Exploring the roles of lead organisations in spreading sustainability standards throughout food supply chains in an emerging economy

Abstract

PurposeThis paper investigates how food supply chains (SCs) introduce sustainability standards (i.e. organic and/or Fair Trade labels). The authors combined the concepts of power and dependence with types of governance mechanisms to analyse for-profit and cooperative organisations. The authors explored nuances of how lead organisations are spreading sustainability standards.Design/methodology/approachFour cashew nut and honey SCs were investigated as case studies in Brazil, with data gathered through 15 interviews, secondary data and field visits. Data were examined through a content analysis process following a combined deductive and inductive approach.FindingsSustainability is spread driven by market pressure, mainly through the diffusion of technical information, either by lead organisations enablers or inter-organisational relations. The authors found that the type and structure of organisations impact the source of power (mediated or non-mediated) and level of mutual dependence between buyer and supplier. For instance, suppliers that hold a strategic position use direct governance mechanisms, which, in turn, lessens the power imbalance in regard to the lead organisation. The authors found in the analysis, a close relation between governance mechanisms and the spread of sustainability, which is ultimately based on strong SC relationships.Practical implicationsBy recognising their role and the contingencies in spreading sustainability standards along the SC, managers of lead organisations can better design their relationships as well as create strategies to increase their supply chain sustainability (SCS) performance.Originality/valueThis paper contributes to the underexplored issue of how sustainability standards are spread throughout SCs in Latin America. Also, it shows how different types of SC rely on governance mechanisms that foster SCS.

Co-ops 2.0: Alternative Retail Strategies to Support a Sustainable Transition in Food Retailing

“…Meanwhile, the fact that the group of niche prospects has not yet made use of the support of the food cooperative to sell and market grass-fed beef may explain why its concerns about the challenges involved were greater than the concerns of niche pioneers. This result is in line with previous work by Silva et al (2021) showing that collaboration with suppliers is key to pursue sustainability in the supply chain.…”

Theorizing the impact of network characteristics on multitier sustainable supply chain governance: a power perspective

“…Just a few studies applied resource dependence theory in a network context and mainly dealt with qualitative investigations in the food industry, pointing toward the level of power (mediated or non-mediated) and the level of mutual dependence between buyer and supplier (e.g. Silva et al. , 2021).…”

“…As illustrated by the food industry example, power inequalities hinder the development of trust in relationships. While substantial power imbalances may harm interorganizational relationships, "careful" use of coercive power promotes supply chain integration (Maloni and Benton, 2000;Silva et al, 2021) and increases sustainability performance. Accordingly, alternative forms of mediation with lower power imbalances and mutual dependencies decrease competition and ease transformations toward sustainability.…”

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

“…For example, the UK and Canada buyers started to develop a B Corp. certification program after working with the supplier in focus. Such a perspective demonstrates that sustainability knowledge at the SC level cannot rely only on existing knowledge from the firm level (through information diffusion); engagement among SC members is needed, which ensures effective dissemination (Johnsen et al, 2022;Silva et al, 2021). Therefore, we provide this contribution because, to the best of our knowledge, this is the first paper to document evidence on the process by which sustainability knowledge was managed and systematically connected with SCS learning.…”

“…This paper defines sustainability knowledge as a strategic and specialized resource that firms use to execute sustainability-oriented policies and strategies. Since sustainability knowledge is diffused and influenced either by external pressures or, proactively, by internal needs (Carbone et al ., 2012; Silva et al ., 2021), we must clarify how it happens (Silvestre et al ., 2020). We advocate that suppliers play a vital role in diffusing sustainability knowledge.…”