A supply chain sustainability innovation framework and evaluation methodology

Abstract

Sustainability is hinged on innovation. The importance of sustainable innovation management in sustainable supply chain management (SSCM) cannot be underestimated. Studies on SSCM have emphasised the need for sustainable innovation in achieving sustainability but none provide deep insights into sustainable innovation management in SSCM implementation. This lack of research depth stimulates this study to identify and investigate criteria for sustainable supply chain management innovation advancement. This paper proposes a sustainable innovation criteria framework for investigating sustainable supply chains in manufacturing companies. To exemplify the applicability and efficiency of the proposed framework, a sample of five Indian manufacturing companies are used to evaluate and prioritise the sustainable innovation management criteria, using the 'best-worst' multi-criteria decision-making (BW-MCDM) model. The criteria weights for all companies from BWM are aggregated, averaged and used for ranking. The respondent managers viewed 'financial availability for innovation' as the most important sustainable innovation sub-criteria. The results of the study will inform industrial managers, practitioners and decision-makers on which criteria to focus on during the implementation stage, to increase sustainability in manufacturing supply chains, and further advance corporate and supply chain sustainable development. The framework may also serve as a theoretical construct for a future empirical study on sustainable supply chain innovation in the manufacturing sector. This paper sets the stage for further research in sustainable innovation practices in the manufacturing sector and its supply chains.

The role of innovation in the implementation of green supply chain management practices

“…Instead, the results of our study suggest that firms that aspire to be leaders in sustainability performance need to combine the implementation of GSCM practices, particularly at the inbound and production levels, with innovation. Our results reinforce the idea that financial availability for innovation and investment in R&D for green practices are critical to the implementation of GSCM practices (Kusi‐Sarpong et al, ). Managers should be cognizant of the structural relationships between implementing GSCM practices and innovation activities to bear the fruit of sustainability performance.…”

“…The results also support the role of product and process innovation as mediators of the relationship between GSCM practices and sustainability performance, providing empirical support for the role of innovation as a stepping stone on the path to the sustainable performance of GSCM practices (Adams et al, ; Kusi‐Sarpong et al, ). Both product and process innovation mediate the relationship between inbound GSCM practices and sustainability performance.…”

“…The performance effect of GSCM practices cannot be fully understood without considering the implementation work involved in embedding and integrating GSCM practices. The study also contributes to a better understanding of the relationship between innovation and supply chain sustainability performance (Kusi‐Sarpong et al, ). Our model postulates innovation as a key organizing structure in the dynamic process of GSCM practice implementation.…”

“…A related stream of research investigates the link between green product and process innovation and firm performance (Dangelico, ; Dangelico, Pujari, & Pontrandolfo, ; Doran & Ryan, ; Melander, ; Tang, Walsh, Lerner, Fitza, & Li, ). Green innovation consists of the development of products and the improvement of processes to reduce or minimize negative impacts on the environment (Berchicci & Bodewes, ; Kusi‐Sarpong, Gupta, & Sarkis, ). The joint effect of GSCM initiatives and innovation on sustainability performance has been underexplored in the literature (de Oliveira, Espindola, da Silva, da Silva, & Rocha, ; Fahimnia et al, ) but is critical to the advancement of supply chain sustainability (Adams, Jeanrenaud, Bessant, Denyer, & Overy, ; Kusi‐Sarpong et al, ).…”

“…Green innovation consists of the development of products and the improvement of processes to reduce or minimize negative impacts on the environment (Berchicci & Bodewes, ; Kusi‐Sarpong, Gupta, & Sarkis, ). The joint effect of GSCM initiatives and innovation on sustainability performance has been underexplored in the literature (de Oliveira, Espindola, da Silva, da Silva, & Rocha, ; Fahimnia et al, ) but is critical to the advancement of supply chain sustainability (Adams, Jeanrenaud, Bessant, Denyer, & Overy, ; Kusi‐Sarpong et al, ). To successfully implement supply chain greening efforts, firms often need to embark on a nonlinear journey of exploration that involves changing or adapting their products, creating new methods, or even adopting new business models.…”