Implementing supplier management strategies for supply chain sustainability risks in multinational companies

Abstract

Purpose

In a time where stakeholders increasingly demand social, environmental, and economic sustainability, mismanaging suppliers can impose substantial sustainability risks for a company and harm its reputation and business severely. This research explores the implementation of a corporate sustainable supplier strategy designed to cope with such risks from an agency theory perspective.

Design/methodology/approach

A case study of a multinational enterprise, a provider of leading mobility solutions in the realm of escalators, moving walkways and elevators, is conducted. Data is collected from multiple sources of evidence, including strategy documents, a focus group and semi-structured interviews.

Findings

The study identifies several implementation challenges and coping mechanisms in firstly, the agency relationships between the headquarter and the regional subsidiary units and secondly, the relationships between the regional subsidiary units and their suppliers.

Research limitations/implications

A framework conceptualising the implementation of sustainable supplier strategies is proposed. The framework positions the topic at the interface between supply chain sustainability risk, supplier quality management as well as agency relationships and identifies avenues for further research. The key limitations refer to the single case study methodology and the exclusion of suppliers in the data collection approach.

Practical implications

The proposed framework can support multinational enterprises in developing corporate sustainability strategies and in implementing them in the supplier network.

Originality/value

The originality of the framework lies in the integrated approach combining supply chain sustainability risk, supplier quality management and triadic agency relationships.

Citation

Juettner, U., Windler, K., Podleisek, A., Gander, M. and Meldau, S. (2020), "Implementing supplier management strategies for supply chain sustainability risks in multinational companies", The TQM Journal, Vol. 32 No. 5, pp. 923-938. https://doi.org/10.1108/TQM-05-2019-0136