Who in the firm can create sustainable value and for whom? A single case-study on sustainable procurement and supply chain stakeholders

Sustainable value creation is a term that is widely used in sustainable business model literature, and it is gaining importance in other management fields. While there is still confusion on the meaning of this concept, researchers encourage studies that take a network perspective to generate new knowledge and a better understanding of it. In this paper, we address this call by taking a supply chain perspective, which is a type of network, and by focusing on one specific supply chain activity: procurement. Through a single case study of a French multinational, we investigate who creates sustainable value and for whom, taking a stakeholder theory lens. The case study is based on an inductive and qualitative-driven mixed-methods approach, involving interviews of key procurement and sustainability employees, ethnographic observation, and content analysis to provide new knowledge in both the sustainable business model and sustainable supply chain management fields. The findings provide empirical data that show, in the case of the firm studied, that the procurement function has a key role to play to create sustainable value for multiple stakeholders within and outside the firm. Sustainable procurement creates sustainable value for the firm, suppliers, clients, investors, municipalities, schools, NGOs, and associations. This value relates to economic, social, environmental and ethical dimensions. To our knowledge, this is the first study that clearly underlines the role of sustainable procurement to create sustainable value, which is relevant to guide researchers in digging further the importance of the procurement function and the supply chain lens in the sustainable business model field. The findings also highlight the need for top management and supporting functions such as finance to build capacity among the procurement department to develop sustainable procurement practices as, with a long-term perspective, it improves the sustainability performance of the firm and its supply chain partners. Overall, this study invites firms to integrate buyers and procurement managers at the core of their strategy to facilitate the operationalisation of their sustainable development goals.

Automated summary

This paper explores the importance of procurement in creating sustainable value by conducting a case study of a French multinational corporation. The findings reveal the key role procurement plays in creating sustainable value for multiple stakeholders within and outside the firm. Sustainable procurement not only creates value for the firm itself, but also brings economic, social, environmental, and ethical value to suppliers, clients, and investors. This study is significant in providing insights into the importance of procurement in the field of sustainable business models.