A Behavioral Theory of Sustainable Supply Chain Management Decision Making in Non‐exemplar Firms

Abstract

Empirical evidence shows that investments in sustainable supply chain management can improve economic-based performance. Thus, based on standard economic theory, rational business decision makers should and will implement sustainable supply chain management practices. However, through inductive research methods, we uncovered an intriguing theme that runs counter to both the existing empirical evidence and such economic-based assumptions. We find that managers operating in firms without exemplary sustainable supply chain management practices face immense hurdles in developing a business case for implementing sustainability initiatives. Despite the lack of such practices-and in tension with the prevailing empirical evidence and theory-the firms within which these managers operate were performing well on economic-based performance metrics. Departing from the neoclassical economic theory of the firm, we apply the Behavioral Theory of the Firm's theoretical assumptions to findings which suggest four segments of managers in non-exemplary firms who vary based primarily on how they perceive strategic vulnerability, evaluate choices, and utilize sustainability knowledge.

Deviations from aspirational target levels and environmental and safety performance: Implications for operations managers acting irresponsibly

“…Furthermore, much of the focus has been on the relationship between profits and becoming more sustainable, with a general conclusion that it pays to be more sustainable (e.g., Montabon, Pagell, & Wu, ). Our results, along with those of Kirchoff et al () indicate that sustainable operations theorizing is missing not just irresponsible or unsustainable behavior but that this behavior could be the result of performing above expectations. Future research in sustainable operations then needs to consider irresponsible behavior and that even firms whose financial performance is above average might have incentives to behave irresponsibly.…”

Integrating Behavioral Decision Theory and Sustainable Supply Chain Management: Prioritizing Economic, Environmental, and Social Dimensions in Carrier Selection

“…There have been calls for more theoretical clarity and empirical refinement in examining SSCM (Seuring and M€ uller 2008;Kirchoff et al 2016), and this research answers that call in carrier selection decisions. Understanding how carrier selection decisions are made, especially in the context of SSCM, offers critical insight into a substantive part of the economy.…”

“…This is still an important framework to consider, as recent research notes that with the exception of the “exemplar” firms, most are not widely embracing SSCM practices (Kirchoff et al. ). It will likely take more discussion about building a business case for firms to address the low‐hanging fruit that comes with SSCM investments.…”

“…Incorporating sustainability into carrier selection fits under the broader umbrella of sustainable supply chain management (SSCM), which maintains that firms can develop supply chain strategies that balance economic, environmental, and social sustainability objectives (Pagell and Shevchenko ; Kirchoff et al. ).…”

“…Carrier selection decisions were traditionally based on criteria related to cost, service, and capability (Bardi 1973;McGinnis 1990;Kent and Parker 1999), but recent research calls for inclusion of sustainability criteria in decision making (Meixell and Norbis 2008;Williams et al 2013; Thomas et al 2016). Incorporating sustainability into carrier selection fits under the broader umbrella of sustainable supply chain management (SSCM), which maintains that firms can develop supply chain strategies that balance economic, environmental, and social sustainability objectives (Pagell and Shevchenko 2014;Kirchoff et al 2016).…”