Exploring the Effects of Sustainable Innovation on a Textile Company's Business Network

ABSTRACT The study examines how a textile company's business network is affected by sustainable innovation. It investigates the impact of sustainable practices on network dynamics and a company's business network with a particular focus on the textile sector in the fashion industry. Sustainable innovation has a significant impact outside of internal operations and is motivated by the desire to increase operational efficiency and environmental performance. Studies emphasise the significance of concentration and vertical integration within corporate networks as businesses attempt to satisfy long‐term demands. Businesses can preserve critical skills and capabilities and manage resource utilisation and traceability through vertical integration. In contrast, concentration leads to a decrease in the number of actors in the network as smaller businesses that lack the funding to adhere to strict sustainability criteria leave the market. These dynamics highlight how sustainable innovation plays a dual function in strengthening and consolidating capabilities within business networks. Based on a single case study, the study's findings offer insightful information on more general tendencies that might be applicable to a variety of industries.