Abstract
In order to contribute to research on implementing business sustainability, this study aims to explore the distribution of decision-making authority related to economic, environmental, and social sustainability. Sustainability objectives between different organizational levels in multinational manufacturing enterprises (MMEs) are investigated. The research is fundamentally exploratory. We conducted a multiple case study endeavor with nine participating case organizations. The study identified five different decision-making approaches to sustainability in multinational manufacturing enterprises. The findings showed that there was no consistent way of deciding upon sustainability issues. Some case organizations seemed to regard sustainability as a global concern, while others regarded it as a more local concern. In general, the economic sustainability dimension was regarded as more of a global concern, while the environmental dimension was more of a local concern, and the social dimension more of an integrated concern. The findings of this study can act as guidance for managers when implementing or improving sustainability strategies. The findings will also serve as a map to navigate and understand what should be given the strongest priority in different situations concerning decision-making relating to sustainability in manufacturing processes and networks.
Highlights
IntroductionSustainability is increasingly becoming an issue that is high if not on top of the agenda for many companies
We investigated the relationship between setting sustainability objectives and defining decision-making approaches according to the centralization vs. decentralization take on the decision-making structure in organizations
Previous research has mainly acknowledged the relation of sustainability and decision-making concerning sustainability as a concept or investigated the decision-making of one specific sustainability issue or dimension, such as the environmental dimension
Summary
Sustainability is increasingly becoming an issue that is high if not on top of the agenda for many companies. This study explores the distribution of sustainable decision-making in multinational manufacturing enterprises (MMEs). The study aims to investigate where and on what levels decisions concerning questions on sustainability take place in these organizations. Sustainability is commonly defined as development “that meets the needs of the present without compromising the ability of future generations to meet their own needs” [1] with the aim to secure intergenerational equity [2] and intragenerational equity [3]. Sustainability can be defined as a “business approach that seeks to create long-term value for stakeholders by embracing the opportunities and managing risks associated with economic, environmental, and social developments” [4]
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