The Invisible Side of Managing Sustainability in Global Supply Chains: Evidence from Multitier Apparel Suppliers

Abstract

Supply chain scholars, industry leaders, and policy makers have begun to recognize the importance of managing sustainability in global extended supply chains. However, scant attention has been paid to investigating the implementation of sustainable supply management practices from the perspective of multitier suppliers located in challenging institutional contexts. Drawing on institutional theory, this qualitative study examines how institutional pressures, mechanisms, and challenges influence the sustainability implementation of a developing country’s multitier apparel suppliers. The study not only captures the viewpoints of 46 owner–managers across 33 multitier suppliers, but also provides complementary evidence from a wide range of institutional actors. The findings show that first‐tier and second‐tier suppliers experience more collective coercive pressures than mimetic and normative pressures toward sustainability implementation. However, only coercive pressure from second‐tier suppliers influences third‐tier suppliers’ sustainability implementation. The identified key collective coercive pressures were stemming from the selection and assessment requirements of direct buyers, followed by third‐party auditors, governments, and newly emerged collective buyers’ consortia. Finally, building on empirical findings, this study presents a framework and research propositions for understanding the diffusion of sustainability to multitier suppliers.