Challenges within Scaling: Tradeoffs and Tensions

Abstract

Clothing brands implementation of supply chain sustainability in regards to controlling the labor rights of suppliers has long taken the form of auditing, compliance and monitoring. However, critics argue that these methods are not designed to protect labor rights and improve working conditions, but rather to prevent damage to brands reputations, as well as limit their legal responsibility. Therefore, more comprehensive approaches to improve working conditions in factories have arisen, where an alternative solution is Business Case Sustainability Initiatives (BCSI), such as Quizrr. They are a pioneer, working with capacity building, aiming to improve worker well being. However, Quizrr has reached a point where they have met difficulties when trying to scale up, leading them to realize that changes in the business model needs to be made in order for them to potentially succeed. When BCSIs fail to scale up their collaboration, they only reach a limited amount of brands and their suppliers. Consequently, failing to contribute to improvements for stakeholders, such as suppliers and factory workers. Business model innovation has in the specific case been refined changes in components of the business as a reaction to challenges in the organization concerning scalability. The changes will be discussed in regards to Richardson’s (2008) business model framework, focusing on three components: the value proposition, the value creation and delivery and the value capture. This study analyzes what challenges Quizrr faces when scaling up their business, as well as the tradeoffs and tensions that arise when changing the components of the business model.