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The relationship between upstream vertical integration and environmental sustainability in the luxury fashion industry

Author

Listed:
  • Angelo Arcuri

    (European School of Economics)

  • Lorenzo Giolli

    (European School of Economics)

Abstract

Luxury fashion firms increasingly incorporate the principles of environmental sustainability into their supply chain strategies in response to a growing demand for sustainable products. Starting from this premise, the present study explores the relationship between upstream vertical integration and environmental sustainability in the luxury fashion industry. Based on data from a survey and a set of interviews, this paper examines the link between firm size and the importance of environmental sustainability as a driver of upstream integration. In addition, it investigates the connection between the degree of upstream integration and manufacturers’ environmental sustainability performance. According to the research results, large corporations attach greater importance than SMEs to environmental sustainability when considering an upstream integration process. Also, higher levels of vertical integration are positively associated with better sustainability performances.

Suggested Citation

  • Angelo Arcuri & Lorenzo Giolli, 2022. "The relationship between upstream vertical integration and environmental sustainability in the luxury fashion industry," SN Business & Economics, Springer, vol. 2(7), pages 1-20, July.
    • Handle: RePEc:spr:snbeco:v:2:y:2022:i:7:d:10.1007_s43546-022-00252-z
    DOI: 10.1007/s43546-022-00252-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Upstream vertical integration; Sustainability; Manufacturing; Fashion; Luxury;
    All these keywords.

    JEL classification:

    • L00 - Industrial Organization - - General - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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