Supply Sustainable Development Research Articles

Sustainable Farmer Development for Agri-Food Supply Chains in Developing Countries

Improving the supplier’s capabilities and relationships with the buyer to improve triple-bottom-line outcomes for multiple actors in the supply chain (including the suppliers and buyers) is the very purpose of sustainable supplier development. We apply the concept of sustainable supplier development in an agri-food context in a developing economy. The study aims to create a theoretical framework that explains how initiatives by buyers (often processors in the agri-food industry) to develop farmers can result in sustainable farmer performance. Collectively, the propositions derived by us via a literature synthesis propose that farmer development leads to farmer capability development and improved relationships (with the buyer), enabling the farmer to achieve sustainable performance (i.e., performance in economic, social, and environmental domains). The importance of the study from a theory building perspective is that the study attempts to reconcile the supply chain management literature on supplier development in tangible goods manufacturing with the agribusiness literature in developing economies whether or not the farmer occupies the bottom of the income pyramid. The study is also important to academia and policymakers because it acts as a forerunner for the further development of the theoretical model and its testing with a large sample of data to interpret what the results imply from practical and theoretical standpoints.

Linking Sustainable Supplier Selection to Firm’s Sustainable Performance: The Moderated Mediating Role of Supplier Development and Leadership for Functional Integration

This study aims to investigate the moderated mediation model in which leadership support for functional integration complements sustainable supplier selection to enhance a firm’s sustainability performance by promoting sustainable supplier development practices. We tested the proposed hypothesis using 289 data collected from multiple sources of manufacturing firms. Our results reveal that sustainable supplier selection indirectly enhances a firm’s sustainability performance via sustainable supplier development practices. In addition, our results highlight that leadership support for functional integration strengthens this indirect relationship. This study contributes to the sustainability management literature by providing insights into how firms promote sustainability performance by combining leadership with sustainable supplier management.

Optimal selection and investment-allocation decisions for sustainable supplier development practices

Organization’s sustainability performance is influenced by its suppliers’ sustainability performance. This relationship makes sustainable supplier development a strategic competitive option for a buyer or focal organization. When considering sustainable supplier development practices (SSDPs) adoption, organizations have to balance and consider their limited financial resources and operational constraints. It becomes necessary to both select the best SSDPs set and investment allocation among the selected SSDP set such that the organization can maximize overall sustainability performance level. In this paper, an integrated formal modeling methodology using DEMATEL, the NK model, and multi-objective linear programming model is used support this objective. The proposed methodology is evaluated in a practical sustainable supply chain field study of an equipment manufacturing company in China. Through case study, we found that the interdependency among SSDPs must be considered in SSDPs selection and investment allocation problem. Theoretical, managerial and methodology implications, conclusions, and directions for future research are also presented.

A critical content-analysis of sustainable supplier development literature and future research directions

Sustainable supplier development (SSD) deals with how partner firms help their suppliers improve sustainable performance. Recently, SSD has received increased attention in academia and practice. In line with the emergence of supply chain sustainability , SSD evolved from being a primarily environmental perspective to a perspective incorporating corporate social responsibility and business ethics, and eventually a holistic sustainability perspective. This evolution led to a gap in theory as to the lack of a clear boundary between SSD and other sustainable supplier management practices, and a gap in practice on understanding how such practices help buying firms improve their supplier sustainability capabilities. A content-analysis based literature review is used to develop a framework for understanding the foundations of past research to address the above two important concerns and to come up with promising avenues for future research. For this purpose, a total of 47 SSD articles published in recognized academic journals during the decade 2010–2021 (August) are selected, categorized, analyzed and identified to highlight the current research status and opportunities. This article introduces a structural framework to critically examine past articles within four categories – concepts, practices, problems and solutions. The framework provides a general roadmap for future research opportunities. The review presented offers academicians and practitioners a better understanding of SSD towards a more coherent evolution of future research and practice in this area.

How car producers are driving toward sustainable supplier development

Abstract Sustainable supplier development helps to improve mutually the supplier’s as well as the buying company sustainability performance. The producer could choose guidance, compliance or capacity building activities to develop its supplier or implement them all. This paper aims to present how the car producers practice sustainable supplier development taking into account different types of approaches and implementation tools. The authors applied content analysis to investigate approaches of six car producers from EU member states. The data was collected from the sustainability reports and complemented with the available information of the supplier sustainability requirements and the code of conduct of each car producer. The findings revealed that analysed car producers use similar approaches to develop their suppliers in the context of sustainability. All of them use mix of activities from all identified categories and collaborate within industry initiatives devoted to spread sustainability in supply chain.

A hesitant fuzzy linguistic QFD approach for formulating sustainable supplier development programs

Buying companies increasingly need to establish supplier development programs to improve the economic, environmental, and social performance of their suppliers. However, decision models that support the analysis and choice of sustainable supplier development programs (SSDPs) are relatively scarce in the literature. Given this context, this study proposes a model to support the formulation of SSDPs based on the HFLTS-QFD method, which combines Hesitant Fuzzy Linguistic Term Sets with the Quality Function Deployment technique. This model was applied to a European automotive company based on the judgments of an expert who evaluated six SSDPs regarding a set of buying company requirements. In this application, cost and quality were considered to be the most important requirements, whereas the programs related to the adjustment of production capacity, cost reduction, and the creation of a Kaizen system were classified as priorities for implementation. The results of the sensitivity analysis tests considering pessimistic and optimistic scenarios reinforced the robustness of the model. When compared with previous approaches, the proposed model presents several advantages, such as: it allows decision makers to use more than one linguistic term and linguistic expressions to evaluate buying company requirements and SSDPs; it considers the difficulty of implementation as a decision factor in selecting the most suitable SSDPs; and it provides an implementation ranking for the selected SSDPs based on the estimated implementation time and its potential to generate benefits for the buying company.

An integrated framework for sustainable supplier development through supplier evaluation based on sustainability indicators

The chemical industry has growing importance in sustainability because of the potential adverse effects on the environment. Also, stakeholders emphasize many social issues besides environmental protection for the chemical industry. Relying on a solid supplier base has become the main prerequisite for chemical manufacturers to achieve environmental targets and fulfill stakeholders' expectations while remaining competitive. This study develops the Integrated Sustainable Supplier Evaluation & Development Framework (ISSED-F) to support chemical manufacturers with managing supplier relationships according to the economic, environmental, and social facets of sustainability. Although the literature is rife with evaluation models aiming to fulfill the supplier selection tasks, these models mostly ignore the developmental role of supplier evaluation. To remedy this gap, ISSED-F adopts a deductive and holistic approach from setting the criteria to setting the measurement structure, evaluating the suppliers, and developing the suppliers. Materiality analysis, Analytic Network Process (ANP), Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE), and cluster analysis are the fundamental methods that constitute the ISSED-F structure. A case study presents the use of the ISSED-F in a transnational chemical manufacturer's supplier relationship management (SRM) process. The case company evaluates 69 suppliers and assigns development strategies to the relevant performance segments within the implementation. The successful implementation of ISSED-F shows that it can be a roadmap for chemical manufacturers to adopt sustainability practices and ensure continuous development in their supply chains.

Gaining customer satisfaction through sustainable supplier development: The role of firm reputation and marketing communication

Recent cases demonstrate that negative effects of sustainability-related scandals experienced by upstream suppliers can spill over to downstream firms. Thus, initiatives to help suppliers improve their sustainability performance are becoming increasingly essential for firms’ risk management in relation to supply chains. Thus far, the literature has yet to provide significant evidence on how firms can generate value from sustainable supplier development initiatives. In this study, we conduct dynamic panel data analysis of a dataset of 768 firm–year observations collected from four secondary sources, and find that sustainable supplier development initiatives can contribute to firms’ customer satisfaction, which further contributes to improved sales performance. Moreover, the relationship between sustainable supplier development initiatives and customer satisfaction is negatively moderated by firm reputation, yet positively moderated by the firm’s advertising intensity. These results provide robust evidence that customer satisfaction is a valid mechanism that links sustainable supplier development initiatives with improved sales performance.

Networking for sustainable supplier development; evidence from a Finnish industrial cluster

This article examines a network approach to sustainably developing suppliers in the context of a Finnish industrial cluster. The approach (HSEQ AP) aims to assess and develop the health, safety, environmental and quality-related capabilities of the suppliers of the buying companies that form the cluster. In this study, the impact of this approach, which has been operating for more than a decade, is examined through a mixed-methods approach. Suppliers that have been audited two times or more (n = 29) were quantitatively analyzed in terms of safety performance, consecutive assessment scores and the relationship between assessment scores and financial indicators. To support the quantitative analyses, interviews were conducted with buyers and suppliers. The results suggest that the HSEQ AP can be linked to improvement in operational results and to enhancing social sustainability in the supply network, and that the suppliers and buyers generally find it a worthy investment. The antecedents for this network approach are partially similar to supplier development in general: Buyer demonstration of commitment, particularly through purchasing processes, is crucial and not fully realized in all cases. The use of a competent, trained third-party assessor was seen to bring value, and the suppliers also rated buyer participation very highly. Interestingly, no significant improvement was found regarding environmental capabilities. The HSEQ AP can be viewed as a CSR practice, but the results show there could be further potential to unlock.

Making tough choices: A policy capturing approach to evaluating the tradeoffs in sustainable supplier development initiatives

This research explores the tradeoffs that decision makers are willing to make when implementing development initiatives to improve supplier sustainability performance. We employ a policy capturing methodology in which respondents are forced to choose between multiple potential sustainable supplier development initiatives. Data were collected from traditional and executive MBA students. The results suggest that when confronted with tradeoffs, decision makers value improvements in supplier cost savings and injury reduction equally, which was somewhat unexpected. Further, both improvements in supplier cost savings and injury reduction were valued over supplier emissions performance. Because we measure individual tradeoff preferences, multi-level regression analysis was used to better understand the impact of respondent value structure regarding sustainably developing suppliers. Our findings suggest a hierarchy of tradeoff preferences for decision makers as they pertain to sustainable supplier development. As the pressure to ensure supply chain sustainability increases, more firms will engage in sustainable supplier development. The outcomes of the choices they make when choosing between initiatives, and how managers make these choices, will be of increasing interest in both industry and academia. This research answers previous calls for further examination of decision maker tradeoff preferences in sustainable supply chain development.

Do dependent suppliers benefit from buying firms’ sustainability practices?

In view of the limited understanding and research on the effect of sustainable supplier development practices on supplier performance, this study examines the impact that the implementation of assessment and collaboration practices have on supplier performance outcomes. In addition, we investigate the role that supplier dependence has on the performance outcomes of assessment on and collaboration with suppliers. Based on a sample of 129 Chinese manufacturing firms, we run a series of OLS regressions to test our theoretical models. The findings suggest that collaboration improves supplier performance, while assessment causes a deterioration. In addition, supplier dependence could be leveraged for suppliers to gain performance improvements through collaborative practices.

Incorporating dynamic concept into gradual efficiency: Improving suppliers in sustainable supplier development

Sustainable supplier management goes beyond a simple compliance with standards and norms defined by a purchaser or being only effective in terms of economic performance in sustainable supply chain management context. Buying firms are seeking to adopt the sustainable supplier management in their supply chains as they are responsible for their suppliers' environmental and social performances. Previous researches on sustainable supplier management indicate that evaluation of suppliers' sustainability has attracted a great attention from practitioners while suppliers' sustainability development has been widely neglected. One of the development programs for suppliers is performance improvement. Two significant issues need to be considered for implementation of suppliers' improvement program; first, considering time in evaluation process and continuity in improvement, second, applying stepwise or gradual approach as sudden and huge changes in inputs and outputs may be impossible or troublesome. To this end, we propose a data envelopment analysis (DEA)-based model to incorporate dynamic concept into gradual improvement approach. Given proposed model, carry-overs between two consecutive periods are considered in a dynamic environment and also inefficient suppliers are projected to efficiency frontier step-by-step. An illustrative case study in machinery industry is proposed to indicate applicability of proposed model.

Supplier Development Practices for Sustainability: A Multi‐Stakeholder Perspective

AbstractSupplier development for sustainability is a critical element of sustainable supply chain management and requires extensive multi‐stakeholder collaboration. This article establishes a conceptual four‐stage framework to analyse the collaborative mechanisms of supplier development practices, and presents an exploratory, qualitative analysis to identify the major contributors of sustainable supplier development practices, such as NGOs, industrial associations, consulting firms etc. Based on semi‐structured interviews about 63 organizations from different regions and industries, this article identifies three types of contributor: drivers, facilitators and inspectors. Instead of traditional stakeholder engagement processes, these contributors actively collaborate with buying firms and suppliers to design, implement and evaluate sustainable supplier development programs. The article then provides a matrix to describe the supply chain coverage and supplier performance of supplier development practices, given the absence or positive involvement of facilitators and inspectors. We conclude our study by suggesting future research directions as well as discussing managerial implications. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

Growth and Strategies of Large, Lead Firms-Supermarkets

Supermarkets are a key route to market for suppliers of food and household consumable products in South Africa. The growth, performance and strategies of the retail industry driven by JSE-listed supermarket chains therefore has important implications for suppliers and, in turn, for the development trajectory of agro-processing and light manufacturing industries. However, costly trading terms and stringent requirements limit the participation of suppliers in supermarket supply chains. This paper tracks the performance, investment and growth strategies of supermarket chains in South Africa between 2010 and 2016. Key findings reveal that although the formal supermarket industry has grown significantly over the past six years (measured by investments in assets and real turnover), it has remained relatively concentrated with only a handful of main players. Local supermarkets are also expanding their investments into the rest of Africa in search of new markets. The paper further evaluates the implications of supermarket procurement strategies on the ability of local suppliers to participate in supermarket supply chains. It highlights a wide range of constraints that suppliers face in accessing supermarket shelf space. To increase participation of local suppliers, the study recommends better designed and more sustainable supplier development programmes. It also recommends the implementation of a retail code of conduct to curb uneven balances of power and to promote transparency in procurement procedures and trading terms.

The impact of sustainable supplier management practices on buyer-supplier performance

PurposeThis paper aims to present an empirical study on the multidimensional relationships between sustainable supplier management (SSM) practices and buyer–supplier performance from the buying firms’ perspective. Specifically, the authors focus on four SSM practices, namely, sustainable supplier selection, sustainable supplier monitoring, sustainable supplier development and sustainable supplier collaboration, and test their effects on three buyer–supplier performance measures, namely, supplier performance, buyer–supplier relationship and buyer competitive advantage.Design/methodology/approachBased on data collected from 256 manufacturers across different geographical areas and industrial branches in Greater China. A conceptual model was proposed and tested using structural equation modeling technique with the help of SmartPLS 3.0.FindingsThe sustainable supplier development and sustainable supplier collaboration have positive relationships with supplier performance, while sustainable supplier selection, sustainable supplier monitoring and sustainable supplier collaboration have positive influence on buyer–supplier relationship and buyer competitive advantage. Furthermore, the relative importance and contributions of the individual measures was also identified.Originality/valueThis study simultaneously integrates the constructs of SSM practices and buyer–supplier performance. Moreover, it seeks to make a contribution to existing literature from a theoretical perspective by investigating the sub-dimensions of SSM practices and buyer–supplier performance.

Does implementing social supplier development practices pay off?

Purpose– The purpose of this paper is twofold. First is to investigate the impact of social supplier development practices on the suppliers’ social performance. Second is to analyze if the implementation of supplier development practices by Western buying firms pays off in terms of operational and economic results.Design/methodology/approach– Hypotheses are tested in a sample of 120 Spanish manufacturing firms using Path Analysis.Findings– The results suggest that while supplier development practices help to improve the suppliers’ social performance and the buying firm’s operational performance, they do not pay off in terms of economic performance.Research limitations/implications– The paper shows that supplier development practices help to improve the suppliers’ social performance while improving the operational performance of the buying firm. The study has two main limitations. First, because cross-sectional data are used, possible recursive relationships could not be accounted for. Second, the study is limited to the Spanish scope and, as such, results need to be interpreted in that context.Practical implications– The results of this study provide insights to managers with respect to the implementation of supplier development practices to make their suppliers more socially responsible. Furthermore, managers are shown the implications of implementing such practices in terms of operational and economic outcomes.Originality/value– This paper contributes to the existing literature on the effectiveness of sustainable supplier development practices by including the suppliers’ performance, which has been generally neglected. Objective measures for economic performance are also included.

Sustainable supplier development practices: Drivers and enablers in a global context

The objective of this paper is to study the impact of institutional pressures at the country level (i.e., coercive, regulatory, normative) on the adoption of sustainable supplier development practices. Globalization is allowing firms to expand in new markets and to leverage on localization advantages by establishing foreign plants and sourcing internationally. Plants located in different countries might be subject to different institutional pressures shaping their organizational response to sustainability within and outside their domain (e.g., in relation to their suppliers). The paper also aims to examine if firm specific capabilities (e.g., supply chain integration) play an enabling role in the adoption of sustainable supplier development practices. To analyse these relationships we relied on both primary and secondary data, and used hierarchical linear modelling to test our hypotheses. The results show that mimetic pressures have a positive effect on the adoption of sustainable supplier development and that this influence is positively moderated by the firm’s level of supplier integration. Coercive and normative pressures have no effect on the adoption of sustainable supplier development practices. Overall our results suggest that sustainable supplier development is a proactive practice adopted for competitive reasons and enabled by firm specific capabilities.

Identifying Robust portfolios of suppliers: a sustainability selection and development perspective

The initial selection and development of suppliers is a critical and increasingly complex component of organizational supply chains. In recent years sustainability issues have played an increasing role in making these decisions, though there has been limited activity in the literature in this regard. We develop an optimization model that simultaneously addresses supplier selection, supplier development, and sustainability considerations. Sustainability is integrated in the form of supplier sustainability ratings and sustainable supplier development through investment and training budgets. To handle the considerable complexity concerning such decisions, we demonstrate a recent algorithmic approach that can identify a portfolio (set) of multiple high-quality and yet collectively diverse solutions. This approach is carried out on a selection of randomly generated, representative test instances. Encouraging computational results and managerial implications are analyzed and discussed.

Study on Dynamic Relationship between Economic Growth and Energy Consumption in Chongqing - Based on 1980-2011 Data

Analyzed the dynamic interaction characteristics of Chongqing Economic growth and energy consumption between 1980-2011 based on vector auto regression model, impulse response function. The results showed that: 1 Between the Chongqing's economic growth and energy consumption exist the positive long-term stable equilibrium relationship, Chongqing's economic development depending on energy consumption is too high, to keep the economy in Chongqing's rapid economic development, energy relatively insufficient supply sustainable development must rely on the energy market, which will restrict the development of Chongqing's economy. 2At this stage, Chongqing continuing emphasis on optimizing the industrial structure to improve energy efficiency at the same time, the key is to establish and improve the energy consumption intensity and total energy demand "dual control" under the security system, weakening the energy bottleneck effect on economic growth.

Advertising as Information

This paper tries to show how the major features of the behavior of advertising can be explained by advertising's information function. For search qualities advertising provides direct information about the characteristics of a brand. For experience qualities the most important information conveyed by advertising is simply that the brand advertises. This contrast in advertising by these qualities leads to significant differences in its behavior. How does advertising provide information to the consumer? The producer in his advertising is not interested directly in providing information for consumers. He is interested in selling more of his product. Subject to a few constraints, the advertising message says anything the seller of a brand wishes. A mechanism is required to make the selling job of advertising generate information to the consumer. [Авторский текст]