Sustainable supply chain management and partner engagement to manage climate change information

Climate change poses significant new risks and challenges for businesses and their supply chains. Additionally, in many sectors, Scope 3 indirect greenhouse gas emissions resulting from the sourcing and distribution of goods and services are larger than firms' own carbon footprints. Here we study how firms engage their key stakeholders in their supply chains in obtaining, processing, and transferring relevant climate change‐related information designed to overcome information asymmetry and drive sustainable development. Grounded in organisational information‐processing theory (OIPT), we draw on data from the Carbon Disclosure Project's Climate Change Supply Chain initiative for a qualitative content analysis of a large sample of global firms. Consistent with OIPT, we find that although firms primarily engage their supply chain partners in a variety of ways to reduce information uncertainty around indirect emissions data, effectively interpreting and managing broader sustainability information equivocality becomes a growing priority. Our findings further suggest that firms engage suppliers, customers, and other supply chain partners through basic, transactional, and collaborative types of engagement. We contribute to literatures on interorganisational information processing and sustainable supply chain management by providing a more detailed understanding of how firms engage supply chain partners in the context of climate change.     

Sustainability Management within Supply Chains – A Resource Dependence View

Proceeding from three basic concepts of resource dependence theory – organizational effectiveness, interdependence and external control – we conducted a multiple‐case study to investigate factors that facilitate and hinder sustainability management within supply chains. Our empirical observations highlight that focal firms do not necessarily transfer their own corporate sustainability agendas into control mechanisms for managing the sustainability of their suppliers. Based on this insight, we develop a new theory that explains how intra‐ and interorganizational sustainability management is affected by a firm's business case for promoting sustainability, control mechanisms, trade‐offs, trust and market liberalization. The theory offers new insights into drivers and barriers for effective interorganizational sustainability management, whereas previous theories could not fully explain the reasons for diverging sustainability management practices in supply chains. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

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.     

Sustainable evaluation and verification in supply chains: Aligning and leveraging accountability to stakeholders

Managers are being challenged by multiple (and diverse) stakeholders, which have variety of expectations and informational needs about their firm’s supply chains. Collectively, these expectations and needs form a multi-faceted view of stakeholder accountability, namely the extent to which a firm justifies behaviors and actions across its extended supply chain to stakeholders. To date, sustainable supply chain management research has largely focused on monitoring as a self-managed set of narrowly defined evaluative activities employed by firms to provide stakeholder accountability. Nevertheless, evidence is emerging that firms have developed a wide variety of monitoring systems in order to align with stakeholders’ expectations and leverage accountability to stakeholders. Drawing from the accounting literature, we synthesize a model that proposes how firms might address accountability for sustainability issues in their supply chain. At its core, the construct of sustainable evaluation and verification (SEV) captures three interrelated dimensions: inclusivity, scope, and disclosure. These dimensions characterize how supply chain processes might identify key measures, collect and process data, and finally, verify materiality, reliability and accuracy of any data and resulting information. As a result, the concept of monitoring is significantly extended, while also considering how different stakeholders can play diverse, active roles as metrics are established, audits are conducted, and information is validated. Also, several antecedents of SEV systems are explored. Finally, the means by which an SEV system can create a competitive advantage are investigated.     

Supply chain risk management in India – practical insights

This paper reviews the supply chain risk management (SCRM) literature to identify as well as to discuss and elaborate on the impact and origin of major supply chain risk factors in an Indian context. Through a combination of existing literature and a survey instrument, we identify major SCRM issues including underlying supply chain risks and thereafter identify gaps, issues and opportunities for further research. SCRM has become a popular research topic, in part owing to increased globalisation of business. Moreover competitive factors such as shorter product life cycles, technological innovations and changing government policies have brought this topic more sharply into focus. We carried out a survey among Indian supply chain professionals, based on supply chain risk constructs developed from a literature review. Statistical analysis utilised exploratory and confirmatory factor analyses to determine the major risk factors in the Indian supply chain sector. We found a range of supply chain risks prevalent in Indian supply chains, classified here as cultural, operational, infrastructure, economic, forecasting and supplier-related risks. However, for a variety of reasons and as discussed in the paper, the implications can vary considerably. Based on the findings we provide a future SCRM research agenda from an Indian perspective. As international supply chains increasingly have Indian partners and domestic firms within India seek to be globally competitive, the risks need to be better understood. This is the first detailed study on SCRM practices in an Indian context.     

The Wicked Character of Sustainable Supply Chain Management: Evidence from Sustainability Reports

Supply chains are changing their business paradigm as they strive for sustainability and not just for increasing profits. Sustainability, however, is a concept that is open to interpretation since it is based on societal and organizational values. Little is known about what companies actually mean when referring to sustainability, and how this contrasts with the understanding at different echelons of the supply chain. Diverging interpretations and translations of sustainability among stakeholders, termed wicked problems, affect the progress of sustainable supply chain management. This paper aims to contribute to closing the gap between our common sense expectations and the actual evidence from sustainability reports of how sustainability evolves from abstract ideas to operational practices across the supply chain. To this end, this study employs a computer‐aided content analysis of 142 corporate sustainability reports across 12 industries. Building on the findings, and using the lens of wicked problems, this paper provides guidance to practitioners on how to develop strategies that are effective across the whole supply chain. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Using ISO 14001 to promote a sustainable supply chain strategy

Formally adopted in 1996 by the International Organization of Standardization, ISO 14001 represents a voluntary international environmental standard, which will likely be adopted by a vast majority of corporations. Its major focus is on the structure, implementation and maintenance of a formal environmental management system. Despite its international acceptance, ISO 14001 is surrounded by controversy and criticism. The literature is clearly divided in its assessment of ISO 14001, which is viewed as a variant of total quality environmental management or a paper‐driven process of limited value. In this study, case‐based research is used to address the competing views of the standard to show that ISO 14001 registration can be leveraged across the supply chain into a competitive advantage. By looking at ISO 14001 registered firms, we compare different amounts of integration and sustainability in the supply chain. We then posit several research propositions to provide an empirical framework for the impacts of ISO 14001 on supply chain design and how it will evolve in the future. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

An examination of sustainable development of supply chain using foreignness perspective

This multidisciplinary paper examines the sustainability of supply chain partners from a foreignness perspective. The arguments draw from the research on institutional theory to explain the underlying mechanisms. We propose and discuss a comprehensive conceptual framework evaluating the relationships of foreignness to economic, social, and environmental sustainability. In addition, we consider contingent factors such as the level of development of supplier's nation, level of global integration of buyer, and type of industry, on sustainable development of focal firms. The direct and contingency frameworks introduced in this paper are presented along with research propositions that provide valuable insight into the sustainable supply chain management from the international business perspective.     

Assessing the Comprehensiveness of Supply Chain Environmental Strategies

As environmental awareness grows, firms are expected to expand the scope of their environmental strategies beyond organisational boundaries and to address more comprehensively environmental issues in their supply chains and product life cycles. Drawing on different literature streams, international standards and corporate disclosure, this paper presents a conceptual framework for the quantitative assessment of the comprehensiveness of firms' environmental strategies. This framework allows us to capture: (i) the environmental inputs and outputs addressed, (ii) the firm versus supply chain orientation of environmental strategies, and (iii) the environmental management practices adopted by companies. We illustrate the application of this framework with a content analysis of corporate sustainability reports for a cross‐sectoral sample of sustainability leaders. Our results indicate that there is a need for greater specificity in environmental reporting and that, overall, companies remain firm‐oriented. It is also observed that supply chain orientation can generally be associated with stakeholder pressure. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.     

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.     

The role of innovation in the implementation of green supply chain management practices

How organizational green practices become routinely embedded in supply chains remains underexplored in the literature. Based on the practice‐based view and normalization process theory, this study adopts a novel perspective on green supply chain management (GSCM) practices implementation and suggests that innovation is a crucial mechanism in such process. Specifically, we theorize and test the mediating effect of product and process innovation on the relationship between GSCM practices and sustainability performance. Survey data from 173 manufacturing firms were used to test the model hypotheses. Our findings show that product and process innovation mediate the relationship between GSCM practices and sustainability performance. The findings also suggest that the relevance of different innovation mechanisms depends on the stage of the operational lifecycle within which the practices are implemented. Our study provides insights for managers and scholars seeking to define innovation strategies to ensure the successful implementation of GSCM practices.     

Linking sustainable business models and supply chains — Toward an integrated value creation framework

Extant literature on sustainable business models highlights that value creation stems from resources exchanged in relationships between a focal firm and its stakeholders. In this context, the literature has, so far, focused on direct relationships. However, despite the acknowledged relevance of sustainability issues in supply chains, this relational view of the focal company and its direct stakeholders has not been extended toward value creation for and with indirect stakeholders, such as stakeholders of suppliers. Addressing this gap, this conceptual article integrates a relational view of sustainable supply chain management into the management of sustainable business models. It extends the scope of sustainable business models from relationships between the focal firm and its direct stakeholders to indirect relationships with stakeholders of suppliers. A framework is developed that supports analysis and management of value-creating relationships between the focal firm, suppliers, and stakeholders of suppliers. By extending the conceptualization of sustainable business models to consider relationship chains beyond direct relationships, this article proposes that a focal firm has to actively manage interactions both with suppliers and with suppliers' stakeholders.     

An empirical investigation into supply chain vulnerability

A growing number of academicians and practitioners have put supply chain risks on their agendas, particularly triggered by a recent series of catastrophic events that have disrupted economies and supply chains around the globe. Given the increasing awareness of this important topic, the purpose of this research was to study supply chain risks in more detail and to investigate the relationship between supply chain vulnerability and supply chain risk. Responses from 760 executives from firms operating in Germany reveal that supply chain characteristics such as a firm's dependence on certain customers and suppliers, the degree of single sourcing, or reliance on global supply sources are relevant for a firm's exposure to supply chain risk. Overall, this research represents the first large-scale investigation of this important relationship and provides a finer understanding of the antecedents of supply chain vulnerability.     

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.     

Managing supply chain resilience to pursue business and environmental strategies

Resilience has become a crucial topic in the field of strategic management as it requires companies to design resilient business models to tackle managerial and environmental disruptions of individual firms and supply chains. However, extant research still lacks deep insights into how companies design and manage supply chains according to the resilience principles. With this premise, this paper aims at conducting a state of the art review on supply chain resilience (SCR) considering 125 relevant papers collected from Scopus and Web of Science academic search engine. Starting from the results of the literature review, this study proposes a systemic framework of SCR assessment and contributes to improve the understanding of the impact of different empirically tested constructs on the development of the resilience concept. Further, the findings are summarized in several areas including barriers in developing resilience, metrics to measure the resilience performance, and effective strategies to foster the SCR. Finally, this study outlines promising future research directions for scholars and practitioners.     

Efficiency meets accountability: Performance implications of supply chain configuration, control, and capabilities

The public increasingly holds firms accountable for social and environmental outcomes, such as product toxicity problems and human rights violations, throughout their global supply chains. How can companies improve the social and environmental performance within their supply chains, particularly as other competitive pressures, such as cost and quality, continue to escalate? Starting from an efficient versus responsive supply chain framework, we develop an integrative model that blends together elements of supply chain configuration, stakeholder management, and capability development. Specifically, we spotlight the dimensions of control and accountability that collectively determine stakeholder exposure, and show how this new construct affects the linkages between supply chain capabilities, configuration, and performance. In particular, this analysis reveals that the nature of stakeholder exposure determines how social/environmental technical and relational capabilities impact social and environmental outcomes. We conclude with implications for research and practice, discussing how current supply chain theories must be extended to incorporate external stakeholders, to clarify strategies and identify potential pitfalls, and to better predict performance outcomes.     

The road to cooperative supply‐chain environmental management: trust and uncertainty among pro‐active firms

The pressures on firms to improve their environmental performance have caused them to look outside their boundaries towards their supply chains. In such approaches, firms work with vendors to develop the environmental profile of supplied materials (for example) by reducing materials' toxicity or the amount of packaging used. While large firms can mandate that their suppliers comply with such initiatives, more cooperative approaches are generally likely to be more fruitful. This article presents the results from an exploratory, two phase study of the conditions under which firms engage in cooperative supply‐chain environmental management. First, the authors conducted interviews with 14 leading‐edge firms. In the second phase, the authors conducted a theoretical‐sample survey to examine a model of the antecedents of cooperative supply‐chain environmental management. The results suggest that inter‐firm trust, uncertainty and pro‐active environmental management most directly affect the extent to which firms engage in cooperative supply‐chain environmental management. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.     

Structural drivers of upstream supply chain complexity and the frequency of supply chain disruptions

A great deal of research has focused on supply chain risk management, but the question “Which supply chain characteristics increase the frequency of supply chain disruptions?” has not received much attention from empirical research. This is a relevant question, because firms seek stability in their operations, and therefore managers need to know how the structure of their supply chains affects the occurrence of disruptions. The present study addresses this issue with a specific focus on upstream supply chain (supply-side) disruptions. Drawing on the literature on supply chain complexity, we devise and test a model that predicts the frequency of supply chain disruptions based on a multi-dimensional conceptualization of upstream supply chain complexity. Not only do the empirical findings suggest that all of the three investigated complexity drivers – horizontal, vertical, and spatial complexity – increase the frequency of disruptions, but also that they interact and amplify each other's effects in a synergistic fashion.