Local procurement, shared value, and sustainable development: A case study from the mining sector in Mongolia

Abstract

AbstractIn emerging economies, tension can arise between the pursuits of economic development to alleviate poverty versus the protection of cultural traditions. In Mongolia, for example, efforts to expand the economy through the development of mineral resources have raised understudied questions about how to accommodate the economic benefits of mining without compromising traditional ways of life. In this case study, we consider the complex and cascading challenges confronting mining, traditional livelihoods, and sustainable development. Semi‐structured interviews with 62 participants over a 3‐year period were used to investigate the role the corporate strategy of local procurement to create shared value could have in reducing tensions in a remote region where mineral exploration and mine development is underway. The findings provide insight to the barriers and opportunities for company‐initiated local procurement practices that contribute to locally led sustainability initiatives and community resilience in emerging economies.