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.     

Does the configuration of macro‐ and micro‐institutional environments affect the effectiveness of green supply chain integration?

Despite the importance of the general environment in affecting the effectiveness of green supply chain integration (GSCI), our understanding of the roles of different configurations of macro‐ and micro‐institutional environments remains limited. Based on institutional theory and resource mobilization theory, this study examined the moderating effects of the configurations of macro‐ and micro‐institutional environments on the GSCI performance link employing both a configuration and a contingency perspective. Our findings from a longitudinal survey of 206 Chinese manufacturing firms provide empirical evidence for the coexistence and nature of macro‐ and micro‐institutional environments and their moderating effect on the GSCI performance link. Specifically, the results revealed that Chinese manufacturers can be clustered into three groups with different macro‐ and micro‐institutional environments (i.e., cognizant, sensible, and conscious manufacturers). Furthermore, the configuration of macro‐ and micro‐institutional environments moderates the effect of green supplier integration on social performance, as well as the effects of green customer integration on financial, environmental, and social performance. This study contributes to both the GSCI literature and practices.     

The effect of institutional pressure on cooperative and coercive ‘green’ supply chain practices

Little is known about buyers׳ decisions to implement ‘green’ supply chain management (GSCM) through either coercive or cooperative approaches. This is an important area of study as buyers are increasingly expected to improve and ensure that their purchasing and supply chain practices are environmentally sound. Pressuring and monitoring suppliers to become more environmentally responsible dominates the coercive approach to GSCM. In contrast, a cooperative approach is associated with training and helping suppliers to become ‘greener’. In this study we draw on institutional theory, and argue that the decision to implement such practices and the choice between them will be contingent upon institutional pressures (mimetic, normative and coercive), and downstream customer requirements for GSCM. Using primary survey data from 198 UK-based companies, we find compelling evidence to suggest that coercive and cooperative GSCM practices are driven by substantially different factors. Institutional pressures significantly determine cooperative approaches to GSCM while coercive practices are, to a larger extent, driven by downstream customer demands. Customer pressure is also found to moderate the influence of institutional factors on cooperative practices; no significant effect was found for coercive practices.     

How do supply chain management and information systems practices influence operational performance? Evidence from emerging country SMEs

This study first provides a comparative analysis of the impact of supply chain management (SCM) and information systems (IS) practices on operational performance (OPER) of small- and medium-sized enterprises (SMEs) operating in two neighbouring emerging country markets of Turkey and Bulgaria. Then, we investigate moderating effects of both SCM–IS-linked enablers and inhibitors on the links between SCM and IS practices and OPER of SMEs. To this end, we first empirically identify the underlying dimensions of SCM and IS practices, and SCM–IS-related enabling and inhibiting factors. Second, a series of regression analyses are undertaken to estimate the impact of the study's constructs on OPER of SMEs. The results are discussed comparatively within the contexts of both Turkish and Bulgarian SMEs and beyond. The study makes a significant contribution to the extant literature through obtaining and analysing cross-national survey data of SCM and IS practices in emerging country markets.     

Does the interaction between the knowledge management process and sustainable development practices boost corporate green innovation?

Green innovations are being deployed in manufacturing industries to promote organisational sustainability by embracing sustainable development practices (SDPs). However, little is known about how corporate green innovation (CGI) is influenced by the knowledge management process (KMP). To fill this gap, we have developed a multidimensional framework based on the resource-based view (RBV) theory that provides a foundation for sculpturing the process by which KMP was observed to capture and sustain CGI through SDPs. Data were collected from 393 respondents of large- and medium-sized manufacturing corporations in Pakistan and analysed using partial least squares structural equation modelling (SEM) and fuzzy set qualitative comparative analysis (fsQCA). This study provides several key findings. First, KMP dimensions (acquisition, dissemination and application) significantly improve the SDPs' dimensions (environment, economic and social). Second, SDP dimensions play a significant role in achieving CGI. Third, the implementation of SDPs partially mediates the relationship between the KMP and CGI. Furthermore, the fsQCA results signify the robustness of all integrated constructs. Our results demonstrate that investing in and adopting the latest technologies and sustainable practices are not only valuable for long-term success but the soft concerns such as managing organisational knowledge are also vital in the current knowledge-based economy. Finally, in light of our findings, theoretical and managerial implications, with propositions for future studies, have been provided at the end of the paper.     

How do employment relationships enhance firm innovation? The role of human and social capital

Aiming to explore the effect of human resource management on innovation, this study examined how employment relationships (ER), human capital and social capital work together in influencing innovation in a sample of Spanish firms. We defined an indirect effects model in which both human and social capital mediate between ERs and innovation. We also expected that social capital would enhance human capital. Tests on a sample of 160 innovative Spanish firms confirmed that ERs are not directly associated with innovation. Nevertheless, there is an indirect effect of the mutual investment employment model on innovation through human and social capital. Finally, we observed a positive effect of social capital on human capital.     

Can sustainability report assurance be a collaborative process and practice beyond the ritual of verification?

This study examines the role of assurance for sustainability reporting whether it has the role beyond a verification mechanism for corporate sustainability reporting. This paper looks beyond the discourse about managerial and professional capture in sustainability report assurance practice. Drawing on the in-depth interviews with assurance practitioners for sustainability reporting in the United Kingdom from different professional backgrounds, it provides an evidence-based illustration on how sustainability report assurance service can contribute to more corporate sustainable actions. The findings also highlight the potential influences of the assurance providers on the assurance process and corporate decision-making. The conceptualization of the assurance from the service perspective and of the assurance providers as transformational leaders enables this paper to challenge the current framing of the assurance services as a verification ritual that constraint its impacts and contributions to sustainable development.     

How do firms achieve sustainability through green innovation under external pressures of environmental regulation and market turbulence?

Analyses in the fields of environmental and innovation research have hindered our understanding of the real effects of external drivers of firms' green innovation and sustainability behaviors on financial performance. This study compares the ways in which two different external factors drive firms to be green innovative: environmental regulation and market turbulence. By dividing green innovation into green process innovation and green product innovation, we propose that environmental regulation increases financial performance mainly through green process innovation rather than through green product innovation, and market turbulence affects financial performance mainly through green product innovation rather than through green process innovation. The results of an empirical analysis based on a mediation model and panel data on 472 Chinese listed firms for 2006–2017 lend support to our hypotheses. Our study contributes to the green innovation management and sustainability literature by offering a holistic framework for examining how firms pursue green innovation and sustainability in response to two different forms of external pressure.     

Can business‐oriented managers be effective leaders for corporate sustainability? A study of integrative and instrumental logics

This qualitative study investigates whether the views of managers need to be congruent with the corporate sustainability (CS) logics—either integrative or instrumental—of their employing organization. We assessed the CS performance of 25 organizations within the Australian forestry and wood products industry and analyzed the CS orientations of 32 senior managers within these companies to explore whether their individual CS views were consistent with organizational CS logics. The findings indicate that, in general, better performing organizations are led by managers that hold the integrative view, whereas poorer performing organizations are more likely to have managers with an instrumental view of CS. Nonetheless, there were noteworthy exceptions to this conclusion. The findings indicate that, under certain industry conditions, managers who hold an instrumental view may be able to generate ecological and social organizational outcomes that are at least equal to those produced by integrative managers.     

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.     

How do small businesses pursue sustainability? The role of collective agency for integrating planned and emergent strategy making

Research on sustainability strategy in large corporations has shown that carefully planned strategies can address environmental and social concerns. However, we still lack clarity on how small businesses form sustainability strategies. Assuming that small businesses can—or should—carefully plan strategies is inappropriate considering that such organizations often lack the needed resources, foresight, and formalized decision-making structures. Building on the study of two craft breweries in Canada and Germany, we detail how a combination of planned and emergent actions enables owners, employees, and external stakeholders to jointly form strategic sustainability orientation. Developing these findings into an integrated activity-based model, we show the need to move beyond the dichotomy between planned and emergent strategizing. We contribute a human-centered perspective to the sustainability strategy literature and suggest that research should take the role of people in small businesses more seriously as here interpersonal relationships and collective agency are central in forming strategic sustainability orientation.     

Friend or foe? The impact of high‐performance work practices on workplace bullying

The aim of this paper is to examine the relationship between high‐performance work practices (HPWPs) and workplace bullying and identify possible mediators. The study presents hypotheses based on two competing perspectives: a mutual gains perspective, arguing that HPWPs lead to higher perceptions of justice and less role conflict, thereby reducing the risk of bullying; and, a critical perspective, arguing that HPWPs lead to work intensification and competition among colleagues, and thereby to more bullying. A two‐wave survey (n = 209) was conducted among business professionals in Finland. The results show that HPWPs are associated with less bullying, and justice and role conflict mediated the relationship. Thus, the results provide support for the mutual gains perspective on HPWPs, challenging prevailing assumptions in the bullying literature that suggest performance‐enhancing HR practices are a risk factor. Instead, the results point to the significance of HPWPs as an important tool to prevent bullying.     

Does adoption of ISO 56002-2019 and green innovation reporting enhance the firm sustainable development goal performance? An emerging paradigm

Reporting is a means of communication for companies to their respective stakeholders. The literature on non-financial reporting has mostly focused on operational, Carbon Discloser Project (CDP), and environmental disclosure to firm performance. This reporting and disclosure approach adopted by companies in their sustainability practices appears to be a normative approach. However, there has been a growing demand by stakeholders to incorporate proactive approach in business activities. To meet that, green innovation practices (GIPs) has been integrated as a new element in environmental reporting, thereby reflecting the proactiveness of companies in their adoption of green innovation reporting (GIR). The objective of this study is to advocate for greater disclosure on sustainability reporting by incorporating the GIPs of companies and substantial, sustainable development goal contribution, along with the moderation of the newly upgraded ISO 56002-2019 innovation management system. Adoption of green innovation reporting and ISO 56002-2019 will enhance the level of transparency of business activities and create greater stakeholder confidence along with enhancing the firm's sustainable development of goal performance. Furthermore, an extensive literature review was undertaken to create a GIR framework (i.e., product, process, service and technology) for firms to integrate GIPs into sustainability reporting. The conceptual model proposed the adoption of green innovation reporting and ISO 56002-2019 innovation management system to firm sustainable development goal. This needs to be injected into the sustainable reporting of companies to reflect their innovativeness, actual sustainable business practices and sustainable development goal performance for the firm.     

Are high‐performance work practices (HPWPs) enabling or disabling? Exploring the relationship between selected HPWPs and work‐related disability disadvantage

We develop the organizational characteristics element of Stone and Colella's (1996) framework by drawing on the Ability–Motivation–Opportunity (AMO) model to assess the relationship between high‐performance work practices (HPWPs) and work‐related disability disadvantage. We develop competing “enabling” and “disabling” hypotheses concerning the influence of selected HPWPs (competency testing, performance appraisal, individual performance‐related pay, teamworking, and functional flexibility) on disabled relative to nondisabled employees. An empirical assessment of these competing hypotheses using matched employer–employee data from the nationally representative British Workplace Employment Relations Study 2011 reveals a negative relationship between these HPWPs when used in combination and the proportion of disabled employees at the workplace, although this relationship disappears in workplaces with a wide range of disability equality practices. While disabled employees report lower work‐related well‐being than their nondisabled counterparts, we find limited evidence that this is associated with the presence of HPWPs.     

Who promotes a value‐in‐diversity perspective? A fuzzy set analysis of executives’ individual and organizational characteristics

Diversity perspectives are philosophies of or approaches to diversity held by organizations, groups, or executives. They are important for organizations because they can determine the success or failure of diversity in the workforce. However, little is known about the predictors of diversity perspectives among executives. Using fuzzy set qualitative comparative analysis, we analyzed 50 interviews with top executives in Germany to identify individual and organizational characteristics that predict executives' adoption of a diversity perspective, in particular of a value‐in‐diversity perspective. Specifically, we analyzed gender, age, education level, vocational background, and tenure (individual characteristics), as well as size, sector of organization, and competitive environment (organizational characteristics), as potential predictors. We found single characteristics did not predict adoption, but configurations of characteristics did. Drawing on the person‐situation‐interactionist perspective, we developed specific profiles of executives likely to foster a value‐in‐diversity perspective and identified characteristics of their work environments that support such an approach. Theoretical and practical implications are discussed.     

Is R&D spending influenced by disinvestment and local political corruption? The case of Indian central public sector enterprises

The current study examines the effect of disinvestment (dilution of state ownership) and local political corruption on R&D spending in enterprises owned by the central government of India. Based on certain characteristic features of innovation as a strategy available to state-owned enterprises, I build two sets of hypotheses formalising the channels of how these variables may affect the possibility and amount of R&D. Data is drawn from multiple sources to compile a dataset that covers all manufacturing central government-owned enterprises in India over a period of ten years from 2007 to 2016. The study employs an instrumental variable technique to reduce the endogeneity between disinvestment and R&D decisions. We find that, while disinvestment and local political corruption have strong negative effects on whether a firm invests in R&D or not, it has no effect on the amount of R&D. In fact, the amount is driven by a host of firm-specific factors such as size, profit and proficiency of the share of skilled labor, managerial strength and non-unionisation of labor. We also find that the effects are strongly driven by the size of firms, special status awarded to firms and the ideology of the state where the enterprise operates.     

Falsified or Substandard? Assessing Price and Non‐price Signals of Drug Quality

Pharmaceutical products can be of poor quality either because they contain zero correct active ingredient (referred to as “falsified”) or because they contain a nonzero but incorrect amount of the right active ingredient (referred to as “substandard”). Although both types of poor‐quality drugs can be dangerous, they differ in health consequence, price, and potential policy remedies. Assessing basic quality of 1437 samples of Ciprofloxacin from 18 low‐to‐middle‐ income countries, we aim to understand how price and nonprice signals can help distinguish between falsified, substandard, and passing drugs. Following the Global Pharma Health Fund e.V. Minilab® protocol, we find 9.88% of samples have less than 80% of the correct active ingredient and 41.5% of these failures are falsified. Falsified and substandard drugs tend to differ in two observable attributes: first, falsified drugs are more likely to mimic drugs registered with local drug safety regulators. Second, after controlling for other factors, substandard drugs are on average cheaper than passing generics in the same city but the price of falsified drugs is not significantly different from that of passing drugs on average. These data patterns suggest that careful consumers may have information to suspect a drug is substandard before purchase but substandard drugs can still exist to cater to poor and less‐educated population. In contrast, falsified drugs will be more difficult for consumers to identify ex ante because they appear similar to high‐quality, locally registered products in both price and packaging.     

Quality and cost? The evolution of Walmart's business strategy and human resource policies and practices in China and their impact (1996–2017)

This study responds to calls for more in‐depth and qualitative studies, the return to a focus on external factors, and the inclusion of business strategy and industrial relations in human resource management (HRM) research, as well as more research in the retail sector in the Chinese context. We examine the coevolution of the business strategy and HR strategy of Walmart (China) in the last two decades and identify tensions in the context of intensifying competition in the Chinese retail market. We highlight the interactive effect of business and HR strategies through a historical lens. Our study reveals a shift from the original employee‐oriented win–win strategy through rent sharing between the firm and the employees to a win–lose strategy through the introduction of more cost conscious HR policies and practices. Findings of our study challenge the conventional wisdom that firms adopt either the cost or quality strategy and, along with it, the suggestion of matching the quality strategy with employee‐oriented HR policies and practices, and cost leadership with a transactional approach to HRM. We argue a cost and quality business strategy may be adopted, which requires the support of employee‐oriented, rather than cost‐oriented, HR policies and practices.     

Charity E‐volution? An evaluation of the attitudes of UK charities towards website adoption and use

• The objective of the research was to assess attitudes in relation to website adoption and use, across a broad spectrum of UK charities. A survey methodology was adopted for the research, administered using a self‐completion questionnaire. The results reveal that although the majority of responding charities have websites, most appear to be using them to deliver information about the organisation and its mission, rather than acquiring new supporters, raising funds or allowing beneficiaries/clients to interact. However, overall, respondents were positive regarding the use of websites by charities, and most are optimistic about future improvements in their own online performance.

Copyright © 2006 John Wiley & Sons, Ltd.