External stakeholders have built up high expectations on "sustainability", putting firms under constant watch by non-governmental organizations, media, etc. (Bellmann, 1999; Kudla & Stölzle, 2011). Stakeholders usually do not differentiate between a firm's and its suppliers' operations. They hold the focal firm responsible for all practices involved in the making of the product, including any potential sustainability concern (Koplin, Seuring & Mesterharm, 2007; Rao, 2002). Suppliers not complying with the firm's promised standards, norms, or values are likely to cause damaged brand reputation, decreased brand value, or destroyed consumer confidence. Nike and Mattel are prominent examples of brands that suffered from non-compliant suppliers and faced media campaigns, consumer boycotts and partially declining sales (Locke & Romis, 2007; Wagner et al., 2009).
Die "EUR/EPAL-Paletten-Marktstudie Schweiz" stellt erstmalig für die Schweiz die Kosten eines Umlaufs einer EUR/EPAL-Palette dar und zeigt auf, wie sich die Kosten auf die beim Palettentausch beteiligten Akteure Versender, Transporteure und Empfänger verteilen. Darüber hinaus beleuchtet die Studie anhand von qualitativen Einschätzungen der Studienteilnehmer die gegenwärtigen Praktiken im EUR/EPAL-Paletten-Tauschverfahren und kann einen Beitrag zur Identifikation der Ursachen für die diskutierten Problemfelder leisten.
The food industry and its supply chains have significant sustainability implications. Effective supply chain management requires careful consideration of multiple tiers of partners, especially with respect to sustainability issues. Firms increasingly approach their sub-suppliers to drive compliance with social and environmental efforts. A number of complexities make sub- supplier management more difficult than direct supplier management. The literature has not investigated from either a sustainability or standards perspective the critical success factors for firms' sub-supplier management. Using data and information from a one-year field study in two food supply chains, our research identified 14 critical success factors (CSF) that potentially influence the success of the sub-supplier management outcome of sub-suppliers' compliance with corporate sustainability standards (CSS). The identified CSF can be classified into (1) focal firm-related, (2) relationship-related, (3) supply chain partner-related, and (4) context-related CSF. We expand on the theory of critical success factors by expanding the theory to sustainability and sub-supplier management. For each CSF we provide a foundational definition and analyze them with respect to existent literature. CSF's unique importance to sub-supplier management success was highlighted and exemplified by field study insights from practitioners. Respective research avenues are highlighted.
Focal firms face the challenge of ensuring compliance with their corporate sustainability standards (CSS) within their own organization, by their suppliers, and higher tiers of upstream sub-suppliers - all the way up to suppliers of basic raw materials. Supplier management strategies are key to increase suppliers' sustainability performance. While focal firm's sustainable supplier management practices towards their first-tier suppliers have been studied relatively extensively, little is known on how firms may approach suppliers beyond the first-tier level, the sub-suppliers. Focal firms' challenges range from the mere identification of sub-suppliers to little opportunities to enforce sub-suppliers' practices.
This paper investigates the sub-supplier management practices of two focal firms in the electronic and retail industry by case study research. It proposes that by actively managing sub-suppliers through assessment and collaboration firms can improve sub-suppliers' compliance with their CSS, that (1) public attention, (2) risk management, and (3) channel power are antecedents to sub-supplier management, and that stakeholder involvement amplifies the effect of sub-supplier management on sub-suppliers' compliance with their CSS.
This paper is novel in addressing the management of higher tiers of upstream sub-suppliers, proposing a framework for understanding sustainability compliance in sub-supplier management.
The food industry and its supply chains have significant sustainability implications. Effective supply chain management requires careful consideration of multiple tiers of partners, especially with respect to sustainability issues. Firms increasingly approach their sub-suppliers to drive compliance with social and environmental efforts. A number of complexities and unique challenges make sub-supplier management more difficult than direct supplier management, e.g. a lack of contractual relationships to sub-suppliers, few opportunities to put direct pressure on sub-suppliers, or lack of transparency concerning sub- suppliers' involvement in a focal firm's supply chains. The literature has not investigated, either from sustainability or other perspectives, the critical success factors (CSFs) for firms' sub-supplier manage- ment. Therefore, this study seeks to explore and increase understanding of critical factors that help to overcome the complexities and unique challenges of sub-supplier management, with a focus on the food industry. Using data and information from a year-long field study in two food supply chains, the research identified 14 CSFs that influence the success of sub-suppliers' compliance with corporate sustainability standards (CSS). The identified CSFs can be classified into (1) focal firm-related, (2) relationship-related, (3) supply chain partner-related, and (4) context-related CSFs. The present research expands on the theory of critical success factors by applying the theory to the sustainability and sub-supplier manage- ment context. In support of critical success theory, it was found that CSFs do exist and their management will be necessary for effective sub-supplier management success as highlighted and exemplified by field study insights from practitioners. Multiple research avenues are necessary for further evaluation of sub- supplier management in the food industry and other industries who may find similar issues that arose from the food industry.
We develop a framework outlining key capabilities for an institutional entrepreneur that seeks successful implementation (institutionalization) of a new institution across its supply chain. We focus on the institution of corporate sustainability standards. To achieve this objective, we complete an exploratory research study based on six comparative case studies within the retail, paper, medical textile, and information technology industry. The research integrates institutional entrepreneurship and the resource-based view theories to help explain the phenomenon exhibited by the case studies. While the first theory explains how organizations can drive institutional change, the latter outlines criteria for organizational capabilities enabling the focal firm, i.e. the institutional entrepreneur, to achieve the targeted institutional change. Our analysis suggests five key capabilities enabling the focal firm to effectively implement the CSS in its supply chain that is reflected by both suppliers' and also sub-suppliers' compliance with the previously defined CSS: (1) inter-firm dialogue, (2) risk management, (3) external stakeholder collaboration, (4) cross-functional integration, and (5) continuous improvement. The organizational key capabilities identified help to extend the theory of institutional entrepreneurship with concepts that facilitate the institutional change in supply chains with respect to corporate sustainability. This exploratory work opens up significant avenues of additional research in general and supply chain theory development.
Public interest on firms' business practices in respect to society and the environment has motivated firms to develop individual statements about their corporate sustainability standards. These statements communicate to the firm's stakeholders that the creation of its products and services remained within the limits of its self-defined sustainability standards.
Most firms procure a substantial portion of their value added from third parties, like suppliers, sub-suppliers, or logistics service providers, which are out of the firm's direct control. Nevertheless, external stakeholders such as NGOs, media and consumers hold the focal firm responsible for all practices involved in the making of the product. Suppliers and sub-suppliers not complying with the firm's sustainability standards may damage the firm's reputation, causing considerable revenue losses. However, firm's resources to control their (sub-)suppliers' sustainability compliance are limited.
Recent research highlighted the importance of a 'sustainable supplier risk management capability' to enable efficient usage of limited resources by means of identifying, assessing, and controlling sustainability-related risks within the value chain - and the corresponding alignment of compliance management activities such as supplier assessment, development and monitoring.
In this paper, we propose a measurement instrument for firm's 'sustainable supplier risk management' capability. It combines the results from a literature review, semi-structured interviews, and two roundtable discussions with academic and industry experts. The proposed items may be tested statistically in the future to serve as basis for quantitative research.
