Abstract
The paper aims to analyze how suppliers collaborate with other actors of the textile and clothing industry value chain to create sustainability-oriented innovations (SOI) and to derive mutual benefits. To answer this research question, we draw on the relational view originally introduced by Dyer and Singh in strategic management. The authors argue that a firm’s critical resources may span beyond the firm’s boundaries and highlight four sources of relational rent grounded in the relationship between two firms. Empirically, we conduct a multiple case study on SOI processes involving Portuguese suppliers and other actors of the value chain. The preliminary results show that the SOI processes rely on a common governance mechanism: a non-disclosure agreement, which can be supplemented by the informal mechanism of reputation. Secondly, the suppliers bring complementary resources to the relationship with the buyer through machineries and sustainability certifications. In terms of relationship-specific assets, the location of the supplier in a textile cluster plays a significant role. Lastly, processes for sharing knowledge and information are crucial in all the cases for fostering innovation towards sustainability.