Sustainability Tensions in Supply Chains: A Case Study of Paradoxes and Their Management

Abstract

Abstract:The comprehensive coverage of sustainability issues in a supply chain incurs goal conflicts-i.e., sustainability tensions-and is often limited by market characteristics, such as the availability of sustainable materials and services. While the mainstream business is prioritizing economic goals, a number of entrepreneurs are trying to move forward to more sustainable business practices for their own company and their supply chain. Fairphone represents such a case in the electronics industry, which is openly communicating its sustainability efforts and shortcomings. This communication is content-analyzed in this study by applying the theoretical lenses of paradox sustainability tensions and sustainable supply chain management. Findings of this analysis reveal the limitation of sustainability efforts by supply side characteristics, while Fairphone is innovatively using the demand side of its supply chain to drive sustainability. The resulting tensions among both sides are addressed via pro-active and direct supplier and stakeholder engagement by Fairphone at their suppliers' mines and factories. The systematic identification of tensions and practices by which they are addressed is adding to our understanding of sustainability practices and goal conflicts in supply chains.

Managerial perspectives on drivers for and barriers to sustainable supply chain management implementation: Evidence from New Zealand

“…Although managers of buying companies preferred to buy sustainable products or services, a lack of supplier capability and commercial requirements may discourage buyers from selecting the most suitable option—a sustainable product or service. This finding is consistent with prior studies by Brix‐Asala et al () and Font et al (), which reported a similar set of supply‐side (availability of sustainable materials and services) and demand‐side (disconnect between customer intention and purchase behaviour) supply chain sustainability tensions in the electronic supply chains. These studies identified several challenging situations that constrained managers from implementing SSCM practices.…”

“…Hahn et al (, p. 299) went further to argue that “firms need to pursue sustainability aspects simultaneously—even if they seem to contradict each other.” Thus, it is important to recognize the inherent tensions that arise from reconciling normative and instrumental goals. By recognizing SSCM tensions between instrumental and normative stakeholder theory logics and carefully resolving the inherent tensions between such contrasting logics, an integrative stakeholder view enables sustainability and supply chain professionals to concurrently achieve contending yet desirable SSCM objectives (Brix‐Asala et al, ; Hahn, Figge, Pinkse, & Preuss, ). However, SSCM research has yet to thoroughly examine varied tensions present within supply chains (Xiao et al, ).…”

“…Nevertheless, other scholars have pointed out that companies refrain from engaging in SSCM practices due to financial constraints (Chkanikova & Mont, 2015). This denotes that implementing SSCM practices may potentially involve synergies, trade-offs, and tensions (Brix-Asala, Geisbüsch, Sauer, Schöpflin, & Zehendner, 2018;Rezaee, 2018;Xiao et al, 2019). Whereas perceived economic and operational performance benefits positively influence SSCM, financial and time constraints and cost concerns may hinder SSCM implementation (Font et al, 2008).…”

“…To this end, this paper pointed out that managers need to work through and manage SSCM tensions to successfully implement SSCM. In particular, supplier-related issues can be resolved by developing trust-based, collaborative relationships (Brix-Asala et al, 2018;Oelze, 2017), as well as regular contact and feedback that could reduce monitoring requirements and risks on the part of suppliers (Hajmohammad & Vachon, 2016;Xiao et al, 2019).…”

Circular Economy as a Glocal Business Activity: Mobile Phone Repair in the Netherlands, Poland and China

“…Such activities are undertaken as part of global value chains and networks, in which the ties with remanufacturing and recycling firms are, so far, relatively weak. A notable development in this respect is the creation of the fair phone, which is innovatively using the demand side of its supply chain to drive sustainability [43].…”