasanthi Weerapperuma, 2023. "Integrating Circular Economy Principles in Modular Construction to Enhance Sustainability," Sustainability, MDPI, vol. 15(15), pages 1-25, July.
    5. Kurniawati, 2023. "Sustainable Textile Practices by Integrated Viscose Rayon and Yarn Producers: An Empirical Study," GATR Journals jfbr210, Global Academy of Training and Research (GATR) Enterprise.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pedro Núñez-Cacho & Valentín Molina-Moreno & Francisco A. Corpas-Iglesias & Francisco J. Cortés-García, 2018. "Family Businesses Transitioning to a Circular Economy Model: The Case of “Mercadona”," Sustainability, MDPI, vol. 10(2), pages 1-19, February.
    2. Christian Espinosa-Méndez & Carlos P. Maquieira & José T. Arias, 2023. "The Impact of ESG Performance on the Value of Family Firms: The Moderating Role of Financial Constraints and Agency Problems," Sustainability, MDPI, vol. 15(7), pages 1-20, April.
    3. Carlos de las Heras-Rosas & Juan Herrera, 2020. "Family Firms and Sustainability. A Longitudinal Analysis," Sustainability, MDPI, vol. 12(13), pages 1-27, July.
    4. Cox, Kevin C. & Lortie, Jason & Marshall, David R. & Kidwell, Roland E., 2022. "Beyond the balance Sheet: The effects of family influence on social performance," Journal of Business Research, Elsevier, vol. 143(C), pages 318-330.
    5. Alvaro Rojas & Daniel Lorenzo, 2021. "Environmental and Social Goals in Spanish SMEs: The Moderating Effect of Family Influence," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    6. Melanie Richards, 2023. "When do Non-financial Goals Benefit Stakeholders? Theorizing on Care and Power in Family Firms," Journal of Business Ethics, Springer, vol. 184(2), pages 333-351, May.
    7. Victoria Antin Yates & James M. Vardaman & James J. Chrisman, 2023. "Social network research in the family business literature: a review and integration," Small Business Economics, Springer, vol. 60(4), pages 1323-1345, April.
    8. Roland Kidwell & Franz Kellermanns & Kimberly Eddleston, 2012. "Harmony, Justice, Confusion, and Conflict in Family Firms: Implications for Ethical Climate and the “Fredo Effect”," Journal of Business Ethics, Springer, vol. 106(4), pages 503-517, April.
    9. Mumin Dayan & Poh Yen Ng & Nelson Oly Ndubisi, 2019. "Mindfulness, socioemotional wealth, and environmental strategy of family businesses," Business Strategy and the Environment, Wiley Blackwell, vol. 28(3), pages 466-481, March.
    10. Cambrea, Domenico Rocco & Ponomareva, Yuliya & Pittino, Daniel & Minichilli, Alessandro, 2022. "Strings attached: Socioemotional wealth mixed gambles in the cash management choices of family firms," Journal of Family Business Strategy, Elsevier, vol. 13(3).
    11. William Nikolakis & Doina Olaru & Andreas Kallmuenzer, 2022. "What motivates environmental and social sustainability in family firms? A cross‐cultural survey," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2351-2364, July.
    12. Gregorio Sánchez-Marín & Antonio J. Carrasco-Hernández & Ignacio Danvila-del-Valle, 2020. "Effects of family involvement on the monitoring of CEO compensation," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1347-1366, December.
    13. Van Gils, Anita & Huybrechts, Jolien & Minola, Tommaso & Cassia, Lucio, 2019. "Unraveling the impact of family antecedents on family firm image: A serial multiple-mediation model," Journal of Family Business Strategy, Elsevier, vol. 10(1), pages 17-27.
    14. Francesco Aiello & Paola Cardamone & Lidia Mannarino & Valeria Pupo, 2021. "Green patenting and corporate social responsibility: Does family involvement in business matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1386-1396, July.
    15. Davila, Jessenia & Duran, Patricio & Gómez-Mejía, Luis & Sanchez-Bueno, Maria J., 2023. "Socioemotional wealth and family firm performance: A meta-analytic integration," Journal of Family Business Strategy, Elsevier, vol. 14(2).
    16. James J. Cordeiro & Giorgia Profumo & Ilaria Tutore, 2021. "Family ownership and stockholder reactions to environmental performance disclosure: A test of secondary agency relationships," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2091-2107, May.
    17. Hauck, Jana & Suess-Reyes, Julia & Beck, Susanne & Prügl, Reinhard & Frank, Hermann, 2016. "Measuring socioemotional wealth in family-owned and -managed firms: A validation and short form of the FIBER Scale," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 133-148.
    18. James J. Chrisman & Jess H. Chua & Franz Kellermanns, 2009. "Priorities, Resource Stocks, and Performance in Family and Nonfamily Firms," Entrepreneurship Theory and Practice, , vol. 33(3), pages 739-760, May.
    19. Ferreira, João J. & Fernandes, Cristina I. & Schiavone, Francesco & Mahto, Raj V., 2021. "Sustainability in family business – A bibliometric study and a research agenda," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    20. Andrea Stübner & Svenja Jarchow, 2023. "Family oblige: the link between CSR and succession intention in small and medium family firms," Journal of Business Economics, Springer, vol. 93(3), pages 389-431, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:18:p:10202-:d:634213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.