Digital-Driven Sustainable Innovation in Local Apparel Firms: A Case Study of PT. Tactical Outdoor
https://doi.org/10.62157/ijbefs.v3i1.100
Keywords:
Sustainable innovation, Digital transformation, Apparel industry, Innovation management, Local creative industryAbstract
The rapid digital transformation of the fashion industry and increasing environmental concerns have encouraged apparel companies to adopt sustainable innovation strategies to remain competitive. However, most studies on digital innovation and sustainability in the fashion sector focus on large multinational corporations, while empirical evidence from local creative industry firms in developing countries remains limited. This study aims to analyze sustainable innovation management practices in a digitally driven local apparel company, PT Tactical Outdoor, in Bandung, Indonesia. Specifically, the research explores how the company integrates market-based innovation, digital technology utilization, and leadership practices to support sustainable business development. The study employs a qualitative case study approach, with data collected through purposive in-depth interviews with the company owner and key staff members involved in innovation decision-making, technology management, and product development, conducted on January 6, 2025. Additional supporting data were obtained from company documentation, social media platforms, and relevant academic literature. The data were analyzed using thematic coding in NVIVO, complemented by SWOT and TOWS strategic analyses. The findings reveal that PT Tactical Outdoor manages innovation through three interconnected elements: market-based innovation, technology, and innovative leadership. Market intelligence derived from social media analytics, e-commerce data, and community engagement enables the company to identify emerging consumer needs and develop relevant products. Digital technologies such as ERP systems, digital design tools, and e-commerce platforms accelerate product development and support data-driven decision-making. Leadership plays a crucial role in fostering a culture of experimentation, collaboration, and sustainability within the organization. The study concludes that even small or local apparel firms can successfully implement sustainable innovation management when supported by digital technology, collaborative ecosystems, and adaptive leadership. These findings contribute to the literature by providing empirical insights into how digitally oriented local fashion brands can integrate innovation, sustainability, and digital transformation to achieve long-term competitiveness.
References
Casciani, D., Chkanikova, O., & Pal, R. (2022). Exploring the nature of digital transformation in the fashion industry: Opportunities for supply chains, business models, and sustainability-oriented innovations. Sustainability: Science, Practice and Policy, 18(1), 773–795. https://doi.org/10.1080/15487733.2022.2125640
Casciani, D., & D’Itria, E. (2024). Fostering directions for digital technology adoption in sustainable and circular fashion: Toward the circular fashion-tech lab. Systems, 12(6), 190. https://doi.org/10.3390/systems12060190
Glogar, M., Petrak, S., & Mahnić Naglić, M. (2025). Digital technologies in the sustainable design and development of textiles and clothing: A literature review. Sustainability, 17(4), 1371. https://doi.org/10.3390/su17041371
Gunaratne, D., Sinkovics, N., & Sinkovics, R. R. (2023). The promise of Industry 4.0 technologies for the sustainability of developing country apparel manufacturers. In R. R. Sinkovics & N. Sinkovics (Eds.), Research handbook on international corporate social responsibility (pp. 391–407). Edward Elgar Publishing.
Hasan, M. M., & Shehun, M. T. F. (2022). Implementing sustainable supply chain practices in global apparel retail: A systematic review of current trends. ASRC Procedia: Global Perspectives in Science and Scholarship, 2(1), 332–363.
Heim, H., & Hopper, C. (2022). Dress code: The digital transformation of the circular fashion supply chain. International Journal of Fashion Design, Technology and Education, 15(2), 233–244. https://doi.org/10.1080/17543266.2021.1997349
Hoque, M. A., Rasiah, R., Furuoka, F., & Kumar, S. (2023). Critical determinants and firm performance of sustainable technology adoption in the apparel industry: The stakeholder approach. Journal of Fashion Marketing and Management, 27(1), 182–200. https://doi.org/10.1108/JFMM-09-2021-0247
Hoque, M. A., Rasiah, R., Furuoka, F., Kumar, S., Adnan, Z. H., & Chowdhury, N. H. (2025). Antecedents and firm performance of sustainable technology adoption in the clothing industry: A study based on the technology–organization–environment framework. Sustainable Futures, 10, 101381. https://doi.org/10.1016/j.sftr.2024.101381
Huynh, P. H. (2022). Enabling circular business models in the fashion industry: The role of digital innovation. International Journal of Productivity and Performance Management, 71(3), 870–895. https://doi.org/10.1108/IJPPM-02-2020-0083
Li, J. (2025). Challenges and strategies for SMEs in the apparel industry: Navigating technological and sustainable transformations. In Proceedings of the 1st International Conference on Modern Logistics and Supply Chain Management (MLSCM 2024) (pp. 457–460). https://doi.org/10.5220/0013337900004558
Nureen, N., Sun, H., Irfan, M., Nuta, A. C., & Malik, M. (2023). Digital transformation: Fresh insights to implement green supply chain management, eco-technological innovation, and collaborative capability in manufacturing sector of an emerging economy. Environmental Science and Pollution Research, 30(32), 78168–78181. https://doi.org/10.1007/s11356-023-27954-2
Oliveira Neto, G. C. D., Pinto, L. F. R., de Silva, D., Rodrigues, F. L., Flausino, F. R., & Oliveira, D. E. P. D. (2023). Industry 4.0 technologies promote micro-level circular economy but neglect strong sustainability in textile industry. Sustainability, 15(14), 11076. https://doi.org/10.3390/su151411076
Orisadare, E. A., Achukwu, O. E., Ogunyemi, A. A., Adedeji, D. O., Diyaolu, I. J., Ugwu, E. I., Awoyelu, I. O., & others. (2025). Digitalisation and green strategies: A systematic review of the textile, apparel and fashion industries. Circular Economy and Sustainability, 5(4), 2775–2827. https://doi.org/10.1007/s43615-024-00475-2
Schmiedle, L. (2023). The impact of sustainability on innovation in the apparel industry. In Managing the challenges of today’s economic landscape (pp. 27–54). Würzburg International Business Press & Doğuş University Press.
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007
Wang, Y. (2024). Digital transformation factors affecting the operations with digital systems in the garment manufacturing industry in China (Doctoral dissertation). Rangsit University Library.
Wiegand, T., & Wynn, M. (2023). Sustainability, the circular economy and digitalisation in the German textile and clothing industry. Sustainability, 15(11), 9111. https://doi.org/10.3390/su15119111
Wiegand, T., & Wynn, M. (2024). Circularity and digitalisation in German textile manufacturing: Towards a blueprint for strategy development and implementation. Processes, 12(12), 2697. https://doi.org/10.3390/pr12122697
Zhou, K. Z., & Wu, F. (2010). Technological capability, strategic flexibility, and product innovation. Strategic Management Journal, 31(5), 547–561. https://doi.org/10.1002/smj.830
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Authors

This work is licensed under a Creative Commons Attribution 4.0 International License.




