Managing Open Twin Transition in SMEs: a Case Study in Fashion Industry

According to the French Agency for Ecological Transition, ADEME, the textile sector is projected to contribute to 26% of global greenhouse gas emissions by 2050, highlighting the significance of sustainable fashion. The current market, influenced by increasingly conscientious consumers seeking transparency regarding product origins and production conditions, alongside stricter regulations, compels fashion companies to diminish their environmental footprint by embracing progressively sustainable and eco-friendly practices. With the ability to purchase garments online from anywhere in the world, the necessity of providing clear and accurate information to customers and the supply chain about product features through a document in a smart format has become essential. Consequently, digitization has become imperative in the fashion industry, with the digital passport serving as a pivotal milestone in advancing towards an eco-friendly and more digitalized sector. However, small, and medium-sized enterprises (SMEs) face an uncertain landscape where standards and technologies may not always be mature or readily accessible. Furthermore, limited internal expertise and scarce financial resources often pose challenges in independently developing new technological solutions. One proposed solution is to adopt open innovation approaches. This qualitative research study employs a single case study approach, presenting insights from a small enterprise in the fashion industry specializing in label printing. Utilizing primary data sources such as multiple interviews with managers and secondary sources like detailed briefings of company meetings with technological partners and machinery suppliers, the study aims to shed light on the initial phase of an open innovation approach by SMEs amidst the challenges of twin transition. It highlights that the shift from internal RD& to open innovation is not a direct one, but an iterative one. Scholars will gain a deeper understanding of open innovation mechanisms within SMEs, while practitioners will gain insights into building innovation networks to navigate twin transition challenges.