Understanding the dynamics of global supply chain sustainability initiatives: The role of institutional distance from the buyer's perspective

Research points to sustainable supply chain management as a core strategic goal for most global firms. However, managers continue to struggle with implementing successful sustainability initiatives both internally and throughout their globally dispersed supply chains. Using grounded theory, our findings uncover a potential explanation for how firms manage sustainability initiatives in the context of global supply chain management, from a buyer's perspective. Institutional theory of the firm is applied to help explain the challenges of developing and implementing global supply chain sustainability-related initiatives within buyer-supplier relationships. Analysis of the data from qualitative interviews show that institutional distance is an influential factor that produces mixed effects on the global buyer-supplier relationships in our sample in the context of buyer and supplier strategic orientation toward sustainability. The findings can help guide managers when approaching sustainability-related initiatives in the context of global supply chains. Theoretical and managerial implications are discussed as well as areas for future research.     

Toward an organizational understanding of the transformation needed for sustainable supply chain management: The concepts of force-field and differential efforts

This paper facilitates an in-depth view of the transformation needed for the transition from traditional to sustainable supply chain management (SSCM)—by delineating its elemental aspects. Taking an organizational unit of analysis perspective, this conceptual review seeks to characterize the fundamental nature of complexities inherent in the transformation, and thereby seeks to explicate the elemental nature of organizational efforts responsible for shaping sustainable supply chains. The findings outline intriguing mechanisms for explaining the complex and endless nature of the transformation for organizations. This discourse also involves the proposition of two novel concepts applied in this context: the SSCM Force-field and Differential Efforts in SSCM. While the former represents the intricate interplay between organizational efforts and organizational complexities in absorbing SSCM practices in the supply chain routines of an organization, the latter reflects the value of additional efforts above and beyond what is required in existing supply chain routines, to facilitate the integration of a desired SSCM practice into routines. The findings show how the force-field impedes an organization's progress in SSCM and how differential effort allows an organization to overcome the force-field to extend theoretical frameworks and offering valuable guidance for practicing managers. Overall, the research strengthens the conceptual foundation of SSCM theory by explicating the under-explored aspects involved in an organization's progressive journey toward SSCM. Further, it is a first attempt to outline the organizational implications of the SSCM journey.     

Social capital as a facilitator of successful buyer-supplier performance management

Performance management in supply chains is an increasingly important, rapidly developing but challenging area. It may benefit from sufficient levels of social capital, such as frequent interactions between buyers and suppliers. However, social capital has not yet been studied as a facilitator of performance management. To bridge this knowledge gap, we examine buyer-supplier performance management and social relationship characteristics as perceived by suppliers. We analyze empirical data gathered through a survey of 482 suppliers by employing PLS-SEM and PLS-MGA. The findings elaborate on the role of cognitive, relational, and structural capital in performance management activities within a buyer-supplier relationship. Moreover, the results demonstrate how a supplier's positive perception, in the form of preferred customer status, can be facilitated through performance management activities. The findings reveal that there is a difference in the role of structural and relational capital between key and non-key supplier groups in performance management activities. We conclude that successful performance management in buyer-supplier relationships requires more than simply a system for sharing information. The mature use of performance measurement is also essential, with cognitive capital being especially beneficial in this endeavor.     

Product co-development in an emerging market: The role of buyer-supplier compatibility and institutional environment

In emerging markets, supply chains increasingly serve as critical value chains through which ideas, practices and knowledge flow to and from suppliers and buyers. Drawing on buyer-supplier collaboration literature and organizational learning theory, we examine the antecedents and underlying mechanisms of product co-development. Due to emerging markets' unique institutional environments, we further investigate how government intervention and guanxi importance moderate supplier-buyer collaborative outcomes. Dyadic data from 323 supplier-buyer pairs in China largely support our theoretical framework. Partners' knowledge commonality has a curvilinear (inverted U-shaped) relationship to product co-development, whereas goal compatibility has a positive impact on product co-development. Mutual learning partially mediates the main effect. Furthermore, government intervention weakens the positive effect of mutual learning on product co-development whereas guanxi importance strengthens this relationship. This research provides fresh theoretical and managerial implications to supply chain collaboration in emerging markets.     

Do the barriers of multi-tier sustainable supply chain interact? A multi-sector examination using resource-based theory and resource-dependence theory

In a geographically dispersed multi-tiered supply chain, managing sustainable practices throughout the entire upstream network is increasingly challenging for the lead firm. But often, it is the lead firm that is held responsible for the lack of non-sustainable practices by any of its suppliers in the network. This can potentially damage the reputation of the lead firm. Moreover, complex inter-relationship among multi-tier sustainable supply chain management (MSSCM) barriers tends to constrain the cascading of sustainability. Consequently, the strategies in overcoming the MSSCM barriers show limited impact. Thus, exploring the mutual interaction among MSSCM barriers is crucial as removing one barrier can intensify or diminish the effect of another barrier. This research unpacks the intra-firm, inter-firm, and contingency barriers for multi-tiered supplier network. A grey-based multi-criterion decision-making approach is adopted in establishing mutual relationships among MSSCM barriers. In addition, a combined resource-based theory and resource-dependence theory supports the theoretical anchoring. The MSSCM barriers are studied for supply networks which involve three lead firms, five tier-one suppliers, and ten lower-tier suppliers selected from automobile, beverage, and home appliances industries. The research provides a granularity of the MSSCM barriers’ by analysing the meaningful relationship at the individual tier-firm level and aggregated level.     

Sustainable Development in Supply Chain Management: The Role of Organizational Learning for Policy Implementation

Implementing sustainable policies in supply chains is a significant challenge for businesses. Recent evidence has shown that failure to manage supply chains responsibly can have significant impacts on firms' reputation and financial performance. In this paper, we develop a conceptual framework, which focuses on organizational learning, and outline specific channels through which firms can generate learning processes and build appropriate capabilities to successfully implement social and environmental supply chain policies. Drawing on 57 in‐depth interviews from a cross‐sectional sample of seven UK and nine German companies, we empirically assess our conceptual framework in accordance with a grounded, in‐depth case study analysis approach. We find compelling evidence to suggest that organizational learning is an important factor for a successful implementation of sustainable supply chain management. Organizational learning is often established as a result of training, knowledge acquisition, stakeholder engagement and collaboration between intra‐organizational and inter‐organizational partners, including suppliers and NGOs. Nonetheless, our results also emphasize that firms often have few systematic processes through which organizational learning is developed, and that such learning processes are often ad hoc at best, which in turn has significant implications for the responsible supply chain practices. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

A configuration of sustainable sourcing and supply management strategies

This paper seeks to analyze empirical differences and patterns in applied sustainable sourcing and supply management (SustSSM) strategies. The question is whether companies employ individual SustSSM practices in reoccurring configurations. The study aims to identify such typical corporate SustSSM approaches and how they vary across contingency factors such as industry or region. We employed a two-step methodology. First, a literature review derives scoring scales for six categories of how companies can integrate sustainability into sourcing. Second, using these scales for a content analysis of sustainability reports from 99 corporations spread across different regions, a taxonomy is derived by means of a cluster analysis.Identifying five corporate types of how firms configure their SustSSM strategy, the analysis suggests that companies do not combine SustSSM practices randomly. Rather, individual SustSSM practices are combined to alternative configurations that follow different logics to form sustainable sourcing strategies. Addressing a cross-regional and cross-industry sample, the results encourage further investigating the interplay of different SustSSM practices. In doing so, we show the need to align SustSSM configurations with a firm's specific operative supply chain structures and strategic goals.     

Customer pressure and innovativeness: Their role in sustainable supply chain management

This work investigates how sustainable supply chain management develops within a company and evolves from internal to external practices. Specifically, the relationships among sustainable process management (internal practices), sustainable supply management (external practices), customer pressure and innovativeness are elaborated in a conceptual model, which is tested using a survey approach. Partial least squares (PLS) methodology is applied to data collected from a sample of 77 Italian manufacturing firms. Our results highlight that customer pressure and innovativeness positively and significantly affect SPM. We also observe that SPM fully mediates the relationships between such factors and SSM. Finally, innovativeness negatively and significantly moderates the effect customer pressure has on SPM. This study is relevant because it shows what driving and enabling factors influence the development of SSM, providing guidance for companies that wish to achieve further social and environmental improvements in their supply chains.     

Practices and strategies for sustainability-related risk management in multi-tier supply chains

This study investigates how sustainability-related risks are managed in multi-tier supply chains. It focuses on the strategies and practices that companies use to manage sustainability-related risks and how these differ between supply chains and supply chain tiers. We use a multiple-case study with 25 companies forming 5 multi-tier supply chains. As a result of this study, we present a conceptual framework for sustainability-related risk management practices in multi-tier supply chains and apply it empirically by defining sustainability-related risk management profiles for the case supply chains. We show that in multi-tier supply chains, companies need direct and indirect collaboration and direct and indirect monitoring practices for managing sustainability-related risks emanating from not only their first-tier suppliers but also lower-tier suppliers. Our framework helps purchasing and supply chain managers understand the dimensions of sustainability-related risk management in a multi-tier setting and develop strategies and practices for mitigating and managing those risks. We also empirically show the challenge of extending sustainability-related risk management practices beyond first-tier suppliers due to the different practices in different supply chain tiers.     

Intermediation in Search Markets

In markets, in which exchange requires costly search for trading partners, intermediaries can help to reduce the trading frictions. This intuition is modeled in a framework with heterogeneous agents, who have the choice between intermediated exchange and search accompanied by some bargaining procedure. The equilibria of such a game are characterized. In the case of a monopolistic intermediary, the tradeoff between the bid-ask spread and the costs of delay during private search determine the intermediary's clientele. In equilibrium the monopolist charges a positive spread. Traders with large gains from trade prefer to deal with him, whereas traders with relatively low gains from trade engage in search. In case of competition among intermediaries, the classical Bertrand result obtains, and bid and ask prices converge to the (unique) Walrasian equilibrium price. Thus, in the confines of the model, the Walrasian auctioneer of the market under consideration can be replaced by competing intermediaries. In addition a multiplicity of subgame perfect Nash equilibria emphasizes the coordination problems inherent in models of intermediation.     

Stakeholder management in sustainable supply chains: A case study of the bioenergy industry

Engaging with stakeholders and managing their issues when striving for a sustainable supply chain (SC) is a significant challenge. Although most studies on sustainable supply chain management (SSCM) consider stakeholder management necessary, little is known about related stakeholder management practices in SSCM. Thus, this paper seeks to enrich the theoretical debate on stakeholder management practices in SSCM through a case study approach to bioenergy SCs in Chile. Based on 28 interviews with SC actors and representatives from the surrounding stakeholder environment, the deductive–inductive analysis reveals that stakeholder management combines different practices to discuss stakeholder concerns, address them, and evaluate the process at the SC's external and internal levels. We propose structuring these practices based on two dimensions: “practices to address stakeholder requirements” and “practices whereby stakeholders are integrated.” The analysis' results indicate that although two-way communication with stakeholders can be seen as the core of stakeholder management, a certain willingness to learn and transform SC design is a prerequisite for true orientation toward stakeholder management in SSCM. Additionally, linkage development and local anchoring are practices used to obtain further legitimacy at the external level. Building on these findings, this study can guide practitioners in engaging with stakeholders and managing their issues across the SC.     

Trade through endogenous intermediaries

We propose an intermediation core for an economy that explicitly specifies how traders organize themselves into trade cooperatives (intermediaries) and how trade between them gets carried out. The intermediation core allocations are closely related to the equilibrium allocations of a non-cooperative intermediation game in Townsend (1983). We show that the intermediation core contains all subgame perfect equilibrium allocations of the intermediation game, similar to the inclusion of competitive equilibrium allocations in the core usually studied. We identify intermediation core allocations that are also subgame perfect equilibrium allocations of the intermediation game in terms of the supporting intermediary structures. These results help to characterize subgame perfect equilibrium allocations of the intermediation game and to analyze their welfare and stability properties.     

Integrating sustainable development in the supply chain: The case of life cycle assessment in oil and gas and agricultural biotechnology

It is widely accepted that firms play an important stewardship role in addressing sustainable development concerns. A key challenge in this role is to balance the often conflicting pressures created by sustainable development—firm-level economic performance versus environmental degradation and social disruption. Drawing on complexity theory, risk management, stakeholder theory and the innovation dynamics literature, we discuss the problems of integrating sustainable development concerns in the supply chain, specifically the applicability of life cycle assessment (LCA). Many authors have emphasized the importance of the “cradle to grave” approach of LCA in optimizing closed-loop supply chains, improving product design and stewardship. Based on two case studies (an agricultural biotechnology and an oil and gas company) with supporting data collected from key stakeholders, we argue that sustainable development pressures have increased complexities and presented ambiguous challenges that many current environmental management techniques cannot adequately address. We provide a framework that addresses these deficiencies and discuss implications for practitioners and management theory.     

Framing Sustainable Supply Chain Finance: how can supply chain sustainability practices and supply chain finance solutions be integrated?

Supply chain finance (SCF) can play a role in improving supply chain (SC) sustainability. That is why academics have started investigating the connection between SCF and sustainable SC management, and practitioners have begun developing new SCF solutions with a sustainable orientation. Although SCF solutions have been suggested as supporting tools for the diffusion of sustainability within SCs, academic contributions have only partially investigated sustainable SCF (SSCF). There is the need to understand in greater detail first, how different SC sustainability practices (e.g., supplier assessment, supplier development, incentives to suppliers, and third-party involvement) can be integrated into SCF solutions; second, how different brokerage roles can facilitate this integration to contribute to the successful implementation of an SSCF solution. This paper investigates those aspects through multiple international exploratory case studies. The results confirm that SCF solutions become sustainable by integrating different SC sustainability practices, either embedded in the SSCF solutions or reinforced by the implementation of the solutions. Moreover, involving new actors, including third-party information providers, NGOs, and certification bodies, who assume different brokerage roles, positively influences the development of SSCF solutions.     

Improving sustainable supply chain performance through organisational culture: A competing values framework approach

This research adopts the institutional and relational view theories to empirically test the impact of organisational culture (OC) on sustainable supply chain performance (SSCP) and further examines the impact of external integration on their relationship, drawing on a study in the food manufacturing industries in the UK and Greece. Using the mixed method approach, structural equation modelling (SEM) technique was first used to empirically analyse the data from a survey of 315 firms. In addition, insights from 11 interviews from top managers were qualitatively used as the basis to enrich and confirm the findings from the quantitative study. Our findings revealed that in the context of global supply chains only developmental, hierarchical, and group culture components of the competing values framework (CVF) as a model for assessing OC are conducive for achieving a higher SSCP. Although developmental, hierarchical and group cultures are instrumental for SSCP, a strong external integration is still required. Thus, external integration was found to mediate the relationship between the dimensions of OC and SSCP. The results further confirmed a positive relationship between all the dimensions of OC (developmental, group, hierarchical and rational culture) and external integration and a positive impact of external integration on SSCP. This research expands the institutional and relational view theories to examine the effect of OC (using CVF) on SSCP and further reveals the extent of external integration needed in the relationship to enhance SSCP in global supply chains. Supply chain managers are encouraged to adopt integrated competing values, namely, developmental, group, and hierarchical cultures to intensify the external integration in the supply chain to overcome several sustainability challenges and improve SSCP.     

Drivers and barriers to environmental supply chain management practices: Lessons from the public and private sectors

This study explores the factors that drive or hinder organisations to implement green supply chain management initiatives. A literature review identifies the main categories of internal and external drivers of green supply chain management practices, including organisational factors, regulation, customers, competitors and society, but there is little indication of suppliers as drivers for green supply chain management. Internal barriers include cost and lack of legitimacy, whereas external barriers include regulation, poor supplier commitment and industry specific barriers. An explorative study is conducted based on interviews from seven different private and public sector organisations. Encouragingly, across the organisations, more drivers than barriers to environmental supply chain management are identified. Organisations seem to be more influenced by external rather than internal drivers. The barriers to environmental supply chain management experienced by organisations tend to be both internal and external.     

Development and validation of a measurement instrument for studying supply chain management practices

It is widely argued that competition is no longer between organizations, but among supply chains. Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance. This research conceptualizes, develops, and validates six dimensions of SCM practices (strategic supplier partnership, customer relationship, information sharing, information quality, internal lean practices, and postponement). Data for the study were collected from 196 organizations and the measurement scales were tested and validated using structural equation modeling. It is hoped that this study will provide a parsimonious measurement instrument to assess the performance of the overall supply chain.     

Sustainable development in small and medium enterprises: The role of entrepreneurial orientation in supply chain management

Organizations are under increased pressure to improve their sustainable performance through the adoption of green supply chain management (GSCM) practices. Small and medium enterprises (SMEs) have lagged behind larger corporations due to a number of factors. Chief among these factors is the lack of resources and capabilities. In this study, we investigate whether entrepreneurial orientation as a distinctive firm-level resource contributes to the successful implementation of GSCM practices within SMEs. We use primary data obtained from 316 manufacturing SMEs and analyze the data by using a fuzzy-set qualitative comparative analysis (fsQCA). Our findings show four equifinal configurations of GSCM practices and the components of entrepreneurial orientation (EO) that lead to high environmental performance. Two practices, “eco-design” and “internal environmental management”, are present in all configurations, with the latter being the single core condition. The components of EO are present in all the configurations. Three distinct configurations lead to the simultaneous achievement of high environmental performance and high economic performance. Some noticeable differences appear in these configurations: “internal environmental management” is no longer a core condition, instead external practices (“green purchasing,” “cooperation with customers including environmental requirements,” and “investment recovery”) and “risk-taking” become core conditions. We exptrapolate our findings into a set of propositions that expand theory on the link between entrepreneurial orientation and sustainable performance. Our study provides insights for managers who seek to infuse entrepreneurial thoughts and actions into their green supply chain initiatives.     

Sustainable procurement practice

Procurement has a key role in sustainability as policies and practices need to extend beyond organisations' boundaries incorporating their whole supply chains. Guidelines on sustainability encourage procurement to make decisions that encompass the environmental, economic and social elements of the Triple Bottom Line (TBL). Taking a supply chain perspective, procurement also need to analyse how decisions impact on the TBL in respect of suppliers. The results of a survey of sustainable procurement practices in 44 English‐based UK Housing Associations (HAs), who are responsible for the provision of social housing, confirms prior research of other sectors that suggests 1) a failure to overcome inertia in relation to sustainable procurement; and 2) in the few examples where practices have been established, only the environmental element of the TBL is considered. The organisations surveyed have sustainability‐related issues in their missions and external and internal pressures to embed sustainability, yet this has not translated into widespread establishment of sustainable procurement. Recommendations to neutralise inertia are: firstly, take the experiences from other areas, e.g. innovation management, which stress the importance of inter‐organisational relationships; secondly, develop a small number of sustainable development indicators for procurement and, to take advantage of the relatively more‐advanced environmental practices to show how these elements have socio‐economic impacts; and finally, rather than focus on just the pressures and drivers of sustainability (as suggested in strategic models of sustainability), emphasise the triggers that overcome inertia and lead to changes in behaviour amongst procurement staff i.e. the establishment of ethical pricing models. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.