Dynamic capabilities approach in business model innovation: the case study of a strategic transition to technological sustainability in a portuguese textile company
Abstract
O comportamento da sociedade evolui a um ritmo frenético. Atualmente, o conceito assumido de que grupos de pessoas se comportam de forma semelhante está em decadência, e a sociedade encontra-se em transição para uma nova noção de singularidade. As motivações e perceções particulares são o que molda a conduta do indivíduo, influenciando os seus atos de compra. A atitude individualista da procura afetará a forma como a mesma é percecionada pelas tendências, dada a evolução de um comportamento generalista e de grupo para uma realidade de nicho que emerge na forma de preferências dinâmicas, não se moldando, assim, a nenhuma linha definida de tendências. A Indústria Têxtil e do Vestuário (ITV) toma este paradigma como sendo de grande importância para o desenvolvimento de modelos de negócio futuros. Ao mesmo tempo, os temas da Sustentabilidade e da Tecnologia, anteriormente tidos como macrotendências, são assumidos como constantes para a criação de valor. Assim sendo, as empresas terão de adotar estas considerações de forma a manterem os seus níveis de competitividade nos mercados globais. Ao longo deste estudo, estas transições são analisadas com o intuito de gerar uma proposta de modelo de negócio a implementar pela TMG Textiles, uma empresa têxtil estabelecida no norte de Portugal, para a resolução da sua problemática atual. Este projeto de investigação iniciou com o estudo de inputs teóricos relativos ao posicionamento de contexto e futuro previstos para a ITV nacional, considerando as perspetivas de consumidor e produtor. O estudo originou o desenvolvimento de sinergias entre os conceitos abordados e teorias de gestão estratégica, originando a sugestão de um modelo teórico alinhado ao conceito de capacidades dinâmicas e perceção de modelo de negócio inovador (MNI), em conjunto com as macrotendências da indústria. Posteriormente, recolheram-se inputs de uma amostra de especialistas da ITV através de entrevistas que validaram o modelo proposto e ofereceram novas linhas orientadoras para um novo modelo teórico prático. Foi, então, elaborado um MNI que provou como oportunidade de negócio o alinhamento entre a orientação dos negócios pelas necessidades dinâmicas da procura e a flexibilidade às mesmas. Por fim, a formulação do novo MNI sugere uma abordagem ao mercado com duas frentes para fazer face a esta realidade de transição. A primeira frente mantém os negócios nucleares da empresa, sobretudo a exploração de produtos de base algodoeira, enquanto a segunda frente transforma o material resultante da insustentabilidade da primeira em oportunidades de negócio de caracter tecnológico.
Full text
Universidade do Minho Escola de Economia e Gestão Beatriz Prisca Martins Ferreira Dynamic Capabilities approach in Business Model Innovation: the case study of a strategic transition to technological sustainability in a Portuguese textile company abril de 2022
Beatriz Prisca Martins Ferreira Dynamic Capabilities approach in Business Model Innovation: the case study of a strategic transition to technological sustainability in a Portuguese textile company Mestrado em Gestão e Negócios Projeto efetuado sob a orientação do Professor Doutor António Azevedo abril de 2022
ii DIREITOS DE AUTOR E CONDIÇÕES DE UTILIZAÇÃO DO TRABALHO POR TERCEIROS Este é um trabalho académico que pode ser utilizado por terceiros desde que respeitadas as regras e boas práticas internacionalmente aceites, no que concerne aos direitos de autor e direitos conexos. Assim, o presente trabalho pode ser utilizado nos termos previstos na licença abaixo indicada. Caso o utilizador necessite de permissão para poder fazer um uso do trabalho em condições não previstas no licenciamento indicado, deverá contactar o autor, através do RepositóriUM da Universidade do Minho. Atribuição-NãoComercial-SemDerivações CC BY-NC-ND https://creativecommons.org/licenses/by-nc-nd/4.0/
iii AGRADECIMENTOS A tentativa de previsão da consequência de um movimento dinâmico vislumbra-se mais fácil do que a realização deste trabalho sem o apoio das partes envolvidas. Aproveito esta oportunidade para agradecer por escrito à Rita pelo desafio proposto, à TMG por todo o apoio e disponibilidade ao longo deste percurso, às Anas, ao Hélder, ao Ilídio, à Isabel, aos Josés, ao Manuel, à Mónica, ao Pedro, ao Rui e ao Sérgio pelo tempo de entrevista. Agradeço também ao Professor António pelo acompanhamento e ajuda. Por fim, agradeço ao Henrique, que, como sempre, tornou tudo mais fácil.
iv STATMENT OF INTEGRITY I hereby declare having conducted this academic work with integrity. I confirm that I have not used plagiarism or any form of undue use of information or falsification of results along the process leading to its elaboration. I further declare that I have fully acknowledged the Code of Ethical Conduct of the University of Minho.
v SUMÁRIO Abordagem pelas capacidades dinâmicas a um modelo de negócio inovador: o estudo de caso da transição para sustentabilidade tecnológica numa empresa têxtil Portuguesa O comportamento da sociedade evolui a um ritmo frenético. Atualmente, o conceito assumido de que grupos de pessoas se comportam de forma semelhante está em decadência, e a sociedade encontra-se em transição para uma nova noção de singularidade. As motivações e perceções particulares são o que molda a conduta do indivíduo, influenciando os seus atos de compra. A atitude individualista da procura afetará a forma como a mesma é percecionada pelas tendências, dada a evolução de um comportamento generalista e de grupo para uma realidade de nicho que emerge na forma de preferências dinâmicas, não se moldando, assim, a nenhuma linha definida de tendências. A Indústria Têxtil e do Vestuário (ITV) toma este paradigma como sendo de grande importância para o desenvolvimento de modelos de negócio futuros. Ao mesmo tempo, os temas da Sustentabilidade e da Tecnologia, anteriormente tidos como macrotendências, são assumidos como constantes para a criação de valor. Assim sendo, as empresas terão de adotar estas considerações de forma a manterem os seus níveis de competitividade nos mercados globais. Ao longo deste estudo, estas transições são analisadas com o intuito de gerar uma proposta de modelo de negócio a implementar pela TMG Textiles, uma empresa têxtil estabelecida no norte de Portugal, para a resolução da sua problemática atual. Este projeto de investigação iniciou com o estudo de inputs teóricos relativos ao posicionamento de contexto e futuro previstos para a ITV nacional, considerando as perspetivas de consumidor e produtor. O estudo originou o desenvolvimento de sinergias entre os conceitos abordados e teorias de gestão estratégica, originando a sugestão de um modelo teórico alinhado ao conceito de capacidades dinâmicas e perceção de modelo de negócio inovador (MNI), em conjunto com as macrotendências da indústria. Posteriormente, recolheram-se inputs de uma amostra de especialistas da ITV através de entrevistas que validaram o modelo proposto e ofereceram novas linhas orientadoras para um novo modelo teóricoprático. Foi, então, elaborado um MNI que provou como oportunidade de negócio o alinhamento entre a orientação dos negócios pelas necessidades dinâmicas da procura e a flexibilidade às mesmas. Por fim, a formulação do novo MNI sugere uma abordagem ao mercado com duas frentes para fazer face a esta realidade de transição. A primeira frente mantém os negócios nucleares da empresa, sobretudo a exploração de produtos de base algodoeira, enquanto a segunda frente transforma o material resultante da insustentabilidade da primeira em oportunidades de negócio de caracter tecnológico. Palavras-chave: Indústria Têxtil; Capacidades Dinâmicas; MNI; Sustentabilidade; Tecnologia
vi ABSTRACT Dynamic Capabilities approach in Business Model Innovation: the case study of a strategic transition to technological sustainability in a Portuguese textile company Dynamic Society’s behaviour and consciousness evolve at a fast pace. At the present time, the concept had for groups of people behaving in similar ways has almost stopped existing since what is known as society has now shifted into a notion of acknowledged singularity. Here, the particular motivations and perceptions are the ones shaping the conduct of the individual, and therefore influence its buying acts. Indeed, the individual demand will affect trend perception, as the shift from a general behaviour into a niche reality emerges in the form of dynamic preferences that does not fit in a settled trend-line. Currently, the Textile and Clothing Industry (TCI) is looking at this new paradigm as the one influencing future business models. Alongside it, Sustainability and Technology, that were once macrotrends, are now assumed to be of constant presence for generating value. Furthermore, companies are doomed to the adoption of these considerations in order to maintain competitiveness in global markets. This investigation analysed how these new sensed movements affect upcoming concerns so as to the development of a future-driven business model hypothesis for TMG Textiles, an established textile company situated in the north of Portugal. The study commenced by understanding what were the theoretical inputs regarding the contextualization and future predicted shifts within the Portuguese TCI, for both consumer and producer perspectives. This led to the development of synergies between the stated concepts and strategic management theories, which resulted in the suggestion of a theoretical model framework that aligned dynamic capabilities theory with the perception of business model innovation (BMI) and the sensed macrotrends. Over and above that, inputs from a sample of experts of the TCI were collected through semi-structured interviews that validated and offered new guidelines for the establishment of a theoreticalpractical framework. In addition, a BMI hypothesis was developed considering the problematics the framework put out as important, such as the demand-driven approach future organizations must have within their core, aligned with the ability to adapt to their surrounding environment consciousness. In the end, the formulation of the new BMI hypothesis suggested a twofronted approach for the company in study to consider when contemplating this transition. On the whole, the first front affairs are related to the maintenance of its core business, cotton exploration, while the second front transforms the unsustainable outcomes of the first into technological business opportunities. Keywords: Textile Industry; Dynamic Capabilities; BMI; Sustainability; Technology
vii Content Index Chapter 1. Introduction ................................................................................................................. 1 Section 1.1. Context and justification of the study ............................................................... 1 Section 1.2. Delimitation of the study ..................................................................................... 3 Section 1.3. Specifications, objectives and expected contributes of the project ............. 5 Section 1.4. Dissertation structure.......................................................................................... 7 Chapter 2. Literature Review ....................................................................................................... 9 Section 2.1. The Portuguese Textile Industry & the need to change .................................. 9 Section 2.2. Sustainability in Textiles ................................................................................... 18 2.2.1. Social Sustainability in Textiles .............................................................................. 19 2.2.1.1. Ethics .................................................................................................................. 19 2.2.1.2. Transparency ..................................................................................................... 20 2.2.1.3. New Human Behaviour ..................................................................................... 22 2.2.2. Economic Sustainability in Textiles ........................................................................ 23 2.2.2.1. New way of transactions .................................................................................. 24 2.2.2.2. E-commerce ....................................................................................................... 25 2.2.2.3. Corporation Network ........................................................................................ 27 2.2.3. Environmental Sustainability in Textiles ................................................................ 28 2.2.3.1. Eco-friendly Fashion .......................................................................................... 29 2.2.3.2. Circularity in Textiles ........................................................................................ 32 Section 2.3. Technology in Textiles ....................................................................................... 34 2.3.1. Innovation & Functionality in Textiles .................................................................... 35 2.3.2. Digitalization in Textiles ........................................................................................... 38 Section 2.4. Strategic Management ...................................................................................... 40 2.4.1. Dynamic Capabilities ................................................................................................ 42 2.4.2. Business Model Innovation ...................................................................................... 46 Chapter 3. Theoretical Framework ........................................................................................... 49 Section 3.1. Identifying perspectives .................................................................................... 49 3.1.1. The consumer’s perspective.................................................................................... 49 3.1.2. The producer’s perspective ..................................................................................... 50 Section 3.2. Sensing opportunities ........................................................................................ 51 3.2.1. Exogenous factors related to the surrounding Market ........................................ 51 3.2.2. Exogenous factors related to the Textile Industry ............................................... 52
1 Chapter 1. Introduction Section 1.1. Context and justification of the study The Clothing and Textiles Industry has been stated by many scholars as one of the most significant activity segments within a nation's performance (Ramesh et al., 2018). Specifically, the Portuguese Textile and Clothing Industry (TCI) generates a turnover volume of 7.6 billion euros, from which 5.3 billion are related to its export activity (Associação Têxtil e Vestuário de Portugal, 2019), representing 10% of the national exports. Currently, even though this scenario puts the textile industry on a pedestal, it faces major challenges for continuing contributing positively to the Portuguese economy, maintaining itself as a key part of the national budget. This happens not only due to the traditional labour-intensive/low wage policies within the sector, that are slowly being abolished, but also due to the emergence of quick changes in demand. Consumers are, in one hand, looking for low-price products, not easily achievable under the production policies of the modern world, and are, on the other hand, also looking for high-tech products that surprise by its functionality and sustainability. These views are supported by Tudor (2018) who affirms that TCI companies are presently facing a range of unique challenges, going from the need to invest in new technologies to the pursue for just and competitive labour and resource costs, whilst having to deal with unstable consumer preferences. All of which contributing to a sensed need for a new approach from inside the sector. Alongside this comes the seek for sustainability. The Textile and Clothing Industry is considered to be one of the highest rated polluting sectors due to its raw material exploitation, heavy consuming production processes and the combination between its products reduced life cycle and their inherent inadequate disposal practices (Provin et al., 2021). Indeed, these concerns highly contribute towards a necessary change amongst the TCI. Following the above stated, society’s trends for a responsible consumption are being “conditioned by environmental and social concerns that push consumers for more thoughtful buying acts” (ATP, 2021, p.9). The report from ATP 2030 horizons fits the new business models within the Portuguese Textile and Clothing sector as transparent responses from productors to final consumers. The urge for sustainability matters (environmental, social and economic) leads to less product volume demand, as the general
2 consumption requirements are being shifted from a fast fashion mindset to an approach that values goods that arise by their quality, performance and innovative behaviour (ATP, 2021). Even though sustainable and technological textile products will tend to grow their presence within the market, they are still far away from being mainstream. As noted on ATP’s report (2021), this change is highly related not only to the slow investment in education and consciousness, but also due to the low income that the consumers still have available. So, if in one way the textile demand is screaming for greener and high-tech options, and on the other way people are still not able to fully follow these trends, businesses will have to find a place in-between both contrasting inputs considering changes that support both technological and sustainable causes and are still on budget. Further, as the global market is influencing the Portuguese Textile and Clothing Industry to become more adaptable to the market demands, there is an implicit need for companies to become competitive through innovation. In other words, there is an urge for businesses to become modern (Félix et al., 2019) in terms of products, their base production line and their managerial structures (Araújo et al., 2019). To rephrase it, the intrinsic textile know-how that is implicit within the sector requires a new approach from fibre format to finished good, englobing its production methodology, the managerial inputs that sustain the industry and, of course, its materialized final goods. Amongst all fibres, the most known and mostly used within the Textile and Clothing sector is cotton. Furthermore, even though the use of man-made fibres – both regenerated and synthetic – has been growing at an enormous speed, cotton is still at the present time a safe and favoured choice (Tausif et al., 2018). Indeed, this preference does not match the needs for improvement mentioned above as the cotton fibre is considered to have a negative impact on the matters of sustainability and functionality, thus disabling the development of innovative solutions (Chen et al., 2021). Additionally, the collisions that the cultivation and production of cotton have with the new needs from demand boost the pursue for other raw material sources that value sustainable and innovative development (La Rosa & Grammatikos, 2019). This research-project seeks to solve a managerial problem presented by a Portuguese Textile Company related to the holistic scenario of cotton being replaced by some other form of textile. The study is going to focus on the industry’s inputs regarding the mentioned imposed scenario and aims to find a strategic management solution related to the exploration of technology and sustainability as the current trends for the textiles’ future. Further, the study will explore these concepts within the theory of Dynamic Capabilities (Teece et al., 1997), as “the term ‘dynamic’ refers to the capacity to renew competences so as to achieve congruence with the changing business environment” and “the term ‘capabilities’
3 emphasizes the key role of strategic management in appropriately adapting, integrating, and reconfiguring internal and external organizational skills, resources and functional competences to match the requirements of a changing environment” (Teece et al, 1997, p.515). Finally, the proposed business model hypothesis to be achieved will be presented under the means of the concept of the Business Model Innovation, developed by Massa and Tucci (2014), that, likewise the Dynamic Capabilities theory, is everchanging from its initial state – Business Model Design (BDM) – into an adaptive and evolved state – Business Model Reconfiguration (BDR). Overall, the reason why it was chosen to explore the proposed topic is related to the writer's interest in conciliating both the textile knowledge and practice, that are intrinsic to her day-to-day life, with strategic management concerns. By doing so, it is intended to reinforce the symbiosis that exist between these two concepts in a context of contemporary trends, thoughts, ideals and movements. Section 1.2. Delimitation of the study The problem to be considered and solved in this study is related to a holistic scenario that the company TMG Textiles has proposed and that consists of the generation of a new suggested strategic management plan boosted by the replacement of the exploration of the raw material cotton in their woven fabrics production line. Indeed, this matter can be approached from a managerial or engineering point of view, yet the study addressed throughout the present document is aimed to be looked at from a strategic management and business model formulation point of view, almost not mentioning the raw material dilemma set out to be the primary impasse of the project’s starting question. Furthermore, the company to which the study is addressed – TMG Textiles – was founded in 1937 and has been a mark in the textile industry since then. It began working with a set of 6 hand looms having grown to be one of the major companies within the Portuguese manufacturing sector. Having set as their purpose the will to deliver viable solutions to their existing clients, the company, as the whole textile sector, is currently facing a changing environment due to rapid revolutions in demand. Following the trends for a more sustainable and technological future, the company is committed to generate products that not only feed a value driven network, but also contribute to a conscious and functional future guided by the balance between sustainability and a human centred design. These two
4 macro concepts guide the materialization of textile bases through the usage of sustainable inputs towards a functional end-use. At present, the main profit from the textile department within TMG Group, specifically woven fabric production, comes from the exploitation of the raw material cotton, this having a critical impact in sales. Even though the company was up until now comfortable with its profit reality, it is now sensing a clear need to rearrange their marketing plan, shifting it from a cotton-based approach into a more dynamic and flexible strategy that incorporates in the managerial domain the direct inputs from demand. As mentioned before, the demand within the textile and clothing sector has been rather volatile, hence the need to adapt in order to survive. TMG Textiles has been in the front line when it comes to experiencing the impact that these changes have amongst the industry, thus it is sensed to be prepared for the recalled provoked shift. Decisively, it is believed that technology, innovation and sustainability go hand in hand, and it is through them that a business can keep evolving. Having said this, since the current context senses the need for an important readaptation of TMG Textiles cotton-based core business strategy to match the modern demand, the project’s starting question can be stated as bellow: What if TMG Textiles had to adapt itself to a scenario in which the trends for a more sustainable and technological future directly impact the dynamics of the company’s business model? Further, when analysing the internal context of TMG Textiles throughout their documented budget for 2022, the company has set out its current scenario as being full of uncertainties and fluctuations that directly impact their levels of competitiveness, hence the need to shift their modus-operandi in order to maintain and improve their market share. The SWOT analysis presented bellow systematizes their current paradigm whilst identifying and proposing guidelines for a future in which product, processes and people are on the basis of the managerial strategy.
5 Table 1 - SWOT Analysis of the current context of TMG Textiles (adapted from TMG budged for 2022 by the author) On the whole, the predicted instability and impactful economical dynamics has led the company to find new strategies of approaching the market. The technical textiles markets are targeted to be of interest since value through functionality is predicted to promote sales. There is, indeed, a will to change the company’s managerial paradigm from a cotton based traditional textiles business into a future driven enterprise. The document at hand will accompany this intent. Section 1.3. Specifications, objectives and expected contributes of the project This project is based on a real problem that the textile industry is currently facing. The high demand for sustainable and functional textile solutions is influencing the decrease on the demand for cotton-based fabrics, which are the most explored within the sector. Strengths - Specialized know-how; - Flexible industrial platforms: short runs and sampling; - Future and I&D vision; - Focus on the development of differentiating products; - Investment in sustainable processes and certifications; - Digital creations and platforms; - Client driven; - Strong quality control and assurance network. Weaknesses - Low levels of productivity enhanced by the incompatibility between the industrial tasks and remote work; - High cost levels impacting high prices of products, leading to a volatile competitiveness; - Unclear process alignment; - Commercial front not prepared for the perks of the technical textiles market; - Traditional textiles specialized finishing line; - Outsourcing dependency; - Difficulty in attracting and retaining talent. Opportunities - Strategic repositioning through product, process and people; - Exploration of the technical textiles market: automotive, corporate & workwear and sports; - Differentiate through add-on functionality to textile bases: implicite equilibrium between performance and quality; - Pricing value; - Process and business digitalization; - Product positioning through sustainable measures. Threats - The pandemic crisis: consumers' new dynamics and the new commercial relations in B2C; - Scale growth of fossil fuels, natural gas and electricity prices; - High prices of raw materials and textile transformation agents; - Unstable economical context; - Low wages influencing HR casualities; - Global competition. SWOT
6 Presently, the approach design, producers and consumers have on clothing matters is feeding a growing catalogue of sustained disadvantages that disregard the linear way in which the TCI operates – the consumption of large quantities of non-renewable resources linked with the apparels’ typical short lifecycle (Ellen MacArthur Foundation, 2017) stamps the textile sector as one of the grand contributors for the global polluting footprint. Indeed there is need for a new textiles economy to arise as the means of an environmentally sustainable future are growing importance, thus implying the application of some circular economy principles that are predicted to be conducting to improved outcomes (Ellen MacArthur Foundation, 2017). Additionally, the demand for environmentally sustainable textile solutions goes hand in hand with the concept of innovation in textile products. Further, the current demand is not only assumed to be environmentally conscious but is also needing a desired functionality to be added on to a textile surface (ATP, 2021; Ellen MacArthur Foundation, 2017) – increasingly, the requisite for unique features in a fabric base format is noticed to be quite common. Following the above stated, functionality in textiles arises as fabrics go from having their own fundamental value – either by their raw material or structural influence – to have special effects. Furthermore, the improvement of society’s levels of consumption and the diversification of demand in contemporary times has directly influenced the growth of functional solutions (Zhou et al., 2020) that mirror a new buying behaviour. On balance, as pointed out by Silva et al. (2019), the product range of the fashion chain is thought and materialized according to trends, market specifications and profiles that evolve in fast pace boosting up the development of new and ground-breaking products. With this project, it is intended to understand the effective impact that the current market trends have on the textile domain in what respects sustainability and technology, and how it can affect the value chain of the Portuguese textile sector, specifically TMG Textiles cotton-based core business. Moreover, the key objective of this project consists of generating a problem-solving strategic management hypothesis of what would be the new path to be pursued by TMG Textiles in order to answer the projects’ starting question. Furthermore, this investigation aims to understand the trends and movements of the future of the Textiles and Clothing Industry while recognizing what are the key beliefs that the experts of the textile domain have on how the sectors’ demand will evolve.
7 Finally, having a grounded basis of collected information, the concluding goal of this study is to generate a new strategic plan for TMG Textiles based on the Dynamic Capabilities’ theory (Teece et al., 1997) within the built context, highlighting the generation of a new Business Model proposal, sustained by the theory of Business Model Innovation (Teece, 2018). Further, this project can also be of relevant theoretical value for the rest of the textile industry community. Section 1.4. Dissertation structure This dissertation reveals a study under a project proposal that analyses the trends and movements of society and strategic management with the main goal of generating synergies between both concepts in order to engender value solutions. Further, in order to address the challenge, the document is divided in seven parts, each of them with the purpose of marking the different tasks needed to be completed in order to achieve a theoretical hypothesis well sustained and validated. Furthermore, the first chapter comprehends the introduction to the study, its delimitation and its main objectives. In it, the project’s starting question is also stated with the intention of showing the initial starting point of the problematic in study, followed by a succinct contextualization of how it will be analysed. In the second chapter of the present document, a theoretical contextualization is exposed in the format of literature review. The concepts explored within this chapter are linked to trends, industry studies, sustainability, technology and strategic management. As mentioned previously, the intension of presenting such range of theoretical support for the study is to allow it to explore synergies between the concepts of the textile’s environment and strategy itself. The study goes on by summarizing the concepts learned with the literature review in a proposed theoretical model framework that brings together the matters of the Portuguese TCI with the inputs from Dynamic Capabilities and Business Model Innovation (Teece, 2018), as shown through the third chapter of the document at hands. Chapter four is where the methodology used to further study and analyse the problematic of the project is designed and stated, having qualitative methodology through semi-structured interviews been chosen to address the subject in examination. Additionally, the use of a grounded theory (Glaser &
8 Strauss, 1967) is indicated to guide the data analysis resultant from the application of the mentioned methodology. In chapter five, the data analysis from the interviews is presented firstly by exposing the summarized considerations gathered through the complete analysis of the individual semi-structured interviews, and secondly by validating the proposals that will be part of the corroboration and further development of the initially proposed theoretical model framework, this resulting in the elaboration of a new model that is the basis foundation for the new business model innovation hypothesis proposed in chapter six. Following the above stated, chapter six of the present document is where all the gathered and validated information from both the theoretical background of this investigation, and also the collected inputs from the experts of the Portuguese TCI during the semi-structured interviews, is related in order to transform the built relationships between theory and collected data into a BMI hypothesis that has innovation as its core. At last, chapter seven is where the conclusion of the study is presented in form of a reflective assessment to the developed investigation, highlighting the most important achieved results, and proposing open matters for future studies.
9 Chapter 2. Literature Review In order to explore the area of action of the problem mentioned before, this project requires the understanding and literature placement of both Textile and Management matters. The aim of this chapter is to further study the context within these fields of research, in order to develop a sustained theoretical background for the analysis of the problem that TMG Textiles pushed forward to be studied. Section 2.1. The Portuguese Textile Industry & the need to change The Portuguese TCI is located in the north region of the country (ATP, 2021). It is characterized by its industrial know-how in product design and development, for high quality of goods and services, for flexibility, adaptability, and a strong reactivity to the adaptation to new market needs (ATP, 2019). Even though all these characteristics place the Portuguese textile industry in the plot for a great deal of innovation, the national Small and Medium Enterprises (SMEs) cannot endure just by bringing new products to the market without the certainty of its close future viability. In similarity to what happens in most industries, it is in the mass production of a product that a business finds its bigger share of profit. Further, the Portuguese TCI finds itself in a rather unstable situation at the present moment as its production grounds are sited in a fairly high-wage area when compared to its global competition that is located in countries with lower salary rates (Truett & Truett, 2019), reducing the chances for the national TCI to mass produce fashion related goods. Following the stated global threat influenced by the means of globalization and the implemented European Union (EU) policies, the Portuguese textile sector is currently facing the need of having to change its core business paradigm. As Silva et al. (2019) put it, the incremental and radical changes that industrial sector suffers derive from the world’s constant transformation and adaptation. Therefore, in order to achieve its desired competitiveness, the businesses are led to acquire new skills and offer new products. Before launching possible solutions for the sensed challenges within the sector, it is needed to understand the current situation that the Portuguese Textile and Clothing industry is facing. Furthermore, it’s a)key inefficiencies, b)macrotrends, c)challenges and d)fundamental priorities should be highlighted (ATP, 2021) in order to comprehend the background scenario, analyse risk and propose the new strategic lines to be adopted within the sector. To show that, Table 2 positions the industry in study within the current growth of a new cycle of economic and social development:
10 Key Inefficiencies Dimension of business structures Risk of business sustainability Business profitability Gradual destruction of enterprise network Solvency and liquidity Organizational & productive inefficiencies Productivity Commercial agents and process digitalization Weak organizational structures Table 2 - 2030 Horizon: the Key Inefficiencies for the future of Textile and Clothing Industry (adapted from ATP, 2021, p.17) Notably, Table 2 emphasizes the fragility of the organizational structures as one of the main barriers that should be of immediate solving action. Further, it can be pointed out that adaptability to context is a survival requirement when the goal is being competitive in business internationalization and globalization. Following the ideas acknowledged by author Liviu Tudor (2018), a business ecosystem is an endless everchanging process, not only in terms of structure and managerial adaptations to the modern world, but also in what regards product and process (Silva et al., 2019). For these recent changes to be implemented, there is a primary need for understanding the macrotrends within the TCI. Table 3 summarizes these macro concepts that are on the basis of the development of the new strategic plans for the industry. Macrotrends Environmental sustainability Consumers are more awake of the importance of environmental sustainability, thus favouring material, product and service solutions that show concerns in matters of the preservation of natural resources. Eco-friendly fashion Boosted by new digital technologies and new textile materials that open ways for creativity and the development of new products. The importance of enterprise ethics Prestige is an asset that has been set as one of the key positions that a company should be proud of defending – as the social networks are present in all consuming habits, they are an ‘eco-box’ capable of either spreading positive outputs or even distorting reality.
17 With this being said, and being the Portuguese Textile sector core dependent on the exploitation of the raw material cotton, it faces the obligation to adjust to a more sustainable and technological future (Provin et al., 2021). Following the above stated, not only is the consumer showing a more eco-conscious behaviour that has an impact on its buying act, but also the governmental challenges put forward regarding these matters are all striving for the 3 Rs: reuse, recycle and renew – in raw materials, production impact levels and energy emissions (Provin et al, 2021; Jans et al., 2021; Diekel et al., 2021). In what regards the cotton fibre and sustainability, there seems to be somehow a misinterpretation of how it impacts the environment. As Chen et al. (2021) uphold, even though cotton is often commonly regarded as an environmentally beneficial fibre since it is naturally grown and not fabricated, it consumes, during its agricultural period, a lot of water, as well as fertilizers and pesticides which heavily contribute to the lands over eutrophication leading to toxicity. Furthermore, and having in consideration the fact that the consumers are more and more connected, and thus have access to all the information they require (conscious self-education), a decrease in the demand for this type of raw material is being sensed and underlined. Moreover, it can be stated that the reduction of production of cotton textile products is a critical success factor for all TCI businesses that want to be playing a competitive part amongst the global market for the upcoming sustainable future. Additionally, and having in mind the principles of the industry 4.0 cited before, alongside sustainability comes the desire from the public to add functionality and technology to the textiles’ surface and processes. Smart textiles are seen as reactive surfaces that incorporate one or more functionalities that go beyond its apparel dimension (Ruckdashel et al., 2021). At present, even though the urge of the commercial demand is forcing a quick answer back from businesses to present functional textile solutions, there is still a long way to go for companies to hold a significant portfolio of working technical materials and processes. Evidently, and reinforcing what was before stated, in order to maintain and manage their competitive presence within the producing and selling textile market, the traditional cotton-based businesses will have to rapidly adapt when processing the demand for functional products that do not impact the social and nature environment negatively (Duarte et al., 2018). In accordance, de Sousa Jabbour et al. (2018) emphasizes that, in order to meet success, these two trends must be studied and prepared to be followed in a very near future.
18 Section 2.2. Sustainability in Textiles The concept of sustainability was firstly introduced in what is known as the Brundtland Report, also named Our Common Future, published in 1987 with the intention of creating leading principles for sustainable development. In it, is stated that “sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” (World Commission on Environment and Development, 1987, p.41). Following the intention of valuing future sustainable lives, and since the fashion industry is stated to be of a high unsustainable consumption of natural resources, and has an ongoing growth of chemicals usage (Pereira et al., 2021), it is clear to see how people are increasingly worried about sustainability matters within the Textile and Clothing Industry panorama. Further, and despite having been primarily associated with environmental matters (Geissdoerfer et al., 2017), the concept of sustainability is agreed to have three major pillars supporting it, that should interact and coexist in equilibrium. These are: Social Sustainability, Economical Sustainability and Environmental Sustainability (Salas-Zapata & Ortiz-Muñoz, 2019). Its common representation is in the shape of three intersecting circles, one for society, one for the environment, and one for the economy, with sustainability at the intersection (Pereira et al., 2021), thus enhancing the synergies that must occur in between the three mentioned spheres in order to achieve a sustainable growth. Figure 2 shows the agreed representation. Figure 2 - Sustainability representation (adapted from Pereira et al., 2021, p.3) So as to operationalize what is named in enterprise jargon ‘the triple bottom line’ framework (TBL), a range of standards, codes and ways of measuring sustainability had to be designed. Even though they mirrored what companies put out to be their notion of sustainability in a more practical context, this framework has gained large importance and is now a playing part within the business paradigm, being one of the major drivers for future business models (Geissdoerfer et al., 2017; Pereira et al., 2021).
19 2.2.1. Social Sustainability in Textiles In order to maintain a sustained improving progress, the matters of social sustainability must be addressed within businesses and business models. Going back to the core of this concept’s implementation, social sustainability major concern was linked with the rapid growth of the population, that was not sustainably accompanying, by all means, their natural resource consumption. Therefore relating it into a concern of scarcity, that would eventually lead to an unbalanced living scenario between people and planet (World Commission on Environment and Development, 1987). Additionally, the relations amongst society and politics were also being address within the notion of social sustainability as “social tensions” (World Commission on Environment and Development, 1987, p.15) – gender issues, susceptible social classes and the promotions of local participation in the businesses’ agenda were some of the addressed subjects. Further, the concept was deeply explored within the Textiles and Clothing Industry as a matter related with labour issues. Going back to the First Industrial Revolution, workers had until then been deprived not only of their rights, but also of their wellbeing at work. The issues being tackled were forced hard labour, low salaries, long hours of work, discrimination, health and safety risks, psychological and physical violence, and a lack of consciousness about workers' rights (Li & Leonas, 2021). Nowadays, social sustainability has evolved into a subject directly related with the impact that an organization has amongst their workforce, surrounding local inhabitants and with consumers both in ethics and transparency affairs (Lombardi Netto et al., 2021). Notably, these matters must therefore be relevant towards both business models and organizational processes, while aligned with the best interest of all stakeholders and with the profitability of the organization. As the authors Li and Leonas (2021) put it, the TCI is accountable for the well-being of people, particularly for the communities where its operation grounds are located, since it is a vital industry for global development and economic transactions, it also worries about issues around society, and its behaviour, in general. 2.2.1.1. Ethics Business models are currently acquiring an orientation towards ethical principles. Seen as a dimension of immaterial value and being associated with difficult to manage crisis (Abreu et al., 2021), ethics within corporations has not only an impacting part amongst the internal human assets of the organization, but is also shaping the approval path that a company as to go through in order to gain the
20 loyalty of their consumers. There are, therefore, two approaches when assessing this topic: one directly related to brands and the final consumer, and another with geopolitics reach (ATP, 2021). In the case of the geopolitics sphere of influence, the worries are of diverse background. Labour costs – associated with low salaries –, the organizational policies – also known as the Code of Conduct –, the corporate social responsibility – as for compliance and/or monitoring –, safety standards, anticorruption policies, and finally counterfeiting and dishonest business procedures are themes of Macro and Global interest (Cerchia & Piccolo, 2019). Evidently, the way governance has to measure, maintain and audit the stated affairs has a lot to do with the transparency policies within the company, yet, there is a tendency for organizations to become more and more straightforward about what they buy, how they transform, sell and supply, which is aligned with the future strategy for achieving social sustainability standards (Ellen MacArthur Foundation, 2017). Furthermore, the consumer driven approach illustrates the relationship between user and brand. The so known as ethical consumer (Harrison et al., 2005) worries about how its purchase habits affect the rest of the world (Cerchia & Piccolo, 2019), this meaning that the individual will make a conscious choice when buying a product considered to be a materialization of its own beliefs. Additionally, the way consumers perceive the company’s culture and values has a direct impact on its financial statement. In this sense, being ethically driven becomes a new concept of quality and will lead towards business profitability. On the whole, the principled behaviour of an organization can be seen as a win-win situation, where the company is in one hand compliant with an ethical code of conduct, and at the same time generates value by being good. 2.2.1.2. Transparency Following the ethical path illustrated before, businesses have now a clear need to be straightforward with their consumers about not only their beliefs and values, but also about their ways of production and their processes. This is enhanced by the will consumers now have of knowing the story behind what they are buying (ATP, 2021). As previously stated, it is only by matching what are the core beliefs of the current ‘social network’ that a company will strive. It is agreed that big brands are at the present time introducing what is known as the “ministries of transparency” (ATP, 2021, p.73), responsible for guaranteeing the social sustainability variables of their supply chain in order to diminish their vulnerability when it comes to maintaining their fidelized customers (ElMessiry & ElMessiry, 2018).
21 Further, customers and governments have put industries under enormous pressure to implement sustainable manufacturing methods due to major illicit trades, immoral production techniques, and fragile supply networks (Agrawal et al., 2021). In other words, this reality of demand being responsible for boosting an ethical and transparent behaviour from companies might be leading the producers under the European laws to have a competitive advantage in a global market context (ATP, 2021). Moreover, transparency within textiles matches the issues around traceability. As defined in the United Nations Global Compact (2014), traceability is “the ability to identify and trace the history, distribution, location and application of products, parts and materials, to ensure the reliability of sustainability claims, in the areas of human rights, labour (including health and safety), the environment and anti-corruption” (p.6). Further, the list bellow shows a number of listed positive impact of the matters of transparency and traceability (UN Global Compact, 2014): • Traceability’s impact on the sustainability of raw materials: what corporations consume - implies a globally certified supply chain that proves goodwill practices within the harvest, collection and treatment of the source of value. An example of this type of certifications within the Textiles and Clothing Industry is the Better Cotton Initiative (BCI) that defines itself as the world’s prime sustainability initiative for cotton, which mission is to assist cotton farmers in surviving and prospering while also caring and renovating the environment (Better Cotton, 2022). • Traceability as proof of good enterprise practices: the ability companies have of providing trustworthy information regarding the sustainable impacts of their products so as to help their customers make more informed purchasing decisions. • Traceability unites companies and stakeholders around a common purpose: the foundation behind the generation of industrial clusters driven by a common good. Transparent practices amongst them do not only bring corporation cooperation, but also keep and maintain the companies together. Evidently, the means of a globalized world brought to place the ability for the textile manufacturing grounds to be relocated and outsourced to countries with less severe legislation, cheaper labour costs, and more readily available suppliers (Kumar et al., 2017). For this reason, and reinforcing what was before acknowledged, this marginalized way of production is collapsing with the educated approach and needs from the modern demand. Since information is value, it boosts up the implementation and maintenance of transparency, product assurance and security and supply network management (Kumar
22 et al., 2017), which directly connects traceability (and thus transparency) to the profitability of contemporary businesses. 2.2.1.3. New Human Behaviour As times are evolving, so are the concepts around society and their behaviour. Up until now, the biggest social revolution related to gender ever to be documented was associated with women rights and their emancipation. The achievements conquered by women go as far as the acknowledgement of their role in society, their juridical equality against men, equal opportunities within the education field, equal pay wages for the same jobs as the ones performed by men, and the sexual revolution in general - in other words, women gained the right to expose their body by their own will (Melo, 2017). Even though the fight for women’s rights is still ongoing, another sexual revolution is emerging. As it happens, the new envisioned transformation is thought to be much more disruptive as it studies sexual entity as a subject that should be reformed. There is a new ideology for gender, in which the subject is affirmed not to be of a biological nature, but yet of a social understanding. As instance, there are theoreticians that believe that gender is not only limited to two possibilities: the feminine and the masculine (ATP, 2021). Although the mentioned gender revolution might seem to be an affair of social and psychological impact and study, it strongly and directly affects fashion and consequently the Textile and Clothing Industry. According to Reis et al. (2020), the TCI mirrors the ever-changing patterns in “social, political, technological, and economic environment of a society” (p.24). This is to say that the matters of gender identity not only shape how individuals perceive themselves, but also gives way for new concepts around the fashion and textile businesses to come forward. Throughout ATPs' (2021) report, this revolution is stated to have a major positive impact in major brands as the genderless clothing concept is highly attractive to explore and materialize, the ambiguity within gender fluidity gives way to immense creative processes, and the QUEER theory is also referred to be advocating publicity campaigns, putting brands in the centre of equality promotion and valorisation. Following the previously acknowledged, the new gender identity support those major brands and businesses are providing to society puts them aligned with social sustainability matters. Moreover, organizations are not only supporting impartial equality concerns but also contributing positively to the generation of materialized solutions for this new gender paradigm, therefore valuing products with ethical principles and beliefs that mirror the thoughts and behaviour of the contemporary demand.
23 2.2.2. Economic Sustainability in Textiles It can be said that businesses are now facing an economic rollercoaster sustained on a theory of recovery that is leveraged by two different consumption acceleration engines: there is a sense of accumulated savings directly connected to the pandemic and increased by the time people had to stay home, allied with the euphoria around the end of the lockdown era. Even though this scenario might seem great for business, it indeed presents a problem towards sustainable economic growth. The fact that society is eager to buy does not mean it will maintain this behaviour throughout times. It is therefore expected to see high peaks in sales, followed by very significant drops, thus contributing to market instability and resulting in an unsustainable economy (ATP, 2021). If we consider the substance underneath the concept of Economic Sustainability, it is common to find definitions that go back to Barbier's (1987) initial approach. In his article, the author defines economic development as a process that implies the economic growth of a country, per capita, over an extended period of time, together with the assumption that the poverty line does not increase, and also with the claim that the distribution of income should not become more unequal. Thus “economic development became almost synonymous with economic growth” (Purvis et al., 2019, p.683). Further, as this concept evolved, it became more and more linked to the matters of social and environmental sustainability, as the ‘economic growth’ of an entity, it being a nation or an organization, could not be dissociated from the impact that humans have on the environment and, evidently, in society (Purvis et al., 2019). For this reason, and going as far as the UN World Commission on Environment and Development publication ‘Our Common Future’ (1987) , it was stated that the concept of economic growth is therefore growth that is both vigorous and communally and ecologically sustainable, making it a part of the solution and not of the problem. On the whole, economic sustainability can be seen as a mean to achieve human welfare through economical transactions. Furthermore, as economic growth , the concept has opened doors to worldwide transactions within the Textile and Clothing Industry – as the space for production and commercialization of products has gone global and gave space to new competitors to be established through price and scale. As a result, the increase in generalized competition brought pressure to the Portuguese producers that are finding themselves at ease through new economical approaches to the market. Nowadays, and having in mind the wills and needs of the future generations, these are emerging within a global and digital sphere, which has to coexist in agreement and coherence with both demand and local businesses.
24 On the whole, and although the future is clearly digital, the concept of Green Economy is stated to have four pillars sustaining its development (ATP, 2021): • Sustainability will be mainstream, and all the efforts from the textile value chain will meet this demand, either through the usage, transformation and commercialization of new recycled or bio-based products, and/or through the means and platforms used for providing the mentioned service and products; • Sustainability also comprises the architecture of the production process as it worries about reducing waste and resource consumption; • Sustainability is ethical through transparency and traceability of the production processes; • Sustainability is a matter of the textile cluster, as it involves a dynamic and continuous strategy of communication and storytelling. Evidently, and reinforcing what was before stated, the new economic growth is supported by concerns intimate to environmental and social sustainability matters. Equally, the concept’s global envelopment is futured to be of a digital sphere. Consequently, it is in the correlation and maintenance of this two worlds – the intangible and the tangible – that the world sustainable will find place within financial development (ATP, 2021; Babenko et al., 2019; Castro Lopez et al., 2019). 2.2.2.1. New way of transactions So as to stimulate economic growth, a new way of transitioning was established. Following what was before stated, economic sustainability exists in synergy with the other two fields of sustainable development – the social and the environmental grounds. Indeed, it is within this harmony that the stated new transactions are built-up, as they emerge from the relations and strong compromise between an educated society (the consumers) and sustainably driven businesses (the producers). Here, the product, processing, selling and buying schemes all rely on the integration of the real with the online spheres (the Omnichannel 2.0), providing all stakeholders a sense of place that is ethical, traceable and created for the ‘new human behaviour’ (ATP, 2021). Additionally, the Omnichannel 2.0 is not only a perceived macrotrend towards a more digital future, as it is also a booster for generating new transactions – therefore impacting economic growth –, new relationships – thus making companies socially aware of consumers’ needs and demands –, and it also generates a strong engagement as it brings together the values and beliefs of the ones who buy and
25 the ones who sell as means for delivering sustainable solutions. Evidently, the space between companies, society and their platform of transactions is getting smaller and smaller, as the economic growth of a business is getting further dependency on how business models perceive the new human behaviour and transition it from a physical to a digital word. Moreover, it can be stated that this digital economic transformation leads the way for technological, economic, HR and knowledge general improvement (Shen et al., 2021). Furthermore, there is a growing number of digitally literate users and buyers (Chai-Arayalert & Suttapong, 2020) that are boosting the growth of the future of sustainable economy through e-commerce means of transitioning. 2.2.2.2. E-commerce The links between society and corporations, and also between different corporations are increasing extremely, the internet has played a crucial part in society’s evolution, as it has been the world's and the most important technology for the past two decades (Orzan et al., 2020). There is, in fact, an identified business opportunity through the world of the wide web, linking it to the digital economic growth studied throughout the above subsection of the present document. Further, websites can therefore be considered to be platforms that support these new digital relationships. Within the Fashion and Textile businesses, the main functions they serve are acknowledged to be of information dissemination – from in, out, and around the TCI sector –, product sales and of generation of beliefs and consumption (Castro Lopez et al., 2019). Likewise, E-commerce has been a studied concept throughout times. From being associated with the trade-off goods and services, becoming an electronic agreement of exchanging values, transforming itself into the means for product digitalization, and, in an extreme minimalist view, pointed out to be the result of the usage of a computer and the internet to send and receive information about product and service (Babenko et al., 2019). The authors Babenko et al. (2019) continue by summarizing the concept as follows: • In a micro sense, e-commerce is mirrored to be financial transactions that happen through the internet. These can be entitled to result in 1) sales of goods and services, and 2) money transfers. There is, therefore, a first intention of possession boosted by the desire of owning something that is still in virtual format, followed by a transfer, from one virtual account to another, of the right amount of money to buy it and have it physically.
26 • In a macro sense, e-commerce can also play a role in business relationships, maintained by their interactions through the world of the wide web. In sum, the emergence of the Internet, and the immense transactions it permitted, here named e-commerce trades, has contributed largely to the development of globalized business, and, at the same time, it has improved society lifestyles (Khurana, 2019). Further, the links between globalization and ecommerce are expected to alter a nation’s economic structure (Babenko et al., 2019), thus developing and enhancing the economical relationships amongst consumer and industry, on the basis of a large scheme of global competition. Finally, e-commerce within the Portuguese TCI is put out to have four different development slopes (ATP, 2021): 1. Generalist marketplaces: where the consumer finds infinite purchasing options. It is a perfect ecosystem for the individuals (buyers) and not for brands (sellers), as it is impossible to perform branding, leaving space for private labels, thus opening opportunity for direct business with the producers. 2. Specialized marketplaces: where the user experience is valued. There is an in depth study of the relationships between the user and the UX (user experience) within the digital platforms. This is the most important channel for brands. 3. Vertical platforms: the still remaining fast fashion branches of the TCI. Even though this goes against the concepts and dogmas of sustainability, the internet and e-commerce still leave space for fast businesses at a low price. There is a high change these types of needs will decrease through the years. 4. Brands e-commerce: inserted within an omnichannel strategy, it will guide branding into a whole new dimension, as room is opened for UX, personalized communication and service. In conclusion, and having the vast stated of possible business opportunities, companies are likely to change their way of not only looking at sustainable digital economy, but will also need to adapt themselves into a reality in which the consumer is likely to have an individual demand intended to be fulfilled in a very challenging time-pace. The only way this can be shifted to profit is through corporation cooperation (Associação Têxtil e Vestuário de Portugal, 2021; Bertola & Teunissen, 2018; Ha et al., 2019; Silva & Bonetti, 2021; Ustundag, Alp; Cevikcan, 2018).
33 route into changing by analysing the interactions between the past behaviour of society and the future trends: Figure 4 - Trends within the TCI pushing towards circular economy (adapted from Koszewska, 2018, p.340) Notably, there is an evolution on the already approached concept of the new human behaviour (ATP, 2021) accompanying the shifts within the new demand and, thus, improving the new textiles economy. From a culture of fast fashion, overseas production, consumerism and low-price products, the TCI was put in a position of scale growth economy, that was only worried about producing an increasing quantity of products in order to match the ravenous demand. Currently, this paradigm has changed – the growing worries regarding sustainability matters (social, economic and environmental) have implemented and nourished a barrier against the past way of producing. This has brought the textile and garment industries to the boundaries of the linear take-make-dispose economy model and sped up the transition to the circular one (Aivazidou & Tsolakis, 2019; Connell & LeHew, 2020; Koszewska, 2018; Lewis et al., 2017; Mukendi et al., 2020; Muthu, 2020; Shirvanimoghaddam et al., 2020; Zhang et al., 2020). Evidently, sustainable fashion will not only be limited to the search for product and process lower environmental impact. The enhance will be given to the concept of circularity, going from the industrial processes into the end of a product’s lifecycle. This path is highly demanding, as the inputs for change go from the values and beliefs of the society itself, and are at the same time being boosted by state entities through the integration of sustainable legislation (ATP, 2021). Indeed, the new business models based on the concept of circularity have as their main objective the pursue for profitability (goal shared and maintained by all business models), while at the same time
34 reducing resource consumption, excess production and CO2 emissions. Therefore, these new business models are implementing new ways of producing and presenting their products – emerging within a context of a cluster (cooperation and networking), the companies from the TCI are fighting back waste by valuing not only recyclability as the solution, but also by implementing a new approach towards product materialization. The digital sphere has therefore appeared to be a viable answer to the new consumption trends for circularity – it enables a greener solution to product development and usage, while at the same time prompts individualization and customization (ATP, 2021; Ellen MacArthur Foundation, 2017; Koszewska, 2018). On the whole, circular business models may seem to exhibit obstacles towards sales volume, yet the purpose of these new businesses and organizations is to achieve profitability by producing valued goods, and not by mass producing cheaper products. It is also clear that these circular models imply the collaboration from all stakeholders – as the processes to maintain it goes from the producer’s practices into the consumer’s involvement. Finally, the definitions of circular strategies within the textiles and clothing industry can be seen as a priority, as they face scale challenges that will undoubtably lead to the adoption of procedures that are, in a first instance, focused in dimensioning solutions (Mackinsey & Company, 2020), thus adapting the reality of the present industry into the concerns of the new demand. Section 2.3. Technology in Textiles Innovation is a jargon used to identify almost anything that is considered a novelty, yet this term within the textiles industry can be the definition for product differentiation achieved through creativity (fashion and design) and technology (materials, practices and functionalities) (ATP, 2019). It is predicted that technology will be, alongside sustainability, one of the mandatory paths this sector will have to guarantee for maintaining its competitiveness in a global market level. This approach results in the industrial expansion through the development of technical and functional textile competencies established by research, development, and technological progress (Associação Têxtil e Vestuário de Portugal, 2021). As mentioned above, technology can be a path to take into consideration when it comes to the need for change in businesses. Several authors have pointed out that innovation is the key to success for companies of the TCI, which is why global smart textiles are expected to grow significantly (Tudor, 2018).
35 As Duarte et al. (2018) point out, the current demand goes hand in hand with the fourth industrial revolution, also known as the industry 4.0, that finds its pillars in integrative and collective symbiosis. Further, it mirrors the joint efforts that different technologies are taking into place (as for example, textiles and robotic or textiles and digitalization) in order to present new solutions to the market that will help the human being on problem solving activities, therefore facilitating their day-to-day lives. Indeed, technology in textiles is a grander theme that has several areas of focus. Going from fibre format into production processing, supply chain management, and buying schemes, technology lives as a new era of demand is emerging. The consumers are looking for uniqueness throughout the processes of the TCI, whilst requiring the commercialization of functional substrates. There is a will to buy products that go beyond their aesthetical value, boosting the growth of research and design towards investigation of new technical textiles through technological innovation (ATP, 2021). Likewise sustainability, the matters around technology are also intimate to the beliefs and values of the consumers. As well, when new materials are introduced, such as to improve textiles functionality, it must be guaranteed that sustainability is not compromised (Ellen MacArthur Foundation, 2017). On the whole, technology and sustainability must coexist in balance for the future of TCI to strive and the desired competitiveness is achieved. In other words, if innovation increases, so will the competitive advantage of a business (Udriyah et al., 2019). To conclude, the term technology is applied when the purpose is to aid the application of creative concepts towards product innovation (Hodges & Link, 2019). 2.3.1. Innovation & Functionality in Textiles The grounds of the concept of innovation refer to the implementation of a new or significantly improved product (good or service), a new promotion method, or a new managerial method in business practices, which occurs either in the organization's workplace or through its external relations (Ramesh et al., 2018). Innovation is stated to be a core need for businesses, thus, companies that do not innovate will invariably fail to have the desired market impact and competitiveness. Moreover, innovation within the TCI is addressed in three different stages: materials, process and functionalities (Tudor, 2018). The material stage refers to the concept behind the product, the process indicates how the product is transformed and, finally, the functionality describes the add-on value the subtract possesses (Associação Têxtil e Vestuário de Portugal, 2021). On the whole, innovation in textiles aims to generate new and effective products. Also, technical textiles can be innovative and functional
36 either through the usage of special fibres (raw materials), or through the application of a functional finishing at the end of the manufacturing process. Further, modifying commodity fibres and fabric properties with innovative finishing technologies can be a less expensive approach to achieve a higher performance than using expensive fibres with intrinsic built-in performance properties (Paul, 2019). Additionally, these functional properties can be impregnated on the substrate surface by the means of chemical or bio finishing processes. Table 6 shows how the concepts of innovation and functionality amongst the textile and clothing industry are approached by many authors. Materials Smart Textiles (Chen et al., 2020; Fang et al., 2021; Gong et al., 2019; Kongahage & Foroughi, 2019; Mokhtari et al., 2020; Shi et al., 2020; Shuai et al., 2020) Circular Textiles (Early & Politowicz, 2021; Harmsen et al., 2021; Koszewska, 2018; Ma et al., 2019; Sandvik & Stubbs, 2019; Shirvanimoghaddam et al., 2020; Wagner & Heinzel, 2020) Processes Non-wet finishings (Aivazidou & Tsolakis, 2019; Ma et al., 2019) Eco-friendly processes (Aivazidou & Tsolakis, 2019; Early & Politowicz, 2021; Ma et al., 2019; Mukendi et al., 2020; Zhang et al., 2020) Recycling processes (chemical & mechanical) (Harmsen et al., 2021; Lewis et al., 2017; Rathinamoorthy, Ramamoorthy, et al., 2019; Rathinamoorthy, Surjit, et al., 2019; Sandvik & Stubbs, 2019; Wagner & Heinzel, 2020) Functionalities Protective Textiles (Hu et al., 2022; Kim et al., 2022; Li et al., 2022) Thermal camouflage (Fang et al., 2021; Ruckdashel et al., 2021) Thermoregulating E-textiles (Chen et al., 2020; Gong et al., 2019; Kongahage & Foroughi, 2019; Mokhtari et al., 2020; Shi et al., 2020; Shuai et al., 2020) Biodegradable materials (Degenstein, 2018; Ambica Khurana, 2021; Mihaleva, 2021; Müggler Zumstein & Weber Marin, 2019; Tabatabaeimanesh, 2021; Vasquez & Vega, 2019) Table 6 – Approach to concepts of innovation and functionality amongst the textile and clothing industry
37 As revealed by ATP's (2021) report, both the diversification of the Portuguese textile sector and the development of new capabilities are highly connected with the research and study of technical and functional textile solutions. In the report, it is stated that research, development and technological innovation are key factors that will boost global market competition, making the exploration of technical textiles an opportunity amongst businesses. Further, the Ellen MacArthur Foundation (2017) report acknowledges that the foreseen new textiles economy will specifically provide emphasis to innovation towards the generation of new systems and processes, while still maintaining a sustainable focus, thus adding a greener view onto the subject. The report continues by presenting two different areas of action and support for the future of innovation within the TCI: • Steer innovation investments towards the common vision: where innovators should find support through all stages of the process of creating something new, either at the initial conceptual phase, through its transformation process or when it is being presented to the market. • Mobilise large-scale, targeted ‘moon-shot’ innovations: where innovation 'moon-shots' should be organized in sectors where existing creativity is scarce, but a big impact is predicted. Stakeholders from throughout the industry would come together to generate new ideas. Following the above stated, it is clear to note the bond that the report generates around innovation and cooperation networking, again a macrotrend that has been forecasted as key for the TCI future. Equally, ATP (2021) strategy for 2030 points out the textile cluster as the ideal platform for innovation and functionality through collaboration, since it boosts knowledge access and sharing, while at the same time stimulating collaborative practices. Furthermore, ATP (2021) proceeds by pointing out that, indeed, corporation cooperation is one of the most important paths into achieving profitable innovation, as it promotes industrial specialization through dimensioning production processes, technological innovation and expands and strengthens the range of products in portfolio, that will eventually lead to the industry’s internationalization. On the whole, innovation and functionality can be stated to be future guidelines, when approached collectively and with a sustainable intent.
38 2.3.2. Digitalization in Textiles Alongside the materialized sphere of the Textile and Clothing Industry, a new immaterial world has been arising. Following the macrotrends explored throughout this document, there is a clear connection between technology, innovation and digitalization. Truth being told, many industrial companies are currently facing a digital transformation that has gradually been affecting some of the essential internal functions of a company, whilst also broadening the portfolio of functional goods and innovative services corporations now have to offer (ATP, 2021). Furthermore, the integration of the digital systems in drawing, project and prototyping, components manufacturing, assembly and packaging allows for planning and execution to be done with little human help, therefore embracing the new industrial revolution – Industry 4.0. Additionally, by substantially expanding virtualisation, dematerialisation, transparency, and feedback-driven intelligence, digital technology has the potential to help the transition to a circular economy (Ellen MacArthur Foundation, 2017), thus again linking technological development with sustainability matters. In order to illustrate the above stated synergy, Mackinsey and Company (2021) developed a survey that aimed to find out what is the greatest opportunity to come within fashion, so that corporations develop and maintain future business models around it. Figure 5 shows what were the three highest rated concepts within this survey, present on the company’s The state of fashion report for 2022 : Figure 5 - Biggest opportunities ahead for fashion businesses (adapted from Mackinsey & Company, 2021, p.13)
39 In response to Figure 5, it is clear to determine the relationship between the growth of digital thinking, production and economy and the future of the TCI – the metaverse and sustainability will go hand in hand within the context of a global market. Moreover, the digital environments are evolving from linear, transaction-focused areas to multi-dimensional, immersive, and collaborative virtual worlds as they mature, thus implying the evolution of both the producers perspective and the consumer behaviour into a synergetic sphere (Mackinsey & Company, 2021) where both interests are preserved. Further, TCI companies are investing heavily in digital technologies that allow the addition of unique IDs and other digital information to their substrates, as this enables a closer intimacy between producers and consumers through the appliance of transparency principles (Mackinsey & Company, 2021). Furthermore, with the implementation of digitalization, the players within the global textile industry now have access to better and more effective business procedures when looking for suppliers, buyers, partners and consumers, and are consequently creating a strong business network, while converting leads into sales. The authors Ali and Basha (2019) list the benefits of digitalization in textiles as it follows: • Increased Productivity: digitalisation as means to enable the reduction of production lead-times. • Cost efficiency: the cost of a textile good is generally boosted up by the variety of subcost it has – such as equipment and labour management, marketing costs, maintenance and others. With the implementation of digitalization, masses of information will be generated, gathered and treated, so as corporations will be able to control and standardize cost. • Easy to access and always accessible: digital technology, combined with accurate data indexing, aid in effective data searching and access, saving time and effort. • Enhanced security: companies are facing increased dangers of cyber assaults and growing concerns related to incorrect data handling as the digitalisation of fashion enterprises reaches new heights. With cybercrime becoming more sophisticated and consumer and regulatory pressure is increasing, brands and companies must act quickly to strengthen their defences and invest more to make digital security a strategic goal. • Enhanced information preservation: document imaging ensures that a company's most critical information is stored and protected in the future.
40 • Saves space: digitalization is immaterial. When a multipurpose digital machine is used in the manufacturing process, it frees up more space, lowers rent, and/or eliminates the need to create a new office space. • Stay competitive: digitalization has been the slogan of the modern era industrial process, from global corporations to tiny businesses. Firms have reaped the benefits of digitization in the form of lower costs, more efficient workflows, and happier customers. • Environmentally friendly: the digitization process contributes to our green credits and is a green endeavour – it eliminates the need for superfluous actions, boosting the company's eco-friendly quotient. On the whole, the sector in study is currently sensing the effects of digitization – the gradually rising individualization, the device and people networking, and the advancing automation of manufacturing and logistics operations are becoming ever more present (Ali & Basha, 2019). To conclude, these technological advancements and the shifting consumer expectations require new business models and organizational principles to be taken into place. Section 2.4. Strategic Management It can be said that the term Strategic Management follows Porter’s (1998) definition of Competitive Strategy . The progress of such strategies relies on the managerial knowledge of how a company will compete, what its objectives should be, and what policies will be required to achieve those objectives (Porter, 1998). For the author, the implementation of such matter focuses on the internal business development by positioning itself in the market within one of three “generic strategies” such as “overall cost leadership, differentiation and focus” (Porter, 1998, p.34). This will guide to a sharp vision of one’s business aims and thus leading to the definition of its competitive advantage on other market players. The strategic positioning of a business has a major impact on its production outputs, as it will only be producing what it is meant to be sold. Currently, the traditional Portuguese textile companies are competing in a global world that not only forces them to be quick in the development processes and service, but also implies competition through low cost of products with the addon of an innovative portfolio of goods (Truett & Truett, 2019).
41 With the above stated in mind, it is clear to see how a change in the paradigm of the strategic position of the Portuguese textile exploration is needed in order to maintain the sector as one of the most important and profitable in the manufacturing industry of the country. Having said this, a clear analysis must be taken towards achieving the development of a new proposal for a managerial strategic approach. As Albert Humphrey (2005) pointed out, as an early-stage analysis required towards the formulation of a new strategic plan, a SWOT evaluation must be taken into place (refer to Chapter 3, Section 3.3. of the present document). Moreover, the external threats and opportunities must be evident, so as the internal strengths and weaknesses, in order to find out the starting point of the new strategic development. Further, it is also required to analyse all impacting parts of one’s business reflecting not only how the competition can affect the success of sales, but also how can the corporation answer correctly to its public’s demand. As Porter (1979) referred, it is by unmistakably coming up with a scheme of five basic forces based on the behaviour of the market and the consumers, that the profitability of a company can be guaranteed. These forces, namely “threat of new entrants, bargaining power of customers, threat of substitute products or services, bargaining power of suppliers and the industry – jockeying for position among current competitors” (Porter, 1979, p.138), are the ones leading to the desired competitive advantage of businesses. Again, this interpretation of competitive positioning boosted by all trend forces surrounding a company plays as guidance for its adaptation to face the needs of the contemporary world (refer to Chapter 3, Section 3.2. of the present document). Pursuing what is above stated, as the picture is being looked from a more macro perspective, a final strategic tool must be applied in order to come up with a ground based strategic plan. The PESTEL analysis was developed in order to point out macro-environmental factors that need to be taken into consideration when evaluating a proposed business strategy. It is thought that the origins of this strategic analysis framework go back to 1964 when Aguilar developed the ETPS model, evaluating economic, technical, political, and social domains in relation to a business. Currently, this model also considers the legal and environmental areas to have a playing part within the way the strategic analysis of a business is being set up, thus resulting in the PESTEL model framework (political, economic, social, technical, environmental and legal) (Yuksel, 2012). In other words, not only does the PESTEL analysis allow a company to place itself within its surrounding macro environment, but also permits the prediction of circumstances that might arise in the future (Yuksel, 2012). Table 7 materializes this assessment concerning the macro strategic positioning of the Portuguese Textile and Clothing Industry.
42 P E S T E L Political Economic Social Technical Environmental Legal Political tensions between the USA and Russia EU and the Euro Zone: Brexit political impact in commercial transactions China as a powerful global player Tax burden that companies suffer Reduction of employer duties on their workforce Increase in funds towards internationalization Internships funds and validation Reindustrialization Dynamization of the brand ‘Portugal’ Internal political stability International Economy: lowering the levels of export activity towards the USA, the Japanese eager for the US market, and China’s low prices policies EU and the Euro Zone: Brexit costs, inflation, private consumerism & investment Decrease of public deficit Higher internal demand yet low purchasing power Global markets: international competition High fixed costs Establishment of a digital economy EU and the Euro Zone: extended labour market Levels of Unemployment Low wages Lack of specialized workforce Lack of guarantees for a growing evolving career Specialized know-how in the Textile industry Sector update for the industry 4.0 Growing demand for innovative and sustainable textile solutions Established production network Competition through value Dynamization of technological partnerships: between intelligence centres, universities and private companies The omnichannel Controlled energy usage: investment in highly efficient equipments Sources of green or alternative energy Low carbon emission goals Reduction of environmental costs Sustainability as a settled mindset Ethics and transparency as matter of sustainable development Legal & mandatory requirements in sustainability matters Obligations to rationalise energy and resources consumption The Cluster entity validation Transaction agreements with EU and Non-EU countries Table 7 - PESTEL analysis of the Portuguese TCI (based on theory from Associação Têxtil e Vestuário de Portugal, 2019, 2021) On the whole, strategic planning is considered to be a concept that evolves over time. Moreover, the current conjuncture forces it to be of continuous and adaptative planning, thus reacting rapidly to changes while focusing on the consumer, its needs, trends, and on future innovation. 2.4.1. Dynamic Capabilities Dynamic Capabilities is a term used within the context of Strategic Management explained as the ability that a company has of establishing, organizing and revising capabilities existing internally and externally with the aim of adapting itself to its surrounding environmental changes (Lee & Yoo, 2019).
49 Chapter 3. Theoretical Framework Following the literature review presented on the Chapter 2 of the present document, there is need to structure it within the context of the project starting question. Further, having a sustained theoretical background on the areas of Sustainable & Innovative Textiles, and Strategic Management contemporary movements – such as Dynamic Capabilities and Business Model Innovation – this chapter aims to deliver a valid input towards solving the managerial hypothesis in stake. Thus, a theoretical model framework sustained by literature shall be developed, so as to deepen explore and analyse the current context contents. Section 3.1. Identifying perspectives At the present time, and going back to what has been before stated throughout this document, the Textiles and Clothing Industry is currently facing a major change in demand. There is a need from consumers for more technological and sustainable textile solutions that boost design to be human centred (ATP, 2021). In other words, this emerging demand for new products, either through conceptual or physical characteristics, provide the users with solutions that will have a positive quantitative impact in their day-to-day lives. Furthermore, this sensed contemporary demand, highly sustained by the mottos of sustainability and technology, is leading the way for a new textile economy to arise (Ellen MacArthur Foundation, 2017). Consequently, two different areas of interest appear to be the most relevant for the studies around this context: (1) the consumer’s perspective, and (2) the producer’s perspective. 3.1.1. The consumer’s perspective Globalization has brought to the table a new sense of society. In one way, people are more connected to each other and sensitive to communal worries (Ellen MacArthur Foundation, 2017), yet, in another way, society is more and more formed by individuals that pursue non standardized paths. This is to say the unique and the singular are taking place in people’s focus (Reckwitz, 2020). Further, this sociocultural context is highly shaping fashion’s future, since the buying evolution of human behaviour is sustained by volatile individual variables (Associação Têxtil e Vestuário de Portugal, 2021) – such as motivation, perception, acknowledgement and decision making. Moreover, the importance that singularities (Reckwitz, 2020) give to the themes of sustainability and technology are more connected to core values and beliefs one has of the world’s evolution, than to one’s buying power. In other words, since consumers are more aware of the impact that their buying acts
50 can have on their daily lives and on society’s future, they will make a conscious choice around the products they are purchasing (ATP, 2021; Ellen MacArthur Foundation, 2017), thus influencing producers to have this into consideration when strategically competing in a global market context. 3.1.2. The producer’s perspective As the world turns around, it changes and evolves. Likewise, the industry sector follows these movements, as they are influencing society through the implementation of incremental and radical changes (Silva et al., 2019), that then have an impact on the consumers’ buying acts. As stated before, the individual variables commanding current demand are rather volatile, leaving the producers in a delicate position. Since demand is forcing an almost individual industrial adaptation to better serve its singular beliefs around the themes of sustainability and technology within the TCI, a new adaptive textiles economy must be approached as the viable solution for competitiveness within a global market context (ATP, 2021). Furthermore, companies must be able to adjust themselves, their products and their processes to this new reality of singularities (Reckwitz, 2020). On the whole, this adaptative environment has a strong impact within organizational variables such as (ATP, 2021): o Living assets: not only are the current living assets of an organization affected by this new mindset of demand, thus influencing the change or adaptation of the culture of the organization, but also human resources policies and practices will need to be adjusted to the new social network; o Organizational structure: weak business structures can delay success as demand is likely to quickly shift their preferences, thus implying companies to solve their needs rapidly and organically. Companies must, therefore, be ready to predict change or adapt to it while it is occurring; o Processes and Production: likewise the organizational structure of a contemporary business, its processes and production lines must have readiness as their trigger. It is only by delivering a fast, valid and sustained solution that future businesses will strive. To sum up, both consumer’s and the producer’s perspectives are supported by variables, namely individual and organizational variables, that can differ as their surrounding context evolves and adapts.
51 Section 3.2. Sensing opportunities Since corporate agility is a core characteristic amongst the current transaction market, the TCI is no different. As stated before, the variables within demand are of such instability, as they vary almost individually, that the ability to identify and develop opportunities and threats in this context plays as the differentiating business factor (Teece, 2018). In fact, the referred ability will be the booster for creating new competitive business opportunities (Lee & Yoo, 2019). Furthermore, in order to sense opportunities and transform them into corporate related profitability, a series of exogenous factors must be studied. Following the thoughts and development of the project in study, the Portuguese Textile Cluster, and TMG Textiles specifically, were taken into consideration as main objects of study as the following impacting parts were identified as relevant: 3.2.1. Exogenous factors related to the surrounding Market The Market is representative of all commercial exchanges, either physical or digital, that imply a trade of some kind of textile solution for money. Here is where the two different perspectives – the consumer’s and the producer’s – are analysed from a macro viewpoint. Further, these perspectives exist and evolve within the context of the TCI macrotrends. Looking back at the theoretical background behind the Portuguese TCI and its need to change, a series of key macrotrends were highlighted to be taken into consideration when developing future business strategies (Associação Têxtil e Vestuário de Portugal, 2021). Amongst them, the Evolution of Human Behaviour, Environmental Sustainability and the Omnichannel 2.0 (ATP, 2021) were identified to be the most impacting sensed movements on a macro level perspective. o Evolution of Human Behaviour: set out to be of a gender revolution background (ATP, 2021), the influence that the new way of identifying society, or not, as something communal – such as a gender tag – directly affects the TCI context. The issues around gender identity and gender fluidity shape not only the way individuals perceive themselves, but also boost the generation of new fashion concepts that will be leading competition on the new TCI businesses. In other words, the evolution of gender identity will impact the TCI as it mirrors society’s everchanging behavioural patterns (Reis et al., 2020). o Environmental Sustainability: alongside the pursue for a new textiles economy, the will for greener textile solutions is getting higher levels of importance. What was seen before as a trend has now evolved into a way of living, therefore considered in a macrolevel of analysis.
52 The environmental dimension of sustainability is a constant worry of the current demand (Ellen MacArthur Foundation, 2017), and clearly influences its informed buying acts. o Omnichannel 2.0: the symbiosis between the digital and the physical world has brought to the table not only matters of environmental and economic sustainability, but also of technological development and digitalization concerns (ATP, 2021). Consequently, the new co-dependency of the material and the immaterial allows for less production waste, new ways of transaction, new concepts of fashion and new marketplaces, thus impacting economic growth, a closer relationship between consumers and producers (Shen et al., 2021) and in between producers themselves – the textile cluster (Ramesh et al., 2018). Overall, the macrotrends impacting the surrounding market of the TCI are not only of economic, social and environmental sustainability awareness, but also imply technological development through digital progress. 3.2.2. Exogenous factors related to the Textile Industry Indeed, the textile industry is one of the greatest impacting sectors in the country’s performance (Ramesh et al., 2018). As it generates a high turnover and export activity (ATP, 2019), this business is constantly under development and improvement according to the needs of its contemporary demand. At the present time, the current set of challenges the TCI faces – such as new consumer preferences, adaptability to new technologies and sustainable development, the increase in labour costs amongst others (Provin et al., 2021; Tudor, 2018) – sustain a necessary change within the sector. Consequently, it is in the combination between society’s trends and new behaviours, and the evolution of the business itself that the TCI impacting exogenous factors emerge so as to influence this required change. Additionally, these factors, also known as trends, shape the industry’s products, processes and production systems, as they deliver clear briefs for solution development (Araújo et al., 2019; Félix et al., 2019). On the whole, New Fashion Concepts, Eco-friendly Fashion, Online Shopping, Cooperation and Ethics (ATP, 2021) are the most relevant outsourced dynamics influencing the TCI’s future. o New Fashion Concepts: as the material and the immaterial worlds start to interact and exist in equilibrium, new ways of thinking, doing and promoting products are stimulated (ATP, 2021). There is a new mentality opening towards the digital that forces the TCI to be rather technological and innovative. Additionally, this transition boosts the principles of a greener economy, since it implies dematerialization and transparency (Ellen MacArthur
53 Foundation, 2017). On the whole, the shift from the real to the ethereal leads to a joint venture between the metaverse and sustainability (Mackinsey & Company, 2021). o Eco-friendly Fashion: enhanced by the digital technologies and the materialization, development and usage of new textile materials, the eco-friendly way of doing fashion opens ways for creativity (ATP, 2021). Further, Design is, within this creative sphere, the most important player when approaching an eco-friendly fashion future, as it has a direct impact on the final product itself, the materials that constitute it and the processes performed to achieve the desired results (Early & Politowicz, 2021). Evidently, there is a clear connection between eco-friendly fashion and the matters of sustainability, hence the emphasis given to the usage of environmentally friendly raw materials, products and processes (Ellen MacArthur Foundation, 2017) amongst the TCI. o Online Shopping, Marketplaces, Fashion and the Future: the new and digital way of doing transactions has come to revolutionize the markets. The speed at which producers are expected to generate products is in line with the quick changes in demand (ATP, 2021). Even though there is a will from the consumers to almost personalise the items they buy, they are not giving up on the timings of fast fashion. o Corporation Cooperation: in order to generate a global competitive strength, the companies of the Portuguese TCI are challenged to form an alliance that will allow for knowledge sharing and creation through collaboration, thus resulting in the generation of disruptive product solutions yet to be seen (ATP, 2021). Furthermore, this trend predicts and supports individual businesses to be process specialized, as the idea behind corporation cooperation aims for these distinct areas of specialization to be part of a major package to be offered to the market, including the inputs of several different companies. Consequently, this will allow for a quicker and more individual, thus personalized, answer to demand that will prosper the industry (ATP, 2021; Mackinsey & Company, 2021). o The importance of enterprise ethics: the conscious drive of demand is currently leading its responsible buying acts. Further, the contemporary consumer is no longer looking to buy a product that has no history or conceptual value, thus elevating the matters around ethics (ATP, 2021). Accordingly, business models are ever more concerned with the dimension of the immaterial value (Abreu et al., 2021) since the relationship between the consumer and the producer is sealed with a moral background (Cerchia & Piccolo, 2019; Harrison et al., 2005).
54 On the whole, the way society thinks and behaves has a direct impact on the emergence of new macrotrends for the TCI. Indeed, the outside forces of influence businesses absorb will be materialized into strategic guidelines for their future. 3.2.3. Exogenous factors related to the Competition Looking at the upcoming times for Portuguese TCI, there is a need to comprehend competition within the context of a global market. Additionally, and having in mind the before stated trend for corporation cooperation, the current worldwide competitive front will be looked at from a cluster perspective. Since the acknowledged challenges predicted for the future of the sector in study go hand in hand with the themes of capitalization, differentiation through innovation, environmental sustainability, digitalization, the capacity of the HR to attract and retain talent and internationalization (Associação Têxtil e Vestuário de Portugal, 2021; Mackinsey & Company, 2021), the increase of profitability in businesses will be maintained through a perspective of product and service diversity. Consequently, this empowers the pursue for innovative solutions through new ways of creating and/or communicating the latest achievements while preserving the core pillars of sustainability (Pereira et al., 2021). Furthermore, the improvement of business diversity and productivity (ATP, 2021) will inevitably lead to a competitive position within the context of the international market (Félix et al., 2019). On the whole, looking at competition from an exogenous perspective, it is understood that both the threats and opportunities for the Portuguese Textile and Clothing Industry are marked out by the means of product and service diversity (ATP, 2021), while at the same time being surrounded by other various competitive business models (ATP, 2021). 3.2.4. Exogenous factors related to I&D+ Following the above stated, indeed product and service diversity have the leading part as competitive business models are being built. Further, in what regards the product, the context of the I&D+ must be approached. It has been stated throughout this document that there will be a change in the TCI boosted by the new needs of demand. Furthermore, these needs fit into two different concepts of materialization: sustainability in textiles and technology in textiles (Associação Têxtil e Vestuário de Portugal, 2021; Ellen MacArthur Foundation, 2017; Mackinsey & Company, 2020, 2021). Both these paths may refer to product, processes and services, yet their expression will always be through the means of innovation,
55 digitalization and environmental sustainability (ATP, 2021), as these are the concepts society is currently giving money for. In fact, these three product approaches are connected and allow for the emergence of synergies between them. Figure 9 shows how these interactions can happen from an exogenous point of view, while presenting an impact upon the sensing phase of a dynamic business strategy (Teece, 2018), as the observed novelties are being sensed: Figure 9 - Schematic representation of the interaction in-between the spheres of innovation, digitalization and environmental sustainability On the whole, innovation, digitalization and environmental sustainability can be worked from an individual perspective, yet the high point of competition through I&D+ is predicted to be mirroring the interaction in-between all of these spheres. Section 3.3. Seizing strategy Firstly, in order to seize the strategy (Teece, 2018) of a proposed theoretical framework, the dimension and lines of action of the value chain to be studied must be set. Consequently, as the project’s delimitation of study is the woven business unit of TMG Textiles, the relevant value chain to consider is represented in Figure10: Innovation Digitalization Environmental Sustainability Digital & Technological Innovations enabling the principles of Sustainability: •New ways of creating •New products •New processes •New ways of transitioning •Transparency •Networking •(…)
56 Figure 10 - Schematic representation of TMG Textiles value chain Since the success of a business strategy implies the anticipation of competitor reactions, aligned with the sensing phase of the process in study, while at the same time defending the intellectual property generated by knowledge sharing and creation (Teece, 2018), the principles of the scenario set in Figure 10 arise to the design and improvement of a business model. In other words, a company’s’ internal reaction and adaptation to its sensed exogenous factors, pointed out through the previous section of this document, results in the built up and/or refinement of a corporate strategy. Additionally, this shifting environment is referred to as seizing (Teece, 2018) and aims to enhance the endogenous factors of the context in analysis in order to promote the mobilization of the internal assets of the focused company, so as to address the opportunities found previously (Lee & Yoo, 2019). Furthermore, in order to achieve the creation of value propositions whilst aiming to generate guidelines for the settlement and alignment of a business strategy, a series of endogenous factors must be approached from the project’s perspective. Following the assumptions presented and explored through Section 3.2 of the present document, the internal aspects of the Portuguese Textile Cluster, and TMG Textiles specifically, were taken into consideration as main objects of study as the following impacting parts were identified as relevant: 3.3.1. Endogenous factors related to the Textile Industry Going back to the principles of strategic management, the way corporations exploit their internal assets, them being either material or immaterial, and turn them into business related transactions, thus generating economic relations resulting in profit, lead to the definition of competitive advantage (Porter, 1998). This principle so deeply explored and set out to be the aim of businesses was developed under the conceptual name of competitive strategy (Porter, 1998), that, likewise seizing, takes advantage of the internal resources to promote the generation of value. Indeed, the context of the current scenario amongst the Portuguese Textile and Clothing Industry promotes the development of innovative and sustainable processes, products and services (Truett & Truett, 2019) in order to generate a competitive advantage in a global market context. Consequently, and following the inputs from the exogenous factors pointed out on Section 3.2., and demand itself, the Weaving Finishing Logistics & Distribution Sales Yarn & Thread
57 inclusion of innovation, technology and sustainability (ATP, 2021; Ellen MacArthur Foundation, 2017; Mackinsey & Company, 2021) as valid inputs for strategic competition will lead to the desired competitive advantage. Furthermore, and reinforcing what was before stated, the inclusion of these concepts within the internal processes of one’s company will be eased if worked through a networking perspective (ATP, 2021). This is to say that the joint efforts amongst the Portuguese TCI will provide individual companies with the ability to generate value by sharing knowledge and opening doors to tight business bonds. Further, it is predicted that the future competitive strategy of a business will be ever more advantageous the closer the companies of the cluster become. On the whole, the endogenous factors related to the textile industry fit within the company’s approach towards the adoption of the sensed macrotrends of the textile industry so as to generate a competitive advantage. 3.3.2. Endogenous factors related to Strategic Management In order to achieve business sustainability, several factors around strategic management must be taken into consideration. Further, looking at the already studied key inefficiencies of the Portuguese TCI (Associação Têxtil e Vestuário de Portugal, 2021), the risk of accomplishing a sustained business equilibrium is directly linked to the dimension of business structures, profitability, solvency and liquidity, productivity and commercial & technological agents (ATP, 2021; Mackinsey & Company, 2021). Furthermore, it is through the exploitation of the mentioned dilemmas by adapting one’s strategy to its surrounding environment (Silva et al., 2019; Tudor, 2018), that a business will strive. Additionally, there is also need to relate the concept of business sustainability to its contemporary context. Following the ideas explored throughout the document at hand, the pillars of sustainability are currently linked to a value driven network (Abreu et al., 2021), thus adaptability to demand is required, either through processes, product and/or services. Further, and since demand is presently educated and informed for the themes around sustainability, the need for transparent communication arises as proof sustaining this adaption as requested by the consumer (Ellen MacArthur Foundation, 2017). To sum up, it is by aligning the internal assets of a company with demand, whilst maintaining a trustworthy relationship with the consumers, that a business will be strategically positioned to embrace the new technological and sustainable future and thus achieve business sustainability.
58 3.3.3. Endogenous Factors related to the Portuguese Cluster / Company So as to understand the current context of the Portuguese Textile and Clothing Industry, an elementary threats and opportunities analysis must be performed in relation to the strengths and weaknesses of the sector. This assessment aims to acknowledge the positioning of the industry in study in order to sustain the design of a new strategic plan (Humphrey, 2005). Indeed, the synergies found in-between the specific exogenous and endogenous factors affecting the TCI (either considered positive or negative) will lead to the elaboration of strategic guidelines towards the build-up of a cluster competitive advantage that, by its means, will be in the basis of the predicted business future. On the whole, the challenge will be to delineate a model capable of accelerating the process of change within the context of internal and external competitiveness, based on the concepts of design development through innovation and sustainability (ATP, 2021). Further, Table 8 contextualizes and summarizes these inputs: Table 8 - SWOT Analysis of the current context of the Portuguese TCI Cluster (adapted from ATP, 2021, p.108) Strengths - Industrial specialization; - Resilience of the TCI; - Reliability and industrys' know-how; - Moderate production costs; - Prestige of the Made in Portugal Concept; - Private label model differentiation; - Cluster organization of the national TCI; - The role of intelligence centres to promote innovation; - Industry is prepared to commit to the trends of a responsible consumption; - Experience in B2B business models. Weaknesses - Low capitalization of the companies and difficulty in acessing funds; - Lack of critical dimension; - Low Productivity; - Individualism culture; - Lack of B2C experience in business; - Delay in the process of digitalization of the TCI; - Nonexistence of professional network to support design; - Reduced profissionalization of management roles. Opportunities - Political, social and economical stability and security; - Favorable context for reindustrialization; - Easen access to commercial agreements; - Niche business models sustained by the principles of circular economy and sustainability; - Incorporation of competitiveness through design, creativity and innovation; - Generational change in firms; - Acess to communal funds; - Unification of the associative movement; - Product diversification through the technical textiles and new raw materials. Threats - Lower levels of fashion consumption; - Critical acess to raw materials; - Increase in energy and environmental costs; - Inflation; - Risk in the breakdown of the cluster due to lack of labour assets; - High levels of competitiveness in geographically close countries; - Abandonment of production from big fast fashion& low cost brands; - Lack of educated professionals for the sector; - Discouraging public policies for the growth of the sector. SWOT
65 Figure 13 - Grounded Theory data analysis and hypothesis formulation On the whole, the application of the Constructivism Grounded Theory will be based on the data collected from the semi-structured interviews, that will then allow for the conceptualization of subcategories, which consequently will enable the emergence of macro categories that will be in the basis of the formulation of the hypothesis (or theory) (Glaser & Strauss, 1967) leading the resolution of the project’s problematic. Section 4.2. Qualitative interviews to a panel of experts As Eriksson and Kovalainen (2008) point out, primary data is empirical data gathered by the investigators themselves. Further, the interview methodology can help a business researcher acquire the mentioned empirical data for its research topic. Thus, the project’s methodology consists in the collection of primary qualitative data from semi-structured interviews to a panel of experts from the textile industry, based on a phenomenological study approach. The sample to be addressed is therefore a “purposive sample” (Silverman, 2015, p.70), as it is critical for the interviewed population to be chosen in order to match the parameters to be studied within the project. Moreover, the interviewees are purposively selected based on the targeted groups of the research problem (Silverman, 2015). Interviews are generally characterized by a conversation arranged in form of questions and answers between two or more stakeholders (Eriksson & Kovalainen, 2008), hence the script of the interviews to be taken into place is developed from the theoretical interpretation of the literature review regarding the topic in hands. Collected Data SubCategories Category Hypothesis (Theory)
66 The typology of the interview is of constructionism paradigm background (Sebastian, 2019; Silverman, 2015). Its main aim is directed at creating conceptual meanings achieved throughout the interactions between interviewee and interviewer (Eriksson & Kovalainen, 2008). Further, it is in the ability to analyse what truly occurs in naturally arising contexts that qualitative research finds its greatest asset (Silverman, 2015), prospering the reliability of the achieved results that, after explored and analysed, contribute for the generation of the managerial hypothesis that will address the project’s problematic. On the whole, the sample addressed within this study is set at 12 interviews that cover the following business areas: Role Area of Interest Company Executive Board Director Vertical Textile Company TMG Group Business Manager Woven/Knit Textile Industry (x2) TMG Textiles Finishing Mill MGC - Acabamentos Têxteis I&D+ Director Technological Development Centre of a textile Company TMG Textiles, Development Manager Raw Material Manager TMG Textiles Knit Department of a Textile Company TMG Textiles Production Manager Woven/Knit Textiles Industry TMG Textiles Quality Manager Product and Process validation and guarantee of a Textile Company TMG Textiles Technology Department Director Intelligence Centres/Investigation CITEVE – Centro Tecnológico Têxtil e Vestuário Sensorial Wearables Department Manager Sustainability Department Manager Table 9 – Identification of Semi-Structure Interview Sample Notably, the addressed sample for the semi-structured interviews has a close relationship with the studied subject and the company to which the project is focused on, as the intention of this research is
67 to understand intimate and inside thoughts around the field of study being analysed, in order to construct valid relationships between theory and a close reality. Section 4.2.1. Semi-structured interviews script Following the theoretically sustained background of the proposed model framework, the script for the qualitative interviews to the panel of experts was divided in four parts, likewise the outlined setting. Firstly, the questions addressed the issues around the Dynamic Capabilities theory (Teece et al., 1997; Teece, 2018) in relation to the studied context. In other words, the script tackled the matters of Sense, Seize and Reconfiguration (Teece et al., 1997), connecting them to the affairs of the Portuguese TCI, and TMG Textiles specifically. After all, the concerns of the Business Model Innovation theory (Teece, 2018) were also given the plot as the fourth part of the script to be questioned. On the whole, the theoretical domain explored throughout this document was somehow queried to interviewees so that the generation of the new managerial hypothesis shows itself sustained by not only hypothetical knowledge, but also by practical spheres of influence. Tables 10 to 13 show the relation between the theoretical dimension sustaining the script, the question addressed to the expert from the TCI and the academic references in which each question is based upon. Dimension Questions References SENSE 1. Is it possible to anticipate a change in demand? What makes you reach that conclusion? // What are the main factors prior to change? How can opportunities be identified? (Associação Têxtil e Vestuário de Portugal, 2021; Cerchia & Piccolo, 2019; T. Eriksson, 2014; Félix et al., 2019; Harrison et al., 2005; Mackinsey & Company, 2021; Silva & Bonetti, 2021; Teece, 2018; Tudor, 2018) 2. Do you consider that changes occur from the synergies between the internal and external empiric knowledge? Or, in the other hand, do you believe that change occurs from the need a company has of adapting itself to its surrounding environment? (Cerchia & Piccolo, 2019; T. Eriksson, 2014; Harrison et al., 2005; Inigo et al., 2017; Pereira et al., 2021; Ramesh et al., 2018; Teece, 2018; Tudor, 2018) 3. How does the culture of an organization adapt to changes in demand? (Guedes & Vaz, 2021; Inigo et al., 2017; Koszewska, 2018; Mackinsey
68 4. Does top management need to/give inputs towards preparing change? & Company, 2020, 2021; Maia et al., 2014; Truett & Truett, 2019; Tudor, 2018; Ustundag, Alp; Cevikcan, 2018) 5. Can changes in demand be considered businesses opportunities? How do you relate this with sustainability and technology? (Associação Têxtil e Vestuário de Portugal, 2021; Bertola & Teunissen, 2018; Ellen MacArthur Foundation, 2017; Ha et al., 2019a; Mackinsey & Company, 2021) 6. Which macrotrend sustaining the textile and clothing sector do you believe to be the most (or more) relevant? Can you correlate these macrotrends with the technical and technological exploitation (raw materials & processes) of the TCI? (Associação Têxtil e Vestuário de Portugal, 2019, 2021; Ellen MacArthur Foundation, 2017; Mackinsey & Company, 2020, 2021) 7. Having in mind the previous question, which of the textile raw materials (natural and synthetic) do you consider having a growing conditioned use due to the context of innovation and sustainability? (Abreu et al., 2021; Associação Têxtil e Vestuário de Portugal, 2021; Bertola & Teunissen, 2018, 2018; Dal Forno et al., 2021; de Oliveira et al., 2021; de Sousa Jabbour et al., 2018; GarciaTorres et al., 2017; Geissdoerfer et al., 2017; Harmsen et al., 2021; Inigo et al., 2017; Li & Leonas, 2021; Lombardi Netto et al., 2021; Müggler Zumstein & Weber Marin, 2019; Mukendi et al., 2020; Pereira et al., 2021; Ræbild & Bang, 2017; Ramesh et al., 2018; Shen et al., 2021; Silva & Bonetti, 2021; Wagner & Heinzel, 2020) 8. How do you relate what was discussed in the previous question with cotton’s exploitation? Given the technological limitations (technical, performance and digital) and environmental sustainability, can you anticipate a growth or decrease on the usage of this raw material by the TCI? What is the ‘raw material’ you consider to be the future one? (Agrawal et al., 2021; Better Cotton, 2022; Chen et al., 2021; Diekel et al., 2021; Jans et al., 2021; La Rosa & Grammatikos, 2019; Tausif et al., 2018; Yousef et al., 2019) Table 10 – Interview Script Sense
69 Dimension Questions References SEIZE 9. Do you identify the products being produced throughout the Portuguese TCI/company’s value chain as valid answers to the modern demand? Can you associate the concepts of sustainability and technology to the range of products and processes of the Portuguese TCI/company you work for? (Associação Têxtil e Vestuário de Portugal, 2019, 2021; Félix et al., 2019; Guedes & Vaz, 2021; Ha et al., 2019a, 2019b; Maia et al., 2014; Ramesh et al., 2018; Truett & Truett, 2019) 10. Are you aware of the environmental impact of the production process of the company in which you work/Portuguese TCI? Do clients want to know this impact? (Abreu et al., 2021; de Oliveira et al., 2021; de Sousa Jabbour et al., 2018; Ellen MacArthur Foundation, 2017; Inigo et al., 2017; Lombardi Netto et al., 2021; Mackinsey & Company, 2020, 2021; Ramesh et al., 2018; United Nations Global Compact, 2014) 11. Are you familiar with the concepts of Design for Sustainability, Design for Circularity and Design for Performance? How do you relate these concepts with the product your company delivers? 12. How can the exogenous factors to the company /TCI be transformed into endogenous inputs? In other words, how identifying opportunities (sensing) can lead into a business strategy? (Porter, 1979, 1998; Teece, 2009, 2010, 2018) 13. What does strategy mean? Product, business model, organizational culture, modern decision behaviour…? (Associação Têxtil e Vestuário de Portugal, 2021; Duarte et al., 2018; Ellen MacArthur Foundation, 2017; T. Eriksson, 2014; Maia et al., 2014; Massa & Tucci, 2014; Ramesh et al., 2018; Sandberg & Hultberg, 2021; Teece, 2018; Tudor, 2018) 14. Does the definition of processes, proceedings and standards contribute to the elaboration of a business model strategy? Are these the competitive advantage (Patrício et al., 2021)
70 factors? Or, on the other hand, the competitive advantage is on the final product’s differentiation? 15. What are the facilitators and inhibitors on the development of capabilities? (e.g. Leadership, communication, team spirit…) (Laaksonen & Peltoniemi, 2018; Patrício et al., 2021; Teece, 2007, 2018) 16. In what way do you fit the Development and production of cotton-based products throughout the Portuguese TCI? Do you see this practice as a vehicle towards future value creation? (Associação Têxtil e Vestuário de Portugal, 2019, 2021; Better Cotton, 2022; Chen et al., 2021; de Oliveira et al., 2021; Diekel et al., 2021; Ellen MacArthur Foundation, 2017; Félix et al., 2019; Jans et al., 2021; La Rosa & Grammatikos, 2019; Ramesh et al., 2018; Tausif et al., 2018) Table 11 - Interview Script Seize Dimension Questions References TRANSFORM / RECONFIGURATION 17. What are the competitive and differentiation factors that the companies from the Portuguese TCI should consider within the context of the global market? (Associação Têxtil e Vestuário de Portugal, 2019, 2021; Mackinsey & Company, 2020, 2021; Ramesh et al., 2018; Truett & Truett, 2019) 18. How could incremental changes, within the textile processes and products, be driven towards sustainability and technology? And radical changes? (Inigo et al., 2017; Ramesh et al., 2018; Silva & Bonetti, 2021; Tudor, 2018) 19. What are the primary consequences that the adjust of the structure and culture of an organization can bring? (Maia et al., 2014; Teece, 2018; Tudor, 2018) 20. In what way can multidisciplinary teams bring competitive benefits to the company? (Associação Têxtil e Vestuário de Portugal, 2021) 21. Are you familiarized with the concepts of Reindustrialization, Industry 4,0, Circular Economy and (Associação Têxtil e Vestuário de Portugal, 2019, 2021;
71 Global Markets? How do these concepts impact on the reconfiguration of the Portuguese TCI? Mackinsey & Company, 2020, 2021) 22. Given the concepts discussed before, do you see the integration of products that are cotton based having a playing part within the future business models? (Associação Têxtil e Vestuário de Portugal, 2021; Bertola & Teunissen, 2018; Chen et al., 2021; de Oliveira et al., 2021; de Sousa Jabbour et al., 2018; Ellen MacArthur Foundation, 2017; Ha et al., 2019; Inigo et al., 2017; Jans et al., 2021; Mackinsey & Company, 2021; Maia et al., 2014; Provin et al., 2021; Ramesh et al., 2018; Tausif et al., 2018; Truett & Truett, 2019; Tudor, 2018; Ustundag, Alp; Cevikcan, 2018) Table 12 - Interview Script Transform Dimension Questions References BMI 23. What drives the need for adapting a business model? Is it the producer’s perspective or the consumer’s perspective? (Associação Têxtil e Vestuário de Portugal, 2021; Duarte et al., 2018; Ellen MacArthur Foundation, 2017; Euchner & Ganguly, 2014; Ha et al., 2019; Khessina et al., 2018; Mackinsey & Company, 2021, 2020; Massa & Tucci, 2014; Patrício et al., 2021; Pereira et al., 2021; Ramesh et al., 2018; Sandberg & Hultberg, 2021; Tausif et al., 2018; Teece, 2009, 2010, 2018; Truett & Truett, 2019; Tudor, 2018) 24. What are the current competitive values that you consider to be the most crucial for the Portuguese TCI? And what are the ones which will strive in the future? (e.g. price vs. value; passive attitude from the industry vs. active attitude – to offer solutions “full package service”; individual strategy vs. collective strategy – the textile cluster…) 25. Transparency, sustainability, technology, digitalization and people: are these the drivers of the future business models?
72 26. Having in mind what has been debated before, do you see a clear rupture happening from the traditional business model of the Portuguese TCI? Can you relate this with the implementation of business models that have innovation as their future value proposal? 27. What risks do you anticipate with the implementation of a business model that has as a premise the reaction to changes within the market, driven by the demand for product and process innovation? Table 13 - Interview Script BMI Having set the script presented in Tables 10 to 13, the semi-structured interviews were taken into place through arranged meetings between interviewer and interviewee. The conversation was taped to be further transcribed and analysed. The direct transcription of these meetings can be found in Annex A to L of this present document.
73 Chapter 5. Data Analysis Having in mind the methodology presented in the previous section of this document, a set of 12 semi-structured interviews (Annexes A to L) were performed, transcribed and analysed according to the constructivist grounded theory (Glaser & Strauss, 1967) mentioned in Section 4.1.. The object of observation for the proposed study was a panel of 12 individuals, five women and seven men, with ages ranging from 30 to 60 years old and all working amongst the Portuguese Textile and Clothing Industry. The sample is composed by people working in managerial roles, from board directors to top and department managers, in order to get a wide and trustworthy opinion of the experts in relation to the matters of strategic management within the sector. The present chapter is sub-divided in four sections, mirroring the four different momentums of the script of the semi-structured interviews (see Section 4.2.1.). Each section studies, validates and proposes improved changes to the theoretical model framework presented in Section 3.5. with the intention of generating a new supported theoretical framework that will be the basis of a hypothetical business model to be considered by the company under study. Furthermore, as the theoretical model framework is built by variables related to the four different momentums of the script, a drill through analysis was taken into place as the responses from the interviewees were considered in a summarizing scheme as it follows: • Variable: considered to be groups of factors and perspectives influencing the textile value chain. • Collected data: complete transcription from the semi-structured interviews, here considered as raw data. • Sub-categories: summarized translation of the collected data. The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. • Category: further summarization of the sub-categories into conceptual propositions associated to the variables. On the whole, the goal of the analysis was not only to generate propositions related to the theoretical model framework, but also to validate existing and propose new propositions to base the theory to be presented as result of the exercise. In other words, the propositions were divided into two different classifications:
74 (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12). (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts. Section 5.1. Exogenous factors leading Sensing Firstly, in order to analyse the established first phase of the Dynamic Capabilities theory (Teece, 2018), as exposed in Section 2.4.1. of the present document, a set of variables were determined so as to relate Sense (Teece, 2018) to the exogenous factors (see Section 3.2.) influencing the Portuguese Textile and Clothing Industry. Further, the investigation of the conceptual sub-categories were then associated to either a consumer or a producer perspective from the sector in study or any other variables identified in the theoretical model framework (see Annex M). Following the above stated, the table in Annex Q presents the result of the analysis by relating the interviewees interventions to the variables identified in the Sense phase, and exposes a series of categories that follow proposition validation and new proposition proposal. The following parts of this section summarize this while exposing the number of interviews that validated the existing and proposed new propositions. 5.1.1. Propositions related to Consumer and Organizational Perspectives While analysing the first phase of the script, the interviewees validated the Individual Variables proposition as they mentioned the motivations for the buying acts of the consumer perspective to be driven by intention or motivation. The new propositions proposal were also related to the individual behaviour. More than half of the interviewed experts mention the Sustainable Behaviour and Consuming Habits of society to be an important exogenous factor influencing the Portuguese TCI. Further, and as suggested in previous sections of the present document, current and future consumers’ Demand for Technological Goods exists in synergy with their conscious behaviour. Even though the consumer is evermore showing Dynamic Preferences , they are forcing solutions to be thought in a Human Centred Design mindset that puts the individual needs as the most centre for creating. Finally, this perspective also shows a worry for the
81 Section 5.2. Endogenous factors leading Seizing Following the previous section of the document at hand, the study continues by analysing a set of variables related to the recognized second phase of the Dynamic Capabilities theory (Teece, 2018), as exposed in Section 2.4.1. – Seize. These variables here mentioned are the endogenous factors of the Portuguese Textile and Clothing Industry, in a more macro perspective, and the ones of TMG Textiles itself, in a micro perspective, pointed out in the theoretical model framework present in Section 3.2. Further, the investigation of the conceptual sub-categories were then associated to either a consumer or a producer perspective from the sector in study or any other variables identified in the theoretical model framework (see Annex N). Additionally, the table in Annex R presents the result of the analysis by relating the interviewees interventions to the variables identified in the Seize phase, and exposes a series of categories that follow proposition validation and new proposition proposal. The following parts of this section review this while exposing the number of interviews that validated the existing and proposed new propositions. 5.2.1. Propositions related to the Consumer and Organization Perspectives Mirroring what had been already validated in the first phase of the script concerning the consumer perspective, the interviewees also mentioned the Sustainable Behaviour and Consuming Habits of future demand to be of endogenous worry. This happens as companies do not only need to foresee this impacting as an exogenous factor, and thus marking the behaviour of their surrounding environment, but also assume it to be of internal influence as it shapes the product portfolio organizations must present to future consumers. Additionally, the Dynamic Preferences of the consumer were also pointed out as to be of endogenous relevance since this new proposition proposal was here presented as a factor influencing the materialized goods a company produces. Furthermore, and regarding the organizational perspective here studied, most interviewees mentioned Leadership to have a major role in the producers’ internal variables. Alongside it, Team Spirit, Multidisciplinary Teams and Internal Communication appear as new proposition proposals guiding change acceptance in a scenario where the consumer is thought to be the highest influencing component of a business strategy. Having said this, the Culture of the Organization and the Structure of the Organization were also referred to as the concept of change was being discussed throughout the semi-structured interviews. Notably, the experts understand that the internal core of a company should reflect demands’ needs, and
82 therefore reinforce the presence of the new proposition proposal Trend-driven Culture of the Organization . Further, as the mindset for change evolves so do the Processes & Production of an organization, being this only possible if Technological Developments accompany the shift. To illustrate the materialization of this process, Sustainability Management and Information Systems were highlighted to be a sure investment if companies want to have an active role within the future textiles market. Finally, and having change in mind, Wage Policies were stated to be a capability dissuasive factor if Portuguese companies do not invest in their human assets salaries as new times are ahead. Figure 20 - Propositions related to Consumer and Organizational Perspectives 5.2.2. Propositions related to the Endogenous Factors of the Textile Industry Not surprisingly, Sustainability and Innovation/Technology appear as the most relevant endogenous factors of the Textile Industry for the sample interviewed, having been mentioned by nine and five interviewees respectively. These themes come forward as fundamental pillars companies should base their strategies on in order to seize opportunities within the market.
83 Hence, having the mentioned propositions in consideration, organizations must focus on building a Competitive Strategy in a global market scenario. This can be achieved through Networking , as joining a company’s most relevant competencies with the expertise of other entities generates great value. Various interviewees agreed that the successful organizations of the future will be the ones that can take advantage of this type of partnerships, here named Clusters. Furthermore, as future businesses were being predicted, new propositions related to Sustainability were suggested. In line with what was discussed in the PESTEL analysis present in Section 2.4., Legislation regarding Sustainability is a concern that companies must embrace as endogenous in order to build future-driven business models that are ready for the inevitable transition of global sustainability worries into laws. In a similar way, Certifications for Sustainability , which can have a strong relationship with legislation, should be a matter of concern for future companies, as consumers demand proof that organizations follow good and sustainable practices. Finally, Recycling is presented as an endogenous factor to the Textile Industry, such as it was mentioned as an important factor of exogenous nature in the Sense phase (see Section 5.1.3.). Here, the Exploration of Synthetic Fibres also appears as a proposition, as the use of this type of raw material facilitates recycling processes and circularity as a whole, giving space for new business opportunities. Figure 21 - Propositions related to the Endogenous Factors of the Textile Industry
84 5.2.3. Propositions related to the Endogenous Factors of Strategic Management Following the predicted future paradigm of the Textile and Clothing Industry, in which new business opportunities shall emerge from demand’s influence, organizations must be able to adapt their strategy to their surrounding environment. Reinforcing this idea, most interviewees mentioned Adaptability to Demand when the matters of Strategic Management were being discussed. In fact, the way companies perform aligned with how they inform the consumer of their performance is a branch the stated adaptability bring as means for Transparent Communication . This channel must be well studied before its blind implementation, as pointed out by one interviewee, that associated transparency to be an obstacle for Business Sustainability. Figure 22 - Propositions related to the Endogenous Factors of Strategic Management I Indeed, when approaching Strategic Management, interviewees showed some incoherence as to what they considered to be the meaning of strategy itself. There was a clear division to whether strategy was related to management or to product, thus the emergence of the new proposition proposals Strategy is a Business Model and Strategy is Product. Evidently, the interviewees closer to product stated their output to be of grander importance, whereas top management roles were inclined to find strategy to mirror what they aspire for business. Alongside the mentioned new proposition proposals, strategy also found importance in Process , People and Knowhow of the Organization , as all these propositions are intrinsic to the intangible value of
85 a company. In fact, these propositions are more than just a series of endogenous factors, as they reflect the core of the company, relating the Culture and Structure of the Organization to strategy. On the whole, strategy is, indeed, management, material, processes and the organization itself. Further, the way this is delivered to the consumer validates the four concepts mentioned before. In line with this, strategy is in good Service . Figure 23 - Propositions related to the Endogenous Factors of Strategic Management II 5.2.4. Propositions related to the Endogenous Factors of the Portuguese Cluster/Company All propositions proposed on the theoretical model framework under this variable were validated throughout the interviews. Therefore, Positioning Map , Competitive Advantages and SWOT Analysis are important endogenous factors to consider from either a Cluster or a Company perspective. In fact, Competitive Business Models was referred to be of the same importance, if one considers the number of interviewees that stated it through the methodology application, as the already proposed propositions. Further, a Relevant Product Portfolio was seen to have more relevancy than the before mentioned management tools as the levels of competitiveness in a global market context increased with product differentiation.
86 Marketing was also acknowledged to be a new proposition proposal as it related product and the consumer, specifically in the way the first is communicated to the second, thus validating the importance of a channel of communication. In the end, the most referred proposition within the context of endogenous factors related to the Cluster and the Company was indeed Certifications for Sustainability , as also mentioned in Section 5.2.3. Figure 24 - Propositions related to the Endogenous Factors of the PT Cluster/Company I Competitiveness was also analysed under the endogenous factors related to the Cluster and the Company, as it is related to success. Even though competitiveness was not mentioned in the original theoretical model framework (see Section 3.5.), it seemed an important them to approach since the present document explores the means of strategic management. Furthermore, competitiveness was found to be more significant in what regards the Process with which a company operates and generates value. Then, Product was stated to also have competitive relevancy for businesses as it represents the desired output a company is aiming to trade, followed in importance by Business Model . Service , Quality and People were also mentioned to be competitive factors from the Cluster and the Company, even though they were only mentioned by one interviewee each.
87 Figure 25 - Propositions related to the Endogenous Factors of the PT Cluster/Company II 5.2.5. Propositions related to the Endogenous Factors of I&D+ The materialization of products consists in the transformation process of raw material to final good. Before this process, the time for creation, known as design, allows for the inventor to generate valid solutions directed at demand’s needs. As seen before, the matters of sustainability, circularity and performance are of general concern. The consumers are evermore conscious while looking for functional solutions. Subsequently, the producers are guided to produce materialized goods that resemble all three of these concepts. When examining the endogenous factors related to I&D+, Design for Sustainability , Design for Circularity and Design for Performance were validated as propositions. Additionally, the Synergy between Design & Engineering was suggested by one expert due to a previous work experience. Finally, when approaching product, and relating this to the most intrinsic form of exploration and consumption of the Portuguese TCI, cotton, Alternative methods for Cotton Processing were suggested in order to meet the validated propositions, as this raw material lacks in sustainable and performative characteristics.
88 Figure 26 - Propositions related to the Endogenous Factors of I&D+ 5.2.5.1. Propositions related to Product Following the idea of altering the processing of cotton, the interviewees were asked to share their view on the presence and value of this fibre in future transactions. Indeed, Cotton Can Create Value in the Future , as validated by most experts, yet this proposition was not found true by a third of the interviewees, having three stated that the fibre cannot create value and one that it may. This illustrates the present dilemma the Portuguese Textile Cluster and TMG Textiles itself are going through: in order to embrace the future there is need to let go of the past, which means to let go of all known organizational values, strategic and competitive factors. In the end, this leaves companies in a volatile position, fully dependent on future demand.
89 Figure 27 - Propositions related to Product Section 5.3. Factors leading Reconfiguration Having the validated and new proposition proposals acknowledged in Sections 5.1. and 5.2., the data analysis continues by contextualizing their applicability in the third phase of the Dynamic Capabilities theory (Teece, 2018), named Reconfiguration/Transform. Indeed, the purpose of this phase of the theory is to align existing capabilities and to invest in new ones in order to follow what has been found important through Sense and Seize (Teece, 2018). The variables here mentioned are factors of management influence that will directly impact the business plan itself, and can be found connected to sub-categories in Annex O so as to evaluate the accuracy of the proposed theoretical model framework present in Section 3.2. Furthermore, the results presented in the table in Annex S summarize the data analysis by relating the interviewees interventions to the variables identified as important in the Reconfiguration phase, and expose a series of categories that follow proposition validation and new proposition proposal. This section continues by examining each of these variables, exposing the categories identified by the interviewees that will evidently shape the elaboration of the new model framework to be presented.
90 5.3.1. Propositions related to Consumer and Organizational Perspectives So as to shape an internal organizational organism to the change in the consumer’s buying acts, a company has to consider the Singular/Individual Demand as of great influence for the business plan. Here, the Culture and Structure of the Organization have to be aligned with the Influence of Demand in order to allow for Change to be well Managed . This of course can only happen if a company has a Leadership capable of guiding the path towards change. Additionally, the incentive to work within the context of Multidisciplinary Teams also allows for better integration and acceptance of new ideas by the living assets of the company. Indeed, Internal Communication and Team Spirit are the propositions that carry out the organizational variables to success. Figure 28 - Propositions related to Consumer and Organizational Perspectives I Following the above stated, change implementation can only be possible if the Processes & Production of the company merge with a trend-driven mindset that will lead to Technological Developments . This scenario puts the company in a place that is appealing for the new generation workers to find value other than in Wage Policies , thus assuring the future of the Portuguese TCI. When facing this situation, most interviewees found the process of change to be more efficient if it is accomplished through Incremental movements. However, when thinking about the specific current context of the Portuguese
97 Alongside this, almost with the same granted importance, the differentiation through product was said to be of innovative significance, allowing the emergence of the new proposition proposal Competitiveness is in the Product (Value) . In fact, this consideration links to the appearance of product as a definition of competitiveness in Reconfiguration (see Section 5.3.4.), also generating a relationship between the concepts of technology and sustainability with innovation. Service was also mentioned by more than half of the experts to be of competitive value since the world nowadays demands for a faster pace in the appearance of the before mentioned innovative solutions. Moreover, Circular Economy , Quality and Price were also stated as competitive factors for the future business models, being mentioned by one interviewee each. Figure 35 - Propositions related to Business Model Competitive factors
98 5.4.3. Business Model Future Drivers The approach to the identification of business model future drivers was intended to validate some of the propositions already mentioned in previous sections of this document. This exercise resulted in the agreement of all experts that business models will in fact be driven by Innovation/Technology and, apart from the opinion of one, Sustainability will have the same importance. Digitalization , Transparent Communication and People , a new and significant proposition proposal, were pointed out by 10 interviewees as future drivers for business models, matching what had already been referred to in previous sections of Chapter 5. The interviewee in a board role pointed out the concern for the maintenance of Business Sustainability (economic health) as a key driver for future business model awareness. Figure 36 - Propositions related to Business Model Future Drivers 5.4.4. Business Model Validity Following the analysis for the future drivers of the BM, the interviewees were asked what are the ones validating a BM implementation. Indeed, innovation was again mentioned by all as a core category
99 to mind when approaching future business models. Here, the interviewees proposed the emergence of the new proposition Future Business Model based in Innovation , hence the applicability of the concept of Business Model Innovation (Teece, 2018) to the study. Further, two experts mentioned some difficulties in implementing a business model based in innovation, yet most found this process as a possible thrilling experience for the company’s workforce. In the end, one expert also mentioned BMI as mean to attract Talent , mirroring what was said in Section 5.3.1. that relates the adoption of technological developments with an appealing scenario for attracting talent, which as been a problem for the current national TCI and the company. Figure 37 - Propositions related to Business Model Validity 5.4.5. Business Model Implementation Risks The final variable investigated in the application of the methodology was connected to the risk of implementation of a business model that has the principles of innovation in its basis. This is to say that the business plan would, in its time, suffer shifts due to the influence demand would have in aligning the company’s strategy. The most common risk point out during this phase of the semi-structured interviews was No Return on Investment as some experts revealed that a company’s investment can be ahead of its time
100 and therefore not result in an immediate public acceptation. As for the process of implementing a BMI, the interviewees pointed out the need for Incremental Change in order to Reduce Risk , People’s Incapacity to Adapt and difficulties in Cost Control as important propositions to have in mind. Finally, being mentioned by one interviewee each, Bad Marketing Policies , Bad Timing , Company’s Incapacity to Adapt and Fast Obsolescence of new investments were also considered risks for BMI implementation. One expert mentioned BMI Non-Implementation is Riskier as a new proposition proposal since it is believed that if a company does not adapt, it will not survive the context of future markets. Figure 38 - Propositions related to Business Model Implementation Risks Section 5.5. New Theoretical Model Framework Hypothesis In order to analyse the problematic in study, the originally proposed theoretical model framework (see Section 3.5.) was set out to be of contextual purpose. Here, a set of variables and issues
101 (categories) were established as a starting point in order to analyse what had been discovered through literature review (see Chapter 2.) in the perspective of the project’s domain. Going back to the proposed theoretical model framework, a set of 12 variables were exposed having in mind the context of the Portuguese TCI and the company: two in relation to perspectives, four regarding exogenous factors and sense (Teece, 2018), five approaching endogenous factors and seize (Teece, 2018) and one in relation to business model innovation and reconfiguration (Teece, 2018). All these variables were validated by the interviews, as the experts also additioned another five variables to be considered when thinking about the implementation of a new business model based on innovation. Furthermore, the sub-categories exposed related the collected data (see Annex A to L) to the variables and resulted in a total of 548 relevant interventions (sub-categories, see Annex M to P) from the experts of the TCI. This then led to the validation of 34 categories (propositions, see Annex Q to T) already found relevant in the original theoretical model framework, and 77 new proposition proposals emerged (see Annex Q to T), leading to a total of 111 propositions validated by the experts. Figure 39 to 43 show how the reorganization of the propositions within the new theoretical model framework were organized in relation to the variables, following the Hypothesis phase (see Section 4.1., Figure 13) of the Constructivist Grounded Theory (Glaser & Strauss, 1967). The referred propositions were born of the synergy between the study and the experts’ opinion. Figure 39 – New Theoretical Model Framework part 1 – Organizational Perspective Propositions
102 Figure 40 - New Theoretical Model Framework part 2 – Consumer Perspective Propositions Figure 41 - New Theoretical Model Framework part 3 – Exogenous Factors Propositions Figure 42 - New Theoretical Model Framework part 4 – Endogenous Factors Propositions
103 Figure 43 - New Theoretical Model Framework part 5 – Reconfiguration & BMI Implementation Propositions From the total of the propositions that build the sustained new theoretical model framework (see Figure 44), there are 31 inputs that answered direct questions and therefore are not to be considered in a macro perspective, leaving the list bellow as guidelines the experts believe of relevance when approaching the future textiles global markets: Sense Exogenous factors related to the Textile Industry • Exploration of Man-Made Fibres • Exploration of Synthetic Fibres Seize Endogenous factors related to Strategic Management • Strategy is a Business Model • Strategy is Product • Strategy is Process • Strategy is People & Knowhow
104 Endogenous factors related to Strategic Management • Competitiveness is in the Process • Competitiveness is in the Product • Competitiveness is in the Business Model Reconfiguration Organizational Perspective • Change should be Incremental • Change sometimes has to be Radical BMI BM Adaptability • The need for adaptability can be influenced by the consumer or in synergy with the producer BM Competitive Factors • Corporation Cooperation • Product Differentiation • Service BM Future Drivers • Innovation/Technology • Sustainability • Digitalization • Transparent Communication • People BM Implementation Risks • No Return on Investment • People’s Incapacity to Adapt • Cost-control
105 Figure 44 – New Theoretical Model Framework (Elaborated by the author)
106 Chapter 6. New BMI Hypothesis Having the new theoretical model framework as the basis for the generation of future business models sustained by innovation, new business opportunities arise within the context of technology and sustainability. Indeed, the academic review presented in Chapter 2 approached the new perceived paradigm of the Textiles and Clothing Industry to be future driven by these two concepts in synergy. Likewise, the interviewed experts from the TCI also agreed in this strategic path as the route to be followed by TMG Textiles in a micro perspective, and by the general national TCI in a macro viewpoint. This being said, and considering the proposition validations and proposals resulted from the application of the methodology alongside the project’s starting question, a Business Model Innovation (Teece, 2018) can be proposed so as to approach a suggested opportunity. Furthermore, as most interviewees mentioned the belief for the pursue for alternative solutions, more sustainable and technological, for current processes and production in order to match demand’s needs, a BMI hypothesis based on innovation was developed. Figure 45 shows a BMI proposal that explores recycling, readaptation and re-functionalization as a means to transform the current end-life of a textile product into a new material aimed at an individual driven demand market with dynamic preferences. This idea follows the core concept of both Dynamic Capabilities and Business Model Innovation (Teece, 2018) theories, since it assumes change as a natural and repetitive process that influences the constant adaption of business to its surrounding environment. Further, in order to materialize the BMI idea exposed, there is need to acknowledge what has been described in Section 2.1. as the key inefficiencies, macrotrends, challenges and fundamental priorities (Associação Têxtil e Vestuário de Portugal, 2021) of the national TCI, so as to generate a solution for the already mentioned problematics. Following the above stated, the BMI hypothesis presented bellow illustrates a dual dynamic of an organization, that in one way considers its internal and external mass production inputs to achieve business profitability, while on the other way explores the individual demand as a business opportunity. Firstly, considering the current inputs for production a contemporary textile company has, here fitting TMG, one must study two different sources:
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120 Annex Annex A – Semi-Structured Interview 1 _ Executive Board Director point of view Sense É possível antecipar uma mudança no comportamento da procura? O que o leva a chegar a essa conclusão? // Quais considera serem os fatores antecedentes à mudança? Como é que as oportunidades podem ser identificadas? Atualmente, vivemos numa época ligada através da internet. Sofremos uma transição de uma sociedade hierarquizada para um contexto onde estamos todos igualmente conectados. Todos têm o potencial de ser conectar. Tudo isto influencia o comportamento das pessoas e da sociedade em geral. Existe cada vez mais liberdade entre as pessoas: liberdade comportamental e também de empregabilidade através das redes sociais. Esta normalização das plataformas digitais muda a forma como as pessoas se comportam em sociedade. Existe uma noção assente de uma nova forma de individualismo: o autoemprego é espelho destes novos movimentos da sociedade. Quem tem mais seguidores, vende mais. Um bom exemplo desta mudança de perspetiva de negócio é a Uber. No passado, alguém que quisesse ser taxista teria de se empregar numa empresa de táxis, cujos ativos eram carros e pessoas. Atualmente, para alguém ser taxista, basta ter um carro próprio e promover esta sua disponibilidade numa plataforma digital. Assim nasce a Uber. Resumindo, as mudanças no comportamento das pessoas são o que influencia os novos modelos de negócio, ou a adaptação dos modelos de negócio passados aos novos tempos. As private labels são uma oportunidade para as indústrias: o facto que começar a haver uma dinamização da indústria local emergida pela liberdade de pôr em prática a criatividade local, diversifica os negócios e volta a gerar o valor perdido com a globalização. Estes negócios, embora se revelem como uma oportunidade para as indústrias, exigem a fragmentação dos processos produtivos em muitas pequenas indústrias. Passamos de um paradigma de produção em massa para uma produção com foco em gerar produto com características diferenciadoras (e locais). Considera que as mudanças ocorrem de sinergias entre conhecimento empírico interno e externo à empresa, ou, por outro lado, que a mudança ocorre da necessidade de adaptação que a empresa tem ao meio que a envolve? As mudanças ocorrem por via destes dois inputs, embora de relevar que as organizações que não se adaptam ao meio que as envolve acabam por deixar de ter relevância no mercado, e por isso desaparecem. Esta adaptação não é científica, já que ocorre da observação que fazemos ao meio que nos rodeia e ao comportamento das gerações mais novas. As empresas capazes de percecionar estes movimentos e de os traduzir em modelos de negócio serão as organizações que irão vingar no futuro. Por um lado, as empresas podem até ter uma ideia de modelo de negócio boa e sustentada, mas podem estar fora de tempo – podem ser muito inovadoras, mas o mercado pode não estar recetivo aos seus inputs de futuro. Ou seja, embora o modelo de negócio de uma organização possa estar a absorver uma tendência de mercado, este input pode não ser grande o suficiente para alimentar uma indústria.
121 Em resumo, é na sinergia entre a perceção das macrotendências e dos comportamentos da sociedade e na visão estratégica de uma empresa que se baseia a mudança dos modelos de negócio. Como é que a cultura da organização se adapta a essas mudanças na procura? Esta pergunta revela um problema atual para as organizações. A título de exemplo, assisti a um webinar há pouco tempo sobre a transição digital, onde uma empresa específica fez uma apresentação extraordinária sobre a adaptação que tinha feito na forma de elaborar e apresentar as suas coleções através de uma ferramenta digital – o clo 3D. No fim da sua apresentação, a empresa foi questionada sobre a eficiência desta adaptação e transição digital. O CEO revelou que apenas tinha tido sucesso na implementação desta nova forma de fazer no sector das crianças, pois era uma área de negócio com uma equipa relativamente pequena e jovem, capaz de aceitar a mudança e de gradualmente se adaptar. As equipas mais velhas, já habituadas a realizar as suas atividades do diaa-dia de uma certa forma, não foram capazes de se comportar da mesma forma – talvez por medo de errar, por resiliência ou mesmo pela incapacidade de incorporar a mudança. Acredita-se que, caso esta adaptação traga um resultado muito positivo no núcleo da equipa mais predisposta, a equipa resiliente olhe para a mudança como algo a considerar, mas este contágio leva tempo até estar estabelecido e implementado. Neste cenário, as empresas têm de estar preparadas para aceitar o erro. Este modo de estar deve ser passado aos colaboradores com o propósito de os preparar para a realização das suas tarefas de forma diferente, abolindo a proteção do ‘sempre fiz assim, para quê agora mudar’. Tudo isto promove a rapidez na implementação da mudança. A cultura de uma organização não se muda por decreto. Para a mudança ser eficaz, é preciso trabalho e continuidade, e tem de haver contágio entre colegas, bem como a vontade de fazer diferente e a capacidade de encaixe do erro. As pessoas têm de dar a elas mesmas a oportunidade de fazer com risco, porque senão não evoluem – existirão coisas que correm bem, outras menos bem. Quando correm menos bem têm de voltar atrás, tentar corrigir, fazer de novo e aprender com o erro. Existem inputs da gestão de topo de preparação para a mudança? Sim, têm de existir. Embora as organizações sejam organismos vivos capazes de se organizar por forma a resolver assuntos e mudar formas de fazer. Aqui, se não houver apoio da gestão, volta-se atrás, por isso tem sempre de passar pela gestão o incentivo à mudança. As mudanças no comportamento da procura podem ser consideradas oportunidades de negócio? Como relaciona estas oportunidades com os temas da sustentabilidade e da tecnologia? Sim, não há dúvidas. Todas as mudanças de comportamento a que nós estamos a assistir vão muito de encontro aos temas da sustentabilidade. Atualmente são poucas as pessoas que não acreditam que temos de mudar o nosso comportamento para garantir o futuro do planeta. A sensibilização que tem havido neste sentido é um massacre, e levou as pessoas a consciencializarem-se, embora ainda não estejam preparadas para viver o seu dia-a-dia de forma 100% sustentável. Veja-se o sucesso das marcas de fast fashion que continua a impor-se no mercado. No fundo, as pessoas estão conscientes do tema da sustentabilidade (a todos os níveis) embora não estejam preparadas para mudar a sua qualidade de vida. Neste cenário, a tecnologia aparece como uma via facilitadora de abordar a sustentabilidade sem alterar muito o nosso modus operandi. Um exemplo
122 disso é o sector da mobilidade: nunca conseguiríamos obrigar as pessoas a deixar de andar de carro, mas conseguiríamos impor a que utilizasse o carro elétrico. Olhando para o têxtil, a sustentabilidade só vai ser possível se a tecnologia acompanhar este processo. Nós, enquanto sociedade, teremos de desenvolver fábricas capazes de produzir de forma sustentável a preços competitivos, e isto só se dá por via da tecnologia. Um exemplo disso é a alteração do processo de distribuição (supply chain) com o sentido de diminuir os tempos bem como as atividades a realizar por via da tecnologia. Neste cenário, o custo de transformação pode aumentar, promovendo assim o onshoring e a fabricação à medida – ou seja, fabricar para a necessidade, ao contrário do que se faz hoje em que se produz em grande quantidade porque é mais barato, mas sem certezas de que se vai vender. 30% das peças de vestuário das marcas nunca chega a ser vendida, acabando por ser considerado desperdício inerente ao processo produtivo e volatilidade de mercado. Este comportamento é altamente insustentável. Este desperdício pode ser eliminado se tivermos toda uma cadeia de valor e logística que permita ao cliente fazer as suas compras online enquanto a fábrica está a receber ordens de produção do mesmo pedido. Se a fábrica estiver altamente alinhada neste sentido, apenas produz sob encomenda, evitando assim a criação de desperdício. Quais as macrotendências da indústria têxtil que identifica como mais pertinentes? Consegue gerar uma correlação entre estas macrotendências e a exploração técnica e tecnológica (matérias-primas e processos) da ITV? As macrotendências que exploram as vias da sustentabilidade e da tecnologia são sem dúvida as mais pertinentes para os modelos de negócio futuros. Todas as outras também são relevantes, é claro, embora abordem um contexto que terá de ser analisado sempre com base nas duas primeiras. Uma macrotendência a ser considerada dentro do âmbito da sustentabilidade é a circularidade das peças de vestuário. Pessoalmente, tenho alguma dificuldade em ver isto a acontecer como algo normal, embora seja possível com a emergência dos mercados das peças em segunda mão e/ou com o aluguer de roupa. Outra via de abordagem à circularidade é através da reciclagem dos materiais, sendo necessária uma educação para a sustentabilidade desde os designers até ao consumidor final. Dar um fim de vida útil a uma peça de vestuário tem de ser pensado logo desde o início da conceção da mesma. O designer tem de pensar ao longo do seu processo criativo em formas diferenciadoras de criar com os constrangimentos que a reciclabilidade acarreta (exemplo o monomaterial). Quando se utiliza misturas de matérias-primas diferentes nos produtos, impede-se a sua circularidade, por isso cabe a quem idealiza as peças um pensamento direcionado para a sustentabilidade. Tendo em conta o abordado nas questões anteriores, quais as matérias-primas (naturais e sintéticas) cujo uso está cada vez mais condicionado dadas as envolvências de inovação e sustentabilidade? Penso cada vez mais no paradigma em que as fibras sintéticas se mostram mais ecológicas que as fibras naturais. Isto porque é muito mais complexo e improvável dar uma segunda vida às fibras naturais do que às sintéticas. Veja-se o exemplo destas últimas: derretendo-as novamente, é possível extrudi-las, dando assim origem a um novo fio de propriedades parecidas com o primeiro, ao contrário das fibras naturais (algodão) que, ao sofrerem um processo de reciclagem, ficam extremamente curtas, dando assim origem a um fio mais pobre, e por vezes inadequado ao sector do vestuário. É preciso notar também que, quando avaliamos o ciclo de vida das fibras naturais, nomeadamente do algodão, se verifica que concorre com a produção alimentar, isto porque a terra onde a planta é cultivada
129 Annex B – Semi-Structured Interview 2 _ Woven/Knit Textiles Business Manager I point of view Sense É possível antecipar uma mudança no comportamento da procura? O que o leva a chegar a essa conclusão? // Quais considera serem os fatores antecedentes à mudança? Como é que as oportunidades podem ser identificadas? A antecipação pode ser feita, sim, com base no que vamos ouvindo todos os dias de várias entidades. O caminho que a TMG tem feito nos últimos cinco anos é tentar antecipar as necessidades do mercado, perceber como as empresas se devem posicionar e preparar a nossa empresa através de formação interna e externa. A antecipação parte da identificação dos movimentos de mudança e deve levar a ações de preparação da empresa para a enfrentar, sabendo que nunca conseguiremos antecipar completamente todas as alterações do comportamento da procura. Considera que as mudanças ocorrem de sinergias entre conhecimento empírico interno e externo à empresa, ou, por outro lado, que a mudança ocorre da necessidade de adaptação que a empresa tem ao meio que a envolve? Acredito que podem ocorrer das duas formas, mas é preferível que ocorram das sinergias entre o conhecimento empírico interno e externo. No nosso caso, porém, acontecem maioritariamente pela necessidade de adaptação ao meio envolvente. Relativamente ao conhecimento interno, é extremamente importante que as empresas trabalhem mecanismos para fazerem passar esse conhecimento entre os seus colaboradores, pois é essencial para que a organização seja capaz de dar resposta aos desafios externos. É, também, importante que as empresas tenham pessoas capazes de absorver conhecimento empírico externo além do interno. Como é que a cultura da organização se adapta a essas mudanças na procura? A TMG ainda apresenta, enquanto organização, bloqueios e resistência à mudança. Existem pessoas que estão predispostas e entusiasmadas com oportunidades de mudança e que se mostram proativas nesse sentido, mas a cultura dominante não é essa. Os programas de desenvolvimento de competências que temos feito nos últimos anos têm o objetivo de contrariar essa forma de estar e o de começar a preparar a organização de forma diferente, virada para objetivos e preocupada com o cliente. Se os nossos colaboradores, desde o operário ao diretor geral, tiverem enraizado um espírito de preocupação com o cliente, percebem mais facilmente o que é preciso mudar na organização e estão predispostos a fazê-lo. Estes programas de formação que desenvolvemos foram muito importantes para alinhar os colaboradores com a estratégia da empresa e para lhes incutir esse espírito. As empresas mais bem preparadas para a mudança são as que têm uma equipa pronta a antecipar e responder à mudança quase ao nível do seu subconsciente. Mas é um esforço grande e mudar a cultura da organização é muito difícil. No entanto, é algo absolutamente necessário para que mantenha a sua reputação como empresa de referência na Europa e prospere num mundo em constante mudança.
130 Os temas que são mais relevantes hoje não serão os mesmos amanhã. Coisas como a reciclagem, a redução de desperdícios, a partilha e preocupação com o outro, compra de vestuário em segunda mão e outros têm hoje mais importância do que há alguns anos atrás. No futuro, outros temas emergirão. Tanto as pessoas como as empresas precisam adaptar-se a essas mudanças. Existem inputs da gestão de topo de preparação para a mudança? Sim. Sempre o tentei fazer e, idealmente, têm de existir. É preciso mostrar à organização qual é a estratégia e qual o caminho a seguir, avisando que há sempre a hipótese de o futuro nos obrigar a fazer desvios momentâneos do caminho traçado. Em qualquer momento do percurso, é importante que a gestão de topo garanta que o grupo está unido e alinhado. As mudanças no comportamento da procura podem ser consideradas oportunidades de negócio? Como relaciona estas oportunidades com os temas da sustentabilidade e da tecnologia? Sim, podem. As oportunidades podem ser identificadas relacionando os novos problemas e desafios do mundo em mudança com as nossas capacidades e características. Por exemplo, os desafios logísticos que têm afetado o mercado global recentemente e os problemas de sustentabilidade inerentes ao transporte de mercadorias podem revelar-se oportunidades para nós, enquanto fornecedores mais próximos do mercado europeu. Não só somos capazes de lead times mais curtos, como possibilitamos a redução da pegada ecológica, reduzindo a distância dos pontos ao longo da cadeia de abastecimento. Quais as macrotendências da indústria têxtil que identifica como mais pertinentes? Consegue gerar uma correlação entre estas macrotendências e a exploração técnica e tecnológica (matérias-primas e processos) da ITV? Uma das macrotendências mais pertinentes está relacionada com o serviço e traduz-se na redução do lead time e no encurtamento das cadeias de abastecimento com vista à redução da pegada ecológica e na prestação de um serviço mais rápido e eficiente aos clientes. Deveremos fazer o máximo ao nível da exploração técnica e tecnológica, apostando na sustentabilidade, que nos permita alterar a base de construção dos produtos com o objetivo de melhorar o serviço. Concretamente, falo em mudanças na matéria-prima utilizada que permita chegar a produtos finais com as mesmas características dos desenvolvidos no passado sem processos de acabamento tão intensivos e agressivos. Isto permite reduzir substancialmente a duração do processo produtivo e reduzir drasticamente o consumo energético e a utilização de químicos e corantes nocivos para o ambiente. A macrotendência é, então, fazer diferente – fazer de forma mais económica, mais sustentável e com lead time mais curto. Tendo em conta o abordado nas questões anteriores, quais as matérias-primas (naturais e sintéticas) cujo uso está cada vez mais condicionado dadas as envolvências de inovação e sustentabilidade? Continuamos a trabalhar com um dilema constante entre algodão normal, algodão orgânico e poliéster. O core business continua a ser o algodão, embora atualmente e cada vez mais com a preocupação de usar mais orgânico e reciclado nas misturas com algodão normal. Esta é uma tendência motivada pela procura e temos vários pedidos de clientes para a utilização de fibras mais sustentáveis, em substituição do algodão virgem. No entanto, é um desafio para algumas tipologias de produto. Um tecido para calças, por exemplo, precisa ter níveis de resistência que não são facilmente atingíveis com algodão reciclado. Obriga-nos a soluções técnicas de tratamento da fibra, como torcer o fio, que encarecem o produto. A gestão da relação qualidade-preço é um grande desafio.
131 Como relaciona a questão anterior com a exploração do algodão? Dadas as limitações tecnológicas (técnicas, de performance e digitais) e de sustentabilidade ambiental, consegue antecipar o crescimento ou decréscimo do uso desta matéria-prima pela ITV? Qual a MP que assume como a ‘matéria-prima do futuro’? Não me arrisco a apontar uma matéria-prima de futuro. O futuro será de sucesso para as empresas capazes de encontrar soluções diversas para os desafios dos clientes. Desde que seja dada essa solução, independentemente das matérias-primas usadas, o cliente ficará satisfeito. Por isso, o fator chave é o know-how das pessoas na organização. Seize Vê os produtos que estão a ser produzidos ao longo da cadeia de valor da empresa/fileira têxtil Portuguesa, como respostas válidas à procura dos tempos modernos? Por favor, associe conceitos de sustentabilidade e tecnologia ao leque de produtos e processos da empresa/fileira têxtil portuguesa. Sim, acredito que estamos prontos para responder às exigências do mercado. Atendendo à sustentabilidade, antecipámos a importância crescente da oferta de soluções sustentáveis e temos várias certificações relacionadas com o tema ao nível da matéria-prima. Além disso, a nossa equipa de desenvolvimentos já trabalha várias soluções com fibras diferentes, tornando-nos capazes de, para cada pedido do cliente, oferecer várias alternativas de construção de produto, cada uma com o seu preço e nível percebido de sustentabilidade. Quanto à tecnologia, temos vindo a preparar a nossa maquinaria para tratar materiais diferentes. A parte final do processo produtivo, o acabamento, será onde ainda estamos mais atrasados, mas já fizemos parte do caminho. Após perceber que a nossa fábrica teria muita dificuldade em tratar determinadas tipologias de produto que prevemos serem importantes no futuro, estamos numa fase de exploração e desenvolvimento de parcerias com outras empresas de acabamentos especializadas nos processos que procuramos. Está consciente do impacto ambiental do processo produtivo da empresa em que trabalha/fileira têxtil portuguesa? Sente que o cliente procura conhecer este impacto? Sim, estou. Quanto aos clientes, depende do mercado onde se inserem. No caso da TMG, grande parte da nossa carteira de clientes são marcas de Espanha e essas estão mais preocupadas com o preço do que com qualquer outra coisa. Os mercados do norte da Europa têm muito mais consciência ambiental, solicitam muita informação sobre o tema e procuram soluções mais amigas do ambiente. Temos uma grande oportunidade, ainda pouco explorada, na prospeção destes mercados, porque os clientes estão dispostos a pagar mais por produtos mais sustentáveis. Prevejo, no entanto, que, num espaço de dois anos, todos os clientes de todos os mercados procurem estar informados sobre o impacto do processo produtivo da empresa, tal como os nórdicos fazem atualmente. Assuntos como a rastreabilidade e o LCA (Life Cycle Assessment) passarão a ser uma norma. No futuro, acredito que poderemos criar um departamento dedicado à sustentabilidade que, entre outras funções, apoie a organização na coleta de dados, análise e disponibilização de informação sobre este tema ao cliente.
132 Está familiarizado com os termos Design para a Sustentabilidade, Design para a Circularidade e Design para a Performance? Como relaciona estes termos com o produto da empresa/fileira têxtil? Sim, estou. Relativamente à nossa empresa e, especificamente, à nossa equipa de desenvolvimento de produto, o Design para a Sustentabilidade e o Design para a Performance fazem parte, atualmente, da nossa base de criação de produtos. O Design para a Circularidade ainda não é levado em conta na generalidade dos processos de desenvolvimento. Como é que se transformam os exógenos à empresa /indústria têxtil em inputs para os fatores endógenos? Ou seja, como é que a identificação de oportunidades (sensing) pode ser trabalhada por forma a chegar a uma estratégia de negócio? Acima de tudo, é importante saber que existem oportunidades nos problemas e desafios que os nossos clientes enfrentam e temos de os saber ouvir e entender. Enquanto empresa, precisamos ter a capacidade de perceber e usar esses fatores exógenos no desenvolvimento de soluções. O que significa estratégia? Produto, modelo de negócio, cultura organizacional, modelos de decisão dos tempos modernos…? Estratégia é a definição de um propósito e do caminho a seguir para o atingir. Temos sempre de saber onde queremos chegar – a que pessoas, a que clientes, a que resultados. Nesse sentido, a definição de estratégia está relacionada, principalmente, com modelo de negócio, cultura organizacional e know-how . A definição de processos, procedimentos e standards contribui para a elaboração da estratégia de um modelo de negócio? São estes os fatores de vantagem competitiva? Ou, por outro lado, a vantagem competitiva está na diferenciação do produto final? A vantagem competitiva está, principalmente, na definição de processos. Relativamente aos processos, acredito que existem três valências principais em empresas como a TMG – pessoas, tecnologia e tecnicidade. É o desenvolvimento de cada um e o equilíbrio entre os três que nos permitem chegar aos produtos que o mercado quer de forma economicamente rentável. Quais os fatores facilitadores e bloqueadores no desenvolvimento de capacidades? (ex. liderança, comunicação, espírito de equipa…) Saber ouvir pode ser um grande facilitador no desenvolvimento de capacidades. Enquanto gestores, devemos reservar parte do nosso tempo a ouvir a nossa equipa e perceber os seus problemas e motivações. Este é um aspeto de liderança que passa por incutir uma cultura que valoriza a comunicação e que promove o espírito de equipa. A comunicação deve ser incentivada em toda a organização e entre colaboradores de todos os departamentos e níveis de hierarquia. Outro fator facilitador, também relacionado com a liderança, é o reconhecimento. Devemos devolver aos colaboradores a sua entrega e boa performance em forma de elogios, prémios, aumentos de remuneração, pagamento de formações ou cursos. Alguém que se esforça em prol da organização estará motivado para desenvolver ainda mais as suas capacidades se o seu esforço for reconhecido.
133 De que forma encaixa o desenvolvimento e produção de produtos de base algodoeira ao longo da fileira têxtil portuguesa? Vê este tipo de exploração como veículo para a criação de valor e de fatores competitivos futuros? Sim, a TMG continuará a ser, no futuro, uma empresa algodoeira na sua essência. Faz parte da nossa cultura e é a nossa especialidade ao nível técnico e tecnológico. Trabalharemos, como já começámos a fazer, o algodão de formas diferentes, com foco na sustentabilidade, e estamos mais abertos à exploração de desenvolvimentos com outras fibras. Mas acredito que é possível criar valor e ser competitivo no futuro com produtos de base algodoeira. Transform / Reconfiguration Quais são os fatores competitivos e de diferenciação que as empresas da fileira têxtil portuguesa devem ter em consideração num mercado global? A TMG trabalha, neste momento, com três vetores, que são os que considero fatores competitivos mais importantes: qualidade, preço e serviço. A qualidade está relacionada com a nossa capacidade de criar produtos com as características desejadas pelo mercado, englobando os conceitos de performance e sustentabilidade. O preço é sempre importante e devemos explorar formas de reduzir os nossos custos para que o preço dos produtos finais seja mais competitivo. O serviço é, cada vez mais, um aspeto diferenciador. Fazer e entregar rápido e bem é um fator competitivo extremamente importante no mercado global atual e será ainda mais no futuro. A definição de processos é um importante fator de vantagem competitiva, como discutido anteriormente, uma vez que apoia a empresa no desenvolvimento destes vetores. Como poderiam ser motivadas/incitadas as mudanças incrementais nos processos e produtos têxteis em torno do tema da sustentabilidade e tecnologia? E mudanças radicais? Todos os processos de mudança devem ser feitos gradualmente. O ideal é fazer uma pequena alteração, analisar o resultado e, se positivo, passar à alteração seguinte. Alterações radicais são mais propícias a insucesso e esse insucesso paga-se mais caro. As mudanças devem ser incentivadas pela gestão de topo e disseminadas pela organização numa perspetiva top-bottom . Isto é, enquanto gestora do negócio, devo partilhar as ideias que estão na base da necessidade e preparação para a mudança com os meus colaboradores mais próximos, gestores de departamento. Este, por sua vez, farão o mesmo com os colaboradores pelos quais é responsável. E por aí adiante, quase como um processo de contaminação. Este processo de motivação para a mudança pode ser feito diariamente, nas interações profissionais que vamos tendo, ou de forma mais estruturada em ações de formação e partilha, interna ou externa, como temos feito nos últimos anos. Quais as consequências primárias que o ajuste da estrutura e cultura de uma organização podem trazer? As consequências são ao nível das pessoas e, normalmente, existem três tipos de reação, um positivo e dois negativos. Algumas pessoas sentem-se entusiasmadas com a mudança pela perspetiva de novos projetos e desafios. Esta é uma reação positiva, mas representa uma proporção pequena da força de trabalho.
134 Outras pessoas vêm a mudança de forma negativa por sentirem que pode significar um aumento da carga de trabalho. Por último, outra reação negativa é o medo de não ter as capacidades necessárias para responder aos novos desafios que a mudança trará. Estas pessoas raramente partilham este medo por assumirem que poderão ser vistas como menos competentes, o que é perigoso para a organização. Cabe à gestão a difícil tarefa de conseguir percecionar em qual destes tipos de reação cada colaborador se insere, principalmente quando a reação é negativa, para que lhes possa oferecer ferramentas que combatam os seus receios. Por exemplo, organizar formações para que os colaboradores desenvolvam novas competências necessárias, pois não há problema nenhum em não saber, desde que se esteja disposto a aprender. De que forma é que equipas multidisciplinares poderiam trazer benefícios competitivos à empresa? As equipas multidisciplinares podem ser muito benéficas no desenvolvimento de competências por toda a organização. Um exemplo disso é o nosso programa Learning Together , que teve o objetivo de aproximar pessoas de várias áreas de especialização. Além de conhecimento, este programa permitiu que os colaboradores partilhassem dificuldades e desafios do seu trabalho, o que contribui para o aumento da compreensão e entreajuda, que aumenta a fluidez dos processos. Está familiarizado com os conceitos de re-industrialização, Indústria 4.0, Economia Circular e Mercados Globais? Em que medida é que estes conceitos impactam a transformação/reconfiguração da indústria têxtil portuguesa? Sim e todos têm importância na transformação da indústria têxtil portuguesa. Dados os conceitos mencionados anteriormente, vê a exploração de produtos de base algodoeira como parte integrante dos modelos de negócio do futuro? Sim. Terá de ser trabalhado de forma diferente, mais sustentável, e existirão outras fibras cuja exploração será muito importante também, mas o algodão fará parte dos modelos de negócio futuros. BMI O que leva à necessidade de adaptação de um modelo de negócio? A perspetiva do produtor vs. perspetiva do consumidor. É a perspetiva do consumidor. O mercado dita as regras, porque quem paga é quem manda. Quais os fatores competitivos atuais que considera como os cruciais da indústria têxtil e do vestuário portuguesa? E quais os fatores competitivos que talharão o futuro? (ex.: competição por preço vs. por valor; atitude passiva do sector vs. Atitude ativa – oferecer soluções “full package service” ao cliente final; estratégia empresarial individual vs. Estratégia empresarial coletiva – o cluster têxtil) Os fatores competitivos mais importantes, pelo menos para a nossa estratégia, são a trilogia preço, qualidade e serviço.
135 Transparência, sustentabilidade, tecnologia, digitalização e pessoas: são estes os drivers dos modelos de negócio futuros? Sim, sem dúvida. Outro aspeto importante, que talvez se possa inserir na transparência, é a comunicação ao longo da cadeia de valor. Se clientes e fornecedores estiverem constantemente informados sobre os nossos processos produtivos, mais facilmente perceberão de que forma os podemos servir ou nos poderão servir melhor, respetivamente. Tendo em consideração o discutido na questão anterior vê o romper do modelo de negócio tradicional da ITV, e consequente implementação de modelos de negócio com base na inovação como a proposta de valor viável do futuro? Vejo um caminho a ser feito nesse sentido, sim. Quais os riscos que antecipa com a implementação de um modelo de negócio que tem por base as mudanças no contexto de mercado impulsionadas pela procura por inovação de produto e processo? Todas as alterações ao modelo de negócio devem ser feitas gradualmente de formas a reduzir os riscos, sejam eles quais forem. Alterações radicais são mais propícias a insucesso e esse insucesso paga-se mais caro.
136 Annex C – Semi-Structured Interview 3 _ Woven/Knit Textiles Business Manager II point of view Sense É possível antecipar uma mudança no comportamento da procura? O que o leva a chegar a essa conclusão? // Quais considera serem os fatores antecedentes à mudança? Como é que as oportunidades podem ser identificadas? A mudança na procura é algo com que temos aprendido a viver de forma mais frequente nas últimas décadas, e isso está muito relacionado com a sociedade de informação. As marcas procuram perceber o que o consumidor quer e tentam condensar esses desejos em ciclos de compra e produção cada vez mais curtos. Antigamente, esses ciclos eram mais longos, o que permitia mais tempo para pensar, desenvolver e apresentar tendências, mas, hoje em dia, esses tempos estão mais condensados. Na minha experiência anterior à TMG, na Prozis, procurávamos saber o que estava a ser procurado a nível de tipologia de produto, cor, etc., e agir rapidamente na resposta a essa procura. Antecipar comportamentos é cada vez mais complexo. A Prozis, tem um site que é um sucesso de vendas impressionante, e o Miguel Milhão dizia-me sempre, sobre alguns produtos com grande volume de vendas, que nem ele nem ninguém poderia saber exatamente o motivo para o sucesso desses produtos, pois não existe forma de tipificar, por meio de um algoritmo ou outra forma, as exatas razões que explicam porque é que um produto vende. Isto porque existem tantos fenómenos influenciados por tão variadas variáveis que se torna impossível tipificar. Por isso a solução é fazer, vender e, se funcionar, replicar. Enquanto gerar retorno, continua-se a vender. Muitas das apresentações de tendências que via eram-me difíceis de perceber. Algumas tendências, que são empurradas por fatores sociais, são claras. Por exemplo, a sustentabilidade é fácil de perceber. Tudo começa com a dependência de fibras de petróleo e com a escassez desse recurso, passa pela procura de biopolímeros e polímeros sustentáveis, que depois escala para a reciclabilidade e por aí adiante. Ou seja, tudo isto gira em volta do chavão que é a sustentabilidade. Lembro-me de a HM, há 15 anos atrás, nomear para administradora não executiva uma figura pública inglesa para representar um projeto chamado “Plano A”, que era a estratégia da HM para a sustentabilidade. Isto foi um sinal fortíssimo para o mercado e para a comunidade têxtil. Já aí se percebia que as questões relacionadas com a sustentabilidade iam ser estratégicas e importantes. O chavão dessa altura era inovação, que, entretanto, foi substituído pela sustentabilidade, embora muita gente nem saiba o que significa a palavra “sustentável” e o conceito de sustentabilidade está hoje, muitas vezes, muito baralhado e deturpado. O algodão, por exemplo, é muitas vezes apresentado como sustentável. É, no entanto, uma fibra que exige um consumo de água muito superior a qualquer poliéster. Um poliéster reciclado é, do ponto de vista da pegada ecológica, muito mais interessante do que o algodão. Concluindo, existem muitos conceitos chave que vão surgindo. Alguns, é possível antecipar, como a questão da sustentabilidade que já há muito mostrou que poderia ser uma questão estratégica, e ainda é. A inovação foi, mais do que uma antecipação, uma resposta, pois surgiu da pressão competitiva do mercado asiático, que obrigou aqueles que não poderiam competir pelo preço a inovar e fazer diferente.
137 Considera que as mudanças ocorrem de sinergias entre conhecimento empírico interno e externo à empresa, ou, por outro lado, que a mudança ocorre da necessidade de adaptação que a empresa tem ao meio que a envolve? Os fatores que originaram estratégias baseadas na sustentabilidade ou inovação, como falámos, são fatores antecedentes à mudança ao nível macro. Surgem da adaptação ao mercado e às leis da economia global, que empurram as empresas para determinadas estratégias. Existem também os fatores a nível micro, que surgem da adaptação a necessidades específicas do cliente. A este nível, percebemos hoje que o cliente quer prazos cada vez mais curtos, com ciclos curtos e renovação permanente de artigos. Numa loja online , não se podem ter os mesmos artigos na homepage durante oito ou nove semanas. Todos os dias têm de aparecer coisas novas, porque as lojas deixaram de ser numa rua e passaram a estar em qualquer dispositivo, o que leva a acessos muito mais frequentes por parte de cada consumidor. Os lançamentos têm de ser planeados e feitos de forma faseada, para haver uma renovação permanente da oferta. Isto obriga a produção a ter a capacidade de trabalhar em ciclos mais curtos e repor coisas diferentes de forma permanente. Mas esta tendência acaba por ser, também ela, um fator macro, pois é comum a todo o mercado. Acredito que as grandes ideias e drives que constroem o caminho das empresas vêm dos fatores macro, que vêm do mercado e economia global. Depois, existem também as micro ideias, que podem vir do cliente. Como é que a cultura da organização se adapta a essas mudanças na procura? É importante saber ouvir. Os comerciais têm de estar preparados para ouvir o cliente com mais atenção. Não falo de ouvir as coisas inerentes ao processo de compra e venda, mas de outras coisas, pois é aí que pode estar o segredo do sucesso. É muito importante saber o máximo sobre o cliente para perceber de que forma o podemos servir melhor. Na Prozis, enquanto cliente, procurava partilhar e trabalhar com os fornecedores de uma forma próxima, fazendo, por vezes, pequenas alterações ao nosso produto para que pudessem ser utilizadas soluções que o fornecedor tinha disponíveis no imediato. A nossa equipa de design estava preparada para, se necessário e de acordo com a disponibilidade de soluções dos fornecedores, alterar alguns aspetos do produto (sem alterar o conceito base que o originou, claro), de forma a acelerar o processo produtivo. Hoje em dia, com todas as dificuldades no abastecimento de matérias-primas e em toda a cadeia logística, os clientes têm apresentado cada vez mais esta capacidade de adaptação. Para esta sinergia acontecer, temos de saber sobre a operação do nosso cliente, pois permite-nos perceber os pontos de cedência e onde é possível adaptar as suas necessidades à nossa oferta. Existem inputs da gestão de topo de preparação para a mudança? Os inputs surgem, muitas vezes, das equipas, como as equipas de design e desenvolvimento. Nestes casos, a gestão de topo deve validar as ações de mudança propostas. Se estivermos a falar do lançamento de uma nova linha de produtos, por exemplo, é importante fazê-la acontecer rapidamente após essa validação, mesmo que em pequena escala, de forma a permitir medir o seu sucesso. Se for bem-sucedida, replica-se.
138 As mudanças no comportamento da procura podem ser consideradas oportunidades de negócio? Como relaciona estas oportunidades com os temas da sustentabilidade e da tecnologia? Acredito que podem ser oportunidades de negócio, mas apenas se conseguirmos dar resposta a esses novos comportamentos de forma rápida. Por exemplo, se falarmos na tendência da procura por artigos personalizados, isso só se torna uma boa oportunidade se conseguirmos oferecer ao cliente o produto personalizado sem adicionar em demasia o tempo de espera comparativamente a um produto normal, porque as pessoas não estão dispostas a esperar. Vejo isso a acontecer mais em loja, onde se pode oferecer a opção de colocar, no momento de compra, um bordado, estampado ou outra aplicação que diferencie a peça. Isto até ajuda a dinamizar o ponto de venda, como acontece com a loja da Adidas na Avenida dos Campos Elíseos, em Paris, onde se podem personalizar sapatilhas no momento da compra. Se estivermos a falar de uma loja online e se ofereça, por exemplo, um produto normal com opção de personalização em que a diferença no prazo de entrega dos dois seja de dois dias para três semanas, já não funciona. Hoje em dia, o sentido de urgência faz com que o consumidor procure as alternativas mais rápidas que se aproximem do seu imaginário de compra, mesmo que o produto não seja exatamente o pretendido. Além disso, é muito difícil para uma empresa fazer a gestão produtiva de produtos personalizados. Respondendo à segunda parte da pergunta, o tema da tecnologia e funcionalidade na indústria do vestuário está marcado pela dificuldade que as marcas sempre demonstraram em apresentar ao consumidor final as funcionalidades incorporadas nos seus produtos e as suas vantagens. As áreas do desporto e atividades outdoor serão as exceções, até porque os consumidores ligados a estas áreas procuram saber sobre o tema. No resto da indústria do vestuário, nota-se ainda uma fraca educação do consumidor relativamente a este tema. Existem funcionalidades que algumas marcas, por vezes, apresentam nos seus produtos como grandes inovações, quando, na verdade, já existem há vários anos. O tema da sustentabilidade está muito mais explorado. Embora tenha dúvidas se a generalidade dos consumidores está disposta a pagar mais por um produto reciclado, por exemplo. Não sei se o consumidor, quando confrontado com duas opções semelhantes em que uma é reciclada, mas mais cara, opte por esta. Acredito que não. Falando de outro setor, o espaço para produtos biológicos representa menos de 1% do espaço do grande retalho alimentar. Ou seja, é certo que os retalhistas têm de reservar esse espaço para os artigos biológicos, mas não será aí que ganham dinheiro. Quais as macrotendências da indústria têxtil que identifica como mais pertinentes? Consegue gerar uma correlação entre estas macrotendências e a exploração técnica e tecnológica (matérias-primas e processos) da ITV? Uma das macrotendências que está claramente identificada e veio para ficar é a que gosto de chamar comfort is king . Hoje em dia, as pessoas querem coisas confortáveis e essa tendência ganhou uma importância enorme. Não creio que fato, gravata e sapato voltem a ser a indumentária mais comum e passarão a ser vestuário de cerimónia. Mesmo nos blazers de homem se vê, cada vez mais, peças estruturadas, em malha, com maior elasticidade e, consequentemente, conforto. E aqui englobam-se características como a respirabilidade, a secagem rápida, entre outras. É uma tendência que estará presente por muito tempo. Outra tendência está relacionada com a funcionalização dos produtos e com a diminuição do tempo que as pessoas têm disponível para tratar da roupa. Portanto, tudo o que possa ser easy clean, no iron, stain release e outras funcionalidades que poupem tempo e facilitem a lavagem e secagem da roupa são coisas com futuro.
241 Question 7 _ Having in mind the previous question, which of the textile raw materials (natural and synthetic) do you consider having a growing conditioned use due to the context of innovation and sustainability? Consumer Perspective Organizational Perspective Exogenous factors related to the surrounding Market Exogenous factors related to the Textile Industry Exogenous factors related to the Competition Exogenous factors related to I&D+ Interview 1 The agriculture phase of cotton directly competes with the food industry, negatively impacting the environment. The exploration of synthetic fibres seems to be more directed towards a sustainable future due to its life cycle that embraces recyclability. Interview 2 Organic and recycled alternatives to natural fibres will improve the sustainability of the textile products. Performance and functionality in natural fibres might be compromised due to sustainable inputs, this will have to be overcome by Design. Interview 3 The agriculture phase of cotton directly competes with the food industry, negatively impacting the environment. The exploration of cotton fibre will be abolished, as man-made fibres (both existing and future developments) will substitute it due to their similar characteristics. New man-made fibre development to achieve cotton's performance and behaviour through a sustainable alternative. Interview 4 The exploration of synthetic fibres seems to be more directed towards a sustainable future due to its life cycle that embraces recyclability. Organizations should aim to find alternatives to the use of nonsustainable raw materials.
242 Interview 5 The exploration of the cotton fibre will be limited due to its sustainable conditionings. The exploration of synthetic fibres seems to be more directed towards a sustainable future due to its production processing that enables mores sustainable practices. Alternative fibres to cotton must be explored within the context of the TCI, so as to generate solutions that behave and perform similarly to the cotton fibre while not impacting as much on the environmental, social and economic dimensions of sustainability. Interview 6 The exploration of the cotton fibre will be limited due to its sustainable conditionings. Organic alternatives to normal cotton will improve the sustainability of the textile products, even though the demand may be a lot bigger than the supply. Alternative fibres to cotton must be explored within the context of the TCI, so as to generate solutions that behave and perform similarly to the cotton fibre while not impacting as much on the environmental, social and economic dimensions of sustainability. Interview 7 The usage of synthetic fibres will be limited due to its sustainable conditionings. Man-made natural fibres will substitute the usage of cotton and synthetic fibres. Interview 8 The exploration of the cotton fibre will be limited due to its performance properties. Exploration of alternative natural fibres (such as basalt) are capable of answer some of the more technological market needs. Interview 9 The usage of synthetic fibres will be limited due to its sustainable conditionings. Organic and recycled alternatives to natural fibres will improve the sustainability of the textile products, alongside man-made natural fibres. Genetically modified cotton will arise to be an alternative to organic cotton.
243 Interview 10 The exploration of the cotton and synthetic fibres will be limited due to their sustainable conditionings. Recycled alternatives to natural fibres will improve the sustainability of the textile products, alongside man-made natural fibres. Interview 11 Interview 12 The exploration of the cotton fibre will be limited due to its sustainable conditionings, especially the competition with the food industry. Man-made natural fibres will substitute the usage of cotton and synthetic fibres from fossil fuels. Alternative natural fibres to cotton must be explored within the context of the TCI, so as to generate solutions that behave and perform similarly to the cotton fibre while not impacting as much on the environmental, social and economic dimensions of sustainability. Table 26 - Sub-categories analysed in Question 7 Sense The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12) (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts.
244 Consumer Perspective Organizational Perspective Exogenous factors related to the surrounding Market Exogenous factors related to the Textile Industry Exogenous factors related to the Competition Exogenous factors related to I&D+ Proposition Validation Environmental Sustainability Eco-friendly Fashion Innovation New Fashion Concepts Environmental Sustainability New Proposition Proposal Technology Recycling Design Exploration of Synthetic Fibres Alternative methods for Cotton Processing Organic and Recycled Fibres Exploration of Alternative Natural Fibres Exploration of Man-made Fibres Table 27 - Validation of Propositions and New Proposition Proposals achieved through the Sub-categories analysed in Question 7 Sense
245 Question 8 _ How do you relate what was discussed in the previous question with cotton’s exploitation? Given the technological limitations (technical, performance and digital) and environmental sustainability, can you anticipate a growth or decrease on the usage of this raw material by the TCI? What is the ‘raw material’ you consider to be the future one? Consumer Perspective Organizational Perspective Exogenous factors related to the surrounding Market Exogenous factors related to the Textile Industry Exogenous factors related to the Competition Exogenous factors related to I&D+ Interview 1 The raw material of the future are the synthetic fibres, whilst the consumption of cotton will decrease. Interview 2 Interview 3 The raw material of the future are the man-made fibres & biopolymers, whilst the consumption of cotton will decrease due to its lack of performance properties and sustainability. Interview 4 The raw material of the future are the man-made fibres, whilst the consumption of cotton will decrease due to its lack of sustainability. Interview 5 The raw material of the future are the synthetic fibres, whilst the consumption of cotton will decrease.
246 Interview 6 The raw material of the future are the man-made fibres, whilst the consumption of cotton will decrease due to its lack of performance properties and sustainability. Interview 7 The raw material of the future will be natural, whilst the consumption of synthetic fibres will decrease. Interview 8 The raw material of the future will be technical and sustainable. Recyclability will also have a major part in the TCI future. Interview 9 The raw material of the future are the man-made fibres, whilst the consumption of cotton will decrease due to its lack of sustainability & technical performance. Interview 10 The raw material of the future is going to be original from recycled materials, whilst the consumption of cotton will decrease due to its lack of sustainability & technical performance. Interview 11 Interview 12 The raw material of the future are the man-made fibres, whilst the consumption of cotton will decrease due to its lack of sustainability. Table 28 - Sub-categories analysed in Question 8 Sense
247 The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12) (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts. Consumer Perspective Organizational Perspective Exogenous factors related to the surrounding Market Exogenous factors related to the Textile Industry Exogenous factors related to the Competition Exogenous factors related to I&D+ Proposition Validation New Proposition Proposal Exploration of Synthetic Fibres Decrease of the Cotton Consumption Exploration of Man-made Fibres Exploration of Biopolymers Decrease of the Synthetic Consumption Exploration of Natural Fibres Exploration of Technical Fibres Recycling Organic and Recycled Fibres Table 29 - Validation of Propositions and New Proposition Proposals achieved through the Sub-categories analysed in Question 8 Sense
248 Annex N – Interview Analysis: Seize Sub-Categories, Proposition Validation and New Proposition Proposal Question 9 _ Do you identify the products being produced throughout the Portuguese TCI/company’s value chain as valid answers to the modern demand? Can you associate the concepts of sustainability and technology to the range of products and processes of the Portuguese TCI/company you work for? Consumer Perspective Organizational Perspective Endogenous factors related to the Textile Industry Endogenous factors related to Strategic Management Endogenous factors related to the PT Cluster/Company Endogenous factors related to I&D+ Interview 1 The world evolves at such pace that the product portfolio of an organization is hard to keep actualized. With the volatile preferences of the consumers, companies are left in the scenario in which they are constantly facing the need to adapt their industrial structure. The changes in the consumer preferences demand for a flexible and agile strategy. The portfolio of products from TMG is not directed to the future. The industrial processes of a company are affected by its innovative business model. The business model must be innovative, before any developments of innovative products. Interview 2 The industrial machinery of a company must be improved in order to process the materials of the future. TMG has its products directed towards a sustainable future, not only by the use of eco raw material, but also by the number of certifications used to ensure this. The development team works in providing sustainable solutions to the client when developing the textile substrates. Interview 3 When addressing sustainability some companies do show a trustworthy information, while others take advantage of the concept for marketing purposes. Business model orientation positions the national TCI to be flexible to consumer preferences.
249 The ability to adapt to the consumer preferences has been what has positioned the Portuguese TCI in competitive grounds. Interview 4 Change does not only involve products, it is also related to the culture and structure of the organization. TMG is going through an adaptation process directed at the new emerging consumer preferences. Technology and Sustainability are future product trends that should be explored within the business practices for the future. In order to maintain economic sustainability, a company has to balance between the production of innovative goods, with the production of commodities. Interview 5 The industrial machinery and knowhow of a company must be improved in order to process the materials of the future. TMG is efforts to adapt quickly to demand preferences. The is a niche market TMG does not explore related to the exploration of nano particles. Interview 6 The finishing processes of a company must be improved in order to process the materials according to sustainable practices. The ability to well communicate sustainable processes will provide the organization with a completive advantage. The development team works in providing sustainable solutions to the client when developing the textile substrates. Interview 7 The implementation of technology and sustainability amongst the TCI is something inevitable. Companies that do not adapt to future trends and movements of society will close in a near future. Some companies are already working towards Circular Economy. Interview 8 The industrial processes & machinery of a company are affected by its approach to sustainability. The development team works in providing sustainable solutions to the client when developing the textile substrates.
250 Interview 9 The processes of a company must be technologically improved in order to produce innovative solutions. The certifications provided from the company are adopted by final client in order to promote its products. The development team works in providing sustainable solutions to the client when developing the textile substrates. The portfolio of products from TMG is not directed to the future. Interview 10 The Portuguese TCI is known for producing innovative and sustainable products. Companies that do not adapt to future trends and movements of society will close in a near future. Interview 11 The Portuguese TCI has the ability to develop technological and functional solutions for the technical textiles market. The sustainable certifications of a product should be standardized. Sustainable products are the clear path to be pursued in the future. Interview 12 The Portuguese TCI is known for producing innovative and sustainable products. The changes in the consumer preferences demand for a flexible and agile strategy. The approach to future driven products is boosted by a company's competitive business model. Table 30 - Sub-categories analysed in Question 9 Seize The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (3) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12)
257 same time allowing for technological developments. Organizations should be looking at waste as a new raw material. Interview 6 TMG Technological Development Centre established in order to address the themes of sustainability and performance. Industrial waste should be looked at as means for generating new business opportunities. Interview 7 The inputs to pursue a sustainable output should be launched by top management. Interview 8 The organization should promote the knowledge of sustainability different aspects. There has been a relative worry in generating solutions that match circular principles, such as the use of recycled materials,. Interview 9 Recycling should be approach as a raw material resource and also as a potential competitive business opportunity. Currently the certifications is an easy quantitative way of promoting sustainability but is not always the better path. Fashion designers should design for sustainability, performance and circularity. Interview 10 The structure and the processes of the organization must be prepared to deal with the new sustainable and technological products of the future. Recycling should be approached as a final end to a products lifecycle. There is a growing trend for design for circularity, fashion designers should design for circularity from an early stage. Interview 11 Certifications for Sustainability should be standardized in order to be able to be quantified and measured.
258 Interview 12 Circularity and sustainability are dogmatic concepts in the organizational grounds. Table 34 - Sub-categories analysed in Question 11 Seize The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12) (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts. Consumer Perspective Organizational Perspective Endogenous factors related to the Textile Industry Endogenous factors related to Strategic Management Endogenous factors related to the PT Cluster/Company Endogenous factors related to I&D+ Proposition Validation Processes & Production Competitive Strategy Business Sustainability Competitive advantage Design for Sustainability Structure of the organization Design for Performance Design for Circularity New Proposition Proposal Technological Developments Recycling Certifications for Sustainability Sinergy between Design & Engineering Sustainability Management Exploration of Synthetic Fibres Table 35 - Validation of Propositions and New Proposition Proposals achieved through the Sub-categories analysed in Question 11 Seize
259 Question 12 _ How can the exogenous factors to the company /TCI be transformed into endogenous inputs? In other words, how identifying opportunities (sensing) can lead into a business strategy? Consumer Perspective Organizational Perspective Endogenous factors related to the Textile Industry Endogenous factors related to Strategic Management Endogenous factors related to the PT Cluster/Company Endogenous factors related to I&D+ Interview 1 Even though the company might have na innovative mindset, the timing is essential for opportunities to be embraced. Opportunities are boosted by the surrounding environment to the company, and can only be transformed into business opportunities if the company is flexible to demand. Interview 2 The organization must be able to transform the clients’ needs product. Interview 3 The share between different members of different teams boosts the generation of new business opportunities. The living assets of the company should be proactive in the research and exploration of new trends. Interview 4 It is by involving all workers in decision making practices that a company can evolve together with its living assets and generate a common goal that will ease trend perception. The inability of the national TCI to correctly plan the implementation of new projects negatively affects their success.
260 Interview 5 The share between different members of different teams boosts the generation of new business opportunities. An organization must be able to validate interesting ideas that can eventually lead into business opportunities. Interview 6 The alliance between the commercial department and the technical department will boost business efficiency. Innovative solutions should be addressed from a marketing perspective in order to present them as a competitive advantage. Interview 7 A taskforce should be created by gathering a team composed with different workers, from different backgrounds in order to find the gaps with which an organization could profit. The taskforce should include people from outside sources. This way new business opportunities can be found interesting. Interview 8 Business opportunities can be found when an organization is challenged to generate problem solving solutions, and in fact solves them. Technical knowledge and the right processes will provide this materialization. Interview 9 The ability a company has of accepting external inputs allows it to follow up on this as business opportunities. The right mindset comes from these examples. Study visits to organizations and places where thinks are made differently boost the generation of new solutions that might suggest new business opportunities. The input for adopting external information and turn it into business opportunities is a directive that must come from top management.
261 Interview 10 With recycling processes a company can transform outsourced material into new raw material. Marketing boost the ability to sell the inputs from demand as materialized products. Interview 11 If the products of a company match demand, then business opportunities may arise. Interview 12 The transformation of exogenous factors in endogenous factors occurs as the processes of a company are adapted to new ways of doing. This happens before product. Table 36 - Sub-categories analysed in Question 12 Seize The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12) (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts.
262 Consumer Perspective Organizational Perspective Endogenous factors related to the Textile Industry Endogenous factors related to Strategic Management Endogenous factors related to the PT Cluster/Company Endogenous factors related to I&D+ Proposition Validation Culture of the Organization Networking Adaptability to Demand SWOT Analysis Processes & Production Positioning Map New Proposition Proposal Trend-driven Culture of the Organization Recycling Marketing Demand-driven Business Models Relevant Product Portfolio Multidisciplinary Teams Table 37 - Validation of Propositions and New Proposition Proposals achieved through the Sub-categories analysed in Question 12 Seize
263 Question 13 _ What does strategy mean? Product, business model, organizational culture, modern decision behaviour…? Consumer Perspective Organizational Perspective Endogenous factors related to the Textile Industry Endogenous factors related to Strategic Management Endogenous factors related to the PT Cluster/Company Endogenous factors related to I&D+ Interview 1 Strategy can be found in an organization Business Model. Interview 2 Strategy can be found in an organization Business Model, culture and knowhow. Interview 3 Strategy is Product & Service Interview 4 Strategy can be found in an organization structure, culture and knowhow. Interview 5 Strategy is Product & Process Interview 6 Strategy is Product
264 Interview 7 Strategy can be found in an organization Business Model. Interview 8 Strategy is Product, Process & People Interview 9 Strategy can be found in an organization Business Model. Interview 10 Strategy can be found in an organization Business Model, in People, Processes & Product Interview 11 Strategy is Product, Process, People & Knowhow Interview 12 Strategy can be found in an organization Business Model. Table 38 - Sub-categories analysed in Question 13 Seize
265 The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12) (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts. Consumer Perspective Organizational Perspective Endogenous factors related to the Textile Industry Endogenous factors related to Strategic Management Endogenous factors related to the PT Cluster/Company Endogenous factors related to I&D+ Proposition Validation New Proposition Proposal Strategy is a Business Model Strategy is the Culture of the Organization Strategy is the Knowhow of the Organization Strategy is Product Strategy is good Service Strategy is the Structure of the Organization Strategy is Process Strategy is People Table 39 - Validation of Propositions and New Proposition Proposals achieved through the Sub-categories analysed in Question 13 Seize
266 Question 14 _ Does the definition of processes, proceedings and standards contribute to the elaboration of a business model strategy? Are these the competitive advantage factors? Or, on the other hand, the competitive advantage is on the final product’s differentiation? Consumer Perspective Organizational Perspective Endogenous factors related to the Textile Industry Endogenous factors related to Strategic Management Endogenous factors related to the PT Cluster/Company Endogenous factors related to I&D+ Interview 1 The competitive advantage of a company is in its Business Model. Interview 2 The competitive advantage of a company is in Process Definition. Interview 3 The competitive advantage of a company is in Process Definition, its Quality standards and Service. Interview 4 The competitive advantage of a company is in Process Definition. Interview 5 The competitive advantage of a company is in Process Definition.
273 Interview 7 The exploration of cotton in the future is going to continue. Interview 8 The exploration of cotton in the future is going to continue. Interview 9 The exploration of cotton in the future is going to continue. Interview 10 The exploration of cotton in the future is going to stop. Interview 11 The exploration of cotton in the future is going to continue. Interview 12 The exploration of cotton in the future is going to continue. Table 44 - Sub-categories analysed in Question 16 Seize
274 The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12) (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts. Consumer Perspective Organizational Perspective Endogenous factors related to the Textile Industry Endogenous factors related to Strategic Management Endogenous factors related to the PT Cluster/Company Endogenous factors related to I&D+ Product Proposition Validation New Proposition Proposal Cotton May Create Value in the Future Cotton Can Create Value in the Future Cotton Can Not Create Value in the Future Table 45 - Validation of Propositions and New Proposition Proposals achieved through the Sub-categories analysed in Question 16 Seize
275 Annex O – Interview Analysis: Reconfiguration Sub-Categories, Proposition Validation and New Proposition Proposal Question 17 _ What are the competitive and differentiation factors that the companies from the Portuguese TCI should consider within the context of the global market? Consumer Perspective Organizational Perspective Factors related to the surrounding Market Factors related to the Textile Industry Factors related to the PT Cluster/Company Factors related to I&D+ Interview 1 Society is currently characterized by groups of individuals with unique consuming habits. Companies must be able to look at the trends from society and adapt their processes in order to fulfil them. Society is currently characterized by groups of individuals with unique consuming habits. Innovation is a vehicle to differentiation. Organizations should create business models adapted to the individual behaviour of demand. Interview 2 Process definition allows for the development of organizational capabilities. Quality, price and service are the base pillars for competitiveness. Interview 3 The low cost of labour boosts the Portuguese cluster performance in the context of global markets. The geographic proximity between companies in the north of Portugal brings a cluster way of working that allows for competitiveness. Interview 4 The differentiating factors of the Portuguese TCI cluster are: product, price, proactivity and economic competitiveness. Interview 5 Innovation through product and knowhow will lead the competitiveness of future companies. In order to inhabit the future global markets, companies must invest in generating products with added value.
276 Interview 6 The capability a company has of investing in new machinery is going to lead its future product development to fit with a global market. Interview 7 Sustainability and Performance are going to maintain companies up to date and competitive. The added value product is the most important factor to keep companies establish within global markets. Interview 8 The process and production grounds of a company should be matching the future needs of demand. Strategy has to impose innovation as a core value for the future. Interview 9 The way an organization is organized allows for the generation of competitiveness. The more controlled processes, the better service an organization can provide. The basis for creating future value is in sustainability. Interview 10 Functionalization and sustainability are going to be mandatory for the TCI. Quality, product and service are the base pillars for competitiveness. Interview 11 The ability companies have to do and the will to do it helps shaping competitiveness. Innovative solutions are going to be the path to pursue in the future. Interview 12 The collaborative spirit of the TCI will allow it a better service and faster achievements. The ability to deliver the demanded product on time provides competitive value to the company. Digitalization and Sustainability are going to lead the future of the TCI. Table 46 - Sub-categories analysed in Question 17 Reconfiguration
277 The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12) (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts. Consumer Perspective Organizational Perspective Factors related to the surrounding Market Factors related to the Textile Industry Factors related to the PT Cluster/Company Factors related to I&D+ Proposition Validation Processes & Production The evolution of Human Behaviour Innovation/Technology Structure of the Organization Corporation Cooperation Culture of the Organization Sustainability New Proposition Proposal Singular/Individual Demand The influence of Demand Competitive Business Models Trend-driven Processes & Production Competitiveness is in Service Wage Policies Competitiveness is in the Quality Technological Developments Competitiveness is in Price Competitiveness is in the Product Table 47 - Validation of Propositions and New Proposition Proposals achieved through the Sub-categories analysed in Question 17 Reconfiguration
278 Question 18 _ How could incremental changes, within the textile processes and products, be driven towards sustainability and technology? And radical changes? Consumer Perspective Organizational Perspective Factors related to the surrounding Market Factors related to the Textile Industry Factors related to the PT Cluster/Company Factors related to I&D+ Interview 1 Change happens with time, with organization and by dissemination, and should be incremental. Interview 2 Change happens gradually and by dissemination. Interview 3 Change should be incremental. Interview 4 Change should be incremental, even though the culture of the TCI makes radical changes more efficient. Interview 5 Incremental changes take longer to be implemented but are the most efficient. Interview 6 Radical changes are not welcome.
279 Interview 7 Changes to occur must be radical and with top-down implementation. Interview 8 Change should be incremental. Interview 9 Changes to occur should be incremental and with top-down implementation. Interview 10 Change should be incremental, even though the culture of the TCI makes radical changes more efficient. Interview 11 Change should be gradual. Interview 12 Change should be incremental, even though the culture of the organization makes radical changes more efficient. Table 48 - Sub-categories analysed in Question 18 Reconfiguration
280 The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12) (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts. Consumer Perspective Organizational Perspective Factors related to the surrounding Market Factors related to the Textile Industry Factors related to the PT Cluster/Company Factors related to I&D+ Proposition Validation New Proposition Proposal Change should be Incremental Change should be Radical Change sometimes has to be Radical Table 49 - Validation of Propositions and New Proposition Proposals achieved through the Sub-categories analysed in Question 18 Reconfiguration
281 Question 19 _ What are the primary consequences that the adjust of the structure and culture of an organization can bring? Consumer Perspective Organizational Perspective Factors related to the surrounding Market Factors related to the Textile Industry Factors related to the PT Cluster/Company Factors related to I&D+ Interview 1 Top Management is responsible for well implementing changes. Interview 2 Top Management is responsible for well implementing changes. Interview 3 Change is well implemented if the whole team is able to pursue it. Interview 4 Change is well implemented if the whole team is able to pursue it. Interview 5 Change should be managed in order to be well implemented. Interview 6 Change should be managed in order to be well implemented.
282 Interview 7 Top Management is responsible for well implementing changes. Interview 8 Top Management is responsible for well implementing changes. Interview 9 Change should be managed in order to be well implemented and pursued. Interview 10 Change should be managed in order to be well implemented and pursued. Interview 11 Change should be well communicated and managed in order to be well implemented. Interview 12 Change should be managed in order to be well implemented and pursued. Table 50 - Sub-categories analysed in Question 19 Reconfiguration
289 The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12) (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts. Consumer Perspective Organizational Perspective Factors related to the surrounding Market Factors related to the Textile Industry Factors related to the PT Cluster/Company Factors related to I&D+ Proposition Validation Culture of the Organization Technology/Innovation Sustainability Corporation Cooperation New Proposition Proposal Leadership Recycling Trend-driven Processes & Production Technological Developments Table 55 - Validation of Propositions and New Proposition Proposals achieved through the Sub-categories analysed in Question 21 Reconfiguration
290 Question 22 _ Given the concepts discussed before, do you see the integration of products that are cotton based having a playing part within the future business models? Consumer Perspective Organizational Perspective Factors related to the surrounding Market Factors related to the Textile Industry Factors related to the PT Cluster/Company Factors related to I&D+ Product Interview 1 it is not the product that is going to give success to a company, it is its business model. Cotton will be approached and explored in a different way. The exploration of cotton in the future may create value. Interview 2 Cotton will be approached and explored in a different way in order to achieve a sustainable output. The exploration of cotton in the future is going to create value. Interview 3 In the future other natural fibres will substitute cottons' consumption. The exploration of cotton in the future is going to create value. Interview 4 The exploration of cotton in the future is going to create value. Interview 5 The exploration of cotton in the future may create value.
291 Interview 6 The exploration of cotton in the future is going to create value. Interview 7 The exploration of cotton in the future is going to create value. Interview 8 The exploration of cotton in the future is going to create value. Interview 9 Cotton will be approached and explored in a different way. The exploration of cotton in the future is going to create value. Interview 10 Cotton will be approached and explored in a different way. The exploration of cotton in the future is going to create value. Interview 11 Cotton will be approached and explored in a different way. The exploration of cotton in the future is going to create value. Interview 12 Cotton will be approached and explored in a different way. The exploration of cotton in the future is going to create value. Table 56 - Sub-categories analysed in Question 22 Reconfiguration
292 The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12) (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts. Consumer Perspective Organizational Perspective Factors related to the surrounding Market Factors related to the Textile Industry Factors related to the PT Cluster/Company Factors related to I&D+ Product Proposition Validation New Proposition Proposal Competitive Business Models Alternative methods for Cotton Processing Cotton May Create Value in the Future Exploration of Alternative Natural Fibres Cotton Can Create Value in the Future Table 57 - Validation of Propositions and New Proposition Proposals achieved through the Sub-categories analysed in Question 22 Reconfiguration
293 Annex P – Interview Analysis: BMI Sub-Categories, Proposition Validation and New Proposition Proposal Question 23 _ What drives the need for adapting a business model? Is it the producer’s perspective or the consumer’s perspective? Question 24 _ What are the current competitive values that you consider to be the most crucial for the Portuguese TCI? And what are the ones which will strive in the future? (e.g. price vs. value; passive attitude from the industry vs. active attitude – to offer solutions “full package service”; individual strategy vs. collective strategy – the textile cluster…) Question 25 _ Transparency, sustainability, technology, digitalization and people: are these the drivers of the future business models? Question 26 _ Having in mind what has been debated before, do you see a clear rupture happening from the traditional business model of the Portuguese TCI? Can you relate this with the implementation of business models that have innovation as their future value proposal? Question 27 _ What risks do you anticipate with the implementation of a business model that has as a premise the reaction to changes within the market, driven by the demand for product and process innovation?
294 Q.23_ Business Model Adaptability Q.24_ Business Model Competitive factors Q.25_ Business Model Future Drivers Q.26_ Business Model Innovation Validity Q.27_ Business Model Innovation Implementation Risks Interview 1 At present, the consumer behaviour is responsible for shaping BM. Society in general has a bigger force in impacting the industries. The cooperation between companies from the Portuguese TCI will bring competitiveness to the sector. The success of a BM is in product specialization. Transparency is crucial if a company wants to be part of the global markets. Alongside this, business sustainability (economic, people and environment) is implemented. Further the only way this can be achieved is through technology and digitalization. In the end, nothing would be possible without people, thus competitiveness is in people. Innovation should be related to the BM and not just to product. The risk of implementing a BMI is related to the high speed at which things change and therefore can influence the immature obsolescence of a BM, and not collect profit. Incremental improvements reduce risk. Interview 2 The consumer dictates the rules. The boss is who pays. Competitiveness is in price, quality and service. Transparency, sustainability, technology, digitalization and people are the drivers of the future BM. Alongside them, transparent communication through the value chain leads success. Innovation should be related to the BM. Incremental improvements reduce risk. Interview 3 The BM is influenced by the consumer. The cooperation between companies from the Portuguese TCI will bring competitiveness to the sector. Competitiveness is in the added value of the product. Transparency, sustainability, technology, digitalization and people are the drivers of the future BM. Innovation should be related to the BM. The risk of the implementation of a BMI is related to the economic return that can possibly not occur. Interview 4 The consumer influences the BM, therefore companies must be attentive to changes in demand. Competitiveness is in the service and is in the added value of the product. Transparency, sustainability, technology, digitalization and people are the drivers of the future BM. Alongside them, transparent communication through the value chain leads success. Even though in Portugal companies are not yet ready to base their BM in innovation, it should be this way. The risk is not to innovate and change. If companies stay the same they won't survive the future.
295 Interview 5 The producer perspective influences the BM, even though it should result of synergies between both the consumer and the producer. Competitiveness is in the added value of the product. The full package service is crucial and able to be delivered in a corporative mindset. Transparency and sustainability are core for organizations, then there is technology and digitalization that allows for global efficiency. Innovation should be related to the BM. The incapacity to adapt leaves a company with a high rick of BMI implementation. Interview 6 The synergies between both the consumer and the producer perspective influence the BM. The full package service is crucial and able to be delivered in a corporative mindset. Transparency, sustainability, technology and people are the drivers of the future BM. Even though in Portugal companies are not yet ready to base their BM in innovation, it should be this way. The working force of a company may not receive change with open arms, and thus react unwell to BMI implementation. Interview 7 The consumer dictates the rules. The boss is who pays. Competitiveness is in the added value of the product. The full package service is crucial and able to be delivered in a corporative mindset. Transparency, sustainability, technology, digitalization and people are the drivers of the future BM. The evolution of processes through digitalization and technology will empower BMI. Innovative products can lead to the failure of a BMI implementation due to price and to the readiness of the market. Interview 8 The producer perspective influences the BM. The cooperation between companies from the Portuguese TCI will bring competitiveness to the sector. Alongside it the pursue for the principles of circular economy will be leading future value. Transparency, sustainability, technology, digitalization and people are the drivers of the future BM. Innovation should be related to the BM. The risk of implementing a BMI is related to the high speed at which things change and therefore can influence the immature obsolescence of a BM, and not collect profit. Interview 9 The consumer influences the BM; therefore companies must be attentive to changes in demand. Competitiveness is in the added value of the product. The full package service is crucial and able to be delivered in a corporative mindset. Sustainability, technology, digitalization and people are the drivers of the future BM. With the implementation of technological and innovative processes and products, the TCI will attract more talent, therefore the future BM should be BMI. The risk of implementing a BMI is related to the high speed at which things change and therefore can influence the immature obsolescence of a BM, and not collect profit. Besides, the working force of a company may not receive change with open arms, and thus react unwell to BMI implementation.
296 Interview 10 At present, the consumer behaviour is responsible for shaping BM. Society in general has a bigger force in impacting the industries. Competitiveness is in the service, and product differentiation. The cooperation between companies from the Portuguese TCI will bring competitiveness to the sector. Transparency, sustainability, technology and digitalization are the drivers of the future BM. Innovation must be related to the BM. The new business model may generate products that are not well communicated and thus do not generate sales. Interview 11 The synergies between both the consumer and the producer perspective influence the BM. Competitiveness is in the product. The cooperation between companies from the Portuguese TCI will bring competitiveness to the sector. People are the most important asset a company can have. Then comes sustainability and technology, both trends capable of accompanying the future. Innovation should be related to the BM. Innovative products can lead to the failure of a BMI implementation due to cost. Interview 12 The synergies between both the consumer and the producer perspective influence the BM. The cooperation between companies from the Portuguese TCI will bring competitiveness to the sector. Transparency, sustainability, technology, digitalization and people are the drivers of the future BM. Innovation should be related to the BM. If the innovation is far away from the client's needs, then the rick of the implementation is high. Table 58 - Sub-categories analysed in Question 23 – 27 BMI The sub-categories were identified through the analysis of the collected data. These sub-categories fit within each variable detected in the theoretical model framework and summarize each expert’s opinion on the questioned theme in relation to the variables. Further, the table below follows this investigation by directing each of the sub-categories into categories, here referred to as propositions. Additionally, the propositions are divided into two different classifications: (1) Proposition Validation: the referred proposition (category) is present on the proposed Theoretical Model Framework (Figure 12) (2) New Proposition Proposal: the referred proposition (category) is not present on the proposed Theoretical Model Framework (Figure 12), and therefore denotes a proposition suggested by the interviewed experts.
297 Q.23_ Business Model Adaptability Q.24_ Business Model Competitive factors Q.25_ Business Model Future Drivers Q.26_ Business Model Innovation Validity Q.27_ Business Model Innovation Implementation Risks Proposition Validation Consumer Perspective Corporation Cooperation Transparent Communication Business Sustainability Producer Perspective Innovation/Technology Circular Economy Digitalization Sinergy between Consumer & Producer Perspective Sustainability New Proposition Proposal Competitiveness is in the Product (Value) People Future BM based in Innovation Fast Obsolescence No Return on Investment Incremental Change Reduces Risk Competitiveness is in Price Difficulties in implementing BMI BMI Non-Implementation is Risky Company's Incapacity to Adapt Competitiveness is in Service People's Incapacity to Adapt BMI as mean to attract Talent Bad Timing Competitiveness is in the Quality Cost Control Bad Marketing Policies Table 59 - Validation of Propositions and New Proposition Proposals achieved through the Sub-categories analysed in Question 23 – 27 BMI
298 Annex Q – Interview Analysis: Sense Categories Identification SENSE Intervi ew Variables Categories Proposition Validation New Proposition Proposal Interview 1 Consumer Perspective Q1 Individual Variables Q1 Singular/Individual Demand Q5 Sustainable Behaviour and Consuming Habits Organizational Perspective Q2; Q3 Culture of the Organization Q1; Q2; Q5 Demand-driven Business Models Q5 Processes & Production Q3; Q4 Change Management Q4 Structure of the Organization Q5 Technological Developments Exogenous factors related to the surrounding Market Q1 Omnichannel 2.0 Q6 Technology Q2 The evolution of Human Behaviour Q6; Q7 Environmental Sustainability Exogenous factors related to the Textile Industry Q7 Eco-friendly Fashion Q1 Private Labels Q7 Decrease of the Cotton Consumption Q7 Recycling Q7; Q8 Exploration of Synthetic Fibres Exogenous factors related to the Competition Q1 Self-employment powered by Digital Platforms Exogenous factors related to I&D+ Q5 Digitalization Q6 Design Q5; Q6 Environmental Sustainability Q5; Q6 Innovation Interview 2 Consumer Perspective Q1 Individual Variables Q1 Dynamic Preferences Organizational Perspective Q2; Q3 Culture of the Organization Q1 Trend-driven Culture of the Organization Q3 HR Policies & Practice Q2; Q5 Demand-driven Business Models
305 Annex R – Interview Analysis: Seize Categories Identification SEIZE Interview Variables Categories Proposition Validation New Proposition Proposal Interview 1 Consumer Perspective Q9 Dynamic Preferences Q10 Sustainable Behaviour and Consuming Habits Organizational Perspective Q9 Processes & Production Q11 Technological Developments Q12 Demand-driven Business Models Q9 Structure of the Organization Q12 Trend-driven Culture of the Organization Q15 Leadership Endogenous factors related to the Textile Industry Q10 Sustainability Q11; Q16 Exploration of Synthetic Fibres Endogenous factors related to Strategic Management Q9; Q12 Adaptability to Demand Q13 Strategy is a Business Model Q10 Transparent Communication Endogenous factors related to the Portuguese Cluster / Company Q9; Q10 Relevant Product Portfolio Q9 Competitive Business Models Q10 Certifications for Sustainability Q10 Marketing Q14 Competitiveness is in the Business Model Endogenous factors related to I&D+ Q11 Design for Performance Q11 Design for Sustainability Product Q16 Cotton May Create Value in the Future Interview 2 Consumer Perspective Q10 Sustainable Behaviour and Consuming Habits Organizational Perspective Q9 Technological Developments Q10 Sustainability Management Q15 Internal Communication Q15 Leadership Endogenous factors related to the Textile Industry Q10 Legislation regarding Sustainability Endogenous factors related to Strategic Management Q12 Adaptability to Demand Q13 Strategy is a Business Model
306 Q13 Strategy is the Culture of the Organization Q13 Strategy is the Knowhow of the Organization Endogenous factors related to the Portuguese Cluster / Company Q9; Q10 Certifications for Sustainability Q9 Relevant Product Portfolio Q14 Competitiveness is in the Process Endogenous factors related to I&D+ Q9; Q11 Design for Sustainability Q16 Alternative methods for Cotton Processing Q11 Design for Performance Product Q16 Cotton Can Create Value in the Future Interview 3 Consumer Perspective Organizational Perspective Q12 Culture of the Organization Q10 Sustainable Behaviour and Consuming Habits Q12 Multidisciplinary Teams Q15 Information Systems Q15 Leadership Endogenous factors related to the Textile Industry Q10 Competitive Strategy Endogenous factors related to Strategic Management Q9 Adaptability to Demand Q13 Strategy is good Service Q9 Transparent Communication Q13 Strategy is Product Endogenous factors related to the Portuguese Cluster / Company Q9 Positioning Map Q10 Certifications for Sustainability Q10 Marketing Q14 Competitiveness is in Service Q14 Competitiveness is in the Process Q14 Competitiveness is in the Quality Endogenous factors related to I&D+ Q11; Q16 Design for Performance Q11; Q16 Design for Sustainability Product Q16 Cotton Can Not Create Value in the Future Interview 4 Consumer Perspective Organizational Perspective Q9; Q12 Culture of the Organization Q15 Leadership Q9 Structure of the Organization Q15 Team Spirit Endogenous factors related to the Textile Industry Q10 Sustainability Q10 Certifications for Sustainability Q10 Legislation regarding Sustainability Endogenous factors related to Strategic Management Q9 Adaptability to Demand Q13 Strategy is the Culture of the Organization Q9; Q10; Q11 Business Sustainability Q13 Strategy is the Knowhow of the Organization Q13 Strategy is the Structure of the Organization Endogenous factors related to the Portuguese Cluster / Company Q12 SWOT Analysis Q14 Competitiveness is in the Process
307 Endogenous factors related to I&D+ Q9 Design for Performance Q9 Design for Sustainability Product Q16 Cotton Can Not Create Value in the Future Interview 5 Consumer Perspective Organizational Perspective Q9; Q11 Processes & Production Q9; Q11 Technological Developments Q12 Multidisciplinary Teams Q12 Trend-driven Culture of the Organization Q9 Structure of the Organization Q15 Internal Communication Q15 Leadership Endogenous factors related to the Textile Industry Q10 Sustainability Endogenous factors related to Strategic Management Q9 Adaptability to Demand Q13 Strategy is Process Q13 Strategy is Product Endogenous factors related to the Portuguese Cluster / Company Q14 Competitiveness is in the Process Endogenous factors related to I&D+ Q9 Design for Performance Q11 Sinergy between Design & Engineering Q10; Q11 Design for Sustainability Q11 Design for Circularity Product Q16 Cotton Can Create Value in the Future Interview 6 Consumer Perspective Q10 Sustainable Behaviour and Consuming Habits Organizational Perspective Q10 Sustainability Management Q12 Multidisciplinary Teams Q15 Leadership Q15 Team Spirit Endogenous factors related to the Textile Industry Q9 Sustainability Endogenous factors related to Strategic Management Q13 Strategy is Product Endogenous factors related to the Portuguese Cluster / Company Q11 Competitive Advantages Q9; Q12 Marketing Q10 Certifications for Sustainability Q14 Competitiveness is in the Product Endogenous factors related to I&D+ Q9 Design for Sustainability Q11 Design for Circularity Product Q16 Cotton Can Create Value in the Future
308 Interview 7 Consumer Perspective Organizational Perspective Q11 Structure of the Organization Q11 Sustainability Management Q12 Multidisciplinary Teams Q15 Internal Communication Q15 Leadership Q15 Team Spirit Endogenous factors related to the Textile Industry Q9; Q10 Sustainability Q9 Innovation/Technology Q12 Networking Endogenous factors related to Strategic Management Q9 Adaptability to Demand Q13 Strategy is a Business Model Endogenous factors related to the Portuguese Cluster / Company Q10 Marketing Q14 Competitiveness is in People Endogenous factors related to I&D+ Q9 Design for Circularity Product Q16 Cotton Can Create Value in the Future Interview 8 Consumer Perspective Organizational Perspective Q9; Q10; Q12 Processes & Production Q9 Technological Developments Q10; Q11 Sustainability Management Q15 Internal Communication Q15 Leadership Q15 Wage Policies Endogenous factors related to the Textile Industry Q10 Sustainability Endogenous factors related to Strategic Management Q13 Strategy is People Q13 Strategy is Process Q13 Strategy is Product Endogenous factors related to the Portuguese Cluster / Company Q10 Certifications for Sustainability Q14 Competitiveness is in the Product Endogenous factors related to I&D+ Q9; Q11 Design for Sustainability Product Q16 Cotton Can Create Value in the Future Interview 9 Consumer Perspective Organizational Perspective Q12 Culture of the Organization Q15 Leadership Q15 Team Spirit Endogenous factors related to the Textile Industry Q9 Innovation/Technology Q10 Legislation regarding Sustainability Q10 Sustainability Q11 Competitive Strategy Q11 Recycling Q12 Networking
309 Endogenous factors related to Strategic Management Q13 Strategy is a Business Model Endogenous factors related to the Portuguese Cluster / Company Q12 Positioning Map Q9; Q10; Q11 Certifications for Sustainability Q9 Relevant Product Portfolio Q14 Competitiveness is in the Business Model Endogenous factors related to I&D+ Q9; Q11 Design for Sustainability Q11 Design for Circularity Q11 Design for Performance Product Q16 Cotton Can Create Value in the Future Interview 10 Consumer Perspective Organizational Perspective Q10; Q11 Processes & Production Q11 Technological Developments Q15 Internal Communication Q11 Structure of the Organization Q15 Leadership Q15 Team Spirit Endogenous factors related to the Textile Industry Q9; Q10 Sustainability Q10 Legislation regarding Sustainability Q9 Innovation/Technology Q10; Q11; Q12 Recycling Q10 Competitive Strategy Endogenous factors related to Strategic Management Q9 Adaptability to Demand Q13 Strategy is a Business Model Q13 Strategy is People Q13 Strategy is Process Q13 Strategy is Product Endogenous factors related to the Portuguese Cluster / Company Q10 Certifications for Sustainability Q12 Marketing Q14 Competitiveness is in the Product Endogenous factors related to I&D+ Q11 Design for Circularity Product Q16 Cotton Can Not Create Value in the Future Interview 11 Consumer Perspective Q10 Sustainable Behaviour and Consuming Habits Organizational Perspective Q15 Team Spirit Endogenous factors related to the Textile Industry Q9 Innovation/Technology Endogenous factors related to Strategic Management Q13 Strategy is People Q13 Strategy is Process Q13 Strategy is Product Q13 Strategy is the Knowhow of the Organization
310 Endogenous factors related to the Portuguese Cluster / Company Q9; Q10; Q11 Certifications for Sustainability Q12 Relevant Product Portfolio Q14 Competitiveness is in the Process Endogenous factors related to I&D+ Q9 Design for Sustainability Product Q16 Cotton Can Create Value in the Future Interview 12 Consumer Perspective Organizational Perspective Q12 Processes & Production Q15 Information Systems Q15 Multidisciplinary Teams Endogenous factors related to the Textile Industry Q9; Q10 Sustainability Q9 Innovation/Technology Q10 Competitive Strategy Endogenous factors related to Strategic Management Q9 Adaptability to Demand Q13 Strategy is a Business Model Endogenous factors related to the Portuguese Cluster / Company Q9 Competitive Advantages Q9 Competitive Business Models Q14 Competitiveness is in the Product Endogenous factors related to I&D+ Q11 Design for Circularity Q11 Design for Sustainability Product Q16 Cotton Can Create Value in the Future Table 61 - Categories identified in the Seize phase of the semi-structured interviews
311 Annex S – Interview Analysis: Reconfiguration Categories Identification RECONFIGURATION Interview Variables Categories Proposition Validation New Proposition Proposal Interview 1 Consumer Perspective Q17 Singular/Individual Demand Organizational Perspective Q21 Culture of the Organization Q19 Change Management Q18 Change should be Incremental Q19; Q20; Q21 Leadership Q20 Multidisciplinary Teams Q17 The influence of Demand Q17 Trend-driven Processes & Production Factors related to the surrounding Market Q17 The evolution of Human Behaviour Factors related to the Textile Industry Q17; Q21 Innovation/Technology Q21 Sustainability Factors related to the PT Cluster / Company Q17; Q22 Competitive Business Models Factors related to I&D+ Q22 Alternative methods for Cotton Processing Product Q22 Cotton May Create Value in the Future Interview 2 Consumer Perspective Organizational Perspective Q17 Processes & Production Q19 Change Management Q18 Change should be Incremental Q20 Internal Communication Q19 Leadership Q20 Multidisciplinary Teams Factors related to the surrounding Market Factors related to the Textile Industry
312 Factors related to the PT Cluster / Company Q17 Competitiveness is in Price Q17 Competitiveness is in Service Q17 Competitiveness is in the Quality Factors related to I&D+ Q22 Alternative methods for Cotton Processing Product Q22 Cotton Can Create Value in the Future Interview 3 Consumer Perspective Organizational Perspective Q19 Change Management Q18 Change should be Incremental Q20 Multidisciplinary Teams Q19 Team Spirit Q17 Wage Policies Factors related to the surrounding Market Factors related to the Textile Industry Q17 Corporation Cooperation Q21 Innovation/Technology Factors related to the PT Cluster / Company Factors related to I&D+ Q22 Exploration of alternative Natural Fibres Product Q22 Cotton Can Create Value in the Future Interview 4 Consumer Perspective Organizational Perspective Q19 Change Management Q18 Change should be Incremental Q18 Change sometimes has to be Radical Q20 Internal Communication Q20 Multidisciplinary Teams Q19 Team Spirit Factors related to the surrounding Market Factors related to the Textile Industry Q21 Innovation/Technology Q21 Sustainability Factors related to the PT Cluster / Company Q17 Competitiveness is in Price Q17 Competitiveness is in Service
313 Q17 Competitiveness is in the Product Q17 Competitiveness is in the Quality Factors related to I&D+ Product Q22 Cotton Can Create Value in the Future Interview 5 Consumer Perspective Organizational Perspective Q21 Culture of the Organization Q19 Change Management Q18 Change should be Incremental Q20 Multidisciplinary Teams Factors related to the surrounding Market Factors related to the Textile Industry Q17; Q21 Innovation/Technology Q21 Sustainability Factors related to the PT Cluster / Company Q17 Competitiveness is in the Product Factors related to I&D+ Product Q22 Cotton May Create Value in the Future Interview 6 Consumer Perspective Organizational Perspective Q17 Processes & Production Q19 Change Management Q18 Change should be Incremental Q20 Multidisciplinary Teams Q17 Technological Developments Q21 Trend-driven Processes & Production Factors related to the surrounding Market Factors related to the Textile Industry Q21 Innovation/Technology Q21 Sustainability Factors related to the PT Cluster / Company Q17 Competitiveness is in the Product Factors related to I&D+ Product Q22 Cotton Can Create Value in the Future Intervie w 7 Consumer Perspective Organizational Perspective Q19; Q20 Change Management Q18 Change should be Radical
314 Q19; Q20 Leadership Q20 Multidisciplinary Teams Factors related to the surrounding Market Factors related to the Textile Industry Q21 Corporation Cooperation Q17; Q21 Innovation/Technology Q17; Q21 Sustainability Factors related to the PT Cluster / Company Q17 Competitiveness is in the Product Factors related to I&D+ Product Q22 Cotton Can Create Value in the Future Interview 8 Consumer Perspective Organizational Perspective Q19 Change Management Q18 Change should be Incremental Q20 Internal Communication Q19 Leadership Q20 Multidisciplinary Teams Q21 Technological Developments Q17; Q21 Trend-driven Processes & Production Factors related to the surrounding Market Factors related to the Textile Industry Q17; Q21 Innovation/Technology Q21 Sustainability Factors related to the PT Cluster / Company Factors related to I&D+ Product Q22 Cotton Can Create Value in the Future Interview 9 Consumer Perspective Organizational Perspective Q17 Structure of the Organization Q19 Change Management Q18 Change should be Incremental Q20 Leadership Q20 Multidisciplinary Teams Factors related to the surrounding Market
321 BM Future Drivers Q25 Digitalization Q25 People Q25 Innovation/Technology Q25 Sustainability Q25 Transparent Communication BMI Validity Q26 Future BM based in Innovation BMI Implementation Risks Q27 No Return on Investment Table 63 - Categories identified in the BMI phase of the semi-structured interviews