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Implementing Voluntary Sustainability Standards in Value Chains

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abstract This paper discusses organizational key capabilities allowing focal firms to implement previously defined voluntary sustainability standards (VSS) (e.g., codes of conduct) in their entire value chain(s). Our case study research identifies five key capabilities of a focal firm to make value chain partners (i.e. direct tier-1 as well as indirect tier-2..n subsuppliers) comply with VSS: inter-firm dialogue, risk management, external stakeholder collaboration, cross-functional integration, and
continuous improvement. We propose that those capabilities are contingent on the prevailing power relationship between the firm and its suppliers. The organizational key capabilities identified may extend the theory of institutional entrepreneurship with concepts that facilitate the institutional change in value chains with respect to corporate sustainability.
   
type conference paper (English)
   
keywords key capabilities, voluntary sustainability standards, value chain, resource based view, institutional entrepreneurship
   
project Proactive sustainable supply chain management strategies
name of conference SMS 31st Annual Meeting Conference (Miami, Florida, USA)
date of conference 7-11-2011
title of proceedings Strategies for a Multi-Polar World
page(s) 7
volume / edition Session 150
publisher SMS Strategic Management Society (Chicago)
review double-blind review
   
citation Grimm, J. H., & Hofstetter, J. S. (2011). Implementing Voluntary Sustainability Standards in Value Chains. In Strategies for a Multi-Polar World, Session 150, pp.7. Chicago: SMS Strategic Management Society.