What is it about?
The textile, clothing and fashion (TCF) industry is under growing pressure to move from a linear “take–make–waste” model to a circular economy. While sustainability-oriented innovation (SOI) is often presented as the key solution, there is limited empirical evidence on when and under what conditions such innovation actually leads to meaningful circular economy transitions, especially in developed, high-consumption economies like the UK. Our study examines how consumer willingness to buy sustainable products and institutional quality shape the effectiveness of sustainability-oriented innovation in enabling circular economy transitions within the UK textile and clothing industry. It draws on survey data from 280 UK textile and clothing firms and uses partial least squares structural equation modelling (PLS-SEM) to test a system-level model of circular economy transitions. Our analysis explicitly tests how consumer willingness to buy sustainable products, institutional voids, and regulatory compliance shape the innovation–transition relationship. We found that: 1) Sustainability-oriented innovation significantly enables circular economy transitions 2) This relationship is strengthened when consumers are willing to buy sustainable textile and clothing products 3) Institutional voids weaken the effectiveness of sustainability-oriented innovation 4) Regulatory compliance, often assumed to drive sustainability, does not significantly moderate the innovation–transition relationship The study highlights that circular economy transitions are not driven by innovation or regulation in isolation. Instead, they depend on behavioural demand-side dynamics and institutional quality.
Featured Image
Photo by TRẦN THANH HẢI on Unsplash
Why is it important?
Much of the circular economy literature assumes that innovation and regulation will naturally lead to sustainability improvements. However, real-world transitions are shaped by market demand, behavioural responses, and institutional contexts. Understanding these conditions matters because: 1) The UK textile sector faces intense sustainability scrutiny and policy pressure 2) Firms invest heavily in sustainability-oriented innovation without clear evidence of returns 3) Policymakers often rely on compliance-based approaches that may not deliver real change This research challenges simplified, linear assumptions about how circular economy transitions occur.
Perspectives
I wrote this paper because much of the circular economy debate in the TCF industry still assumes that innovation and regulation automatically lead to sustainability. From my research and engagement with UK firms, it was clear that this assumption does not always hold in practice. This study reflects my interest in understanding circular economy transitions as system-level processes shaped not only by technology and policy, but also by consumer behaviour and institutional conditions. By focusing on the UK context, the paper highlights the importance of demand-side dynamics and exposes the limits of compliance-led sustainability strategies. I hope this research encourages both scholars and practitioners to move beyond linear models of circular economy adoption and to take a more behaviourally informed, context-sensitive approach to sustainability transitions.
Dr Krish Saha
Birmingham City University
Read the Original
This page is a summary of: Sustainability‐Oriented Innovation and Circular Economy Transitions: Evidence From the UK Textile and Clothing Industry, Business Strategy and the Environment, January 2026, Wiley,
DOI: 10.1002/bse.70518.
You can read the full text:
Contributors
The following have contributed to this page
