Procurement sustainability tensions: an integrative perspective

Supplier selection at the base of the chain: navigating competing institutional logics for shared mutual value

Purpose

Traditional purchasing best practices primarily follow a commercial logic and may not necessarily be applicable for social enterprises (SEs) supplier selection. This study examines how SEs focused on poverty alleviation select suppliers amidst competing institutional logics to achieve both social impact and economic performance.

Design/methodology/approach

A grounded theory methodology is applied to guide semi-structured interviews with 18 fair trade verified SEs. Constant comparison methods aided in determining the point of data saturation was reached.

Findings

The results of this study indicate that SEs select marginalized suppliers based on implicit criteria that is initially based on social-welfare logic and then through a blend of commercial and social-welfare logic based on company structure.

Originality/value

This study is the first to reveal that SEs addressing social issues do not follow the traditional criteria for supplier selection but have their own unique selection criteria when selecting suppliers.

A sustainable sourcing competence model for purchasing and supply management professionals

In order to implement sustainability standards in practice, capabilities are needed at the organizational level as well as at the individual level. The presented sustainable purchasing and supply management (SPSM) competence model is based on the combination of a systematic literature review (SLR) and a Delphi study. The competence model outlines specific SPSM competences which are divided into functional-oriented, cognition-oriented, social-oriented and meta-oriented competence clusters. We also discuss their applicability during typical purchasing and supply management processes. Each of the 26 competences is presented with a short definition as well as exemplary behaviors. For research on SPSM from an organizational point of view, the analysis of the relevance of competences with regard to purchasing process stages offers a conceptual basis for bringing sustainability into overall PSM models, instead of positioning sustainability as an ‘add-on’ activity, which risks the potential of sustainability issues becoming marginalized. The resulting SPSM competence model can serve as a basis for improving teaching and training in both higher education and professional training contexts. In practice, it can also serve to aid the selection of new employees, evaluate employee performance, create development plans or build HR systems.

Legitimacy Contexts of BoP Markets: Characterization and Implications for Supply Chain Functions

An important market that is receiving increasing attention by firms relates to the poorest at the Base of the Pyramid (BoP). BoP businesses contribute to the first UN Sustainable Development Goal that calls for an end to poverty in all its manifestations. BoP businesses are regarded as financially and socially beneficial for both participating firms and poor communities. It is, however, understood that success in BoP markets cannot (and should not) be assumed, as it demands a profoundly different view towards managing supply chains. Focusing on this issue, our conceptual study contributes to the emerging debates in BoP and supply chain management research by elaborating the notion of legitimacy contexts (LCs) at BoP. We draw on institutional theory to characterize the LCs in BoP markets and discuss their implications for key supply chain functions. We argue that firms often design their supply chain functions for BoP business using their own LCs as opposed to those of BoP actors. This implies ignoring the institutional distance between BoP markets and firms and reveals a key culprit in the failure of BoP projects. We offer practical implications for firms intending to engage in BoP business.

Prioritizing the economic indicators of SSC: an integrative QFD approach of performance prism and BSC

Purpose

This paper aims to propose an integrative economic model of the GRI (Global Reporting Initiative) and performance prism based on concurrent engineering and developed balanced scorecard (BSC).

Design/methodology/approach

In this paper, the supplier aspect added to the basic BSC framework, a quality function deployment (QFD) developed in four phases and the economic GRI priorities were determined. Finally, the outcomes of QFD were used in Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) for ranking the economic indicators.

Findings

The indicators of financial interpretation, risks and opportunities had the first rank in learning and growth, internal processes, customer and financial BSC aspects, and they had the second rank only in the suppliers' BSC aspect.

Research limitations/implications

In this paper, merely the economic indicators of the GRI standard was studied, and no comparison was made between the variables of the other standards and the GRI standard.

Originality/value

The most important contribution of this study is merging the supplier aspect and BSC based on the concept of suppliers, inputs, process, outputs and customers (SIPOC) in supply chain analysis. Achieving economic sustainability by a concurrent engineering approach is another novelty of this paper. The proposed model was examined in the tile and ceramic industry for the first time.

The hidden side of sustainable operations and supply chain management: unanticipated outcomes, trade-offs and tensions

Purpose

The research is based on a critically analyzed literature review focused on the unanticipated outcomes, trade-offs and tensions of sustainable operations and supply chain management (OSCM), including the articles selected for this special issue.

Design/methodology/approach

The authors introduce the key concepts, issues and theoretical foundations of this special issue on “The hidden side of sustainable operations and supply chain management (OSCM): Unanticipated outcomes, trade-offs and tensions”. The authors explore these issues within this context, and how they may hinder the authors' transition to more sustainable practices.

Findings

The authors present an overview of unanticipated outcomes, trade-offs, tensions and influencing factors from the literature, and identify how such problems may emerge. The model addresses these problems by highlighting the crucial effect of the underlying state of knowledge on sustainable OSCM decision-making.

Research limitations/implications

The authors limited the literature review to journals that ranked 2 and above as defined by the Chartered Association of Business Schools Academic Journal Guide. The main implication for research is a call to focus attention on unanticipated outcomes as a starting point rather than only an afterthought. For practitioners, good intentions such as sustainability initiatives need careful consideration for potential unanticipated outcomes.

Originality/value

The study provides the first critical review of unanticipated outcomes, trade-offs and tensions in the sustainable OSCM discourse. While the literature review (including papers in this special issue) significantly contributes toward describing these issues, it is still unclear how such problems emerge. The model developed in this paper addresses this gap by highlighting the crucial effect of the underlying state of knowledge concerned with sustainable OSCM decision-making.

Sustainable supply chain management: continuing evolution and future directions

Purpose

The purpose of this paper is to update the work of Carter and Easton (2011), by conducting a systematic review of the sustainable supply chain management (SSCM) literature in the primary logistics and supply chain management journals, during the 2010–2018 timeframe.

Design/methodology/approach

The authors use a systematic literature review (SLR) methodology which follows the methodology employed by Carter and Easton (2011). An evaluation of this methodology, using the Modified AMSTAR criteria, demonstrates a high level of empirical validity.

Findings

The field of SSCM continues to evolve with changes in substantive focus, theoretical lenses, unit of analysis, methodology and type of analysis. However, there are still abundant future research opportunities, including investigating under-researched topics such as diversity and human rights/working conditions, employing the group as the unit of analysis and better addressing empirical validity and social desirability bias.

Research limitations/implications

The findings result in prescriptions and a broad agenda to guide future research in the SSCM arena. The final section of the paper provides additional avenues for future research surrounding theory development and decision making.

Originality/value

This SLR provides a rigorous, methodologically valid review of the continuing evolution of empirical SSCM research over a 28-year time period.

Addressing mass-customization trade-offs in bottom of the pyramid markets

Purpose

Manufacturers find bottom of the pyramid (BOP) markets challenging to serve due to low margins and highly localized needs. As such, residents in BOP markets often go without products commonly available in developed countries. Going without medical equipment may negatively affect healthcare services. This study develops a supply chain design strategy that supports the production of medical equipment by preserving variety flexibility at low volumes that stands to create new market opportunities for manufacturers and improve healthcare for residents in BOP markets.

Design/methodology/approach

The authors introduce a mass-customization model called options-based planning (OBP) which offers a framework to both leverage the efficiencies of high volume production models and provide products that are customized to local market needs. An empirical simulation, grounded in data collected from a large international manufacturer of magnetic resonance imaging (MRI) equipment, illustrates how an OBP production strategy will likely perform under BOP conditions and facilitate the delivery of healthcare equipment to BOP markets.

Findings

OBP provides a means for manufacturers to provide the customization necessary to serve fragmented BOP markets, while enabling higher production volume to make serving these markets more feasible. The empirical simulation reveals the relative benefits of OBP under conditions of forecast uncertainty, product complexity (number of design parameters) and different levels of responsiveness.

Social implications

Increased access to modern medical equipment should improve healthcare outcomes for consumers in BOP markets.

Originality/value

The MRI context in BOP markets serves to illustrate the value of the OBP model for manufacturers.

Supply chain adaptations for the base-of-the-pyramid business: towards a theoretical model

Purpose

Research has not yet captured nor synthesized the supply chain (SC) adaptations exercised by various base of the pyramid (BoP) initiators for successful BoP business. This is a crucial shortcoming that the study has taken a step to address, with the aim of advancing theory in BoP supply chain management (SCM). The paper aims to discuss this issue.

Design/methodology/approach

The authors draw on Carter et al.’s (2015) theory of the SC and use a multi-method approach combining systematic literature review and embedded case studies based on the secondary data.

Findings

The authors compare BoP SC adaptations of MNCs, local companies, NGOs, social enterprises and governments and develop propositions. The authors find that SC adaptations exercised by BoP initiators are influenced by their sense making of institutional and agency drivers at the BoP, and contingent on whether the poor are engaged as recipients or value co-creators.

Practical implications

The authors develop a multi-initiator understanding of SC adaptations for BoP business. This is useful for BoP initiators who struggle to leverage their BoP business as well as for those who are considering entering the BoP. The authors offer these entities insights for aligning strategy and developing capabilities for BoP markets.

Originality/value

The authors develop an original model of BoP initiator-based configurations of SC adaptations for BoP business. As such, the authors contribute toward advancing BoP SCM theory and practice by mapping substantive concepts and their relationships associated with BoP SC adaptations.