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     

Organizational transition management of circular business model innovations

Scholars and practitioners across fields increasingly recognize that business models for the circular economy may be an effective lever for solving ecological persistent problems such as climate change, biodiversity loss, and growing natural resource scarcity. Despite a growing interest in the potential of circular business models, interconnections between the organizational dimensions of firms and their business model innovation processes remain underexplored. Based on problem‐centered expert interviews with business consultants experienced in circular business development, this study creates a conceptual model that offers structured knowledge about why firms steadily reproduce linear BMs and how incumbents manifest themselves as a constant linear‐oriented value creation system. The model also demonstrates organizational conditions and management strategies that frustrate the reproduction of linear BMs and, thus, enable initial moves towards CBM innovation. Building on this, the article provides a set of propositions on how an organizational transition management may be configured and what incumbents require to successfully navigate circular business model innovation. The findings provide a foundation for a contemporary understanding of circular business model transition management, which simultaneously serve as impulses for future research investigations.     

Environmental management capabilities for a “circular eco‐innovation”

At a micro level, eco‐innovation marks a transition towards a circular economy (CE), and standardised routines and controls are being implemented by businesses to introduce eco‐innovative processes and thus a circular business model. Eco‐innovation applied to a circular model implies changes to companies' environmental management and accounting practices used to manage natural resources. In this context, this study analyses and measures formal and informal environmental management systems, such as certification standards and other management and environmental accounting procedures used in eco‐innovation and the CE within the dynamic capabilities theoretical framework. The study also investigates the cause‐and‐effect relationship between firms' “circular eco‐innovation” and environmental capabilities using partial least squares structural equation modelling and tests it using a sample of Spanish companies. This study offers new knowledge about the interposition of business eco‐innovation and CE‐related activities introduced by firms from the dynamic capabilities perspective.     

The Sustainability Balanced Scorecard – linking sustainability management to business strategy

The Balanced Scorecard of Kaplan and Norton is a management tool that supports the successful implementation of corporate strategies. It has been discussed and considered widely in both practice and research. By linking operational and non‐financial corporate activities with causal chains to the firm's long‐term strategy, the Balanced Scorecard supports the alignment and management of all corporate activities according to their strategic relevance. The Balanced Scorecard makes it possible to take into account non‐monetary strategic success factors that significantly impact the economic success of a business. The Balanced Scorecard is thus a promising starting‐point to also incorporate environmental and social aspects into the main management system of a firm. Sustainability management with the Balanced Scorecard helps to overcome the shortcomings of conventional approaches to environmental and social management systems by integrating the three pillars of sustainability into a single and overarching strategic management tool. After a brief discussion of the different possible forms of a Sustainability Balanced Scorecard the article takes a closer look at the process and steps of formulating a Sustainability Balanced Scorecard for a business unit. Before doing so, the basic conventional approach of the Balanced Scorecard and its suitability for sustainability management will be outlined in brief. Copyright © 2002 John Wiley & Sons, Ltd and ERP Environment.     

Commitment Strategies for Sustainability: How Business Firms Can Transform Trade‐Offs Into Win–Win Outcomes

This paper addresses a fundamental problem in corporate sustainability: How can corporations transform trade‐offs through win–win‐oriented governance strategies aimed at creating value? Drawing on new strands of research in business ethics, we employ an ‘ordonomic’ perspective and proceed in four steps. First, we sketch how sustainability semantics has evolved historically from a societal searchlight to a heuristics for business practice. Second, we discuss how business firms can make strategic use of moral commitments as governance contributions by deploying individual or collective self‐commitments as well as commitment services in their stakeholder relations. Third, we combine these four governance strategies with the three ESG (‘ecological, social and governance’) criteria of sustainability. We derive and illustrate with real‐life examples a 12‐box matrix as a tool for the strategic management of corporate sustainability. Fourth, we discuss the specific contribution of our ordonomic approach to the literature. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment     

The nexus of business sustainability and organizational learning: A systematic literature review to identify key learning principles for business transformation

Companies play a central role in the quest for sustainable development. Organizational learning theories have been utilized to explain sustainability-related change processes in firms. However, implications from studies at the nexus of business sustainability and organizational learning are highly dependent on varying conceptualizations. The objective of this study is to provide clarity on the plurality of conceptual underpinnings in research and to uncover principles that are associated with deeper organizational change processes, that is, business transformation. Building on insights from a systematic literature review, we develop a sustainability learning typology, from which we distill three learning principles for business transformation: (1) the deutero learning mode, (2) the societal learning scope, and (3) the cooperative advantage objective. We formulate needs for future research to further elaborate on the learning principles associated with business transformation and suggest implications for practice.     

Training older workers: Lessons learned,unlearned, and relearned from the field of instructional design

Changing workforce demographics have highlighted the need to provide training and development opportunities for older workers. This article critically examines the current state of research on the use of systematic instructional design procedures to develop work‐related training that is inclusive of older workers. The review reveals a disconnect between what the literature recommends to achieve age‐inclusive design and what is offered as evidence of age‐inclusive design. Age‐related generalizations about cognition and learning capacity often serve as the basis for design decisions, with little attention paid to the role of training context and content. The article recommends that this disconnect be resolved and offers some specific suggestions about how human resource managers can integrate sound instructional design principles into the training and development component of their talent management strategies. © 2012 Wiley Periodicals, Inc.     

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.     

The greening dutchman: Philips' process of green flagging to drive sustainable innovations

Sustainability innovation research often focuses on the interrelation and the interaction of influencing factors and actors while neglecting the importance of firm internal initiatives. Based on a longitudinal case study of the Dutch company Royal Philips Electronics, we develop the concept of ‘green flagging’ as a groundbreaking corporate sustainability innovation strategy. This paper describes how Philips uses this approach in its Green Flagship Program (GFP). Philips' GFP is particularly interesting since it sets specific targets across all its business units, thus driving the integration of sustainability innovation into its core business. This study suggests that the impact of sustainability innovations can be improved by focusing on sustainability as an explicit goal as well as processes and projects instead of merely concentrating on content and structure. We discuss the possibilities and limitations of these findings for theory and research on sustainability innovation strategies. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

“Evolutionary” and “revolutionary” events affecting HRM in Israel: 1948–2008

In Western countries, HRM strategies, policies and practices commonly develop in a gradual and incremental “evolutionary” way, but unforeseen domestic or external events can also engender “revolutionary” rapid changes. This paper reviews the major evolutionary and revolutionary changes arising from internal and external sources that Israel has experienced since the founding of the State in 1948, which stem primarily from the political, economic, societal and technological spheres. Israel's HRM has been required to take on new roles to adjust to these changes. A set of propositions derived from a 2-dimensional conceptual model associating source (internal/external) with nature (evolutionary/revolutionary) of change is put forward to account for HRM responses and operations in Israel.     

Environmental soundness: a pragmatic alternative to expectations of sustainable development in business strategy

In recent years, many companies have responded publicly to pressure to improve their environmental performance. The paradigm within which these responses have been made, however, appears to be confused. This paper proposes the role that companies are best able to play in the societal progression towards sustainable development. We argue that the concept of sustainable development may only be properly applied at the global level; it follows that a ‘sustainably developed’ company or industry sector is not a practical objective. Nevertheless, the contribution which business can make within a sustainable development framework is recognized as being of the highest importance. We suggest that the nature of this contribution pivots around a distinction between environmental soundness (which concerns the interaction between the environment and economics) and sustainability (which adds a broad social element to the environmental and economic, and requires the consideration of time horizons). It is proposed that companies are well positioned to pursue effective environmentally sound corporate strategies. It is also argued that such strategies offer great potential to advance social justice, as environmental improvements are often disproportionately beneficial to poorer groups in society. In contrast, arguments are presented against companies attempting to move beyond environmental soundness to address those broad social elements demanded by sustainable development. A broad allocation of those responsibilities inherent in sustainable development to societal institutions is presented, placing the suggested role of business into context. In advocating the adoption of corporate strategies based on environmental soundness we do not seek to derogate the concept of sustainable development; we do aim to stem the apparent continuing erosion of its fundamental tenets and to identify responsibilities that are appropriate to business. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.     

Acculturation,coping, and integration success of international skilled migrants: An integrative review and multilevel framework

In this article, we review the limited but growing body of research on international skilled migrants and examine to what extent knowledge generated in adjacent research streams—specifically, work on assigned and self‐initiated expatriates—can be meaningfully applied to aid our understanding of the challenges, coping strategies, and acculturation dynamics of skilled migrants. We develop a framework that explains how variables and processes at multiple levels (individual, organisational, and societal) influence migrant acculturation and coping and result in integration‐related outcomes in the domains of personal/family life and workplace/career. We discuss directions for future research and implications for practice.     

Why Do Companies Not Produce Sustainability Reports?

Sustainability reporting emerged on the corporate scene nearly 30 years ago as a key mechanism through which business organisations would manage a transition to a new business landscape dominated by greater concern and consciousness about sustainability. While it has become something of a feature on the corporate agenda in some parts of the world, the majority of business organisations do not undertake this type of reporting. This paper explores why 23 of Australia's top 200 companies do not undertake sustainability reporting. The study is situated in the context of a considerable literature that promised numerous benefits to be derived from this type of reporting. The paper uncovers various social and organisational factors that raise some new questions about legitimacy theory, corporate accountability and the spread and uptake of this organisational practice. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.     

Really changing the course: the limitations of environmental management systems for innovation

The paper broadens the scope of environmental management system (EMS) research by describing how EMSs can contribute to inertia in present production systems. In conjunction with other factors this inertia can inhibit dramatic shifts toward more sustainable technologies and systems. Our approach builds upon technological lock‐in theory, which focuses on market coordination and technological interdependencies as generators of inertia in technological systems. Building on this framework, we call attention to previously under appreciated non‐market social forces and institutional structures that can further reinforce lock‐in. We argue that the co‐evolutionary mechanisms that generate increasing returns for physical technologies may also be applied to social technologies, such as management systems. The paper describes the emergence of ‘EMS lock‐in’ as a path dependent evolution occurring within the context of the larger quality management paradigm. While EMS may initially produce improvements in environmental performance, EMS may also constrain organizational focus to the exploitation of present production systems, rather than exploring for superior innovations that are discontinuous. The paper questions the enthusiastic private and public sector support for EMS implementation and instead recommends an ambidextrous management approach that integrates foresight and broader stakeholder collaboration. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Business strategy for sustainable development: Impact of life cycle inventory and life cycle impact assessment steps in supply chain design and planning

Sustainability reporting has become a central instrument in displaying a company's strategy and engagement with a more sustainable society. Life cycle assessment (LCA) is an important tool in this context as it is aimed to analyze the entire life cycle of the product/service, instead of focusing on one focal firm. However, the lack of standardized guidelines in its application raises questions regarding the usefulness and validity of results. This study contributes to the improvement of sustainability reporting through the identification of the uncertainty sources in life cycle methodologies that have the biggest impact in the definition of business and environmental strategies, exploring a supply chain‐oriented analysis. The focus is on life cycle inventory (LCI) and life cycle impact assessment (LCIA). A multiobjective optimization‐based methodology is applied to a supply chain case study in the pulp and paper industry. Environmental and economic objectives are considered. Results show that different LCIA methods and different normalization data sets result in significantly different business and environmental strategies. However, different system models and cultural perspectives at the LCI step and variations in the characterization factors tend to lead to the same decisions. Important insights are gained regarding the impact of nonstandardized analysis of the application of LCA in supply chain design and planning decisions and consequently on business strategy definition and sustainability reporting. Furthermore, the importance of operations research methods to improve LCA‐based studies and of bridging the gap between LCA and supply chain management bodies of knowledge is highlighted in this work.     

The Governance of Corporate Responses to Climate Change: An International Comparison

In response to pressures from governments, investors, non‐governmental organizations and other stakeholders, many large corporations have adopted a variety of carbon and energy management practices, taken action to reduce their emissions and set targets to reduce their greenhouse gas emissions. Using the case of international retailers, this article examines whether, and under what conditions, non‐state actors might be capable of assuming the governance roles that have historically been played by national governments. This article concludes that external governance pressures can, if they are aligned, robust and of sufficient duration, have a significant influence on internal governance processes and on corporate strategies and actions. However, the specific actions that are taken by companies – in particular those that require significant capital investments – are constrained by the ‘business case’. That is, companies will generally only invest capital in situations when there is a clear financial case (i.e. where the benefits outweigh the costs, when the rate of return meets or exceeds company targets) for action. That is, the extent to which external governance pressures can force companies to take action, in particular challenging or transformative actions that go beyond the boundaries of the business case, is not at all clear. This is particularly the case if the business case weakens, or if the opportunities for incremental change are exhausted. In that context, the power of non‐state actors to force them to consider radical changes in their business processes and their use of energy therefore seems to be very limited. Copyright © 2016 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd     

The Role of Sustainability‐Related Strategies on the Biofuel Industry: Trends,Prospects and Challenges

The aim of this study is to elucidate the sustainability‐related strategies on the biofuel industry. Our empirical analysis is based on a time series data set covering diesel demand in Greece over the period 1978–2014 and on the basis of these estimates we make forecasts for biodiesel consumption in the coming years (2015–2030) under three alternative scenarios. Our approach utilizes unit root testing to investigate possible co‐integrated relationships among the sample variables. The empirical findings indicate that diesel demand is income and price inelastic in both the long and the short run, while biodiesel demand seems to have an upward trend over the simulated period. We argue that the importance of biofuel in the Greek energy balance will change the form of the existing business strategies towards issues such as sustainability, green entrepreneurship and corporate social responsibility to achieve the environmental goals set by the EU Energy Roadmap 2050. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment     

Sustainability in the Transport and Logistics Sector: Lacking Environmental Measures

Sustainability as part of the development of companies' business strategies is gaining in importance. Due to its impact on the environment, this is particularly essential for companies of the transport and logistics sector. This paper explores several factors that influence the environmental behaviour of transport and logistics companies in Austria. It discusses the importance of the economic impact on environmental management decision in detail and analyses the sector's specific characteristics in terms of environmental behavior. A case‐based approach involving multiple field studies with face‐to‐face expert interviews and secondary data analysis was used to evaluate environmental performance and specific practices. Using selected cases, we will demonstrate how environmental measures contribute to overall business performance and draw general conclusions regarding the transport and logistics sector. Furthermore, suggestions are given as to how the government can further support transport and logistics companies in this regard. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Sustainability reporting,materiality, and accountability assessment in the airport industry

Air travel is, nowadays, recognized as being one of the most popular modes of transport. Air transport is among the most significant contributors to the world gross domestic product and is accountable for a great environmental and social impact. Driven by the well‐established sustainability discourse and the vital role businesses can play in disseminating the sustainable development concept, this paper attempted to map airport industry's most material operational aspects and assess airport operators' accountability level on disclosing corporate information regarding airports' economic, environmental, and social performance. In this context, 33 reports and 903 material issues representing 193 international airports were reviewed and assessed, and a methodology for benchmarking the accountability level of best reporting airport operators was developed, showcasing materiality assessment as a useful management tool for strengthening airport operators' business strategy and enhancing their corporate performance. The paper indicated that (a) customer focus (i.e., health, safety and satisfaction), economic viability, and business continuity and preparedness are operational aspects of high materiality and (b) the disclosure level, especially concerning specific performance indicators, is still moderate. In conclusion, this study has shown that materiality assessment gains ground as a management tool among airports' management teams and the completeness of Sustainability reports is positively correlated with the “level” of adherence as described by the Global Reporting Initiative.     

Reflexive Evaluation of an Academic–Industry Research Collaboration: Can Mode 2 Management Research be Achieved?

We present a reflexive retrospective account of a UK government research council funded project deploying knowledge management software to support environmental sustainability in the construction industry. This project was set up in a form typical of a Mode 2 research programme involving several academic institutions and industrial partners, and aspiring to fulfil the Mode 2 criteria seen as transdisciplinarity and business relevance. The multidisciplinary nature is analysed through retrospectively reflecting upon the research process and activities we carried out, and is found to be problematic. No real consensus was reached between the partners on the ‘context of application’. Difficulties between industry and academia, within industry and within academia led to diverging agendas and different alignments for participants. The context of application does not (pre‐)exist independently of institutional influences, and in itself cannot drive transdisciplinarity since it is subject to competing claims and negotiations. There were unresolved tensions in terms of private vs. public construction companies and their expectations of ICT‐based knowledge management, and in terms of the sustainable construction agenda. This post hoc reflexive account, enables us to critique our own roles in having developed a managerial technology for technically sophisticated and powerful private industrial actors to the detriment of public sector construction partners, having bypassed sustainability issues, and not reached transdisciplinarity. We argue that this is due to institutional pressures and instrumentalization from academia, industry and government and a restricted notion of business relevance. There exists a politically motivated tendency to oppose Mode 1 academic research to practitioner‐oriented Mode 2 approaches to management research. We argue that valuing the links between co‐existing Mode 1 and 2 research activities would support a more genuine and fuller exploration of the context of application.