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Article
Publication date: 29 December 2022

Thi-Ha-Trang Dang and Shao-Chi Chang

This study aims to examine and analyze the determinants of the stock market performance after firms announce sustainable supply chain management (SSCM) practices.

Abstract

Purpose

This study aims to examine and analyze the determinants of the stock market performance after firms announce sustainable supply chain management (SSCM) practices.

Design/methodology/approach

The study focuses on the long-run stock performance of firms announcing SSCM investments. The authors collected a sample of 280 SSCM announcements from 2010 to 2017 and estimated the buy-and-hold abnormal stock returns up to three years following the announcements. Numerous analyses were conducted to analyze the effect of environmental and social sustainability on long-run stock returns.

Findings

The findings show a significantly positive stock performance in the three-year period after announcements. Moreover, the evidence indicates that the post-announcement abnormal stock return has an inverted-U relationship with corporate environmental sustainability but not with corporate social sustainability. Finally, whether firms expand the firms' corporate sustainability strength to SSCM practices or not, firms secure long-run wealth as long as SSCM programs are carried out.

Research limitations/implications

The research focuses on the stock performance of USA public firms to draw conclusions about firms' market performance. This research leaves out the private and born-sustainable firms.

Practical implications

The findings offer firms incentives to invest in SSCM and suggest the magnitude of value provided by each sustainability type to help firms set firms' supply chain (SC) sustainable investment level.

Originality/value

The study is the first to investigate the long-run stock performance of firms announcing SSCM practices and the contribution of different sustainability types to stock performance.

Details

International Journal of Operations & Production Management, vol. 43 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 6 September 2023

Jason X. Wang, Tsan-Ming Choi, Lincoln C. Wood, Karin Olesen and Torsten Reiners

Sustainable supply chain management (SSCM), driven by the downstream buyers' power, transfers sustainability responsibilities to the upstream supplier. In contrast to the…

Abstract

Purpose

Sustainable supply chain management (SSCM), driven by the downstream buyers' power, transfers sustainability responsibilities to the upstream supplier. In contrast to the heavily-focused buyers' perspective in the literature, the authors investigate how this buyer-driven SSCM influences suppliers' performance, using the measure of stock market reaction.

Design/methodology/approach

Grounded by the resource dependence theory (RDT), the authors empirically analyze the power effect on suppliers. Event study methodology and regression analysis are used, based on a sample of 1977 paired supplier observations from 1990 to 2016.

Findings

The result suggests that although a negative stock market reaction for suppliers in SSCM exists, the effect is less negative at a high level of buyer and supplier dependence. For the investigation of the “consolidated SSCM initiative,” where buyers acquire exogenous power by collaboratively managing SSCM with their peers, the authors uncover that the negative impact of this consolidated SSCM initiative can be mitigated by the high interdependence that generates relational norms in the dyads.

Research limitations/implications

The authors focus on dyadic relationships. Future research can use the study's findings to study the SSCM diffusion to lower-tier suppliers.

Practical implications

This paper has good managerial implications for both suppliers and buyers. The authors propose dependence-based strategies for supplier managers to reduce uncertainty in SSCM. Moreover, buyer managers can use the study's findings to strengthen suppliers' commitment.

Originality/value

The novelty of examining the suppliers' perspective contributes to exploring the supply chain impact of SSCM. The authors extend RDT and show that high dependence is not necessarily detrimental to suppliers in this buyer-driven SSCM context. The interesting finding of interdependence in the context of the consolidated SSCM initiative brings new insights that relational norms constrain the leverage of power in the dyads and are beneficial to the power-disadvantageous suppliers.

Details

International Journal of Operations & Production Management, vol. 44 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 13 November 2017

Injazz J. Chen and Aleksandr M. Kitsis

The purpose of this paper is to develop a framework and propositions to advance research and practice in sustainable supply chain management (SSCM). Performance indicators…

3255

Abstract

Purpose

The purpose of this paper is to develop a framework and propositions to advance research and practice in sustainable supply chain management (SSCM). Performance indicators (economic, environmental, and social) identified in the paper aim to facilitate empirical testing of a range of theoretical models derived or extended from the stated propositions.

Design/methodology/approach

The study of SSCM is truly complicated, and there is no one theory that applies in all instances. The authors analyzed over 200 critical articles published in major supply chain management and sustainability-based journals and grounded the proposed framework in a multi-theoretical perspective.

Findings

SSCM implementation entails linking stakeholder pressures, moral motives, and management commitment with relational practices. The paper further elucidates how relational practices, when bundled together, can create a set of relational capabilities, which in turn transform stakeholder pressures into sustainable outcomes.

Research limitations/implications

The research framework contributes to SSCM theory building insofar as it can be expanded into various theoretical models, allowing researchers to empirically test the links among SSCM drivers, management commitment, and relational capabilities, along with their individual or collective impact on supply chain performance.

Practical implications

The framework provides a roadmap for firms to develop and nurture relational capabilities while dealing with growing stakeholder pressures. Moral motives strengthen top management commitment, which helps channel stakeholder pressures toward the proactive development of relational capabilities.

Originality/value

The paper fulfills a call for utilizing multiple theoretical lenses to examine complex SSCM phenomena and, ultimately, to create a coherent theory of SSCM.

Details

The International Journal of Logistics Management, vol. 28 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 2 December 2019

Aleksandr M. Kitsis and Injazz J. Chen

Drawing on multi-theoretical lenses and a combination of supply chain and business ethics literature, this study aims to investigate the role of motives in driving sustainable…

1793

Abstract

Purpose

Drawing on multi-theoretical lenses and a combination of supply chain and business ethics literature, this study aims to investigate the role of motives in driving sustainable supply chain management (SSCM) practices and sustainable performance.

Design/methodology/approach

Using a sample of 205 supply chain companies in the USA, the authors apply structural equation modeling (SEM) analysis to empirically test the proposed model and seven hypothesized relationships.

Findings

Results of the study underscore the critical role of moral motives, while highlighting that all three types of motives (instrumental, relational and moral) are robust in driving SSCM practices and achieving improvement in all three dimensions of sustainable performance–economic, environmental and social.

Research limitations/implications

This research can help supply chain scholars develop a more robust subfield of motivation-based SSCM research to gain a deeper understanding of how motives may differentially predict sustainable supply chain practices and performance.

Practical implications

The results of this study demonstrate the critical links between moral motivation and the triple bottom line (TBL) performance and suggest that managers pay more attention to moral motives in their decision-making.

Originality/value

This study bridges gaps in the extant literature by incorporating motivation-based antecedents, expanding the scope of SSCM practices, including the social dimension of sustainability and investigating the mediating effects of SSCM practices on the links between motives and the TBL performance.

Open Access
Article
Publication date: 30 March 2021

Kate McLoughlin and Joanne Meehan

The purpose of this paper is to examine how, and by whom, institutional logics are determined in the action of sustainable organisation. The authors analyse a supply chain network…

4069

Abstract

Purpose

The purpose of this paper is to examine how, and by whom, institutional logics are determined in the action of sustainable organisation. The authors analyse a supply chain network structure to understand how multiple stakeholders' perceptions of sustainability emerge into a dominant logic and diffuse across an organisational field.

Design/methodology/approach

Stakeholder network theory provides novel insights into emerging logics within a chocolate supply chain network. Semi-structured interviews with 35 decision-makers were analysed alongside 269 company documents to capture variations in emergent logics. The network was mapped to include 63 nodes and 366 edges to analyse power structure and mechanisms.

Findings

The socio-economic organising principles of sustainable organisation, their sources of power and their logics are identified. Economic and social logics are revealed, yet the dominance of economic logics creates risks to their coexistence. Logics are largely shaped in pre-competitive activities, and resource fitness to collaborative clusters limits access for non-commercial actors.

Research limitations/implications

Powerful firms use network structures and collaborative and concurrent inter-organisational relationships to define and diffuse their conceptualisation of sustainability and restrict competing logics.

Originality/value

This novel study contributes to sustainable supply chain management (SSCM) through presenting the socio-economic logic as a new conceptual framework to understand the action of sustainable organisation. The identification of sophisticated mechanisms of power and hegemonic control in the network opens new research agendas.

Details

International Journal of Operations & Production Management, vol. 41 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 24 November 2021

Olena Klymenko and Lise Lillebrygfjeld Halse

The purpose of this paper is to investigate how sustainable practices in supply chains are affected by the COVID-19 pandemic through the lens of institutional theory.

1092

Abstract

Purpose

The purpose of this paper is to investigate how sustainable practices in supply chains are affected by the COVID-19 pandemic through the lens of institutional theory.

Design/methodology/approach

This research applies a twofold data collection approach: 1) qualitative semistructured interviews and 2) secondary data collection that includes sustainability reports, newspaper articles, journal articles, strategic plans, research reports and statements made by authorities and stakeholders concerning decision-making. In total, managers representing six companies in Norway were interviewed.

Findings

The study suggests that during the COVID-19 pandemic, companies tend to focus on short-term decisions and economic issues. The long-term focus on sustainability has, however, increased at the cluster level. The research also indicates that the pandemic has led to the development of new business routines that may transform institutional norms. The diversity of institutional contexts can, on the one hand, drive sustainability transitions through pressures and supportive programs but, on the other hand, also hinder the development of sustainability thinking.

Research limitations/implications

Institutional factors must be included when analyzing the effects of crises and sustainable transitions. Researchers are encouraged to explore the COVID-19 implications in the form of longitudinal studies.

Practical implications

Policymakers can benefit from in-depth knowledge on the adverse effects of an institutional environment on sustainability. For managers, the outbreak of the pandemic can afford them additional time to revise their strategies and seek innovation. The pandemic highlights the need to build more resilient and sustainable systems that will aid managers in responding rapidly during future uncertainties and enduring sustainability trajectories in operations.

Originality/value

The paper offers an in-depth investigation of COVID-19 effects on the sustainability of supply chains by drawing on institutional theory.

Details

The International Journal of Logistics Management, vol. 33 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 16 August 2018

Gawon Yun, Mehmet G. Yalcin, Douglas N. Hales and Hee Yoon Kwon

The purpose of this paper is to evaluate the research conducted among the interim, dyadic interactions that bridge the stand-alone measures of economic, environmental and social…

2264

Abstract

Purpose

The purpose of this paper is to evaluate the research conducted among the interim, dyadic interactions that bridge the stand-alone measures of economic, environmental and social performance and the level of sustainability, as suggested in the Carter and Rogers (2008) framework.

Design/methodology/approach

This paper conducts a systematic literature review based on the Tranfield et al. (2003) method of the articles published in 13 major journals in the area of supply chain management between the years 2010 and 2016. Results were analyzed using an expert panel.

Findings

The area of research between environmental and social performance is sparse and relegated to empirical investigation. As an important area of interaction, this area needs more research to answer the how and why questions. The economic activity seems to be the persistent theme among the interactions.

Research limitations/implications

The literature on the “environmental performance and social performance (ES)” interactions is lacking in both theoretical and analytical content. Studies explaining the motivations, optimal levels and context that drive these interactions are needed. The extant research portrays economic performance as if it cannot be sacrificed for social welfare. This approach is not in line with the progressive view of sustainable supply chain management (SSCM) but instead the binary view with an economic emphasis.

Practical implications

To improve sustainability, organizations need the triple bottom line (TBL) framework that defines sustainability in isolation. However, they also need to understand how and why these interactions take place that drive sustainability in organizations.

Originality/value

By examining the literature specifically dedicated to the essential, interim, dyadic interactions, this study contributes to bridging the gap between stand-alone performance and the TBL that creates true sustainability. It also shows how the literature views the existence of sustainability is progressive, but many describe sustainability as binary. It is possible that economic sustainability is binary, and progressive characterizations of SSCM could be the reason behind the results favoring economic performance over environmental and social.

Details

The International Journal of Logistics Management, vol. 30 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Abstract

Details

International Journal of Operations & Production Management, vol. 34 no. 5
Type: Research Article
ISSN: 0144-3577

Article
Publication date: 6 February 2017

Rameshwar Dubey, Angappa Gunasekaran and Thanos Papadopoulos

Green or sustainable supply chain management (GSCM/SSCM) has in recent years attracted much attention from academia and practitioners in all part of the world. In recent years…

8758

Abstract

Purpose

Green or sustainable supply chain management (GSCM/SSCM) has in recent years attracted much attention from academia and practitioners in all part of the world. In recent years, all humanity has experienced severe climate change which is widely attributed to human activity. Harmful emissions have made a major contribution to recent climate change which presents major challenges and threats to the entire human race in form of global warming, earthquakes, hurricanes, tsunami and floods. The purpose of this paper is to propose a conceptual GSCM/SSCM framework contributing to knowledge-based view theory and systems theory (ST) and provide an exhaustive list of further research directions.

Design/methodology/approach

In this paper the authors have used a systematic literature review to identify building blocks of the conceptual framework, which is the principal contribution of the present paper.

Findings

In this paper the authors have proposed a conceptual framework for sustainable supply chain network and at the end the authors have outlined further research directions.

Research limitations/implications

The current paper is an attempt to develop a conceptual framework which is grounded in knowledge-based theory. The study helps to extent the prior works which lacks theory focused approach.

Originality/value

The present work has immense theoretical value and can be useful to the policy makers or practitioners engaged in GSCM practices.

Article
Publication date: 2 October 2019

Shereen Nassar, Tarek Kandil, Merve Er Kara and Abhijeet Ghadge

The purpose of this paper is to examine the automotive product recall risk in terms of social sustainability performance and to evaluate the role of buyer‒supplier relationships…

1717

Abstract

Purpose

The purpose of this paper is to examine the automotive product recall risk in terms of social sustainability performance and to evaluate the role of buyer‒supplier relationships in improving social sustainability during product recall crises.

Design/methodology/approach

A multi-methodology approach is used to empirically analyse the interrelationship between the proposed constructs and enablers of the buyer‒supplier relationship. Structural equation modelling and interpretive structural modelling are followed to analyse the data gathered thorough a questionnaire survey of 204 executives and interviews with 15 managers from the automotive industry.

Findings

The results of the study provide evidence regarding the impact of the responsible buyer‒supplier relationship on customer recall concerns and the social sustainability performance of supply chains (SCs). This study also leads to the development of a conceptual model, providing a relationship between the three key concepts used in this study.

Research limitations/implications

Following social sustainability principles, this study addresses the importance of developing strong, responsible relational ties with suppliers to reduce vehicle recalls or successfully recover from a product recall crisis.

Originality/value

This study contributes to the literature by providing theoretical and empirical insights for developing socially responsible SCs and confirming the role of the buyer‒supplier governance mechanism during product recalls in the context of the automotive industry.

Details

International Journal of Productivity and Performance Management, vol. 69 no. 3
Type: Research Article
ISSN: 1741-0401

Keywords

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