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Sustainable Value Creation In The Fashion Industry By Means Of Digitalisation €” Towards Innovation Driven Business Models

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  • LOUISA VON DER ASSEN

    (Faculty of Economics and Social Science, University of Potsdam, 14482 Potsdam, Germany)

Abstract

The fashion industry is confronting significant sustainability challenges due to its negative environmental impacts and excessive material consumption, leading to waste generation and exacerbating climate change. To address these challenges, the integration of digitisation, economic, and ESG (Environmental, Social, and Governance) criteria into the value creation process is crucial. The DSE-CUBE framework highlights various aspects of sustainable value creation within the industry. Companies excelling in all three dimensions — economic, digital, and sustainable are recognised as “Overall Value Champions†and may gain sustainable competitive advantages. It is crucial for fashion companies not to focus solely on one dimension, which could result in deficits in other areas. Instead, they should close value creation gaps to achieve the status of †Economic and Digital Champions†or “Economic and ESG Champions†. A balanced approach considering all three dimensions is essential for long-term success and sustainability in the fashion industry.

Suggested Citation

  • Louisa Von Der Assen, 2025. "Sustainable Value Creation In The Fashion Industry By Means Of Digitalisation €” Towards Innovation Driven Business Models," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 29(05n06), pages 1-20, June.
    • Handle: RePEc:wsi:ijimxx:v:29:y:2025:i:05n06:n:s1363919625400109
    DOI: 10.1142/S1363919625400109
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