PurposeThe study investigates the interaction of sustainability dimensions in supply chains. Along with the analysis of sustainability trade-offs (i.e. prioritizing one dimension to the sacrifice of others), we develop and test the concept of cross-insurance mechanism (i.e. meeting of one sustainability goal possibly attenuating the effects of poor performance in another).Design/methodology/approachThrough the analysis of a 20-variation vignette-based experiment, we evaluate the effects of these issues on the corporate credibility (expertise and trustworthiness) of four tiers of a typical food supply chain: pesticide producers, farmers, companies from the food industry and retail chains.FindingsResults suggest that both sustainability trade-offs and cross-insurance mechanisms have different impacts across the chain. While pesticide producers (first tier) and retail chains (fourth tier) seem to respond better to a social trade-off, the social cross-insurance mechanism has shown to be particularly beneficial to companies from the food industry (third tier). Farmers (second tier), in turn, seem to be more sensitive to the economic cross-insurance mechanism.Originality/valueAlong with adding to the study of sustainability trade-offs in supply chain contexts, results suggest that the efficiency of the insurance mechanism is not conditional on the alignment among sustainability dimensions (i.e. social responsibility attenuating social irresponsibility). In this sense, empirical evidences support the development of the cross-insurance mechanism as an original concept.

Purpose This paper aims to deepen the understanding of the impact of cultural and national idiosyncrasies on businesses. The authors concentrate on the cultural particularity of the Brazilian jeitinho to assess the ethicality of the concept in buyer–supplier relationships. Design/methodology/approach Semi-structured interviews were conducted with 28 Brazilian professionals working for both national and international companies, allowing for the analysis of the context in which the Brazilian jeitinho is perceived either as positive or negative in terms of ethics. Findings The authors propose five distinct dimensions (harm to third parties, seriousness of the issue, formality of relationships, personal benefit and assessed pertinence of rules and laws) to the assessment of Brazilian jeitinho as creativity, corruption or more nuanced classifications between them and offer a reviewed definition of the practice. Practical implications The results of the study may offer new insights into the Brazilian business environment. Deeper comprehension of the contexts in which jeitinho is used and its different connotations may optimise the relations between foreign and Brazilian companies and between foreign and Brazilian professionals and employees. Originality/value Within the context of intensified international trade, global supply chains and geographically spread operations, an understanding of cultural and national idiosyncrasies may provide managers with a powerful tool to conduct their business more effectively. With the economic emergence of countries such as China, Russia and Brazil, local practices are also gaining increased importance as they seem to have a direct influence on management in these places and beyond.

PurposeThe study aims to investigate cultural aspects in supply chains, analysing the effect that local customs may have in the quality of buyer–supplier relationships. Building on the premisses of social exchange theory (SET), it concentrates on the impacts that suppliers’ use of local practices and informal networks may have in buyers’ attitudes and perceptions. The issues addressed and the empirical evidence provided represent initial, yet important steps in the fulfilment of the ‘cultural void’ within supply chain social sustainability (SCCS) literature.Design/methodology/approachThrough a role-playing experiment applied to a total sample of 468 participants, the effects of Chinese guanxi, Russian blat, South Korean yongo and Brazilian jeitinho on buyers’ satisfaction, buyers’ commitment, trust and solution severity are measured by their use to access informal networks as solutions to both common (i.e. documentation irregularities) and extraordinary (i.e. modern slavery) supply chain problems.FindingsResults show that, while the activation of informal networks may impact buyers’ perceptions, the use of some local practices by suppliers (i.e. Chinese guanxi and Brazilian jeitinho) cause greater variations in buyers’ attitudes and perceptions than others (i.e. South Korean yongo and Russian blat), with ethical offences (i.e. modern slavery) and higher levels of buyers’ dependency acting as catalysts of these processes.Originality/valueThe investigation of cultural practices typical of economically peripheral countries contributes to the understanding of new facets of buyer–supplier relationships, with the investigation of non-Northwestern practices being particularly important in this regard.

Purpose With the investigation of the US stock market response to the Volkswagen Dieselgate, this paper aims to empirically demonstrate a case of dissemination of corporate scandals and events through industries and supply chains (i.e. inertial effect). Design/methodology/approach Individual event studies were conducted in the analysis of the market value fluctuations of 33 companies of the American automotive industry upon the disclosure of the scandal. Findings Results show that the fraud held by the German automaker spread to surrounding companies within the industry and supply chain levels of analysis, contaminating market values and costing around 6.44 billion dollars to American firms. Originality/value Building on the efficient market hypothesis and on the literature on supply chain management, empirical evidences support the conceptualization of the inertial effect as a valid rationale to address the dissemination of events through companies not directly involved. In that sense, the study contributes to an emerging and promising research field within the supply chain management literature. Beyond that, its interdisciplinary approach may inspire future research in the applicability of the event study methodology in similar contexts, as well as of alternative forms to empirically test other theoretical constructs.

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