An empirical examination of the relationship between globalization, integration and sustainable innovation within manufacturing networks

Abstract

Purpose While controlling for supply chain effects, the purpose of this paper is to investigate if globalization and collaborative integration within a firm-wide manufacturing network have significant implications for the adoption of sustainable production (SP) and sustainable sourcing (SS) practices at the plant level. Design/methodology/approach The authors conceptualize SP and SS as process innovations with moderate degrees of innovativeness and apply “Organizational integration and process innovation” theory to build our conceptual model. Then, the authors use primary survey data from 471 assembly manufacturing plants operating in the US, Europe and Asia to test our hypotheses rigorously. Findings This research finds that the adoption of SP practices at the plant level is significantly and positively associated with globalization and integration of the firm-wide manufacturing network. On the contrary, the adoption of SS practices is more strongly affected by integration in the external supply chain and benefits from the manufacturing network only indirectly, through the association with SP practices. Originality/value Operations management literature devoted to sustainability has studied sustainable practices mostly from a risk management angle. Also, there exists contrasting evidence in the operations strategy literature about the positive and negative effects that globalization of a manufacturing network may have on the adoption of sustainable practices at the plant level. Moreover, several studies show how integration with supply chain partners helps manufacturing plants transition into more SP and SS practices; however, related literatures have neglected that collaborative integration within a firm-wide manufacturing network may also help to develop, or adapt to, new sustainable practices. This research represents a first attempt to resolve discordance and unveil the positive effects that manufacturing networks may have on sustainable innovations at the plant level.

Global value chains: A review of the multi-disciplinary literature

“…This network structure in turn limits access of lead firms to a diverse set of potential partners and hinders learning and innovation. Similarly, the studies of manufacturing plants in various countries by Golini et al (2016) and Golini and Gualandris (2018) demonstrate that a higher level of external supply chain integration (e.g., through GVC activities) can improve the operational performance of and the adoption of sustainable production by manufacturing MNEs due to information sharing, learning, and innovation through supply chain partners.…”

Market Orientation and Marketing Innovation Activities in the Czech Manufacturing Sector

“…In terms of global competitive pressures, foreign-owned companies (multinational enterprises) have a lower probability of introducing marketing innovation than local enterprises. One of the explanations for this is that the strategic intentions are heavily aimed at integration into the global supply chain, whereas marketing innovations are managed and sourced by other entities (Baulant 2015;Golini and Gualandris 2018).…”

“…Sustainable production practices are associated with globalization and integration into an enterprise-wide manufacturing network. Sustainable sourcing practices are associated with integration into the external supply chain (Golini and Gualandris 2018).…”

Acting as Expected: Global Leadership Preferences and the Pursuit of an Integrated Supply Chain

“…Furthermore, multiple studies have conducted measurement equivalence analyses to ensure the robustness of the IMSS data across nations (e,g., Wiengarten et al, ). Recently, Golini and Gualandris () carried out tests using the generalizability theory method. Their results indicate the validity of the measures across countries.…”

“…Furthermore, multiple studies have conducted measurement equivalence analyses to ensure the robustness of the IMSS data across nations (e,g., Wiengarten et al, 2016). Recently, Golini and Gualandris (2018) countries. Also, it should be noted, that IMSS data explores the presence of integration programs and does not study the state of integration.…”