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Subcontracting represents a popular business model in supply chains across industries. In the case of hidden subcontracting, subcontractors are beyond the visible horizon of the (focal) buying firm. Hence, buyers must rely on a cascading effect for diffusing practices such as compliance with labor standards through their supply networks. Motivated by the case of the Bangladeshi garment industry, we constructed an agent‐based model with buyers, first‐tier suppliers, and subcontractors as agents in a supply network in order to study the impact of network characteristics on the diffusion of labor standards. Our model followed a power‐based diffusion rule that emphasized the coercive power that buyers use to pressure their suppliers into adopting labor standards. This rule is a key underlying assumption of compliance‐based supplier management. Hypotheses regarding power asymmetries through centrality and density of specific network components, as well as structural elements of the network, such as complexity and distance, were tested for different industry scenarios. Our analysis demonstrated that network asymmetries have ample negative effects on the adoption of labor standards, whereas complexity plays a minor role. Moreover, the impact of the tested structural determinants for sustainability diffusion was found to be contingent on specific industry types in the garment industry. This paper discusses its findings in light of previous research on subcontracting and multitier supply chain management. Among others, we highlight how subcontracting increases horizontal complexity at each supply chain tier, and how intermediaries such as sustainability nexus suppliers may crucially affect the adoption of labor standards within industries.

Purpose The food industry and its distribution solutions often lie at the center of sustainability-related arguments. However, little is known about the dynamic role of business capabilities for sustainable transformations in the context of local food distribution. Accordingly, this study aims to investigate how dynamic capabilities drive sustainable supply chain management (SSCM) business practices in short food supply chains (SFSCs) through the professionalization and expansion of online distribution channels. Design/methodology/approach The present study analyzes sustainability-related practices at six online distribution channels selling local food products in Germany and Austria. By applying a cross-case study and theory-elaboration approach, the study analyzes empirical data derived from these businesses and provides insights into how dynamic capabilities can facilitate SSCM practices within SFSCs. Hereby, potential pathways for a sustainable transformation in this industry context are deduced through abductive reasoning. Findings The empirical findings provide evidence that supply chain orientation, coordination, innovation practices and strategies are highly relevant for SFSCs seeking to reach upscaling effects in regional markets. However, because SFSCs may not be able to reach mass markets without weakening their own sustainability performance, the present study recommends addressing sustainability inefficiencies in the region and developing further expansion potentials through replication in other regions. In this approach, related and necessary SSCM dynamic capabilities were identified and validated based on the empirical findings. Originality/value Although SFSCs include sustainability aspects at their core – particularly regarding resource usage, environmental friendliness and social-standard assurance – missing distribution-related capabilities limit growth such that these businesses often remain in a niche. To address this issue, the study builds on dynamic capabilities theory by identifying and describing core SSCM practices and capabilities; moreover, this study is among the first to elaborate empirically on the use of dynamic capabilities theory in this specific industry context.

Purpose So far, most of the literature on logistics social responsibility (LSR) has prioritized the examination, classification of and adaption toward positive LSR practices instead of investigating necessary logistics service providers’ capabilities to implement LSR strategies. Therefore, the purpose of this paper is to contribute to theory by an assessment of LSR and its linkages to dynamic capabilities theory to gain insights into how logistics service providers can foster an enhanced application of LSR practices. Design/methodology/approach The paper is conceptual and grounded on dynamic capabilities theory. Relevant literature from logistics management, supply chain management and sustainable supply chain management (SSCM) as well as dynamic capabilities was examined to build upon existing theory by conceptualizing LSR from a dynamic capabilities perspective. In addition, propositions for future research are presented based on the conceptual model. Findings With regards to the controversial discussion in the literature about the direct link between dynamic capabilities and competitive advantage as well as the necessary degree of heterogeneity of dynamic capabilities, the conceptualization of LSR from a dynamic capabilities perspective adds new elements to this discussion. Considering long-term or even sustainable competitive advantage, the current degree of homogeneity across logistics services might hinder a sustainable advantage in the long run and demands for more advanced logistical capabilities. In this line, it is important to understand and utilize the causal relationships between different logistical resources and capabilities to achieve a unique long-term advantage allowing logistics service providers to further enhance LSR practices. Practical implications Due to the current role of logistics service providers, they should not just foster their resources focusing on the relationship to the focal firm, but they should also develop and implement new logistical capabilities derived from SSCM-related dynamic capabilities to design alternative service portfolio extensions and new business models. Originality/value Although dynamic capabilities have been studied intensively in the last two decades, the causal relationships between different logistical resources and necessary dynamic capabilities to achieve advantages by enhancing LSR practices still lack conceptualization. To build on the understanding of LSR, the paper at hand presents a conceptual framework explaining LSR and SSCM practices through the lens of dynamic capabilities theory.

To achieve sustainable development, it is evident that new approaches to governance are required to govern the transformation of the economy and enable the replacement of unsustainable technologies and practices. Very much like new technologies and social innovation, institutional innovation emerges from the bottom up by non-state actors aiming to facilitate the governance of transformation. What is the potential of such institutional innovation?A sustainable economy fulfills societal needs in a fundamentally different way to the current economic system. Improvements to the efficiency of existing technologies or practices appear insufficient for achieving sustainable development within the planetary boundaries. Disruptive, systemic and transformational changes appear necessary in order to replace existing technologies and practices to establish a sustainable economy. Such innovations often start out in niches; however, the scaling up and the ultimate replacement of current socio-technical systems requires governance to allow for the coordination of actors, the reorganization of socio-technical systems and the mobilization and allocation of resources. As governmental institutions are part of the current (non-sustainable) systems and thereby fail to provide coherent, integrated and transformative governance, we explore whether institutional innovation from non-state actors can step in to provide governance of transformation processes. Based on explorative qualitative case studies of networks in the food sector, city planning and reporting tools, we analyze the potential of bottom-up institutional innovations to coordinate actors in transformation processes.

Supply chain effectiveness and general societal prosperity, as well as economic and ecological productivity will be highly affected in the next decades, entailing challenges for the supply chain and logistics sector. Thereby this sector plays a significant role within the transformation process of economic systems, yet the capacities of it remain up till now underestimated. This paper suggests a holistic approach to assess transformation potential of the supply chain and logistics sector towards more sustainable economic systems while defining innovative business strategies to meet future macroeconomic developments. This is achieved through an integrated assessment of production and consumption systems, considering the interests of the key stakeholders. Moreover, the paper combines advanced methods to develop future macroeconomic scenarios and to assess the strategic business opportunities of the supply chain and logistics sector addressing societal developments, e.g. new consumption patterns. The analysis relies on modern theories of Environmental and Ecological Economics, contributing to transformation theories. Moreover, the innovative role of supply chain and logistics management in achieving sustainable macroeconomic goals at regional and international levels is addressed. The results of the scenario analysis show that the innovation potential is the highest if the consumers exert pressure on the industry and the global governance policy sets favorable conditions for the supply chain/logistics sector to implement innovative and sustainable strategies. To address this scenario, the logistics service providers should extend their business portfolios, becoming a "lead sustainability service provider" (6 PL). If both governmental regulations and consumer requirements for sustainability are at a low level, the innovation rate in the sector can slightly increase, if the logistics service providers focus solely on economic performance indicators, such as cost and time efficiency, by applying new technologies or management methods. This scenario represents a realistic case, since the logistics providers are forced to innovate their business models to a certain extent, due to high competition in the sector. Based on the findings, a strategy roadmap of the supply chains and logistics sector is developed in the sense of a transformative force to address future potential macroeconomic changes, providing managerial implications and policy recommendations.

No abstract

Consumer attitudes toward consuming and buying locally produced food are well studied. By contrast, the topic of consumer preferences for local food, with a special emphasis on the role of norms, still lacks empirical evidence. To study the influence of norms and morals on the intention to buy local food products, a quantitative study (N = 327) focusing on external social and internalized moral norms was conducted using the constructs of the theory of planned behavior in combination with an extended norm taxonomy and the perceived consumer effectiveness measure. The norm constructs consisted of two different personal norms, integrated and introjected, and two social norms, descriptive and injunctive. In a factor analysis, two factors for social norms but only one for personal norms were obtained. Multiple regressions explained 50 percent of the variance in intentions and 29 percent of the variance in past behavior. Norm constructs were proven important in the model, as personal norms had the largest effect among all constructs on intentions, and descriptive norms strongly influenced past behavior. An additional mediation analysis showed that personal norms were internalized social injunctive norms and that intentions mediated the relationship between all constructs. The implications of the findings and recommendations for future research are given accordingly.