Understanding sustainable supply network capabilities of multinationals: A capability maturity model approach

Abstract

The design of global supply networks has evolved from traditional lowest landed cost analysis to include more strategic concepts such as how particular network configurations might support strategic and operational capabilities. An established approach to assessing operational capabilities is the maturity model methodology where the emphasis is on notions of evolution and levels of process formality. More recently, there has been a growing emphasis on sustainable supply networks, driving industrial practitioners to also address energy and resource efficiencies and waste minimisation. However, quantitative measurement approaches such as carbon footprinting beyond the firm boundary are complex and resource intensive and present significant validation challenges. This article proposes a process maturity model-based alternative to supply network carbon measurement approaches, namely, the systematic review of organisational routines and practices relevant to sustainable manufacturing. Furthermore, the incorporation of sustainability dimensions within an established supply chain maturity model architecture provides a basis for potential trade-offs. Application of the maturity model framework in 12 case studies of international manufacturing multinationals is presented, demonstrating feasibility and utility of the approach and identifying potential drivers for manufacturing sustainability linked to the industrial supply network position, including the regulatory context, and consumer sentiment.