Natural resource-based view in sustainability practices among U.S. fashion businesses: insights from fashion entrepreneurs

Fashion small businesses (FSBs) play an increasingly important role in advancing sustainability within the fashion industry, yet little is known about how they leverage sustainability as a source of competitive advantage. Drawing on the Natural Resource-Based View (NRBV) and Dynamic Capabilities theory, this study examines how U.S. fashion small businesses integrate sustainability into their business models and develop sustainability-related competitive advantages. Using qualitative, semi-structured interviews with 13 CEOs and founders across diverse segments of the U.S. fashion industry, this study identifies distinct entrepreneurship types and examines how each exploits NRBV resources and dynamic capabilities in sustainability practices. The findings reveal five entrepreneurship types—SME, SME with social entrepreneurship orientation (SME-SE), SME with environmental entrepreneurship orientation (SME-EE), Innovation-Driven Enterprise (IDE), and IDE with environmental entrepreneurship orientation (IDE-EE). The results further show that clean technology serves as the primary distinguishing resource between SME- and IDE-oriented firms, while SMEs primarily leverage pollution prevention and product stewardship through locally embedded business ecosystems. In addition, firms with stronger dynamic capabilities are more likely to integrate sustainability into their core business models and develop long-term competitive advantages through resource reconfiguration and innovation. This study extends the NRBV literature by providing an empirically grounded typology of U.S. fashion small businesses and demonstrating how entrepreneurship orientation shapes the development of sustainability resources and dynamic capabilities. The findings offer practical guidance for fashion entrepreneurs, industry practitioners, and policymakers seeking to strengthen sustainability transitions among small businesses.