Smart Mixes in International Supply Chains: A Definition and Analytical Tool, Illustrated with the Example of Organic Imports into Switzerland

Abstract

Combinations of national and international, hard and soft powers, known as Smart Mixes, have been proposed as a way for governments in consumer countries to influence the behaviour of supply chain actors who operate outside their jurisdiction. However, the Smart Mix concept has not yet been precisely defined, which has hindered its operationalization as a means of analyzing the governance of long and complex international supply chains. The aim of this contribution is to derive a working definition of Smart Mixes and use it to create and demonstrate a generalizable analytical tool that facilitates identification of whether a Smart Mix exists in an international supply chain. To address this aim, we reviewed existing literature on Smart Mixes to define the concept, which led to a three-step process for analyzing a supply chain. In a second stage, we demonstrate the process by applying it to the example of organic imports into Switzerland, using data from expert interviews and existing public documentation. The application showed that the governance of the organic sector in Switzerland related to imported products fulfils the criteria for it to be considered a Smart Mix that enables the Swiss Government to influence the behaviour of supply chain actors outside its jurisdiction. This example shows that the proposed Smart Mix concept is sound under particular circumstances: in this case, when the interests of the public and private sectors are aligned so that binding public measures provide protection to the private sector. These circumstances are not unique to organic imports into Switzerland, which allows the conclusion that Smart Mixes may provide sustainability solutions in other international supply chains.

Smart Mixes for sustainable value chain management: An evaluation of the conflict minerals, palm oil and green bonds sectors.

“…We observed this in the conflict minerals case study where several initiatives are in line with the OECD-D. This result supports the Smart Mix concept developed by Home et al (2021) by underlining the value of voluntary cooperative measures in Smart Mixes. Rotter et al (2014) also emphasise the importance of joint cooperation and dialogue among and beyond industry peers.…”

“…Our aim was to analyse governance structures in value chains of different sectors, based on the concept of Smart Mixes of Home et al (2021) and to answer the two research questions: (1) Do Smart Mixes exist in the sector of conflict minerals, palm oil and the bond market? (2) What are success factors and failures of existing mixes of measures that aim at improving environmental and social standards in international value chains?…”

“…Research into the usefulness of the Smart Mix concept as a potential solution has been hampered by the lack of an accepted working definition. However, Home et al (2021) proposed a conceptual framework that allowed them to define Smart Mixes as: "A combination of measures that includes at least one binding public measure, accompanied by at least one voluntary cooperative measure that gives guidance to the actions that should be undertaken to achieve stated objectives and at least one voluntary private measure that must have consequences outside the jurisdiction of the intervening government. The combination of measures must interact and thus improve the achievement of the objectives of at least one of the measures".…”

“…The EU AP measures in the bond market are not yet in force so there are insufficient binding public measures means for a Smart Mix to be identified according to the criteria outlined by Home et al (2021). Although the three established measures (CBI, GBP, green bond indices) interact very positively with each other, they are all voluntary.…”

“…However, such convergence is precisely what Ruggie (2011) suggests that governments in consumer countries must achieve if they are to influence the behaviour of supply chain actors in producer countries in which social and environmental regulations are insufficiently enforced. Given the 'reality check' called for by Kindermann (2016), and insufficient academic study to allow confident conclusions, there is a need to investigate the viability of the Smart Mix concept and its applicability to solving real-world problems (Home et al, 2021). The aim of this contribution is to respond to Home et al's (2021) challenge by exploring whether Smart Mixes exist in the real world and, if so, by evaluating their outcomes and the factors that enable or hinder their effectiveness.…”