Disappearing natural resources: what flowers tell us about new value chains

Abstract

Purpose

This paper aims to question the capacity of firms embedded in global value chains to manage their natural resources in a sustainable way. Thus, it offers guidelines for more sustainable value chains.

Design/methodology/approach

While business strategies have focused on optimizing natural resource exploitation and on constructing global value chains to face sustainability issues, this study first explains why these strategies are not effective in preventing natural resource depletion. Second, it offers a model for anticipating resource depletion. The cut flower industry constitutes a central case to explain the model. Two other industry cases complement the demonstration.

Findings

To anticipate natural resource depletion and thus improve industry sustainability, firms must shift from the exploitation of endangered natural resources to the use of alternative local ones. This shift, however, encourages firms to reconstruct value chains and rethink how they create value within these new value chains. It also has an impact on firms’ growth strategy: they must replicate value chains on a local scale instead of taking part in global value chains.

Research limitations/implications

The findings rely on illustrations from the cut flower, fishing and textile fiber industries. Generalization to other industries may strengthen the argument.

Originality/value

This study offers a model of sustainable growth for firms willing to anticipate natural resource depletion by offering a shift in value chains. It consists of exploiting alternative natural resources and of rethinking the value offered to consumers. Thus, it goes against current models that merely focus on optimizing natural resource exploitation within global value chains.

Citation

Carton, G. and Parigot, J. (2022), "Disappearing natural resources: what flowers tell us about new value chains", Journal of Business Strategy, Vol. 43 No. 4, pp. 222-228. https://doi.org/10.1108/JBS-07-2020-0168