This study illuminates the inherent difficulty to manage creativity in fashion design as well as the innovation capabilities in an entire fashion firm. The paper is elaborating creative capabilities in fashion extended to the entire supply chain. In addition to manufacturers and retailers the supply chain also includes transporters, warehouses, stores, and even customers themselves. Within each stage includes all parts needed to get and satisfy customer requirements.

This research is based on data from two of the most rapid growing and profit increasing fashion brands in Sweden, which are Cheap Monday and Acne Studios. The analysis has three starting points and definitions. i.e. fashion design, creativity and innovation. The results show that creative capabilities have to been spread out in the entire supply chain to be an efficient component in the building and managing an innovative firm such as it is the case in the fashion industry.

• Håkan Preiholt(Stockholm University, Sweden)