An empirical examination of the relationship between business strategy and socially responsible supply chain management

Taking a different view: theorizing on firms' development toward an integrative view on socially sustainable supply chain management

Purpose

Despite a surge in public and academic interest in the social sustainability conduct of firms, only few firms have taken responsibility for the social issues in their supply chains. This study seeks to extend our theoretical understanding of why some firms grow toward accepting this type of responsibility while others do not.

Design/methodology/approach

The authors conduct a systematic literature review for the purpose of theory building. Building on Gao and Bansal's distinction of instrumental and integrative views on business sustainability (2013, DOI 10.1007/s10551-012-1245-2) as well as corporate social responsibility development research, the authors review socially sustainable supply chain management (social SSCM) literature to theorize the interplay of driving factors that underly firms' choice to refrain from, start or deepen their engagement in social SSCM.

Findings

The authors propose an overview of the presumed mechanisms underlying the development of a reluctant, a purely instrumental or an integrative view on social SSCM. Among other things, the authors propose that it seems highly unlikely for conventional, profit-oriented firms to develop beyond an instrumental view on social SSCM.

Originality/value

This study conceptually extends current research on social SSCM by offering insights on how firms are driven to engage in it. This study offers first thoughts that should help managers and other stakeholders better understand the social SSCM potential of firms and how to realize this potential effectively.

Socially responsible operations in the Industry 4.0 era: post-COVID-19 technology adoption and perspectives on future research

Purpose

As focal firms in supply networks reflect on their experiences of the pandemic and begin to rethink their operations and supply chains, there is a significant opportunity to leverage digital technological advances to enhance socially responsible operations performance (SROP). This paper develops a novel framework for exploring the adoption of Industry 4.0 technologies for improving SROP. It highlights current best-practice examples and presents future research pathways.

Design/methodology/approach

This viewpoint paper argues how Industry 4.0 technology adoption can enable effective SROP in the post-COVID-19 era. Academic articles, relevant grey literature, and insights from industry experts are used to support the development of the framework.

Findings

Seven technologies are identified that bring transformational capabilities to SROP, i.e. big data analytics, digital twins, augmented reality, blockchain, 3D printing, artificial intelligence, and the Internet of Things. It is demonstrated how these technologies can help to improve three sub-themes of organisational social performance (employment practices, health and safety, and business practices) and three sub-themes of community social performance (quality of life and social welfare, social governance, and economic welfare and growth).

Research limitations/implications

A research agenda is outlined at the intersection of Industry 4.0 and SROP through the six sub-themes of organisational and community social performance. Further, these are connected through three overarching research agendas: “Trust through Technology”, “Responsible Relationships” and “Freedom through Flexibility”.

Practical implications

Organisational agendas for Industry 4.0 and social responsibility can be complementary. The framework provides insights into how Industry 4.0 technologies can help firms achieve long-term post-COVID-19 recovery, with an emphasis on SROP. This can offer firms competitive advantage in the “new normal” by helping them build back better.

Social implications

People and communities should be at the heart of decisions about rethinking operations and supply chains. This paper expresses a view on what it entails for organisations to be responsible for the supply chain-wide social wellbeing of employees and the wider community they operate in, and how they can use technology to embed social responsibility in their operations and supply chains.

Originality/value

Contributes to the limited understanding of how Industry 4.0 technologies can lead to socially responsible transformations. A novel framework integrating SROP and Industry 4.0 is presented.

Building synergies between operations culture, operational routines, and supplier monitoring: implications for buyer performance

Purpose

Pressured by various stakeholder groups to improve the sustainability performance of their emerging economy suppliers, multinational firms continue to expand their supplier monitoring. Leveraging the strategy literature on alliances and the buyer-supplier relationship management literature, the authors propose that a buyer firm's efforts to proactively develop cultural sensitivity and operations cognizance to understand the operational culture and routines of its suppliers can ameliorate some shortcomings of supplier monitoring, thereby improving the performance of the buyer firm.

Design/methodology/approach

Using primary survey data from a sample of US manufacturing firms, combined with secondary data of supplier monitoring and financial performance, this research examines the relationship between supplier monitoring, cultural sensitivity, operations cognizance, and buyer firm performance.

Findings

Supplier monitoring was associated with positive but diminishing returns for financial and sustainability performance for the buyer. Second, increasing cultural sensitivity and operations cognizance for suppliers in emerging economies were associated with improved buyer performance. Finally, the synergistic use of supplier monitoring and operations cognizance was associated with improved buyer firm financial performance.

Originality/value

While the buyer-supplier relationship literature has mainly treated organizational differences between dyadic supply chain partners as exogenous to the context in which their relationship evolves, the authors posit that buyer firms' efforts to understand such differences can affect the value of buyer-directed interactions, such as supplier monitoring. This research adds to the theoretical understanding of the process of developing relational mechanisms with emerging economy suppliers. In particular, efforts of buyer firms to better understand the operational culture and routines of their suppliers can complement monitoring and are associated with a positive impact on performance.

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.

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.

Green warehousing, logistics optimization, social values and ethics and economic performance: the role of supply chain sustainability

Purpose

This study primarily explores the influence of green warehousing, logistics optimization and social values and ethics on supply chain sustainability and economic performance. The study further examines the mediating role of supply chain sustainability between economic performance and green warehousing, logistics optimization and social values and ethics.

Design/methodology/approach

The study employs a quantitative research approach where survey data are collected from 200 managers of manufacturing companies in Ghana. The dataset is analyzed using partial least square structural equation modeling software (PLS-SEM) SmartPLS 3.

Findings

The results show that green warehousing and logistics optimization negatively influence economic performance but improves economic performance through supply chain sustainability. It is further discovered that social values and ethics have a positive influence on supply chain sustainability and economic performance.

Originality/value

This paper proposes and tests a theoretical model that explores the relationships between green warehousing, supply chain sustainability, economic performance, logistics optimization and social values and ethics through the resource dependency theory (RDT) in the manufacturing firms in Ghana.

The impact of multinational corporations’ socially responsible supplier development practices on their corporate reputation and financial performance

Purpose

In the literature on sustainable supply chain management, the social pillar of sustainability has received relatively little attention, especially in developing countries. The purpose of this paper is to test empirically the impacts of supplier development practices on suppliers’ social performance. Furthermore, the impact of suppliers’ social performance on MNCs’ social performance was investigated and corporate reputation was proposed as a potential explanation for the relationship between MNCs’ social and financial performance.

Design/methodology/approach

Data were obtained from a survey of 141 multinational companies (MNCs) in Malaysia which were listed in the Federation of Malaysia Manufacturers’ directory 2017. Data were analyzed using partial least squares structural equation modeling.

Findings

The results show that among the four proposed practices, supplier development and supplier collaboration have significant effects on suppliers’ social performance and consequently on the multi-national companies’ social performance. According to these results, multi-national companies’ corporate reputation mediates the relationship between their social and financial performance.

Practical implications

These results will be useful in helping managers of MNCs to realize that simply monitoring suppliers and giving them incentives are not effective ways of enhancing social responsibility among suppliers; instead, supplier development and collaboration such as technical support and training are needed.

Originality/value

The results extend the literature on socially responsible supplier development practices by testing empirically the impacts of four popular practices in the literature and showing that supplier monitoring and incentives have no effect.

Social sustainability in supply chains: a review

Purpose

The purpose of this study is to review the development of the socially sustainable supply chain management field.

Design/methodology/approach

The 112 most cited papers in the field until 2017 are analysed using a state-of-the-art structured literature review model borrowed from the accounting field.

Findings

This study highlights the increasing number of publications across the years, the diversity of journals and the type of authors addressing the topic. It reveals that qualitative studies focused on large companies in the garment, food and electronics sectors and on private regulations capture most of the attention, with Asia, Europe and North America being the most scrutinised locations. Drivers and barriers for socially sustainable supply chain management are summarised, clustered and confronted. This study also evaluates how the sustainability and corporate social responsibility concepts are used in the above field and analyses the existing definitions of social sustainability.

Research limitations/implications

This study incites researchers to broaden their studies to diverse sectors and locations, addressing different levels of supply chains with quantitative techniques and clearer conceptual foundations.

Practical implications

This study incites practitioners to further contribute to this scholars-dominated research field, offering their practical insights and perspectives.

Originality/value

This study offers original insights and critiques of the literature, highlighting its gaps and proposing new research avenues for the future.

Interactions in sustainable supply chain management: a framework review

Purpose

The purpose of this paper is to evaluate the research conducted among the interim, dyadic interactions that bridge the stand-alone measures of economic, environmental and social performance and the level of sustainability, as suggested in the Carter and Rogers (2008) framework.

Design/methodology/approach

This paper conducts a systematic literature review based on the Tranfieldet al.(2003) method of the articles published in 13 major journals in the area of supply chain management between the years 2010 and 2016. Results were analyzed using an expert panel.

Findings

The area of research between environmental and social performance is sparse and relegated to empirical investigation. As an important area of interaction, this area needs more research to answer the how and why questions. The economic activity seems to be the persistent theme among the interactions.

Research limitations/implications

The literature on the “environmental performance and social performance (ES)” interactions is lacking in both theoretical and analytical content. Studies explaining the motivations, optimal levels and context that drive these interactions are needed. The extant research portrays economic performance as if it cannot be sacrificed for social welfare. This approach is not in line with the progressive view of sustainable supply chain management (SSCM) but instead the binary view with an economic emphasis.

Practical implications

To improve sustainability, organizations need the triple bottom line (TBL) framework that defines sustainability in isolation. However, they also need to understand how and why these interactions take place that drive sustainability in organizations.

Originality/value

By examining the literature specifically dedicated to the essential, interim, dyadic interactions, this study contributes to bridging the gap between stand-alone performance and the TBL that creates true sustainability. It also shows how the literature views the existence of sustainability is progressive, but many describe sustainability as binary. It is possible that economic sustainability is binary, and progressive characterizations of SSCM could be the reason behind the results favoring economic performance over environmental and social.

The rationale for responsible supply chain management and stakeholder engagement

Purpose

Firms are increasingly resorting to responsible supply chain management as they align their economic success with socially responsible initiatives in their value chain. This contribution aims to suggest that there are opportunities for global corporations who are keen on integrating responsible practices into their business operations. It is in their interest to report about their responsible supply chain management, social performance and sustainable innovations to their stakeholders.

Design/methodology/approach

This paper identifies future research avenues in the promising areas of responsible procurement and global supply chain management.

Findings

The corporations’ differentiated strategies as well as their proactive engagement in responsible supply chain management can lead them to achieve a competitive advantage in the long term. The low-cost producers may be neglecting the marketplace stakeholders, including suppliers, distributors among others. Moreover, the smaller businesses’ could not be in a position to follow responsible procurement practices, as they may lack the scarce resources to do so.

Originality/value

This paper raises awareness about the integration of socially responsible behaviours and sustainable practices in business operations. It contends that a responsible supply chain management necessitates an improved relationship with suppliers and distributors in the value chain. This stakeholder engagement with ultimately create value to the businesses themselves.

World class sustainable supply chain management: critical review and further research directions

Purpose

Sustainable supply chain management (SSCM) has attracted considerable interest among academics and practitioners. The purpose of this paper is to present a critical review of the literature, to identify missing links, to argue for the use of world class SSCM (WCSSCM) through a framework, and suggest further research directions.

Design/methodology/approach

In the paper the authors have undertaken an extensive review of literature and classified articles using a novel classification scheme.

Findings

Through the extensive review and identification of research gaps, the paper identifies significant differences between definitions and methodologies in the SSCM literature; and argues for “WCSSCM.” This term is elaborated on via a theoretical framework in which 18 dimensions are classified under six constructs of SSCM. Furthermore, a list of potential research directions for WCSSCM is discussed.

Research limitations/implications

The research is an attempt to critically review literature, argue for WCSSCM, and develop a theoretical framework.

Originality/value

The paper offers a new approach to SSCM literature, arguing for WCSSCM through a framework, and providing further research directions.

Driving green supply chain management performance through supplier selection and value internalisation

Purpose

The purpose of this paper is to apply self-determination theory (SDT) to green supply chain management (GSCM) and explore how green supplier selection (GSS) drives GSCM performance and how realisation of improved GSCM performance is contingent upon SDT mechanisms of autonomy, competence and relatedness.

Design/methodology/approach

This study draws on 18 semi-structured interviews and secondary data from a Germany-based first-tier aircraft interior manufacturer and its six key suppliers. The focal company was selected because it is recognised as having achieved high GSCM standards in the aerospace industry.

Findings

The study draws out the importance of GSS, distinguishing between new and legacy suppliers, and offers significant insights into how suppliers’ motivation and downstream GSCM criteria can be internalised in second-tier suppliers to drive GSCM performance.

Practical implications

GSS should be considered not only for new suppliers but also at an ongoing basis for legacy suppliers. Focal companies must realise the importance of motivating supply chain partners to realise GSCM practices and need to first build-up autonomy before focussing on competence and relatedness sub-dimensions.

Originality/value

The authors make a significant contribution to the GSCM literature by conducting a study of first-tier-second-tier relationships, thus moving beyond the buyer-supplier relationships investigated in extant studies. The results theoretically and empirically draw out key factors in GSS and supplier motivation in engaging with GSCM practices, thus driving GSCM performance.

Supply chain criticality in sustainable and resilient enterprises

Purpose

The purpose of this paper is to broadly explore the contributions of supply chain proficiency in relation to sustainable enterprise excellence, resilience and robustness (SEER2).

Design/methodology/approach

A pre-existing SEER2 model, referred to as the Springboard to SEER2, is put under the microscope to determine specific interactions of supply chain proficiency with six key areas of the Springboard: triple top-line strategy and governance; strategy execution via policies, processes and partnerships; financial and marketplace performance and impact; sustainability performance and impact; human ecology and capital performance and impact; and social-ecological and general innovation and continuous improvement performance and impact.

Findings

Supply chain proficiency is integral to attainment of SEER2. As such, supply chain proficiency must be thoughtfully and strategically approached, with success critical to enterprise contribution to mitigation or solution of wicked global challenges ranging from climate change, to food insecurity, to societal conflict.

Originality/value

This paper reveals in depth the centrality of supply chain proficiency to SEER2, suggesting that such models as those behind America's Malcolm Baldrige National Quality Award and the European Quality Award might be enhanced by more deeply considering supply chain contributions to business and performance excellence. Supply chains are at present peripheral to such models, thereby providing essentially isolated views of enterprises in an age where supply chain collaboration is increasingly the norm.

Corporate social responsibility – from a mere concept to an expected business practice

Purpose

– In the past hundred years, the concept of corporate social responsibility (CSR) has seen a remarkable development with various notions of “what is the right thing to do” for the corporations in that era. This paper aims to highlight the journey of CSR staring from an “abstract concept” in the early twentieth century to a well-recognised and “expected business practice” in the present.

Design/methodology/approach

– This paper presents a meta-analysis of the relevant CSR literature and finds 12 common themes emerging in different periods. This is presented in a chronological order starting from early 1920 to the present day for ease of understanding. The literature chosen is intentionally broad as not to miss a clear view of the times and the themes in CSR discourse.

Findings

– The concept of CSR was viewed as a “social obligation” in the earlier literature (1920s-1960s), as the businesses were thought to operate for the well-being of a community and not for the prosperity of the sole owner(s). A little later, in the 1960s and 1970s, only adoption of socially responsible activities and practices, which were voluntary and beyond legal obligation, were deemed CSR. The 1980s saw businesses trying to find a rational and financially quantifiable justification for adopting activities that were socially responsible, thus the emphasis of “corporate social performance”. The 1990s shifted the impetus on “reporting, transparency and accountability” with numerous reporting requirements. The 2000s sought a win-win situation through the development of “creating shared value” as a result of adopting CSR initiatives. The concept of CSR became an “accepted and expected business practice” in the decade of 2000, with various governments, global entities and organisations issuing their own understanding and definitions of CSR.

Originality/value

– This research paper provides an account of the evolution in the concept of CSR in the past century which has seen numerous changes in the manner businesses conduct their operations. The identified themes are reflective of the journey of CSR. This is an informative paper which is very topical in today’s climate of stakeholder scrutiny of business’ working.

Strategic orientations, sustainable supply chain initiatives, and reverse logistics

Purpose

– Global outsourcing shifts manufacturing jobs to emerging countries, which provides new opportunities for improving their economic development. The authors develop and test a theoretical model to predict first, how sustainable supply chain initiatives might influence reverse logistics outcomes and second, the impact of eco-reputation and eco-innovation orientation strategies on the deployment of sustainable supply chain initiatives. The paper aims to discuss these issues.

Design/methodology/approach

– The proposed new model of antecedents and outcomes of sustainable supply chain initiatives underwent a rigorous empirical test through structural equation modeling with samples from an emerging market.

Findings

– The results show that firms that implement sustainable supply chain initiatives can realize positive reverse logistics outcomes; the study also provides new insights into eco-innovation and eco-reputation strategic orientations as theoretically important antecedents of sustainable supply chain initiatives.

Research limitations/implications

– Though the authors identify three components of sustainable supply chain initiatives, other components could exist, and ongoing research should investigate them.

Practical implications

– The findings have important implications for managers in emerging markets seeking to initiate ecologically friendly business practices. The authors offer strong evidence of the benefits obtained from reverse logistics in sustainable supply chain initiatives. Policy makers and firms attempting to nurture sustainable supply chain initiatives should not overlook the important role of eco-reputation and eco-innovation strategic orientations, which the results identify as important enablers.

Originality/value

– This study offers evidence of the critical role of eco-reputation and eco-innovation strategic orientations in deploying sustainable supply chain initiative programs, as well as of their mutual effects. This study also offers empirical evidence that implementing sustainable supply chain initiatives leads to reverse logistics, creating value, and a new source of competitive advantages.

A field-level examination of the adoption of sustainable procurement in the social housing sector

Purpose

– The purpose of this paper is to report on a field-level examination of the adoption of sustainable procurement in social housing. It explores the role of regulation and procurement consortia in sustainable procurement.

Design/methodology/approach

– The study employs a case study of the UK social housing sector and uses an online survey (n=116) of UK Housing Associations. Factor analysis identifies three parsimonious dimensions of sustainable procurement. Attitudinal data are analysed to explore the field-level adoption of sustainable procurement and the role of consortia.

Findings

– The results delineate sustainable procurement activities into three factors; direction setting, supplier-centric assurance and local socially oriented supply. High yet sup-optimal levels of sustainable procurement activity are revealed. Prevailing attitudes identify positive commitments to sustainable procurement at individual, organisational and sector levels. The value of network collaboration is identified. Tenants as critical stakeholders do not prioritise sustainable procurement creating challenge for inclusivity. Regulators are seen to a have low level of sustainable procurement knowledge and procurement consortia a high perceived knowledge.

Research limitations/implications

– Results provide insight into the effect of sustainable procurement policy, the role of regulators and network structures and consortia, raising issues around legitimacy, coopetition, stakeholder engagement, performance measurement, and functional/sectoral maturity.

Social implications

– The identification of the potential exclusion of tenants in sustainability debates is particularly significant to deliver social value.

Originality/value

– The relative newness of the social housing sector and its quasi-public sector status provides an original contribution to the consortia and sustainable procurement literatures.

Socially responsible sourcing: reviewing the literature and its use of theory

Purpose

– The purpose of this paper is to determine the state-of-the-art in socially responsible sourcing (SRS) research, leading to an agenda for further work; and to evaluate the use of theory in this context. SRS is defined as the upstream social issues within the sustainability literature, where social issues include human rights, community development and ethical issues but exclude environmental concerns.

Design/methodology/approach

– A systematic literature review of 157 papers that include SRS published in ABS listed journals. The papers have been analysed according to their research content, with a particular focus on the use of pre-existing theories.

Findings

– Key findings for researchers and managers alike include an analytical discussion of strategies developed to date to embed SRS in an organisation; and key research gaps include a particular need to consider the supplier perspective in developing countries. In terms of the use of theory, a typology is proposed, which (in ascending order of effectiveness) is as follows: theory dressing, theory matching, theory suggesting/explaining and theory expansion.

Research limitations/implications

– The review is limited to papers published in the ABS list; and the analysis of the use of theory is limited to the SRS literature. The findings suggest that insightful papers can be written without any use of theory but that as a field develops, a greater depth of application of theory is needed to aid understanding.

Originality/value

– This is the only review that focuses exclusively on social issues SRS, excluding environmental issues, thus allowing for a greater depth of discussion on social issues; and is unique in its detailed critical analysis of the use of theory.