Adoption of social sustainability practices in an emerging economy: Insights from Vietnamese handicraft organizations

Abstract

With globalization of supply chains, adopting social sustainability practices (SSP) has become critical to improving sustainable development of organizations in emerging economies producing and exporting goods to developed countries. Yet, comprehensive research on SSP adoption by these companies, such as the handicraft organizations in Vietnam, is scarce. To supplement the inadequacy, this study takes an integrated supply chain perspective to examine holistically the critical factors affecting SSP adoption by Vietnamese handicraft organizations. Data were collected from a countrywide survey of 310 handicraft organizations with SSP adoption in Vietnam. Partial least squares structural equation modeling was employed to test the hypotheses. The findings reveal that organizational behavior and readiness impact directly on SSP adoption, whereas stakeholder pressures show some indirect impacts. The results also validate the mediating roles of organizational behavior and readiness in the adoption of SSP. By combining the technology-organization-environment framework with the institutional theory, this study successfully explains the diverse SSP adoption behaviors in Vietnamese handicraft organizations. It is the first attempt to explore the critical role of internationalization readiness in SSP adoption in the Vietnamese context. The research outcomes provide insights and references for sustainability practitioners and policymakers to promote SSP adoption that extends across the entire supply chain.