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Discussion of the framework

3. Theoretical framework

3.4 Discussion of the framework

Awareness around environmental and social issues has increased in recent years, making sustainability a contemporary issue for organizations and society and an important research area (Ashby et al., 2012;

Saeed et al., 2017). Various stakeholders are now pressuring organizations to take responsibility and actions to reduce negative environmental and social impacts caused by their operations (Alzawawi, 2014; Saeed & Kersten, 2019). To address these issues, SSCM is gaining considerable importance among practitioners and scholars alike (Ashby et al., 2012; Saeed et al., 2017). Despite the increased

24 attention, many organizations are still struggling to implement sustainable practices in their supply chain (Heidary Dahooie et al., 2020). Studies are reporting that the adoption of SSCM practices is occurring slower than expected and that the implementation is ineffective (Narimissa et al., 2019).

Hence, it is important to increase our understanding of factors that influence the strategic decision to implement SSCM practices.

We have through the development of our theoretical framework, identified numerous drivers and barriers to SSCM implementation. These drivers and barriers can be seen as either internal or external to the focal organization. The identified factors and their related sub-categories are presented in Figure 2 and Figure 3.

Figure 2: Driving factors that influence SSCM

Figure 2 shows that previous research has identified numerous internal and external drivers for SSCM practices. Based on the theory presented in this chapter, it is evident that prior research indicates that performance pressures stemming from a desire to achieve operational and cost-related benefits and external factors may be the strongest drivers of SSCM. Nevertheless, studies have also revealed that management's ethical values and intrinsic motivation to show corporate social responsibility are likely needed to integrate sustainability issues at a strategic level and achieve long-term change (Emamisaleh

& Rahmani, 2017; Saeed & Kersten, 2019). Accordingly, top management commitment is found to be one of the most frequently cited and strongest drivers of sustainability practices (Emamisaleh &

Rahmani, 2017; Narimissa et al., 2019; Oelze, 2017). Emamisaleh and Rahmani (2017) suggested that top management commitment and support are likely needed to ensure that the implementation is successful and yields benefits in the mid and long term.

These internal and external pressures stem from various stakeholders with their stakes and sustainability-related concerns. Collaboration among various internal and external stakeholders can

25 increase the pressure on the focal organization and other supply chain partners to adopt sustainable practices within their operations (Saeed & Kersten, 2019). Furthermore, external factors could directly influence internal drivers, suggesting that managers and employees are influenced by the environment and react to changes in the supply chain. Thus, it is essential to balance the needs of the internal and external pressures to incorporate sustainability into corporate mid-term and long-term goals (Emamisaleh & Rahmani, 2017).

Sajjad et al. (2020) and Alzawawi (2014) suggest that organizations and their supply chains primarily adopt SSCM practices to appease external pressures or achieve performance benefits. This is reflected by our theoretical framework, which indicates that market and regulatory pressures, along with performance pressures, are the strongest drivers of SSCM implementation (Alzawawi, 2014; Saeed &

Kersten, 2019; Sajjad et al., 2020). For the market-related factors, customer expectations and pressure created by sustainability initiatives from competitors are major drivers for SSCM (Somsuk &

Laosirihongthong, 2017; Walker et al., 2008). Studies looking at regulatory or coercive drivers generally agree that this pressure group constitutes a stronger and more effective driver of SSCM when organizations take a proactive rather than a reactive approach to regulations and legislation (Somsuk

& Laosirihongthong, 2017; Walker et al., 2008). Pressure from the general public and society is usually the least impactful driver category (Saeed & Kersten, 2019; Sajjad et al., 2020). However, social pressure groups still have the ability to severely impact an organizations’ reputation (Alzawawi, 2014;

Walker et al., 2008).

Figure 3: Barriers to SSCM

Heidary Dahooie et al. (2020) stated that the successful application of SSCM requires identifying and overcoming several intertwined barriers and risks. Accordingly, our theoretical framework has identified numerous internal and external barriers to SSCM implementation, presented in Figure 3.

However, it is important to consider that not all industries are likely to experience the same obstacles,

26 and there is some evidence suggesting that organizational factors such as size and structure can impact the barriers that different industries and organizations face as well as their severity (Al Zaabi et al., 2013). Based on the theoretical framework, the overarching literature on SSCM indicates that the major internal barriers to SSCM are financial constraints, a general lack of information, and lack of top management commitment (Al Zaabi et al., 2013; Alzawawi, 2014; Movahedipour et al., 2017; Sajjad et al., 2015). Prior research has also identified several organizational factors that can influence SSCM implementation, including a lack of strategic prioritization of sustainability issues, corporate structures, size, processes, incentive and reward systems (Oelze, 2017).

For the external barriers identified, it is evident that a lack of customer interest and demand, unwillingness to collaborate among supply chain partners, and a lack of supplier ability and interest are expected to impede the adoption of SSCM practices significantly. Several studies show that the adoption of SSCM practices is often severely hampered by a lack of customer interest and insufficient pressure from society in general (Heidary Dahooie et al., 2020; Narayanan et al., 2019; Sajjad et al., 2020). Insufficient supplier interest and involvement are also identified as a major barrier to SSCM, and supplier involvement is often hindered by a lack of trust, cooperation, and competence (Mastos &

Gotzamani, 2018; Oelze, 2017). Although regulatory pressure can positively impact SSCM, ineffective or inadequate coercive measures and a lack of government interest can also hinder the adoption of SSCM practices (Al Zaabi et al., 2013; Narayanan et al., 2019). Forcing organizations to comply with these regulations and legislations can potentially impede their ability to engage in more effective measures (Sajjad et al., 2015; Sancha et al., 2015). Lastly, a lack of standardization of regulations between countries makes it challenging to implement sustainability initiatives in global supply chains (Chkanikova & Mont, 2015). Based on the theoretical framework and the current discussion a research model was developed, which is presented in the next sub-chapter.