Performance implications of SA8000 certification

Influence of quality management and allied certifications on consumers

Purpose

The perception of consumers towards the products or services that are provided by organisations that are certified to various international quality management and allied standards, such as the standards developed by the International Organization for Standardization, has not been extensively researched. Available research is limited to few standards. It is not comprehensively explored if consumers view certified products, services or organisations favourably in each case. This study aims to explore inclination of three consumer categories i.e. retail consumers, business consumers and subject expert consumers towards 11 international management system standards.

Design/methodology/approach

A survey is carried out among 229 consumers of different types in different countries. Total 11 quality management and allied standards are studied. Similarities and differences among different consumer groups towards these 11 standards are analysed using Chi-square test.

Findings

The study shows that although all consumer categories perceive products, services, and organisations certified to international management system standards favourably, the inclination towards certification is greater among developing economies than in developed economies. It is also proven that all standards are not equally popular among consumers. The brand name of a certification agency is found not influencing consumer’s preference towards certification.

Originality/value

The study is unique in three ways. First, it comprehensively analyses multiple quality management and allied standards from consumers’ point of view. Similarities and differences among retail consumers, business consumers and subject experts are researched, which was not attempted previously and thus it shows a novel approach. Second, no other study has analysed so many standards together. Third, differences in perception of consumers towards international standards between developing and developed nations are compared, which was not available earlier for all the 11 standards.

Analysing the interactions of sustainability practices and financial performance on business-to-business buying behaviour in Indian manufacturing industry: a graph-theoretic approach

Purpose

This study aims to develop a framework for the action hierarchy of sustainability practices and financial performance and their optimal combination for supplier evaluation and selection in business-to-business (B2B) for the Indian manufacturing industry.

Design/methodology/approach

Through the extensive literature review followed by comprehensive interviews conducted using the Delphi methodology with professionals, this study attempts to represent the interactions of the sustainability practices and financial performance factors on B2B buying behaviour using a graph-theoretic approach.

Findings

The contribution of environmental, social, economic and financial performance to B2B buying behaviour is obtained quantitatively in the context of the Indian manufacturing industry.

Research limitations/implications

This study considers inputs from the Indian manufacturing industry, which may vary significantly based on the type of industry and geographical locations.

Practical implications

This study provides a direction to prioritize their supplier evaluation and selection criteria for sustainability practices and financial performance with quantifiable rationale.

Originality/value

The study seeks to encourage manufacturing industries to plan their actions by quantifying the intangibles through a systematic approach.

United Nations Global Compact: Where are we going?

Purpose

In a world characterised by increasing environmental and social awareness, the number of corporate social responsibility and sustainability initiatives has significantly grown. Among these, the United Nations Global Compact (UNGC) is one of the most important, involving more than 12,000 companies. The purpose of this study is to investigate the UNGC’s worldwide diffusion, both at country and industry level, to understand the reasons leading to the highlighted dissemination patterns, and to propose various future projections.

Design/methodology/approach

The study pursues its objectives by applying the logistic curve model to data provided by the United Nations. The analysis is complemented by adopting instability and concentration indexes.

Findings

Results suggest that, while human rights and environmental safeguard in some areas and industries will remain a controversial issue, UNGC adoption will continue growing and giving the participants the required legitimacy to compete in worldwide markets.

Originality/value

To the best of the authors’ knowledge, this is the first paper that analyses the UNGC’s worldwide diffusion and proposes a prediction model for its future dissemination. The findings are of considerable importance in extending the knowledge of the initiative and in understanding the potential values of its adoption.

The impact of abandoning social responsibility certifications: evidence from the decertification of SA8000 standard

Purpose

In recent years, many companies have decided to decertify from their previously adopted corporate social responsibility (CSR) standards. The aim of this paper is to explore the phenomenon by focusing on the most important auditable CSR standard: Social Accountability 8000 (SA8000).

Design/methodology/approach

First, an event study is performed on a dataset composed of 136 SA8000 decertified public listed companies to analyse the possible relationship between certification, decertification and firms’ operating performance. Second, the authors shed light on the differences between 94 SA8000 (still) certified and the abovementioned 136 decertified firms. Finally, 10 interviews are conducted with decertified firms in the dataset to deepen the outcomes of the previous analyses.

Findings

The results show that, despite an initial positive effect in terms of sales and profitability, decertified companies experienced a reduction in productivity and profitability in the years following the certification, while positive outcomes emerged after the decertification. The study also highlights that certified and decertified firms differ in terms of home country, industry and labour intensity.

Originality/value

The paper contributes to the literature by opening the debate on an important but unexplored research area: the decertification from the most popular CSR standard, i.e. SA8000, and its relationship with firms' performance. In doing this, it also highlights the main differences between decertified and certified companies.

How does reverse factoring affect operating performance? An event study of Chinese manufacturing firms

Purpose

As a popular supply chain finance (SCF) strategy, reverse factoring has been widely adopted by buyer firms. However, the extant literature provides scant empirical evidence on the performance effect of reverse factoring. The purpose of this study is to seek to narrow this gap by empirically examining the relationship between reverse factoring and operating performance and the contingency conditions of this relationship.

Design/methodology/approach

Based on a sample of 167 announcements of reverse factoring implementation made by publicly listed Chinese manufacturing firms between 2014 and 2018, this paper employs a long-term event study approach to analyze the operating performance effect of reverse factoring as well as the moderating effects of production and innovation capabilities.

Findings

The event study results indicate that reverse factoring has a positive effect on buyer firms' operating performance in terms of cost efficiency and operating margin. In addition, both production and innovation capabilities positively moderate the relationship between reverse factoring and operating margin. However, neither of them moderates the relationship between reverse factoring and cost efficiency.

Originality/value

This is the first study that empirically examines the impact of reverse factoring on operating performance based on secondary data. Furthermore, it sheds light on the SCF literature by providing insights into the contingency effects of production and innovation capabilities, which also extends our understanding of the application of extended resource-based view in SCF research.

The impact of 3D printing implementation on stock returns

Purpose

The purpose of this paper is to theoretically hypothesize and empirically test the impact of 3D printing (3DP) implementation on stock returns. It further explores how the stock returns due to 3DP implementation vary across different industry environments.

Design/methodology/approach

This paper integrates the dynamic capabilities view with contingency theory to provide a contingent dynamic capabilities (CDC) perspective on 3DP implementation. It argues that implementing 3DP enables firms to enhance their manufacturing capabilities and gain a competitive advantage, but the extent to which the competitive advantage can be realized is contingent on the fit between 3DP-enhanced manufacturing capabilities and firms’ operating environments. Those arguments are tested based on an event study of 232 announcements of 3DP implementation made by US publicly listed firms between 2010 and 2017.

Findings

The event study results show that firms implementing 3DP gain higher stock returns compared with their non-implementation industry peers over two years after the implementation. Such stock returns due to 3DP implementation are more pronounced for firms operating in more munificent, more dynamic and less competitive industry environments. Those findings are consistent with the CDC perspective.

Originality/value

This is the first research empirically examining the impact of 3DP implementation on stock returns. It provides important implications for managers to implement 3DP to enhance firms’ manufacturing capabilities and for researchers to study 3DP implementation from the CDC perspective.

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.

Drivers and barriers for adoption of a leading social management standard (SA8000) in developing economies

Purpose

The purpose of this paper is to identify drivers and barriers for adopting Social Accountability 8000 (SA8000), a leading global social management standard.

Design/methodology/approach

The approach involves combining insights from Institutional Theory with a focus on economic performance to study SA8000 adoption by suppliers operating in a developing economy (i.e. India). Data collection involves interviews with adopters and non-adopters, social standard experts and auditors, and archival data on local working conditions.

Findings

This study confirms that customer requests are the major reason for adopting SA8000 in order to avoid loss of business. It is noteworthy, however, that those customer requests to adopt SA8000 are often symbolic in nature, which, in combination with the lack of a positive business case, hinders effective implementation.

Practical implications

The findings imply that symbolic customer requests for SA8000 adoption induce symbolic implementation by suppliers, a “supply chain effect” in the symbolic approach. Substantive requests in contrast lead to more substantive implementation and require customer investment in the form of active support and an interest in the standard’s implementation, context and effects.

Originality/value

This study is original in that it addresses social sustainability from a supplier’s perspective, using the lens of Institutional Theory. The value lies in demonstrating the “supply chain effects” that arise from the “quality” of customer requests: a purely symbolic approach by customers leading to symbolic implementation vs the merits of substantive customer requests which stimulate substantive implementation.

Supply chain learning of sustainability in multi-tier supply chains

Purpose

The purpose of this paper is to explore how multinational corporations (MNCs) orchestrate internal and external resources to help their multi-tier supply chains learn sustainability-related knowledge.

Design/methodology/approach

An exploratory multiple case study approach was adopted and three MNCs’ sustainable initiatives in China were examined. The data were primarily collected through 43 semi-structured interviews with managers of focal companies and their multi-tier suppliers.

Findings

The authors found that in order to facilitate their supply chains to learn sustainability, MNCs tend to orchestrate in breadth by internally setting up new functional departments and externally working with third parties, and orchestrate in depth working directly with their extreme upstream suppliers adopting varied governance mechanisms on lower-tier suppliers along the project lifecycle. The resource orchestration in breadth and depth and along the project lifecycle results in changes of supply chain structure.

Practical implications

The proposed conceptual model provides an overall framework for companies to design and implement their multi-tier sustainable initiatives. Companies could learn from the suggested learning stages and the best practices of case companies.

Originality/value

The authors extend and enrich resource orchestration perspective (ROP), which is internally focused, to a supply chain level, and answer a theoretical question of how MNCs orchestrate their internal and external resources to help their supply chains to learn sustainability. The extension of ROP refutes the resource dependence theory, which adopts a passive approach of relying on external suppliers and proposes that MNCs should proactively work with internal and external stakeholders to learn sustainability.