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The purpose of this paper is to integrate sustainability and economic factors into a framework for understanding the reshoring decision.

This paper integrates sustainability and economic factors into a reshoring framework through using the theoretical perspectives of the natural resource-based view (NRBV) and transaction cost economics (TCE), and carrying out case study research with a number of firms involved in reshoring in the German automotive industry.

Through adopting a multi-theory approach, the framework captures the complexities of the reshoring decision and illustrates that reshoring is not a location decision alone, but encompasses a range of sourcing options such as local production in-house, using a local supplier or addressing sustainability problems with the offshore operation. The importance of sustainability capability development as a basis of extending the range of reshoring sourcing options available is highlighted.

Using the NRBV has allowed to develop value creating drivers in the context of reshoring. Integrating the logic of TCE with this analysis provided an understanding of how cost reducing drivers were present alongside the value creating drivers for reshoring at the case companies. Beyond previous frameworks integrating the RBV and TCE, bringing in the NRBV allowed us to highlight the importance of sustainability capability development as a basis of extending the range of reshoring sourcing options available. While this study’s cases were in the automotive industry in Germany, future research could sample for further geographies and industries to cover varying regulatory pressures for sustainability as well as sustainability-related industry initiatives.

The framework can provide guidance to managers on the conditions that favour the selection of each sourcing option when making the reshoring decision.

Although there are frameworks in the literature that explain the reshoring decision, limited attention has been given to integrating sustainability issues into the analysis. The findings here contribute important insights into the complementary and contradictory prescriptions of the NRBV and TCE in reshoring decisions, and several propositions are offered outlining these relationships. The resulting framework provides an integrated approach for managerial decision-making beyond economic factors alone.

The purpose of this paper is to compile a set of articles tackling supply chain issues in BOP contexts that address both demand and supply. Solutions are needed for global sustainability problems from medical aid and food availability to the ability to participate in supply chains for the global poor.

The accepted articles in the special issue used a range of qualitative and quantitative methodologies to answer research questions in a variety of base of the pyramid (BOP) contexts. These approaches and results distinguish between demand (BOP market) and supply, or base of the chain (BOC), perspectives.

The findings in the eight accepted marticles are interesting and applicable across different BOP contexts. Compilation of the articles into the special issue and the accompanying editorial led to a comprehensive future research agenda that addresses demand-side issues by investigating the customers in BOP markets, and supply-side issues focusing on the suppliers and intermediaries (BOC) who supply BOP markets. Future research ideas include a focus on supply chain design issues situated at the intersection of the demand (BOP) and the supply (BOC) concerns that address the needs of the world’s poorest populations.

All of the selected articleshave societal implications related to addressing the needs of BOP populations. Many of these articles also have economic and environmental implications, the other two pillars of the triple bottom line. The detailed future research agenda developed in this editorial presents implications for researchers working in emerging and BOP communities to push research forward and further develop the foundational literature in the BOP context.

From a practical standpoint, each of the eight articles presents ideas for businesses that help address the needs of the global poor while enhancing global sustainability performance. The editorial summarizes these implications and provides new directions and examples of success in the BOP context. Managers are provided with techniques to address the supply and demand side of these growing markets.

The overall conceptual framework and positioning of the final papers into the BOP market, BOC suppliers and a combination of the two is novel and helps provide guidance to both scholars and managers.

The last decades have seen manufacturing and services offshoring on the rise, often motivated by low prices and without consideration of other important criteria such as additional cost measures and risk. With wages in former low-cost countries and automation/robotization increasing, these decisions are increasingly contested. Re-evaluations of “shoring” decisions inherently create a need to re-examine theoretical and academic contributions to this rapidly changing phenomenon. Therefore, the special issue sought manuscripts that added to the exciting and dynamic body of knowledge on “rightshoring”. The paper aims to discuss this issue.

The paper starts out by delimiting outsourcing/insourcing and offshoring/reshoring as part of a conceptual “rightshoring” framework to establish a common terminology and context for the insights gathered in the special issue. It illustrates that “shoring” options can be classified along geographical and governance dimensions.

Both the geographical and governance dimensions are part of the rightshoring decision which is an important conceptual foundation for this special issue, as it invited insightful pieces on all of these phenomena (e.g. outsourcing, insourcing, offshoring, reshoring), acknowledging that these decisions are embedded in the same context – firms making governance and location decisions. Therefore, papers 1-4 primarily focus on offshoring, whereas paper 5 focuses on insourcing and paper 6 on reshoring. Their main findings are summarized in Table II.

Suggestions for future research out of the six papers are summarized in Table III. There is ample opportunity to further shed light on these suggestions as well as to cover parts of the “rightshoring” framework presented, that remain less covered here (e.g. insourcing and/or reshoring).

The array of potential “rightshoring” options fosters clarity about the phenomena studied and their implications. The main practical implications of the six papers are summarized in Table II.

The overall conceptual framework highlights the positioning of the final papers included into the special issue and provides guidance to scholars and managers alike.

Implementing sustainability into global supply networks remains a challenge for companies. Purchasing and supply management (PSM) interacts closely with supply network actors, thus influencing how the firm’s value creation is delivered. While previous sustainable PSM (SPSM) research has shed light on how to manage sustainability on an organizational level, the individual competences PSM professionals require are less understood. The paper aims to discuss this issue.

The authors conducted a systematic literature review to determine the current research coverage of specific competences and knowledge required to implement sustainability. The authors complemented this with data from 46 interviews with practitioners. From coding the data with NVivo, a first comprehensive competence overview for SPSM was developed.

The literature review results, complemented with interview data, highlight that functional-oriented, cognition-oriented, social-oriented and meta-oriented competences form part of a comprehensive SPSM competence model. We propose a framework that includes these, and integrates two behavioral moderators on the organizational level, i.e. situational enabling, as well as empowerment and obligation.

While the proposed framework provides a basic first systematization of SPSM competences, further research is needed to extend it. There is ample opportunity to shed further light on both individual and organizational-level factors that influence the application of SPSM competences, and therefore SPSM behavior.

The results have implications for higher education and professional training programs in companies. The framework provides an overview of competences needed for SPSM. The discussion highlights the need to apply education and training methods for different types of competences that are suitable for conveying implicit knowledge apart from explicit knowledge.

Adressing a current research gap in sustainability-related competences in PSM, the overall framework highlights SPSM competences of interest to both scholars and managers alike.

This paper seeks insights into how multinational enterprises restructure their global supply chains to manage the uncertainty caused by geopolitical disruptions. To answer this question, we investigate three significant geopolitical disruptions: Brexit, the US-China trade war and the coronavirus disease 2019 (Covid-19) pandemic.

The study uses an inductive theory-elaboration approach to build on Organisational Learning Theory and Dunning’s eclectic paradigm of international production. Twenty-nine expert interviews were conducted with senior supply chain executives across 14 multinational manufacturing firms. The analysis is validated by triangulating secondary data sources, including standard operating procedures, annual reports and organisational protocols.

We find that, when faced with significant geopolitical disruptions, companies develop and deploy supply chain structural ambidexterity in different ways. Specifically, during Covid-19, the US-China trade war and Brexit, companies developed and deployed three distinct types of supply chain structural ambidexterity through (1) partitioning internal subunits, (2) reconfiguring supplier networks and (3) creating parallel supply chains.

The findings contribute to Dunning’s eclectic paradigm by explaining how organisational ambidexterity is extended beyond firm boundaries and embedded in supply chains to mitigate uncertainty and gain exploration and exploitation benefits. During significant geopolitical disruptions, we find that managers make decisions in tight timeframes. Therefore, based on the transition time available, we propose three types of supply chain structural ambidexterity. We conclude with a managerial framework to assist firms in developing supply chain structural ambidexterity in response to geopolitical disruptions.

Driven by increasing concerns for sustainable development and digitalization, intermediaries have emerged as relevant actors who can help supply chains tackle grand societal challenges. They can also trigger significant changes in structure, shape and governance models of supply chains. The goal of this research is to advance the understanding of supply chain intermediation and digital governance as coordinating mechanisms for enabling multi-level collective action to address the world's grand challenges.

This is a conceptual research paper that uses a vignette approach, where real examples are described to help question and expand theoretical insights and provide a basis for future research. The examples are drawn from past and ongoing extensive primary and secondary data collection efforts in diverse types of supply chains.

Three contexts are proposed to illustrate how intermediaries and digital governance can play a key role in helping supply chains tackle grand challenges. The first and second context highlight the differences between material and support flow intermediaries in a triadic supply chain relationship. The third context illustrates intermediation within a multi-level network which can be industry-specific or span across industries. The three contexts are evaluated on the level of intervention, the focus on material or support flows, and traditional or digital governance. The specific Sustainable Development Goals which can be tackled through intermediary intervention are also indicated.

Intermediaries are often hidden actors in global supply chains and have received limited attention in the academic literature. The conceptual foundation provided in this manuscript serves as the basis for future research opportunities. Three main avenues for further research in this domain are proposed: (1) novel forms of intermediation beyond economic and transactional arrangements; (2) novel forms of digital governance; and (3) translating multi-level collective action into sustainable development outcomes. Research on intermediation driven by sustainable development and digitalization trends can spur empirical advances in sustainable supply chain and operations management with important societal impact.

The purpose of this paper is to unpack tensions faced by procurement professionals as part of their triple bottom line (TBL) sustainability activities. The authors take an integrative perspective based on the procurement sustainability and organizational tensions literature, as well as stakeholder and institutional theory.

The authors use a multiple case study approach. Data are collected through multiple interviews and archival data from eight case companies in Australia.

The authors identify supply chain and company procurement sustainability tensions (PSTs) and explain their multi-level nature. The analysis also dissects the multi-stakeholder and multi-institutional environments where PSTs operate. The authors discuss such environments in terms of various temporal and spatial legitimacy contexts (LCs) that, through their assessment of institutional distance, can characterize the manifestation of PSTs.

The findings are instrumental for managers to make informed decisions when dealing with PSTs, and they pave the way for paradoxical leadership given the increasing importance of simultaneous development and balancing of TBL dimensions, as evidenced in this study.

This is one of the first studies to empirically investigate PSTs by drawing on an integrative approach to identify PSTs, and to discern various LCs that underpin stakeholder judgments of procurement’s TBL sustainability activities.

A circular economy perspective embraces a systemic, cradle-to-cradle notion that everything is designed to be reused as long as possible and then recaptured and repurposed when reuse is no longer possible. Designing for a circular economy ecosystem requires a holistic, integrative viewpoint, spanning all aspects of design and development and considering many supply chain actors, far beyond that of traditional supply chains. This edited book adopts a biomimetic lens, highlighting the need for cross-industry flows and need for different actors (beyond producers and consumers) in circular value cycles. Enablers such as incentives and/or legislation are also discussed. While biomimicry provides the structure for organizing this book, individual chapters build on other theoretical lenses and concepts, such as stakeholder theory, etc. The intent is to move beyond a dyadic (buyer–supplier) view, embracing a holistic network or ecosystem view, to consider a cross-industry system perspective, where there is a diversity of actors (covering four actor groups: producers, consumers, scavengers, and decomposers) needed for a working ecosystem. This edited book offers a comprehensive overview of system components and actors, including how the circular economy adds value, the role of producers and consumers, the spectrum of recovery possibilities to return products back to the consumption supply chain, and the essential role of information management.

This case study shows how Osklen, a 30-year-old fashion brand in Brazil that focuses on Brazilianness and sustainability, has been facing challenges in the last 10 years pioneering the adoption of recycled cotton in its products. By taking the lens of biomimicry and supply networks that encompass vertical, horizontal, and diagonal ties, the case exposes how the weak links in the transition to circular fashion limit advancements. In a field such as sustainability where lack of transparency prevails and there is decoupling between practices and communication, consumers are often unaware of what is being done behind the scenes, and pioneer fashion brands may not benefit from sustainable and circular fashions. Besides the challenges at the consumer front, the shift to circular fashion is hindered by having scavengers as the weak link in the supply network given the lack of financial incentives, excessive informality, and misguided marketing from larger brands.

To create circular economies, we need supply systems to convey materials between their use lives. Often, though, it is not possible to control an entire supply network. Without a coordinator to implement circular economy principles, how can circular supply systems come to be? This chapter sets out to build on complex adaptive systems (CAS) theory and circular economy research to conceptualize how information flows between actors can facilitate the emergence of a circular supply system. It begins by outlining why a supply network can be considered a CAS, as well as the CAS progression from information to adaptation to emergence. Next, it argues that information on local supply networks, extended supply systems, and biosphere impacts is particularly important for circular production. Finally, it concludes with two potential types of emergence that can stem from these information flows: (1) new actor roles and networks and (2) new spatial and temporal patterns. Ultimately, this conceptual overview aims to give researchers and practitioners a CAS frame for thinking about how continual adaptation to information flows can enable change toward circular supply systems.

In research on the circular economy, business models are often taken as a focal point since their essential functions are both to create value and to capture part of that value. This chapter investigates whether and how circular business models can be “opened up” to creating and capturing value by utilizing a firm’s main asset not only in its own operation but also in other firms’ businesses. We hereby take the perspective of producing companies which face various challenges over the entire product life cycle and empirically analyze a case of five companies which are part of a joint innovation toward circularity in the plastics industry. Building on a grounded theory approach, we propose a new framework for companies which combines insights about open business models with circularity. When moving toward circularity, producing companies are advised to expand their dyadic perspective of suppliers, on the one hand, and customers, on the other hand, to a network perspective and open their business models.

Recently, 181 CEOs of notable corporations signed a joint statement at the Business Roundtable (2019) on the “Purpose of a Corporation” – declaring its aim as the creation of benefits for “all stakeholders.” This will likely accelerate the circular economy transition process. Harmonizing the interests of various stakeholders is essential for managing successful organizations and supply chains, which is similar to the first principle of using natural ecosystem thinking. According to that principle, it is essential to strike a balance between the producers, consumers, scavengers, and decomposers. We draw on stakeholder theory to identify various challenges and risks that restrict businesses from building sustainable circular systems. We turn our attention toward increasing the numbers of “scavengers” and “decomposers” in the system for attaining sustainable growth. Our emphasis is on (1) empowering organizational life cycle stages, (2) designing for “decomposability” and “scavengers,” and (3) suggesting the use of advanced optimization models for harmonizing stakeholder relationships.

The earth’s carrying capacity cannot withstand the pace of consumption resulting from current economic models, mainly the linear economy (LE) built on a throwaway culture. In the last few decades, the concept of a circular economy (CE), aiming to design waste out of the economy and mimic ecosystems, emerged as a strong alternative to LE. Being at the heart of the economic landscape, supply chains (SCs) need to respond to the necessary shift to CE. In so doing, the planning and execution of circular supply chains (CSCs) require a broader comprehension of CE and more sophisticated and large-scale analytical decision models. This chapter surveys extant literature on available best practices and quantitative models for sustainable supply chains (SSCs) and offers a new definition of CSC. Mapping on the knowledge extracted from this classification, potential gaps and strengths in the literature are identified. Key research papers on the “closed-loop” and “open-loop” ends of CSCs are highlighted. Challenges in developing CSC performance indicators and prescriptive models are emphasized.

The circular economy is a system that aims to conserve resources at every level for as long as possible with a minimization of waste. The core concept of the circular economy is to improve resource efficiency and prevent valuable materials from leaking out of the system. Better use of increasingly scarce resources can provide both economic and environmental benefits. When excess inventory, returned products, and end-of-life products are disposed of improperly, unnecessary waste is created, often with a detrimental impact to the environment. An effective system must exist to facilitate the proper handling of these products, and secondary markets are a crucial component in this system. In this chapter, we discuss the secondary markets’ role as an important mechanism for achieving a circular economy.

Manufacturing companies today are part of a dynamic, globalized system of production and consumption. Globally dividing labor is now the predominant way of organizing business, but it is clear that the resource demands of linear supply chains have created vulnerability and harm in the system and beyond. The authors draw inspiration from ecology to explore the role of manufacturers in the transition from linear to circular supply chains. Borrowing the adaptive cycle model, originally developed to describe dynamic ecological systems, they employ case examples to illustrate the ways that supply chain management is being reimagined in the shift to a circular economy. This conceptualization uses the adaptive cycle to consider the transition from linear to circular supply chains as part of broader systems change, and the opportunities for manufacturers to play a transformative role in shaping a sustainable future.

Linear supply chain models often overlook the impact that end-users (i.e. people who “consume” or otherwise realize the intended value of the product or service) can have on core supply chain processes. As the global trade environment rapidly evolves, business and government leaders are seeking more regionalized, sustainable circular models that position “consumers” at the center of dynamic value creation and consumption networks. This chapter outlines some ways to leverage end-users of the value chain to inform development and sustainment of circular supply chain strategies and processes. First, we describe the economic, social, and ecological trends that motivate organizational leaders and managers to implement more circular supply chain models. We then provide specific ideas on how managers can leverage end-users to close, slow, narrow, intensify, and dematerialize core supply chain processes.

This chapter empirically investigates the main drivers of the circular economy (CE) and sustainable development (SD) of European countries. The European Union (EU) legislation imposes equal rules for the members who should be followed to achieve CE and SD. This chapter gives a critical overview of the related literature on this topic. The second part focuses on measuring the efficiency of EU countries in achieving CE and SD via a nonparametric approach. Furthermore, the results from the efficiency evaluation are used as a dependent variable in determining which economic, social, institutional, and other factors have the greatest influence on CE and SD achievements. The nonparametric approach consists of selected models of data envelopment analysis (DEA), as this is a methodology useful in constructing a ranking system based on selected criteria. The results indicate that on average, the most efficient countries were (besides Malta and Luxembourg) the Netherlands, Poland, Germany, Sweden, Denmark, France, and the United Kingdom. The worst performing ones were Cyprus, Spain, Greece, Belgium, Portugal, and Croatia. The second part of the research indicates that the resource production and corruption perception index has the greatest effect on the efficiency scores, followed by education attainment. The research and development (R&D) variable is not significant in the observed sample. Based on these results, specific policy recommendations are given at the end of this chapter.

The implementation of circular economy (CE) initiatives has come under the spotlight in recent years with research ranging from business strategy and practices, supply chain implications, and regional or national policy developments. This highlights the multilevel nature of research and importantly the different scales of action required to move toward the CE. This chapter specifically addresses this issue of levels and scales by presenting and analyzing three complementary cases in the agri-food sector. Lessons learnt from this analysis include the need to consider value and impact across multiple levels and how companies and their supply chains can contribute to the scale of action needed.

Circular tourism is not a well-established field of research. In this case study, we address sustainable tourism as an approach that goes beyond the optimization of actions and value-added of the individual tourism actors and moves toward a destination approach, with the four elements – cultural, environmental, economic, and social benefits. A focus on partnerships that are addressing a specific destination has made it possible to develop initiatives that go beyond the traditional “green” approach to sustainable tourism, including sustainable transportation infrastructure, waste management, and protection of cultural and natural heritage. The collaboration in the network is central for the development of the understanding of culture and nature as a “common good” that all current and future actors can benefit from, if it is preserved and well maintained. The tourists have become central actors in this approach, as they take part in this regeneration of both nature and culture and therefore change roles from rather passive consumers to active actors in the destination.