Exploring institutional competing logic for sustainability implementation of retail chains

Abstract

PurposeTaking into account retailers' critical position in the value chain, their sector's economic significance and environmental externalities, in addition to the institutional agenda, this paper aims to explore the drivers influencing retailers to shift to more sustainable business models.Design/methodology/approachThe paper utilises the institutional competing logic, including in-depth interviews with major supermarket retail chains and one expert group discussion. The data gathered in Germany and Lithuania were complemented by desk research analysis, including corporate social responsibility (CSR) reports and management reports.FindingsThe paper provides empirical insights into how multiple drivers through institutional competing logic are brought about influencing the shift to more sustainable business models. The results show that retail chains in both countries implement their sustainability based on triple environmental-legal-financial drivers. However, different types of retail chains–namely premium retailers, typical retailers and discounters–implement their sustainability discourse differently.Research limitations/implicationsBecause of the chosen research approach, the results may lack generalisability. Therefore, researchers are encouraged to test the proposed propositions further.Social implicationsInterestingly, retailers “shift” their responsibility to the consumers rather than encourage themselves to make more sustainable choices. The authors observe a more passive and responsive role of retailing chains because of the inherent trade-off between revenue growth and sustainable consumption.Originality/valueThe original contribution lies in exploring how retail chains adapt institutional competing logic and are influenced by multiple drivers when implementing their sustainability activities. In addition, the authors propose a conceptual model for retailers' sustainability management, as well as formulate three research propositions.