Thi-Ha-Trang Dang and Shao-Chi Chang
This study aims to examine and analyze the determinants of the stock market performance after firms announce sustainable supply chain management (SSCM) practices.
Abstract
Purpose
This study aims to examine and analyze the determinants of the stock market performance after firms announce sustainable supply chain management (SSCM) practices.
Design/methodology/approach
The study focuses on the long-run stock performance of firms announcing SSCM investments. The authors collected a sample of 280 SSCM announcements from 2010 to 2017 and estimated the buy-and-hold abnormal stock returns up to three years following the announcements. Numerous analyses were conducted to analyze the effect of environmental and social sustainability on long-run stock returns.
Findings
The findings show a significantly positive stock performance in the three-year period after announcements. Moreover, the evidence indicates that the post-announcement abnormal stock return has an inverted-U relationship with corporate environmental sustainability but not with corporate social sustainability. Finally, whether firms expand the firms' corporate sustainability strength to SSCM practices or not, firms secure long-run wealth as long as SSCM programs are carried out.
Research limitations/implications
The research focuses on the stock performance of USA public firms to draw conclusions about firms' market performance. This research leaves out the private and born-sustainable firms.
Practical implications
The findings offer firms incentives to invest in SSCM and suggest the magnitude of value provided by each sustainability type to help firms set firms' supply chain (SC) sustainable investment level.
Originality/value
The study is the first to investigate the long-run stock performance of firms announcing SSCM practices and the contribution of different sustainability types to stock performance.
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L. Dam and B.N. Petkova
Multinationals are increasingly pressured by stakeholders to commit to environmental sustainability that exceeds their own firm borders. As a result, multinationals have started…
Abstract
Purpose
Multinationals are increasingly pressured by stakeholders to commit to environmental sustainability that exceeds their own firm borders. As a result, multinationals have started to commit to environmental supply chain sustainability programs (ESCSPs). However, little is known about whether such commitment is rewarded or punished by financial markets, and if the stock price reaction differs depending on the type of firm that commits to such a program. This paper aims to discuss these issues.
Design/methodology/approach
The authors conduct an event study followed by two-equation Heckman modeling, using a sample of 66 multinationals that committed to the ESCSP of the Carbon Disclosure Project (CDP).
Findings
It was found that generally there is a marginally significant negative stock price reaction to announcement of participation in this ESCSP (i.e. −0.8 percent, p<0.10). However, the authors argue and show that firms in industries that have historically faced more pressure from consumers are less likely to announce their participation. If one corrects for this industry bias, then the negative stock price reaction is even more pronounced (i.e. −3.2 percent, p<0.05).
Research limitations/implications
Using objective data, the study provides insights into the shareholder wealth effects of firms that commit to the ESCSP of the CDP. As such, the sample does not cover firms that set up their own ESCSPs.
Practical implications
The paper is valuable for practitioners and investors who are interested in finding out if participation in ESCSPs is financially attractive, and for (governmental) policy makers who may want to be assured that there is sufficient incentive for firms to pursue environmental supply chain sustainability.
Originality/value
This is the first paper that captures how financial markets react to announcements of ESCSPs.
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Swayam Sampurna Panigrahi, Bikram Bahinipati and Vipul Jain
The business enterprises are increasingly focusing on buying and supplying of products and services in a manner to reduce the adverse impacts on the environment, society, and…
Abstract
Purpose
The business enterprises are increasingly focusing on buying and supplying of products and services in a manner to reduce the adverse impacts on the environment, society, and economy. In view of the above, the concept of sustainable supply chain management (SSCM) has received attention of the industry and academia due to its importance on environmental, social and corporate responsibility through economic performance. The paper aims to discuss these issues.
Design/methodology/approach
The structured literature review attempts to map the various theories in the SSCM literature from the perspectives of economic performance, environmental dimensions, and social values and ethics.
Findings
As supply management is vital for enhancing organizational competitiveness, the present work attempts to investigate the theoretical perspectives in SSCM to develop an understanding of the current research activities and future potentials.
Practical implications
This work aims to gain a number of valid insights for the practitioners and the researchers. It also focuses on the perspectives of governance mechanisms for successful implementation SSCM practices in the business enterprises.
Originality/value
As the theory building initiatives with implications on the conceptualization of SSCM is limited in literature, this work has also been able to identify the trends and relevant research gaps to define the potential areas for future research.
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Nutcharee Pakdeechoho and Vatcharapol Sukhotu
The purpose of this paper is to investigate the relationship between sustainable supply chain collaboration (SSCC) and sustainability performance, and examine whether two types of…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between sustainable supply chain collaboration (SSCC) and sustainability performance, and examine whether two types of incentives moderate this relationship. This empirical investigation of the Thai food manufacturing industry provides insight in the context of an emerging economy.
Design/methodology/approach
Survey data were collected from 215 food manufacturing firms in Thailand, and the hypotheses were tested by exploratory factor analysis, hierarchical regression analysis, and cluster analysis.
Findings
The results indicate that SSCC leads to better economic and social performance, but not necessarily better environmental performance; incentives provided by firms in the supply chain enhance the effects of SSCC on social performance.
Practical implications
The findings provide useful suggestions for supply chain managers and policy makers about effective collaboration and the use of incentives to improve the sustainability of individual firms in the supply chain. They also reveal the challenges faced by manufacturing firms in improving environmental performance in an emerging economy.
Originality/value
This study contributes to the literature on the implementation of sustainable supply chain management by explaining the role of incentives.
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Rameshwar Dubey, Angappa Gunasekaran, Stephen J. Childe, Thanos Papadopoulos and Samuel Fosso Wamba
Sustainable supply chain management (SSCM) has attracted considerable interest among academics and practitioners. The purpose of this paper is to present a critical review of the…
Abstract
Purpose
Sustainable supply chain management (SSCM) has attracted considerable interest among academics and practitioners. The purpose of this paper is to present a critical review of the literature, to identify missing links, to argue for the use of world class SSCM (WCSSCM) through a framework, and suggest further research directions.
Design/methodology/approach
In the paper the authors have undertaken an extensive review of literature and classified articles using a novel classification scheme.
Findings
Through the extensive review and identification of research gaps, the paper identifies significant differences between definitions and methodologies in the SSCM literature; and argues for “WCSSCM.” This term is elaborated on via a theoretical framework in which 18 dimensions are classified under six constructs of SSCM. Furthermore, a list of potential research directions for WCSSCM is discussed.
Research limitations/implications
The research is an attempt to critically review literature, argue for WCSSCM, and develop a theoretical framework.
Originality/value
The paper offers a new approach to SSCM literature, arguing for WCSSCM through a framework, and providing further research directions.
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Daniel R. Eyers, Andrew T. Potter, Jonathan Gosling and Mohamed M. Naim
Flexibility is a fundamental performance objective for manufacturing operations, allowing them to respond to changing requirements in uncertain and competitive global markets…
Abstract
Purpose
Flexibility is a fundamental performance objective for manufacturing operations, allowing them to respond to changing requirements in uncertain and competitive global markets. Additive manufacturing machines are often described as “flexible,” but there is no detailed understanding of such flexibility in an operations management context. The purpose of this paper is to examine flexibility from a manufacturing systems perspective, demonstrating the different competencies that can be achieved and the factors that can inhibit these in commercial practice.
Design/methodology/approach
This study extends existing flexibility theory in the context of an industrial additive manufacturing system through an investigation of 12 case studies, covering a range of sectors, product volumes, and technologies. Drawing upon multiple sources, this research takes a manufacturing systems perspective that recognizes the multitude of different resources that, together with individual industrial additive manufacturing machines, contribute to the satisfaction of demand.
Findings
The results show that the manufacturing system can achieve seven distinct internal flexibility competencies. This ability was shown to enable six out of seven external flexibility capabilities identified in the literature. Through a categorical assessment the extent to which each competency can be achieved is identified, supported by a detailed explanation of the enablers and inhibitors of flexibility for industrial additive manufacturing systems.
Originality/value
Additive manufacturing is widely expected to make an important contribution to future manufacturing, yet relevant management research is scant and the flexibility term is often ambiguously used. This research contributes the first detailed examination of flexibility for industrial additive manufacturing systems.
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Rahul Pandey, Dipanjan Chatterjee and Manus Rungtusanatham
In this paper, the authors introduce supply disruption ambiguity as the inability of a sourcing firm to attach probability point estimates to the occurrence of and to the…
Abstract
Purpose
In this paper, the authors introduce supply disruption ambiguity as the inability of a sourcing firm to attach probability point estimates to the occurrence of and to the magnitude of loss from supply disruptions. The authors drew on the “ambiguity in decision-making” literature to define this concept formally, connected it to relevant supply disruption information deficit, positioned it relative to supply chain risk assessment and hypothesized and tested its negative associations with both supply base ties and inventory turnover.
Design/methodology/approach
The authors analysed survey data from 171 North American manufacturers and archival data for a subset (88 publicly listed) of these manufacturers via Ordinary Least Squares (OLS) estimation after ensuring that methodological concerns with survey research have been addressed. They used appropriate controls and employed the heteroskedasticity-based instrumental variable (HBIV) approach to ensure that inferences from our results are not unduly influenced by endogeneity.
Findings
Strong supply base ties decrease supply disruption ambiguity, which, in turn, increases inventory turnover. Moreover, strong supply base ties and data integration with the supply base have indirect and positive effects on inventory turnover. As sourcing firms strengthen ties and integrate data exchange with their supply base, their inventory turnover improves from access to information relevant to detect and diagnose supply disruptions effectively.
Originality/value
Research on supply disruption management has paid more attention to the “disruption recovery” stage than to the “disruption discovery” stage. In this paper, the authors add novel insights regarding the recognition and diagnosis aspects of the “disruption discovery” stage. These novel insights reveal how and why sourcing firms reduce their overall ambiguity associated with detecting and assessing losses from supply disruptions through establishing strong ties with their supply base and how and why reducing such ambiguity improves inventory turnover performance.
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Philip Beske-Janssen, Matthew Phillip Johnson and Stefan Schaltegger
The purpose of this paper is to systematically review the academic literature on sustainability performance measurement for sustainable supply chain management (SSCM) published…
Abstract
Purpose
The purpose of this paper is to systematically review the academic literature on sustainability performance measurement for sustainable supply chain management (SSCM) published over the past 20 years. The development and current state of instruments, concepts and systems to measure and manage sustainability performance are examined and research gaps are identified.
Design/methodology/approach
A systematic literature review is conducted spanning two decades of publications in peer-reviewed academic journals. The publications are analyzed with regard to frequency and bibliometrical metrics and research content.
Findings
The research examines the development of the field over 20 years, which has witnessed a steep rise in related publications only for the past five years, indicating a late interest in the area compared to other sustainability topics. Social performance measures entered the discussion particularly late, whereas economic and environmental measurement almost exclusively dominated the field for the first few years.
Research limitations/implications
The authors identify research gaps and discuss future directions for research. The analysis shows how the research area develops from a topic dealt with by a small group of interested researchers into a broader research field acknowledged in the scientific community.
Practical implications
Findings underline the importance of measuring performance for sustainability management of supply chains. The review identifies what measurement and management tools are discussed in the literature over time.
Originality/value
This is the first literature review on sustainability performance measurement for SSCM summarizing the development over the time span of 20 years.
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Mohamed M. Naim, Andrew T. Potter, Robert J. Mason and Nicola Bateman
This paper aims to develop a framework that rationalises transport flexibility into different types. In this way the role of the flexibility types in delivering specific strategic…
Abstract
Purpose
This paper aims to develop a framework that rationalises transport flexibility into different types. In this way the role of the flexibility types in delivering specific strategic logistics outcomes can be determined.
Design/methodology/approach
The authors undertake a synthesis of available literature related to flexibility to determine what types of transport flexibility are required and when.
Findings
Twelve definitions and key components of transport flexibility are identified. These signify a proactive approach to the consideration of the subject within the context of a collaborative approach to relationships between carrier, supplier and customer.
Research limitations/implications
This is a conceptual study developing definitions and models for transport flexibility. While these frameworks have been formed within the context of the literature, further research to determine the application of the model will need to be undertaken, to examine the benefits and costs associated with various degrees of flexibility.
Practical implications
While the definitions and models are conceptual, they are important as generic templates by which carriers may develop a logistics strategy, determining their competitive offering and hence defining their flexibility capabilities. They may then determine the degree of collaboration necessary. The results of this paper also inform further empirical research into the area of transport and logistics flexibility.
Originality/value
There is little research that addresses the issue of transport flexibility from a logistics perspective. Thus, there is originality in developing a framework that rationalises transport flexibility into different types. This will provide a foundation by which carriers and shippers may develop collaborative and information technology strategies.
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Swayam Sampurna Panigrahi and Nune Srinivasa Rao
Enterprises face the wrath of the government for taking part in environmental conservation and adoption of sustainable initiatives along with customer demands. Therefore…
Abstract
Purpose
Enterprises face the wrath of the government for taking part in environmental conservation and adoption of sustainable initiatives along with customer demands. Therefore, enterprises are forced to adopt sustainable supply chain practices (SSCPs), which leads to competitive advantage. Now, sustainable supply chain management (SSCM) is a management process that promotes the adoption of eco-friendly activities in conventional supply chains (SCs). Enterprises in India are under tremendous pressure to include SSCPs into their conventional SCs. The goal of this paper is to evaluate the barriers for the implementation of SSCPs into Indian Micro, Small and Medium Enterprises (MSMEs).
Design/methodology/approach
This study aims to identify critical barriers for adoption of SSCPs in the textile MSME SCs located in Eastern India, Odisha with the help of interpretive structural modeling (ISM).
Findings
The paper develops a framework for the evaluation of barriers to the adoption of SSCP in the textile SC. This paper also provides appropriate suggestive measures to deal with the barriers and overcome the same to attain a sustainable textile SC.
Research limitations/implications
Opportunities exist for extension of this research on wider geographical area. In addition to this, some other quantitative modeling approaches can be applied, like analytical hierarchy process, to prioritize the barriers.
Practical implications
The framework offers help to SC managers in their decision-making process by enabling them to analyze the barriers and ways to overcome them.
Originality/value
The paper deals with a particular geographical area where such kinds of studies are rare. The proposed framework provides a foundation for further research.