Horizontal collaboration in response to modern slavery legislation

Amy V Benstead,Mark Stevenson,Linda C Hendry

doi:10.1108/ijopm-10-2017-0611

Abstract

Purpose The purpose of this paper is to investigate how horizontal collaboration aids organisations in responding to modern slavery legislation and in gaining a socially sustainable competitive advantage. Design/methodology/approach Action research has been conducted in the textiles and fashion industry and a relational perspective adopted to interpret five collaborative initiatives taken to tackle modern slavery (e.g. joint training and supplier audits). The primary engagement has been with a multi-billion pound turnover company and its collaborations with 35 brands/retailers. A non-government organisation and a trade body have also participated. Findings Successful horizontal collaboration is dependent on both relational capital and effective (formal and informal) governance mechanisms. In collaborating, firms have generated relational rents and reduced costs creating a socially sustainable competitive advantage, as suggested by the relational perspective. Yet, limits to horizontal collaboration also exist. Research limitations/implications The focus is on one industry only, hence there is scope to extend the study to other industries or forms of collaboration taking place across industries. Practical implications Successful horizontal collaborative relationships rely on actors having a similar mindset and being able to decouple the commercial and sustainability agendas, especially when direct competitors are involved. Further, working with non-business actors can facilitate collaboration and provide knowledge and resources important for overcoming the uncertainty that is manifest when responding to new legislation. Social implications Social sustainability improvements aim to enhance ethical trade and benefit vulnerable workers. Originality/value Prior literature has focussed on vertical collaboration with few prior studies of horizontal collaboration, particularly in a socially sustainable supply chain context. Moreover, there has been limited research into modern slavery from a supply chain perspective. Both successful and unsuccessful initiatives are studied, providing insights into (in)effective collaboration.

Highlights

Introduction n ur lJo a ion Modern slavery is attracting significant media attention (e.g. The Guardian, 2016) while legislation has prompted discussion of this social sustainability issue in the academic literature (e.g. New, 2015)
4.1 Major Action Research Cycle: Collaborative Response to Legislation In February 2016, 22 UK-based brands and NGO attended a meeting initiated by Brand al to discuss a shared response to the new modern slavery legislation
In comparison to the prior literature, this paper makes four key contributions, which are ra pe discussed in turn below and lead to four propositions: 1. It finds that relational rents are generated through horizontal collaboration to achieve competitive advantage

Summary

Introduction

Introduction n ur lJo a ion Modern slavery is attracting significant media attention (e.g. The Guardian, 2016) while legislation has prompted discussion of this social sustainability issue in the academic literature (e.g. New, 2015). New UK legislation requires organisations with a turnover greater than £36 million to publish an annual statement regarding action taken to combat modern slavery in their supply chains (UK Government, 2015). The al following definition of modern slavery has been proposed: “the exploitation of a person who is deprived of individual liberty anywhere along the supply chain from raw of material extraction to the final customer for service provision or production” (Gold et al, 2015, p.487). The complex and global nature of modern supply chains means tackling this exploitation is challenging for firms to do alone (Gold et al, 2010). It is important to understand the impact of tio horizontal collaboration on competitive advantage in terms of social sustainability performance

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Conclusion