Leveraging environmental sustainability for competitive advantage in the Italian Clothing and Leather sector

Abstract

The present study analyses how the elements of a corporate environmental management system (environmental strategy, environmental management practices (EMPs) and business competitiveness) are connected for the creation of competitive advantage in clothing and leather companies, strongly affected by sustainability issues. The research was conducted through an online survey submitted to Italian companies. A structural equation modelling approach was employed to test the hypothesised model. Results indicate that the implementation of sustainable product and process practices have positive impacts on company’s business competitiveness. Moreover, companies having a greater integration of sustainable practices in their competitive strategy show advantages in terms of brand value, employees’ retention and access to capital. The most important stakeholders involved in the definition of an environmental strategy are suppliers and companies’ employees. Focusing the attention on the business competitiveness impacts of EMPs, companies that have a production plant abroad show greater competitiveness impacts.

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