Now showing 1 - 10 of 12
  • Publication
    The Effect of Buyer –Sub-Supplier Strategic Consensus on Sub-Supplier Performance
    This paper aims at investigating the effect of inter-organizational strategic consensus on a strategy group level between buyer and sub-supplier regarding its effect on sub-supplier performance. The authors analyze empirical connected multi-tier data (matched-triplets) within a structural equation model applying Bayesian estimation of parameters. This analysis takes into account both a competitive method consensus and consensus on objectives between supply chain actors on category group level, sub-supplier performance (regarding on-time delivery and quality) under the influence of relevant contingency factors. Results confirm a cause-effect between buyer-sub-supplier consensus on objectives on category group level and sub-supplier performance regarding quality and on-time delivery. Furthermore results indicate, that inter-organizational strategic consensus on objectives between buyer and sub-supplier on category group level fully mediates the effect of buyer-sub-supplier competitive method consensus on sub-supplier performance.
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  • Publication
    The role of voluntary sustainability initiatives as means to improve supplier compliance : Evidence from the Business Social Compliance Initiative in Bangladesh and India
    The ongoing revelations on social and environmental misconducts in the global supply chains of well-known brands including Apple, Nike and others have put brands under pressure to ensure socially responsible operations at their suppliers' facilities. In order to respond to the growing pressure, an increasing number of Western brands participate in voluntary sustainability initiatives to augment the compliance level of their suppliers. Yet, few studies have investigated whether such corporate practice leads to actual improvements of suppliers' compliance - particularly in emerging markets. In this explorative work-in-progress paper, we investigate how corporate participation in a voluntary sustainability initiative impacts on supplier compliance. For this purpose, we rely on social audit reports of the Business Social Compliance Initiative focusing on 105 suppliers of the textiles, shoes, leather and hard goods industries based in Bangladesh and India. We find that the lower the level of supplier social compliance in the first full audit the greater is the improvement over time. Surprisingly, very high levels of supplier social compliance are associated with deterioration. Thus, corporate participation in the Business Social Compliance Initiative is appropriate to improve supplier social compliance but not to ensure suppliers' full compliance with the requirements.
  • Publication
    Exploring Sustainability Compliance of Sub-Suppliers
    (Academy of Management, 2012-08-06) ; ;
    Sarkis, Joseph
    Focal firms face the challenge of ensuring compliance with their corporate sustainability standards (CSS) within their own organization, by their suppliers, and higher tiers of upstream sub-suppliers - all the way up to suppliers of basic raw materials. Supplier management strategies are key to increase suppliers' sustainability performance. While focal firm's sustainable supplier management practices towards their first-tier suppliers have been studied relatively extensively, little is known on how firms may approach suppliers beyond the first-tier level, the sub-suppliers. Focal firms' challenges range from the mere identification of sub-suppliers to little opportunities to enforce sub-suppliers' practices. This paper investigates the sub-supplier management practices of two focal firms in the electronic and retail industry by case study research. It proposes that by actively managing sub-suppliers through assessment and collaboration firms can improve sub-suppliers' compliance with their CSS, that (1) public attention, (2) risk management, and (3) channel power are antecedents to sub-supplier management, and that stakeholder involvement amplifies the effect of sub-supplier management on sub-suppliers' compliance with their CSS. This paper is novel in addressing the management of higher tiers of upstream sub-suppliers, proposing a framework for understanding sustainability compliance in sub-supplier management.
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  • Publication
    Implementing Voluntary Sustainability Standards in Value Chains
    (SMS Strategic Management Society, 2011-11-07) ;
    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.
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  • Publication
    The Implementation of Voluntary Sustainability Standards in Supply Chains : A Capability View
    (University of Bamberg Press, 2011-09-29) ;
    Our exploratory case study research identifies five key capabilities of a focal firm to implement previously defined voluntary sustainability standards (VSS) (e.g., codes of conduct) in their entire supply chain(s), ultimately making supply chain partners (i.e. direct tier-1 as well as indirect tier-2..n sub-suppliers) comply with the VSS: inter-firm dialogue, risk management, external stakeholder collaboration, cross-functional integration, and continuous improvement. We further propose that those capabilities are contingent on the prevailing power relationship between the firm and its suppliers. [http://www.opus-bayern.de/uni-bamberg/volltexte/2011/341/pdf/4LSCM35LM11_BdAbsopusseA2a.pdf Link]
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  • Publication
    Developing a Measure for the Capability of 'Sustainable Supplier Risk Management'
    (Academy of Management, 2011-08-15) ; ;
    Röthig, Juliane
    Public interest on firms' business practices in respect to society and the environment has motivated firms to develop individual statements about their corporate sustainability standards. These statements communicate to the firm's stakeholders that the creation of its products and services remained within the limits of its self-defined sustainability standards. Most firms procure a substantial portion of their value added from third parties, like suppliers, sub-suppliers, or logistics service providers, which are out of the firm's direct control. Nevertheless, external stakeholders such as NGOs, media and consumers hold the focal firm responsible for all practices involved in the making of the product. Suppliers and sub-suppliers not complying with the firm's sustainability standards may damage the firm's reputation, causing considerable revenue losses. However, firm's resources to control their (sub-)suppliers' sustainability compliance are limited. Recent research highlighted the importance of a 'sustainable supplier risk management capability' to enable efficient usage of limited resources by means of identifying, assessing, and controlling sustainability-related risks within the value chain - and the corresponding alignment of compliance management activities such as supplier assessment, development and monitoring. In this paper, we propose a measurement instrument for firm's 'sustainable supplier risk management' capability. It combines the results from a literature review, semi-structured interviews, and two roundtable discussions with academic and industry experts. The proposed items may be tested statistically in the future to serve as basis for quantitative research.
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  • Publication
    Selling Good Feelings, But Do You Really Comply?
    (American Marketing Association, 2010-05-20) ;
    The paper deals with sustainability compliance strategies helping brand-owners to ensure that their branded products are produced without violation of their claimed brand values.
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