4.6 Article

Implementing sustainability in multi-tier supply chains: Strategies and contingencies in managing sub-suppliers

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ELSEVIER SCIENCE BV
DOI: 10.1016/j.ijpe.2016.08.006

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Sustainability; Buying firm strategies; Multi-tier supply chains; Case studies

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Buying firms must pay increased attention to supply chain sustainability issues, as stakeholders might hold them responsible for non-sustainable supply chain activities. Frequently, sustainability problems occur upstream at the sub-supplier level. Building on the literature on multi-tier supply chains (MSCs), we investigated the sustainability management strategies of buying firms in the food, apparel, packaging, and consumer electronics with regard to second-tier suppliers and beyond. In particular, we analyzed seven cases of global MSCs and found four different characteristic MSC types-open, closed, third party, and don't bother. We identified three main factors-supply chain complexity, the sustainability management capabilities of the first-tier supplier, and the type of sustainability in focus (i.e., environmental or social sustainability)-that determine when and how buying firms actually extend their sustainability strategies to their sub-suppliers. (C) 2016 Elsevier B.V. All rights reserved.

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