Archetypes of sourcing decision-making: the influence of contextual factors on consensus, argumentation and cabal

Purpose The purpose of this paper is to develop taxonomy of sourcing decision-making (SDM) archetypes and explore how different contextual factors influence these archetypes when global sourcing of complex components is considered a viable option. Design/methodology/approach A multiple case study approach with five in-depth cases is employed. In total, 19 interviews as well as publicly available and internal data from large buying firms headquartered in Austria and Germany were collected and analyzed. Findings The results reveal three different SDM archetypes which are described in detail (i.e. “consensus,” “argumentation” and “cabal”). Furthermore, it is found that these archetypes are mainly influenced by three contextual factors: sourcing maturity, product complexity and leadership style. The final model comprises six propositions which illustrate how these contextual factors determine companies’ SDM archetypes. Research limitations/implications The study contributes to theory development at the intersection of organizational buying behavior and the (global) SDM literature. Thereby, it answers the call for more rigorous investigation of the influence of contextual factors on SDM processes. Practical implications The findings enable practitioners to better understand and consequently manage SDM processes and their outcomes. By supporting decision-makers in identifying SDM archetypes, this study allows sourcing managers and teams to make better decisions by avoiding problems that occur in situations in which the preferred decision-making type would result in suboptimal decisions. Originality/value The study provides a first step toward taxonomy of SDM archetypes and is among the first that explores their underlying contextual factors

Antecedents of green supplier championing and greenwashing: an empirical study on leadership and ethical incentives

Buying firms are increasingly confronted with compliance scandals in their upstream supply chain, for which they are held accountable by their stakeholders. Purely symbolic practices, typically referred to as greenwashing, as well as substantive practices, such as green supplier championing, are thus receiving widespread attention in business practices and academia alike. In this study, we reveal the impact of two opposing leadership dimensions following the concepts of ethical and transactional leadership as antecedents for green supplier championing and greenwashing. We particularly address whether these antecedents have a complementary or a counterproductive effect on green supplier championing and greenwashing. Furthermore, we investigate the complementary impact of incentives and the two leadership styles on achieving sustainability behavior. The resulting model is tested using a path analysis based on a data set of 118 firms located in Germany. We find support for the positive impact of ethical leadership on green supplier championing but also a non-significant negative impact on greenwashing. Greenwashing is significantly impacted by leadership styles reflecting obedience to authority, and further moderated by ethical incentives. Interestingly, ethical incentives do not moderate the impact of ethical leadership on green supplier championing. Finally, we discuss implications for theory and business practice

Future challenges for pharmaceutical supply chains

The pharmaceutical industry is facing an era of fundamental transformation, with new products, markets, and regulations requiring changes to governance, risk and supply chain management. These represent both threats and opportunities to the industry, for those who are able to harness developments. Through the provision of example scenarios, this report aims to provide pharmaceutical supply chain managers with the necessary information to help them find the right strategic solutions for their companies over the next ten years. Based on a thorough review of current practical and academic literature, the research team identified twelve future key developments with the potential to impact pharmaceutical supply chains over the next ten years (2015-2025). Based on assessments by 30 European pharmaceutical managers, the report provides analysis of the probability and impact of each development on pharmaceutical supply chains. It scopes the extent to which pharmaceutical supply chain managers welcome and feel able to influence each development. The authors of the report are Prof. Dr. Constantin Blome, University of Sussex, UK and GSK Vaccines Chaired Professor at Université catholique de Louvain, Belgium, as well as Martin Schleper and Hannes Hofmann from EBS University, Germany

Tackling the sustainability iceberg: a transaction cost economics approach to lower tier sustainability management

Purpose – This article investigates how buying firms manage their lower tier sustainability management (LTSM) in their supply networks and what contextual factors influence the choice of approaches. As most of the environmental and social burden is caused in lower tiers we use the iceberg analogy. Design/methodology/approach – Findings from 12 case studies and 53 interviews, publicly available and internal firm data are presented. In an abductive research approach, Transaction Cost Economics (TCE) conceptually guides the analytical iteration processes between theory and data. Findings – This study provides eight LTSM approaches grouped into three categories: direct (holistic, product-, region-, and event-specific) indirect (multiplier-, alliance-, and compliance-based) and neglect (tier-1-based). Focal firms choose between these approaches depending on the strength of observed contextual factors (stakeholder salience, structural supply network complexity, product and industry salience, past supply network incidents, socio-economic and cultural distance and lower tier supplier dependency), leading to perceived sustainability risk (PSR). Research limitations/implications – By depicting TCE’s theoretical boundaries in predicting LTSM governance modes, the theory is elevated to the supply network level of analysis. Future research should investigate LTSM at the purchasing category level of analysis to compare and contrast PSR profiles for different purchase tasks and to validate and extend the framework. Practical implications – This study serves as a blueprint for the development of firms’ LTSM capabilities that suit their unique PSR profiles. It offers knowledge regarding what factors influence these profiles and presents a model that links the effectiveness of different LTSM approaches to resource intensity. Originality/value – This study extends the application of TCE and adds empirically to the literature on multi-tier and sustainable supply chain management. Keywords Case studies, lower tier sustainability management, multi-tier supply chains, sustainability risk, sub-suppliers, Transaction Cost Economic

Supplier development for sustainability: contextual barriers in global supply chains

Purpose – The purpose of this paper is to explore contextual barriers to supplier development for sustainability (SDS) in global supply chains and managerial remedies to mitigate such barriers. Design/methodology/approach – A dyadic case study design was adopted with a Western European buyer and six of its Chinese suppliers. The database consists of 41 interviews and 81 documents. Findings – Contextual barriers to SDS in global supply chains derive from complexities in the sustainability concept, socio-economic differences, spatial and linguistic distance, as well as cultural differences between buyers and suppliers. Partial remedies include effective joint communications, an open organizational culture, and the fostering of cross-contextual understanding. Research limitations/implications – The findings contribute to theory development at the intersection of sustainable and global supply chain management research. They help to explain why scarce sustainability-related progress in global supply chains has occurred in recent years. Practical implications – The identified barriers facilitate managerial decision making that will expedite SDS progress in global contexts. Social implications – By diffusing knowledge regarding available remedies, the study contributes to improving SDS effectiveness, thereby fostering sustainability capabilities and performance of suppliers. Originality/value – This research highlights the criticality of contextual barriers to SDS. The barrier effects that stem from differing real-world conceptions of sustainability may inform future sustainable supply chain management research within and beyond SDS

A pathway towards true sustainability: a recognition foundation of sustainable supply chain management

Sustainable supply chain management has developed at an exponential rate into a distinct research field, but its progress towards sustainability is rather modest, and a coherent theoretical foundation for guiding companies towards a stronger integration of sustainability into their operations and supply chains is still missing. This article outlines how the tradition of critical management studies could foster higher levels of sustainable business and sustainable supply chains. We argue that the underlying instrumental logic of contemporary corporate engagement with sustainability, driven by stakeholder pressures, is a key obstacle when aiming for ‘truly’ sustainable supply chains. Referring to a recognition perspective may dissolve the reified pursuit of profit-seeking and other merely economic performance targets to recall the genuine—and in its essence truly radical—claim that the concept of sustainable development is inherently a normative one imposed on all of us. Recognition may lead the way for companies to adopt a caring stance for people and the surrounding environment and to respond to the legitimate expectations of all groups in society while conceiving themselves as an integral part of such a society. We conclude by discussing how far the theoretical perspective of recognition is enrooted in the European tradition of institutionalised business–society relationships and therefore could be seen as a rediscovery of a genuinely European way of making business and managing supply chains

Extending the supply chain visibility boundary: utilizing stakeholders for identifying supply chain sustainability risks

Purpose – The purpose of this paper is to investigate how buying firms facing low supply chain visibility can utilize their stakeholder network to identify salient supply chain sustainability risks (SCSR). Design/methodology/approach – The study employs a design science approach to develop a procedural model for identifying SCSR as a new artifact. A small-scale field-testing study in a food supply chain of a Swiss retail firm demonstrates its applicability and pragmatic validity. Findings – When stakeholder knowledge external to the supply chain is regarded as a valuable resource, a generic understanding of a buying firm’s supply chain suffices to identify SCSR hotspots without creating complexity for the SCSR management. Research limitations/implications – The paper contributes to the study of SCSR by identifying mechanisms buying firms can employ to identify SCSR hotspots and fostering the nascent understanding of responsibility attribution by stakeholders. Moreover, the emerging theory of the supply chain is enriched by paving a way to extend the supply chain visibility boundary. The procedural model is presumably most useful in contexts of elevated stakeholder pressure and low supply chain visibility. Future research should seek to validate and improve the effectiveness of the newly designed artifact. Practical implications – The procedural model is directly applicable in corporate practice to the identification of SCSR. Moreover, its application fosters the understanding of a firm’s supply chain and its stakeholder network. Originality/value – SCSR is an increasingly important phenomenon in corporate practice that has received only scarce research attention. The design science approach represents a valuable means for generating theoretical insights and emergent solutions to the real-world problem of SCSR identification. Keywords Sustainability, Risk management, Stakeholder management, Design science, Supply chain visibilit

Purchasing and supply management: from efficiency to effectiveness in an integrated supply chain

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Pandemic-induced knowledge gaps in operations and supply chain management: COVID-19’s impacts on retailing

Purpose This Impact Pathways paper aims to provide a timely and structured discussion of real-world problems at Marks and Spencer and in retail in general, evoked through the current COVID-19 pandemic. Design/methodology/approach The article presents collaborative research based on more than five hours of interviews and several iterative paper writing steps between management scholars and Marks & Spencer’s Head of Procurement - Logistics and Supply Chain. Continuous discussions for more than ten months among the research team assure the timeliness and relevance of the findings. The exceptional position of the executive and his career biography allowed the integration of a variety of intra-organisational and inter-organisational stakeholders. Findings This paper highlights the impacts of the current COVID-19 pandemic on operations and supply chain management (OSCM) in the retail industry, structured in upstream, internal and operational, and downstream and customer perspectives. The paper concludes with a practice-infused research agenda, which aims to trigger relevant research about the current and potential future crises. Research limitations/implications Although the research agenda is directly related to the COVID-19 pandemic and the retail industry, the future research pathways are expected to inform business responses to potential future external shocks other than pandemics and in different industries as well. Originality/value Despite a plethora of studies already published on COVID-19 and OSCM, little is known on how the outbreak affects specific firms and industries. This paper offers an overview of COVID-19 related change as it happens at the retailer and in the retailing industry in general. This article is among the first to provide a practice-infused call for research on urgent issues being faced by business leaders directly relevant to our domain

Survival at the expense of the weakest? Managing modern slavery risks in supply chains during COVID-19

This paper reflects on the implications of the Coronavirus (COVID-19) pandemic on modern slavery risks in supply chains. We first reason that the global supply and demand shock resulting from COVID-19 exacerbates workers’ vulnerability to modern slavery. Then, we discuss challenges firms face to detect, prevent, and mitigate increasing modern slavery risks in supply chains during COVID-19. We conclude our paper by arguing that proactive, value-oriented, and long-term supply chain management approaches increase firms’ resilience to cope with highly volatile and extreme events, such as COVID 19