The study aims to explore competitive capabilities that enable sustainability practices in the Apparel Industry in the Sri Lankan context. It employs an exploratory approach using the case study method. The study discloses six competitive capabilities: organizational climate, operational flexibility, technological competency, alliance and partnership, knowledge sharing, and learning capabilities which drives twenty-four sustainable practices explored in ten categories: water conservation, energy conservation, carbon footprint reduction, fabric waste management, use of environment-friendly materials, controlling mechanism for suppliers, controlling mechanism for leasing/sub-contracting manufacturing plants, reduce the polluted air release, transportation, and ensuring the well-being of the people. Companies in the apparel industry should inculcate a supportive organizational climate, maintain operational flexibility, invest in required technology, maintain healthy relationships in the supply chain, share knowledge and encourage learning to adopt sustainable practices in the Apparel Industry. This study is the first to explore the specific competitive capabilities that bring respective sustainable practices in the Apparel Industry in a South Asian country.
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