Article ID Journal Published Year Pages File Type
7426647 Journal of Purchasing and Supply Management 2018 14 Pages PDF
Abstract
One of the most pressing challenges associated with sustainable supply management (SSM) is that buying firms cannot openly observe social and environmental conduct in their supply networks, as demonstrated by numerous sustainability scandals in recent years. Using eight in-depth case studies across four industries, we explore how firms manage sustainability-related uncertainties and the resulting information deficits within their upstream supply chain. We build on information processing theory and, more specifically, recent research that distinguished three forms of sustainability-related uncertainties in the supply network. Our study shows how sustainability-related uncertainties can be effectively matched by applying a fitting configuration of six information processing mechanisms. The effective choice of information processing mechanisms is contingent upon the type of sustainability-related uncertainty, but it also depends on additional factors such as economies of scale, path dependencies and trigger urgency as presented in this manuscript. We derive propositions how firms create fit between their information processing needs and capacity by means of choosing suitable information processing mechanisms for SSM. The paper can be used as a blueprint for the development of a SSM capability that accommodates a firm's unique sustainability-related uncertainty profile and the resulting information processing needs.
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Social Sciences and Humanities Business, Management and Accounting Business and International Management
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