Social, environmental, and economic value in sustainable fashion business models

The aim of this paper is to advance research on sustainability within the fashion industry by explaining the combinations of social, environmental, and economic values that form the basis of sustainable business models in the Nordic fashion industry and to identify the main challenges fashion companies face in developing such models, given the limitations in current literature. Through an industry -focused case study of the Nordic fashion industry, recognized for its homogeneity and sustainability leadership, this study investigates how Nordic fashion companies collectively create value through the lens of the value mapping tool. The study adopts an inductive approach through eleven in-depth interviews with experts, managers, and owners. Additionally, it integrates secondary data derived from published information, enhancing the understanding of what sustainable business models in the Nordic fashion industry entail. The analysis enabled the identification of twenty-six elements related to the durability and longevity of products and gender -neutral and timeless design. The results suggest that a more holistic approach to sustainability is needed to facilitate the companies' move from unsustainable business models to more sustainable ones. This article contributes to the literature by identifying broader patterns of value creation, value delivery, and value capture within the Nordic fashion industry. Furthermore, it enhances knowledge of social and environmental actions surrounding and examines barriers to sustainability activities. The practical contribution arises from the provision of a better understanding of the key elements in sustainable fashion business models of Nordic fashion companies, and thus, it is relevant to academia, practitioners, and policymakers.