Sustainable Supply Chain Management Literature Research Articles

Pressures for sub‐supplier sustainability compliance: The importance of target markets in textile and garment supply chains

AbstractWe propose that sub‐supplier sustainability compliance in developing economies' textile and garment supply chains can be more effectively realized by understanding sub‐suppliers' target markets. We introduce the concept of sub‐suppliers' customer share of production as the share of production that sub‐suppliers sell to “exporting” direct suppliers that cater to the international market vis‐à‐vis “local” direct suppliers that cater to the domestic market. Through this concept and qualitative evidence, we offer a model outlining that as sub‐suppliers sell more to exporting direct suppliers, they encounter increased coercive, competitive, and collaborative pressures for sustainability compliance. This article contributes to the multi‐tier sustainable supply chain management literature by illustrating how target markets exert pressures for sub‐supplier sustainability compliance, and why some sub‐suppliers are more inclined to invest in sustainability compliance, some decouple from it, and others invest beyond compliance. We conclude with business strategy guidelines for managers in textile and garment supply chains.

Implementation of sustainable farming practices by cocoa farmers in Ecuador and Uganda: the influence of value chain factors

A key strategy of chocolate manufacturers is the promotion of sustainable farming practices amongst their supplying cocoa producers. A growing body of micro-economic literature has analysed factors influencing the adoption of such practices, yet broadly disregarded value chain factors. Information on how factors within single value chains increase the adoption of sustainable farming practices can help direct chocolate companies’ investments and increase return of investments in sustainability. The objective of this study was to understand: (a) how important value chain factors are, relative to farmer and farm factors, for cocoa farmers’ implementation of sustainable farming practices and (b) through which mechanisms value chain factors influence sustainable farming practices implementation. By integrating the practice adoption with sustainable supply chain management literature, we contribute to closing an important research gap. We collected data from 394 cocoa farmers in Ecuador and Uganda and analysed the determinants of implementation sustainable farming practices, testing quantitatively whether value chain factors with variation within single value chains are significantly associated with practice implementation. These factors included information factors (farmers’ access to training; advisory service through the value chain) and structural factors (value chain organisation and persistence; farmers’ dependency on this value chain). We selected 11 sustainable farming practices or indicators across three sustainability dimensions, i.e., environmental, social, and economic. We found that value chain factors are comparable to farmer and farm factors in explaining the implementation of sustainable farming practices across dimensions. Both capacity building and stable relationships were significantly related with the implementation of certain sustainable farming practices. Yet these results were weaker than expected, indicating that their potential was not fully exploited within our case study value chains. Through their value chain sustainability initiatives, chocolate companies should disseminate knowledge, address inhibitors to sustainable farming practices implementation beyond knowledge, and align sustainability goals with all value chain actors.

Customer base environmental disclosure and supplier greenhouse gas emissions: A signaling theory perspective

AbstractAs suppliers' emissions contribute to a significant portion of the global environmental footprint, achieving supply chain wide carbon neutrality largely depends on suppliers' greenhouse gas (GHG) emissions reductions. Although suppliers' customers are increasingly signaling their commitment to tackling climate change through environmental disclosure, whether this signal contributes to supplier emissions reduction remains a question. Using signaling theory, this research proposes an emissions‐reducing effect of customer base environmental disclosure on a supplier's GHG emissions level. Using a 2010–2017 panel dataset from multiple sources, we find empirical evidence supporting the upstream emissions‐reducing effect of customer base environmental disclosure. Further, we identify two customer‐base characteristics that affect this relationship: customer base climate innovation and competition. These findings contribute to the sustainable supply chain management literature by illustrating the effects of the customer base on supplier emissions performance. Specifically, customers could motivate a supplier's engagement in emissions reduction by collectively signaling their environmental commitment through enhanced disclosure. However, the effectiveness of this signaling effect can be contingent on the green innovation and competitive dynamics of the customer base.

Supply chain agility and sustainability performance: A configurational approach to sustainable supply chain management practices

The sustainable supply chain management literature points to a positive relationship between sustainability practices and firm performance. However, firms have limited resources to apply toward competing strategies and initiatives and managers are therefore challenged with making decisions about which sustainability initiatives to pursue. Two potential solutions to this challenge include combining supply chain agility with sustainability practices and utilising the resource orchestration theory framework (ROT) to help supply chain managers make more informed sustainability-related decisions. The purpose of this study is to investigate the different potential combinations of firm and supply chain sustainability practices and supply chain agility which result in high firm performance. This study uses ROT and applies a configurational approach and qualitative comparative analysis methodology. The findings indicate that high sustainability performance can be reached through different paths (equifinality) entailing both high and low values of each proposed sustainability initiative and supply chain agility (asymmetry). The findings also reveal that results are dependent on how practices are combined, rather than on their single effects.

Sustainable supply chains in the heavy vehicle and equipment industry: a multiple-case study of four manufacturers

PurposeRecently, interest in sustainability has grown globally in the heavy vehicle and equipment industry (HVEI). However, this industry's complexity poses a challenge to the implementation of generic sustainable supply chain management (SSCM) practices. This study aims to identify SSCM's barriers, practices and performance (BPP) indicators in the HVEI context.Design/methodology/approachThe results are derived from case studies of four multinational manufacturers. Within-case and cross-case analyses were conducted to categorise the SSCM BPP indicators that are unique to HVEI supply chains.FindingsThis study's analysis revealed that supply chain cost implications and a deficient information flow between focal firms and supply chain partners are the key barriers to SSCM in the HVEI. This analysis also revealed a set of policies, programmes and procedures that manufacturers have adopted to address SSCM barriers. The most common SSCM performance indicators included eco-portfolio sales to assess economic performance, health and safety indicators for social sustainability and carbon- and energy-related measures for environmental sustainability.Practical implicationsThe insights can help HVEI firms understand and overcome the typical SSCM barriers in their industry and develop, deploy and optimise their SSCM strategies and practices. Managers can use this knowledge to identify appropriate mechanisms with which to accelerate their transition into a sustainable business and effectively measure performance outcomes.Originality/valueThe extant SSCM literature has focused on the light vehicle industry, and it has lacked a concrete examination of HVEI supply chains' sustainability BPP. This study develops a framework that simultaneously analyses SSCM BPP in the HVEI.

Unpacking selective decoupling in global supply chains: a stakeholder salience perspective on social issues in Vietnam’s garment factories

ABSTRACT Decoupling – a managerial strategy to buffer a company’s social sustainability policy from its daily business practices in order to minimise the impact on operations – has long been studied in sustainable supply chain management (SSCM). While the SSCM literature offers many examples of buyers’ decoupling, few publications focus on decoupling by suppliers, who are under pressure from buyers to adopt formal structures, i.e. social sustainability policies. There are even fewer studies exploring workers’ claims related to social issues in this regard. Our study, drawing on the concept of policy-practice decoupling, investigates how suppliers navigate the different expectations of buyers and factory-level workers to find ‘decouple-able’ policies when practising social sustainability. We apply the stakeholder salience theoretical lens to analyse 44 interviews from fieldwork in Vietnam to uncover who and what really counts for local supplier managers in selective decoupling. Along with enriching our understanding of decoupling done by local suppliers, our study uncovers the influence of workers on their managers in shaping and reshaping decoupling.

Environmental collaboration with suppliers and cost performance: exploring the contingency role of digital orientation from a circular economy perspective

PurposeTo examine the interplay between sustainable supply chain management (SSCM) and circular economy, this research conceptualises and empirically tests an integrative framework of environmental information exchange with suppliers (ES), environmental product design (EPD) and cost performance (CP) with the contingency effect of digital orientation (DO). The associations proposed in the integrative framework provide a configuration of SSCM practices that support circular economy's restorative processes in the digital age.Design/methodology/approachThe resource orchestration theory and contingency theory are used to investigate the mediation and moderating effects, which were tested by a moderated mediation analysis of survey data of 100 firms in Australia.FindingsThe results show that EPD fully mediates the relationship between ES and CP. Further, DO was found to moderate the relationship between EPD and CP, but not the relationship between ES and EPD.Practical implicationsThe empirical findings of this study offer an effective SSCM practice configuration for firms seeking to target advanced circular business models and economic benefits. Managers should be aware that ES may not be enough to improve CP; EPD is a required mechanism to translate the ES benefits into cost superiority. Managers should also stimulate a DO culture to develop effective EPD capabilities, which leads to improved CP and a foundation for companies seeking to target circularity.Originality/valueThis study advances prior theoretical and practical knowledge. The authors propose and empirically test an integrated SSCM and circular economy model that incorporates mediation and moderation effects to clarify inconsistent findings in prior work, which provides a more holistic and practical understanding of SSCM practices in the digital context. Furthermore, the SSCM literature recommends the adoption of circular economy principles. The integrated model in this study provides a bridge between SSCM and circular economy.

Supply Chain Social Sustainability: Unveiling Focal Firm’s Archetypes under the Lens of Stakeholder and Contingency Theory

Sustainable supply chain management (SSCM) has received increasing attention from scholars and practitioners. Despite its importance, we know little about critical aspects of it, as some important gaps are highlighted in the SSCM literature: deepening social dimension, exploring governance mechanisms, and strengthening theoretical development. This research aims to analyze how stakeholder salience and contingency factors influence the extent to which focal firms implement governance mechanisms to address social issues in supply chains. We conduct a multiple case study in six focal firms operating in Brazil. We intend to reduce the shortage of empirical evidence on emerging economies by focusing on a leading emerging country. This study contributes to the literature in three main aspects: (1) We classify social issues into central, peripheral, and remote, based on their priority within SSCM practices from emerging economy cases; (2) We outline three archetypes of social-SCM, namely elementary, selective, and extensive, to reflect the extent that focal firms incorporate social issues within their practices; (3) We also provide a typology to assess the extent to which focal firms address social issues, therefore contributing to reducing the gap regarding the social dimension within SSCM scholarship, combining the stakeholder theory and contingency theory.

The management of global multi-tier sustainable supply chains: a complexity theory perspective

Global supply chains feature multi-tier systems encompassing many geographically dispersed and sequential partners operating across diversified product chains. This research attempts to examine the different mechanisms that reinforce the management of sustainability throughout complex multi-tier supply chain. Using a multi-case study of a sample of eight firms and relying on the foundations of complexity theory, this research recognises the complex operating environment of global multi-tier supply chains and reveals various mechanisms to effectively manage and facilitate the relationships with first- and lower-tier suppliers. Although institutional controls are important to manage the sustainability of first-tier suppliers, the findings posit that due to the inherent complexities of global multi-tier supply chains, duplicating institutional controls to lower-tier suppliers might not be effective. Therefore, firms should attempt to foster modest mechanisms that reinforce adaptation and self-organisation, for example, collaboration and guiding mechanisms, to effectively manage the sustainability of lower-tier suppliers. The research contributes to multi-tier sustainable supply chain management literature by exploring the different mechanisms to manage multi-tier supply chains and the inherent complexities that may impact on firms’ endeavours in achieving their sustainability goals. Managers can utilise different contingent mechanisms to effectively manage the relationships with suppliers that are beyond their immediate visibility.

Multiple multi-tier sustainable supply chain management: a social system theory perspective

A multi-tier supply chain is a complex system as it covers a focal company and multiple tiers of suppliers in a complex supply chain network. This study explores the complexity in multi-tier sustainable supply chain management (SSCM) through a social systems theory perspective. We carried out a case study on IKEA China’s sustainable cotton initiative and examined its five cotton-textile supply chains. The primary data were collected through 22 semi-structured interviews with managers of IKEA China and their multi-tier suppliers. The findings suggest that in order to cope with environmental complexity in implementing multi-tier sustainable initiatives, focal companies tend to create both internal complexity and collaborative complexity in a variety of governance mechanisms. In addition, environmental overlap and available collaborative complexity increase in this process and can feed back into systems to facilitate further creation of requisite variety. We contribute to the multi-tier SSCM literature through providing an in-depth understanding of nuanced mechanisms of managing different tiers of suppliers to cope with complexities by adopting a social systems theory perspective. We also contribute to multi-tier supply chain governance mechanisms from an evolution perspective.

The impact of sustainability on supplier selection: A behavioural study

Supplier selection is a critical decision with sustainability impacts in global supply chain. This study explores how different dimensions of a supplier's sustainability can affect managers' evaluation and consequent selection of a supplier. An experimental research method is applied to examine a series of hypotheses that integrate the sustainable supply chain management literature and the behavioural decision-making literature. Data from a total of 857 valid sets of responses in three scenario-based experiments were used to explore the impacts of long-term and short-term relationships with the supplier, and the length of work experience of the supply chain manager as factors in managers' selection decisions. The findings show that managers favour sustainability dimensions in their evaluation and intention to select a supplier. Moreover, managers react more negatively to a low level of sustainability than they react positively to a high level of sustainability. The economic dimension of sustainability has the strongest impact of the three dimensions on managers' supplier evaluation and selection intent. Furthermore, where the manager and supplier have been in a long-term relationship, there is an interaction effect between managers support for each of the dimensions and the effect of sustainability on supplier evaluation and selection. However, this moderating effect is less significant in a short-term relationship and becomes insignificant after accounting for the impact of length of work experience of the decision-makers. The experimental research approach and results provide managerial implications for effective allocation of resources, as well as policy suggestions for the broader operations and supply chain systems.

Nominated procurement and the indirect control of nominated sub-suppliers: Evidence from the Sri Lankan apparel supply chain

This article describes and discusses nominated procurement as a means through which buyers select sub-suppliers to achieve sustainability compliance upstream in emerging economies' supply chains. Hence, it critically examines the ways buyers articulate nominated procurement and the unfolding supply chain consequences. Based on in-depth interviews and fieldwork in the Sri Lankan apparel supply chain, the findings indicate that buyers accomplish sustainability compliance among their sub-suppliers while prioritizing their own business agenda. In doing so, however, buyers perpetuate “suboptimal compliance” of raw material suppliers and “sandwiching” of direct suppliers as harmful consequences on the supply chain. These consequences link theoretically with commercial, geographical, compliance and extended-compliance pressure. This article contributes to the advancement of the Sustainable Supply Chain Management literature by theorizing about nominated procurement, direct and indirect pressure, and pointing to the supply chain consequences beyond achievements in sustainability compliance.

Dear supplier, how sustainable are you?

This article analyses one of the most common tools employed by global focal companies in sustainable supply chain management (SSCM) across all industries: supplier sustainability self-assessment questionnaires. Extant research has moved beyond the questions of whether and which suppliers should be assessed. Current research is already focussing on how to share and standardise such assessment data. Despite mounting general research on SSCM, we identified that specific tools such as self-assessment questionnaires have not been empirically analysed in SSCM literature. Thus, this paper addresses the research questions of what differences there are among supplier self-assessment questionnaires and how supplier responses to such questionnaires might be influenced. Our research involves an abductive multiple-case study design and an analysis of over 25,000 responses from globally dispersed suppliers to two types of supplier sustainability self-assessment questionnaires administered and requested by a global automotive focal company.Although the two questionnaires covered similar areas of sustainability practices and were administered to suppliers of the same focal company, the suppliers’ responses demonstrated various observable differences in average sustainability scores.Social desirability bias and supplier assessment fatigue were identified as issues confronting such questionnaires. We find that questionnaire design, how the questionnaire is embedded in the focal company’s processes and institutional settings are factors that potentially influence suppliers’ responses and could counteract social desirability bias and supplier assessment fatigue. Based on these findings we make suggestions for improving these SSCM tools and provide recommendations for further research.

Relationship configurations for procuring from social enterprises

PurposeThis paper explores how the procurement function initiates and develops relationships with social enterprises that are intended to induce social impact in the supply networks of for-profit firms.Design/methodology/approachThe paper utilises an in-depth case study involving a focal company, first-tier supplier, nongovernmental organisation and four social enterprises.FindingsTension mitigation that arises between social and commercial logics occurs via individual relationships through building trust, dependency manipulation, monitoring and supplier development activities. Deeper insights are revealed when triadic relationships are viewed within a quadratic relationship configuration that enables better capturing the essence of supply networks.Research limitations/implicationsThe paper is based on a single case study, limiting empirical generalisability. Future research could consider multiple case studies to reveal different types of relationship configurations that induce social impact in supply networks.Practical implicationsSocietal goals can be met while maintaining supply network economic performance if procurement involves a trusted third party such as a nongovernmental organisation and helps to develop social enterprises as suppliers.Originality/valueThe paper contributes to the sustainable supply chain management literature by reporting on a novel procurement approach for enhancing social sustainability through cooperation with social enterprises. The paper also contributes to supply network theory by demonstrating how exploring quadratic relationships can reveal novel relationship configurations within supply networks.

Supply chain sustainability trajectories: learning through sustainability initiatives

PurposeThis paper explores how organizational capabilities and path dependence affect the implementation of supply chain (SC) sustainability initiatives. Through the lenses of contingency and evolutionary theory, the paper addresses the underexplored supply chain dynamics that enhance or inhibit sustainability trajectories.Design/methodology/approachUsing in-depth multi-case studies for theory elaboration, five supply chains were studied through open-ended interviews with SC members, secondary data collection and site visit observation. The design consists of a combination of deductive and inductive approaches to elaborate theory on supply chain dynamics and enhanced sustainability trajectories.FindingsThe empirical study shows that learning is a fundamental condition for supply chains as they implement sustainability initiatives, and that exploitation capabilities are more frequently used than exploration capabilities. Path dependence plays a role in the outcomes of supply chain sustainability initiatives, which are influenced by both path dependence and contingencies of the contexts in which these systems operate.Research limitations/implicationsThis paper puts forward five propositions that emerge from the literature and from the field study results. Although this is an exploratory research bounded by geographical limitations and the limited number of SC cases, the goal of elaborating theory may open up several promising avenues for future large-scale and longitudinal research studies.Practical implicationsBy enhancing our understanding of the dynamics of supply chain sustainability trajectories, decision-makers, scholars and policy-makers can better understand how supply chains learn, how they employ SC member capabilities and how they deal with stakeholder resistance.Originality/valueThis paper extends supply chain sustainability theory by addressing the knowledge gap that exists with regard to understanding the dynamics of evolving supply chain sustainability trajectories. This paper sheds additional light on this important topic and contributes in multiple ways to the sustainable supply chain management literature.

Corporate social sustainability in supply chain management: a literature review

PurposeRecently, sustainable supply chain management (SSCM) has generated significant interest and gained attention of practitioners and academics. The purpose of this paper is to explore different themes in the existing literature, which pertains to social sustainability (SS) in supply chains, to argue for the use of SS model and suggest further research directions.Design/methodology/approachIn the study, the authors have undertaken extensive literature review (n = 171) and used thematic analysis to propose a model.FindingsThrough the extensive review and thematic analysis, the paper identifies eight themes, which include stakeholder pressure, sustainability culture, contingencies, sustainability practices, partnerships, drivers and barriers, sustainability performance and optimization, and develops a SS model called “five-factor sustainability model.” Furthermore, a list of potential research directions for five-factor sustainability model is discussed.Research limitations/implicationsThe research is an attempt to explore different themes related to SS in supply chain and develop a model that is also applicable to economic and environmental sustainability.Originality/valueThe paper offers a new approach to SSCM literature, arguing for five-factor sustainability model and providing further research directions. Moreover, this model will help sustainability scholars to position and integrate their research within social, economic and environmental sustainability literature.

IMPLICATIONS OF SUSTAINABLE SUPPLY CHAIN MANAGEMENT LITERATURE TO MANAGEMENT ACCOUNTING

The main purpose of this article is to make an extensive review on the sustainable supply chain management literature in order to find some implications to management accounting. It also aims to explain sustainability in supply chain management, the needs of a sustainable supply chain, historical development and importance of sustainable supply chains. As the first step, a keyword search was conducted in the well-known databases, and then, sustainable supply chain management (SSCM) studies, which have connections to and implications for management accounting are evaluated and summarized separately. Although SSCM literature is very rich, the number of SSCM studies which have implications to management accounting is scarce. They point out that management accountants may take parts especially in determining cost and profitability of sustainable products, cost and quality evaluation of input materials and risk evaluation of suppliers, developing costing models for sustainable production, measuring performance in economic, environmental and social areas, and making cost-benefit analysis in the implementation and adoption of sustainability in each steps of sustainable supply chains.

Sustainable supply chain management

Purpose The business enterprises are increasingly focusing on buying and supplying of products and services in a manner to reduce the adverse impacts on the environment, society, and economy. In view of the above, the concept of sustainable supply chain management (SSCM) has received attention of the industry and academia due to its importance on environmental, social and corporate responsibility through economic performance. The paper aims to discuss these issues. Design/methodology/approach The structured literature review attempts to map the various theories in the SSCM literature from the perspectives of economic performance, environmental dimensions, and social values and ethics. Findings As supply management is vital for enhancing organizational competitiveness, the present work attempts to investigate the theoretical perspectives in SSCM to develop an understanding of the current research activities and future potentials. Practical implications This work aims to gain a number of valid insights for the practitioners and the researchers. It also focuses on the perspectives of governance mechanisms for successful implementation SSCM practices in the business enterprises. Originality/value As the theory building initiatives with implications on the conceptualization of SSCM is limited in literature, this work has also been able to identify the trends and relevant research gaps to define the potential areas for future research.

Sustainable Supply Chain Management in the Automotive Industry: A Process-Oriented Review

The holistic shift from traditional supply chain to sustainable supply chain has been practiced in different industries for many years. The automotive industry, as one of the largest and most influential industries in the world, could have a substantial effect on the movement toward a sustainable society. Despite the growing body of literature in the field of sustainable supply chain management, there is no review article that comprehensively synthesizes the state-of-the-art research in the automotive industry. To cover this gap, this paper reviews the sustainable supply chain management literature in the automotive industry published between 1995 and 2017. A systematic review and content analysis were conducted to collect the studies and analyze their content. The content analysis was structured based upon a set of key business processes following the Integration Definition Function (IDEF0) method, which is a structured approach of analyzing business processes. The study provides a practical guideline for designing a sustainable automotive supply chain and culminates with the outlined research gaps and recommendations for future research.

Effects of the attributes of supply chain openness on sustainable supply chain performance

Purpose The purpose of this paper is to empirically examine the effects of the attributes of supply chain openness on sustainable supply chain performance (SSCP). Design/methodology/approach Data were collected by questionnaire survey from 259 supply chain executives in Pakistan. Structural equation modeling (SEM) was used to test the hypotheses. Findings The results indicate that the relative openness of supply chain organizations in Pakistan is very low. Further, all the attributes of supply chain openness have positive but weak association with SSCP. This indicates that there is some awareness of sustainable supply chain but there remains a significant room for improvement with regard to the relationships among different attributes of supply chain openness and SSCP. Pakistani organizations do not fully embrace the concept of supply chain openness in order to achieve SSCP. Originality/value The current paper makes three important contributions to the existing literature. First, it empirically examines the attributes of supply chain openness. Second, it contributes to the broader sustainable supply chain management literature by exploring the effects of the attributes of supply chain openness on SSCP. Third, given the limited studies that address sustainable supply chain issues in the context of developing countries, this is one of the few studies that add value to the body of literature in the context of developing countries, such as Pakistan.