How (do) industrial districts and value chain positioning affect firm sustainability orientation? Evidence from the Italian fashion industry

Abstract The relationship between industrial districts and firm sustainability orientation has gained attention; however, systematic evidence remains limited. This study investigates how value chain positioning, distinguishing business-to-business firms from business-to-consumer firms, interacts with industrial district locations in shaping environmental sustainability orientation. Using data on 1083 Italian fashion firms, we combined financial information from ORBIS and AIDA with web-scraped sustainability indicators. OLS and instrumental variable estimations show that firms located in industrial districts exhibit a stronger environmental sustainability orientation, with effects particularly pronounced among B2B firms operating within districts. These findings offer important implications for entrepreneurs, sustainability managers, policymakers, and stakeholders.