Supplier absorptive capacity: learning via boundary objects in sustainability-oriented supplier development initiatives

Abstract

PurposeTo study the learning processes and mechanisms involved in sustainability-oriented supplier development (SSD), including how knowledge is transmitted by the buyer and how it is received, understood and internalised by the supplier.Design/methodology/approachAn exploratory longitudinal multi-case study approach is adopted. The research context is a social SSD project focusing on occupational health and safety (OHS) management at four supplier factories. The paper draws on the constructs of absorptive capacity and boundary objects.FindingsThe development of a supplier's absorptive capacity for OHS management is triggered by the transfer of boundary objects that are created by the buyer. Findings suggest that each supplier starts explorative learning in a similar and passive way in order to accept the knowledge, but then each supplier proactively transforms and exploits the knowledge through continuous sensing, seizing, and reconfiguring loops that develop the boundary objects in a way that fits their own needs and contexts, incorporating the objects into organisational structures and routines.Research limitations/implicationsThe research furthers the understanding of the development of supplier absorptive capacity for sustainability via SSD projects, including how it is triggered and sustained. The impact of ostensive and performative aspects of boundary objects on knowledge transfer is presented. Finally, insight is provided into how absorptive capacity and dynamic capabilities are linked in the context of SSD.Practical implicationsBuying firms should seek to develop boundary objects that can trigger and maintain learning momentum for sustainability at supplier organisations in addition to effectively transferring SSD-related sustainability knowledge. There is also a need to allow for sufficient flexibility in the design of the boundary objects, and to pay sufficient attention to how suppliers contextualise and embed them into their own organisations, providing support for this process where necessary. For the supplier, establishing structures and routines for OHS management can help to prepare for future audits, thereby reducing audit fatigue.Originality/valueThe paper contributes to the supply chain learning literature by exploring the development of supplier absorptive capacity for sustainability triggered by the focal buying firm. It sheds new light on the role of boundary objects for facilitating knowledge transfer and learning between supply chain members in the context of SSD projects.

“Managing the “new normal”: the future of operations and supply chain management in unprecedented times”

“…Sauer et al (2022), considers the mindset of firms in relation to external turbulence, distinguishing those that bounce-back and return to a previous state with those that bounce-forward to achieve a new state. Marttinen and K€ ahk€ onen (2022) and Jia et al (2022) investigate the nature of relationships between organisations and related communications, regarding stakeholder power imbalances and leaning processes, respectively. Aaltonen and Turkulainen (2022) similarly explore how learning from one-off projects can inform the institutionalization of collaboration.…”

“…The perspectives of different stakeholders and how these dynamically change (again, a Domain 3 approach), the resolution or persistence of paradoxes, and how the different contexts of different organisations can be better understood, are all suggested as future research areas. Jia et al. (2022) note that their study considers absorptive capacity from an organisational scale only and that future research could build on their findings either at the level of the individual (manager cognition in learning processes – as with Al Hasan and Micheli, 2022), or at the wider cross-supply chain level – as with Aaltonen and Turkulainen (2022).…”

“…Using resource dependency theory, this paper considers how dependency between suppliers and customers in a multi-tier network can be better understood. Jia et al (2022)'s "Supplier absorptive capacity: Learning via boundary objects in sustainability-oriented supplier development initiatives", similarly discusses knowledge exchange as part of the interaction between suppliers and customers in relation to sustainability goals. Addressing occupational health and safety requirements in factories, the research considers how initially such requirements are received passively, but then are transformed and reconfigured in ways that suit their local context.…”

“…Jia et al. (2022)’s “ Supplier absorptive capacity: Learning via boundary objects in sustainability-oriented supplier development initiatives ”, similarly discusses knowledge exchange as part of the interaction between suppliers and customers in relation to sustainability goals.…”

Bridging sustainability knowledge management and supply chain learning: evidence through buyer selection

“…The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/0144-3577.htm Bateman et al (2021) revealed an increase in firms' commitment to SCS on a global scale, over time. Despite that, limited evidence exists to explain how suppliers, among multiple stakeholders, contribute to triggering the exchange of sustainability knowledge to enhance SCS learning (Cormack et al, 2021;Pereira et al, 2021;Jia et al, 2022). Recently, Johnsen et al (2022) discovered that first-tier suppliers can diffuse sustainability practices in both upstream and downstream supply chains (SCs) and identified several bridging roles that suppliers play.…”