Sustainability Transitions in Supply Chains: Augmenting Agency in Response to Political Tensions

Abstract

We aim to advance the theory of sustainable supply chains by investigating politically induced structural transitions for sustainability using the case of the palm oil supply chain. We elaborate sustainability transitions mechanisms resulting from key supply chain stakeholders’ efforts to augment their agency for influence in response to political tensions from states and corporations. We find that political tensions render latent influence gaps salient as key supply chain stakeholders feel pressured to respond to criticisms either to fill the institutional gaps or to advance transparency regimes. Our findings contribute to theory, practice, and policy associated with the governance of sustainability transitions in supply chains considering its political economy.