Turning German automotive supply chains into sponsors for sustainability

In recent decades, supply chains have become a critical source of competitive advantage. Yet, in the Germany automotive industry, supply chains have turned out to be untransparent and prone to sustainability breaches, with the recent Volkswagen manipulation scandal exemplifying the financial and reputational consequences. Many firms today, therefore, focus on what is called sustainable supply chain management (SSCM). While drivers, barriers, and performance implications of SSCM have been widely explored, little is known about its implementation process. Building on the foundations of organisational change, this study inductively analysed 54 sustainability reports from three German automotive triads between 2014 and 2019. Our results led to an SSCM implementation framework that sequentially employed the nine most prominent implementation stages and related change measures. The framework expands our knowledge on the SSCM implementation process; furthermore, it serves as an example for industry experts aiming to turn their supply chains into sponsors for sustainability.

Automated summary

Supply chains have become a critical source of competitive advantage, but in the German automotive industry, they lack transparency and are prone to sustainability breaches. Therefore, many firms focus on sustainable supply chain management (SSCM), but little is known about the implementation process. This study analyzed sustainability reports from German automotive triads between 2014 and 2019 and developed an SSCM implementation framework, providing insights for industry experts aiming to achieve sustainability in their supply chains.