The study aims to investigate how institutional voids influence the formation and the implementation of sustainability practices by Brazilian suppliers in the textile sector.
A qualitative study was conducted with Brazilian textile suppliers certified by ABVTEX. Data were analyzed to identify how firms perceive and navigate overlapping regulatory, infrastructural and market-related voids affecting sustainability implementation.
The results show that suppliers respond to institutional fragmentation through adaptive practices, self-governance mechanisms and efforts to build legitimacy with global buyers. The study demonstrates how distinct categories of institutional voids impose specific constraints and how firms mobilize corresponding strategic responses to overcome them.
The findings provide insights for managers and policymakers on how suppliers can navigate institutional weaknesses to meet sustainability demands. The framework can guide capacity-building initiatives, certification programs and governance mechanisms aimed at improving sustainability performance in fragmented institutional contexts.
This study advances international business and global value chain research by proposing a framework that links institutional voids to firms’ strategic responses, demonstrating that these responses not only compensate for governance deficiencies but also paradoxically reproduce structural constraints, shaping uneven sustainability trajectories in the Global South.
