Sustainable entrepreneurial orientation and supply chain dynamic capabilities for social value creation: evidence from MSEs in the East London fashion cluster

This research considers why and how MSEs create social value in clusters and the role of Sustainable Supply Chain Management (SSCM) innovation in achieving this. In so doing, it bridges a gap between SSCM research and studies into creative clusters and sustainable business ecosystems in the fields of strategic entrepreneurship and economic geography. The research uses a critical realist philosophy with a five-step abductive design and two phases of data collection. It builds on the management theories of value co-creation, sustainable and entrepreneurial orientation, the dynamic capabilities framework, and non-market criteria to explore social value. It positions enterprises as both social and political, and not simply economic entities. Forty-seven interviews were conducted, culminating in the analysis of six geographically bounded MSE case studies. These are subjected to in-depth investigation of the enterprises’ resources, their values, and practices in relation to their ability to sense and seize SSCM opportunities to create social value. This leads to an elaboration of the sustainable entrepreneurial orientation construct that provides a compelling explanation of the behaviours of a particular group of MSEs who prioritise environmental and social concerns over profit maximisation. The resulting conceptual framework presents SEO+SSCM+DCF as a new model of sustainable business, driving the transformation of sectors and improved delivery of social value through co-creation. In seeing innovation in SSCM as an industry resource, rather than as a means of competitive advantage, SEO firms create social value in three ways: the creation of socio-economic value through good employment; sustainable supply chain knowledge creation for enhanced environmental and social outcomes; and local community development including support of marginalised communities through inclusive employment, training, and development.