Active listening to customers: eco-innovation through value co-creation in the textile industry

Abstract

Purpose This study contributes to current efforts to design and implement sustainable innovation strategies in organisations from the textile industry. This study aims to examine how businesses can overcome the current challenges (e.g. lack of resources) of sustainable innovation by the incorporation of green knowledge of customers into their value co-creation strategies. Such strategies are based on actively listening to customers and addressing their expectations with regard to environmental sustainability, in particular in the face of the negative environmental impact of the fast-fashion industry. Design/methodology/approach The findings of this study are derived from the analysis of data collected from 208 small and medium enterprises (SMEs) in the Spanish textile sector. A partial least squares structural equation modeling analysis was conducted using version 3.3.3 of the SmartPLS software. Findings This paper contributes to the literature on environmental sustainability by informing SME eco-innovation through the active listening of their customers’ perceptions while implementing value co-creation strategies. The research has found that engaging with customers and actively listening and addressing their expectations can result in the creation of green knowledge that contributes to both incremental and radical eco-innovation in the textile sector. Practical implications This study found that when organisations from the sector lack eco-innovation capabilities, their existing and often their potential customer base is able to acquire new environmental knowledge and transfer it to the business through a process of value co-creation. The research also found that such green knowledge has the potential to lead to eco-innovation in the sector. In other words, the value co-creation process between the textile industry and its customers is a driver of the eco-innovations required to reduce the environmental impact of the sector, helping it address both its sustainability and its ethical challenges. Originality/value This study proposes that co-creation challenges such as the lack of resources, funding, qualified staff or technologies motivate companies in the textile sector to collaborate with their customers to seek joint solutions.

Are consumers willing to co-create value when focal firms' suppliers are proactive in green innovation? A chain liability and green halo effect

“…The higher the perception of green sincerity toward the focal firm, the higher the consumers' willingness for value co-creation. Furthermore, previous research indicates that individual firms engaging in Green innovation and value cocreation GI can stimulate consumers' positive willingness for value co-creation (Mart ınez-Mart ınez et al, 2023). We extend the research scope from a single firm to the entire supply chain, examine the chain-mediated mechanism of supplier GI and find that the green sincerity perception toward the focal firm positively influences consumers' willingness for value cocreation through the halo effect.…”

“…The green sincerity perception is the conduit through which the “chain liability effects” of the green supply chain are transmitted to consumers of the focal firm and the antecedent for the emergence of the “green halo effect.” The higher the perception of green sincerity toward the focal firm, the higher the consumers' willingness for value co-creation. Furthermore, previous research indicates that individual firms engaging in GI can stimulate consumers' positive willingness for value co-creation (Martínez-Martínez et al. , 2023).…”

Group think or shared endeavors?

“…They can replicate what others have found successful, but in an increasingly crowded market, that is not typically a successful direction to take. The work of Martínez-Martínez et al (2022) has shown that small- to medium-sized enterprises (SMEs) in the Spanish textile industry can benefit from active listening to their customers. This is a form communication that is two sided (unlike what someone might consider “normal” listening, which is a passive single-sided activity), whereby both sides prepare and then engage in information transmission, with the receiving side making sure to respond with actions to take forward to demonstrate that they have actively taken in the information the other party wanted to share.…”

Investigating Sustainable Business Ecosystems and the University Role: A Cluster Analysis

“…Trust is a critical factor in digital business ecosystems, as it enables businesses to work together effectively and to share data and information securely. Value co-creation refers to the process of creating value together with customers, suppliers, and other stakeholders, which can help to build trust and foster collaboration in the ecosystem (Martinez-Martinez et al, 2022). Overall, these keywords are interrelated and play important roles in the development and growth of digital business ecosystems, as they enable businesses to collaborate effectively, create new value, and drive progress towards a more sustainable future.…”