A boundary perspective on sustainable business models: insights from the Nordic fashion industry

Purpose This study aims to explore how sustainable business models reshape, and are reshaped by, the boundaries of efficiency, power, competence and identity in the fashion industry. Moreover, it provides new insights into the challenges emerging from redesigning the fenceposts of existing business models. Design/methodology/approach The paper utilises an industry-level study from the Nordic fashion industry, drawing on primary and secondary data. Findings The findings demonstrate that sustainable fashion business models challenge the boundaries of power with the idea of production quotas to enhance sustainability and reduce waste. These quotas, aimed at improving environmental practices, might create uncertainty in recycling policies, impacting fashion industry environmental efforts and societal sustainability expectations. The paradox within the industry’s efforts to reshape its identity involves promoting responsible consumption through repair services while driving mass consumption with frequent seasonal releases. Research limitations/implications Managerial implications highlight the importance of prioritising sustainability to enhance efficiency, drive positive change, develop competencies and shape brand identity. This study contributes to the existing literature by introducing a novel boundary-oriented perspective for evaluating sustainable fashion business models. Practical implications This study contributes to the existing literature by introducing a novel boundary-oriented perspective for evaluating sustainable fashion business models. Originality/value This study offers empirical evidence based on an industry-level study from the fashion industry. It provides a new perspective by analysing the context of how sustainable business models reshape and are reshaped by organisational boundaries in the fashion industry.