Environmental supply chain dynamics

Abstract

This paper investigates the circumstances under which “environmental supply chain dynamics” (ESCD) emerge. ESCD are a phenomenon where environmental innovations diffuse from a customer firm to a supplier firm. Its relevance is based on the argument that systemic approaches are needed to understand the environmental implications of industrial systems, of which supply chains are a key component. Furthermore, buyer–supplier relationships play a critical role in the decision-making processes of most suppliers, which in turn has the potential to stimulate environmental change within the supply chain. Based on case studies in the British and Japanese food retail sector and the British aerospace industry, it will be shown that ESCD emerge if there is a channel leader with sufficient channel power over their suppliers, technical competencies, and are themselves under specific environmental pressure.