Searching for competitive advantage through sustainability

Abstract

PurposeSustainability is becoming increasingly important in supply chains, particularly in those that function in highly competitive industries. The purpose of this paper is to understand more deeply the role sustainability plays within supply chains based on a qualitative study conducted in the New Zealand wine industry.Design/methodology/approachThis research followed a grounded theory methodology which used in‐depth interviews with managers from wineries, retailers, and restaurants; observations of operations; and interpretation of field documents/artifacts.FindingsThe findings show that managers within the New Zealand wine supply chains are trying to find ways to leverage sustainability‐related competencies for competitive advantage in what is now a highly competitive industry. Within this context, the emergent theme of searching for advantage through sustainability involves: pursuing and leveraging sustainability; telling a story that involves sustainability; managing supply chain relationships around sustainability; and experimenting with sustainability initiatives.Research limitations/implicationsThe research is limited to the context and participants of the study. As a qualitative inquiry, findings are exploratory. The research implications, however, involve deeper studies into how wine industry firms in other nations and regions of the world are treating sustainability and searching for competitive advantages. Further validation of the models that emerge can be accomplished through future research, which would draw on aggregate data.Originality/valueThe approach and context within which sustainability is explored is unique. By seeking deep insights from managers on the cutting edge of sustainability initiatives, we are able to get close to strategic thinking and explore the impact on distribution relationships.