Under the umbrella of sustainable supply chain management: emergent solutions to real-world problems

Expect the unexpected: toward a theory of the unintended consequences of sustainable supply chain management

Purpose

The purpose of this paper is to develop a theorization of the unintended consequences of sustainable supply chain management (SSCM).

Design/methodology/approach

The authors integrate extant theory of unintended consequences, sustainable supply chain management and paradox theory to develop a typology of the unintended consequences of SSCM initiatives and a conceptual model of the antecedents of these unintended consequences.

Findings

The authors advance a mutually exclusive and collectively exhaustive typology of the unintended consequences of SSCM initiatives. These unintended consequences include trade-offs as well as synergies in the form of positive spillover. The authors’ conceptual model identifies multiple levels of stakeholders, multiple performance dimensions, multiple time horizons and the interplay with social construction as antecedents to the unintended consequences of SSCM initiatives.

Practical implications

The authors’ typology suggests that managers must move beyond simply assessing whether the intended consequences of an SSCM initiative have been achieved. Managers must also, to the extent they can, assess the potential for unintended consequences to arise. The authors’ typology provides an initial roadmap for managers to continue, discontinue or further consider an SSCM initiative, based on the resulting unintended consequences. The authors’ theorization also provides guidance about how managers can more successfully bring SSCM initiatives to fruition and start cycles of learning.

Originality/value

There largely has been a focus in the operations and supply chain management literature on trade-offs between economic performance on the one hand and social or environmental performance on the other. The authors advocate that this focus needs to shift to interactions within and between social and environmental performance. Further, trade-offs are only one type of unintended consequence. By developing a mutually exclusive and collectively exhaustive typology, the authors introduce a much clearer conceptualization of the unintended consequences of an SSCM initiative and a much better understanding of how to manage SSCM initiatives, both prior to and postimplementation.

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.

Achieving triple bottom line sustainability in supply chains

Purpose

Companies are increasingly challenged by sustainability-related supply chain risks. Research has developed linking supply chain sustainability priorities, practices and triple bottom line performance; however, risk is rarely included in these models. The purpose of this paper is to understand the link between sustainable supply chain strategies, practices and performance, and to test the importance of risk management practices in this relationship focusing on the product category level.

Design/methodology/approach

The paper includes a survey of supply managers in four countries with 305 responses, with a focus on upstream supply chain strategies at the product category level.

Findings

The environmental and social sustainability strategies lead to sustainable supply sustainable performance, through focused practices in either area, but the effect on operational and cost performance is not significant. Social supply chain strategies positively impact environmental and cost performance when mediated by risk assessment practices.

Originality/value

This paper shows a more nuanced view of the impact of supply chain practices on the strategy–performance link. It is one of the first papers to empirically test the role of risk practices in sustainable supply chain management and emphasize the importance of alignment across the main dimensions of sustainability to achieve positive sustainable performance outcomes, but not necessarily cost and operational performance. Unlike other studies, social sustainability priorities may positively impact environmental and social performance and is linked to cost advantage when implemented with risk assessment practices.

Resource commitment and sustainability: a reverse logistics performance process model

Purpose

The purpose of this paper is to extend existing and motivate future sustainable supply chain management (SCM) and logistics research by examining a structure-conduct-performance framework linking resource commitment to sustainable SCM, reverse logistics, and operational performance. A sustainable reverse logistics capability is investigated as mediating the performance benefits associated with resource commitments to sustainable SCM.

Design/methodology/approach

Survey methods and structural equation modeling were used to collect and analyze data from 180 supply chain professionals.

Findings

The results of a mediated model suggest that resource commitments may be used to develop a sustainable reverse logistics capability, reducing the environmental impact of reverse logistics activities. A strong sustainable reverse logistics capability results from resources committed specifically to sustainable reverse logistics and a commitment to the sustainability of the supply chain.

Research limitations/implications

This study applied a purposefully general sampling procedure. Specific industries may have additional constraints (e.g. risk, transparency, governance factors) that directly impact reverse logistics. These constraints are limitations of the study as well as opportunities for future research. Resource commitment is critical to the success of an overall firm strategy to build a sustainable supply chain, especially when considering reverse logistics.

Practical implications

As managers examine the benefits of sustainable SCM, they must consider the resources required. For firms engaging in sustainable SCM, developing a sustainable reverse logistics capability is a key success factor for improved performance.

Originality/value

Given the growing acceptance and importance of sustainable SCM, this research provides insights to managers and academics regarding the key mediating role of a sustainable reverse logistics capability when integrated into existing and future supply chain research frameworks and processes.

Distributing wine globally: financial and environmental trade-offs

Purpose

Given that currently around ten billion litres of wine are transported long distances to overseas consumers per year, the purpose of this paper is to provide a foundation for understanding the trade-offs between cost, water usage and carbon emissions in decisions about the location of wine bottling plants in a global supply chain.

Design/methodology/approach

This paper presents a case-based analytical modelling study and employs actual data from one of Australia’s major wine companies. A descriptive analytical model is developed for assessing wine supply chain scenarios using three indicators of economic and environmental impacts – supply chain cost, risk-weighted water usage and carbon emissions.

Findings

The research highlights trade-offs required when considering optimal supply chain design, and finds possibilities for reshaping a global wine supply chain in order to improve the selected economic and environmental impacts.

Originality/value

The originality of this paper lies in its analytical focus on examining the interplay between supply chain cost, risk-weighted water usage and carbon emissions in a global supply chain, which has not previously been addressed.