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3. Theoretical framework

3.2 Drivers for SSCM

3.2.1 Internal drivers

Internal drivers are pressures stemming from within the organization and predict a proactive sustainability behavior of organizations (Sajjad et al., 2020), and helps form the organizations' strategies and path towards sustainability (Emamisaleh & Rahmani, 2017). Internal drivers are often reflected by management’s intrinsic motivation to show corporate responsibility or the desire to realize financial and operational benefits (Sajjad et al., 2020). The existing literature demonstrates that the primary internal drivers of SSCM implementation are ethical values of managers, top management commitment, cost-related pressures, operational performance, and risk management (Saeed &

Kersten, 2019; Sajjad et al., 2020). These internal drivers can typically be classified as either organizational and ethical pressures or performance expectations for SSCM implementation (Sajjad et al., 2020).

Performance expectations

Sajjad et al. (2020) revealed that organizations' main reason for integrating sustainable practices might be for the economic and operational benefits, and embrace SSCM to mitigate and manage risks related to social and environmental supply chain activities. Perceived economic and operational benefits is expected to positively influence SSCM implementation (Sajjad et al., 2020). This is supported by Alzawawi (2014), who concluded that financial benefits were the number one driver of adopting SSCM practices. According to Sajjad et al. (2020), some organizations implement SSCM practices to improve economic and operational performance (Sajjad et al., 2020). Similarly, several studies have shown that engagement in SSCM initiatives can improve an organization’s performance and competitive advantage (Utami et al., 2019; Vargas et al., 2018). The desire to reduce costs is also identified as a common driver of various green supply chain management initiatives (Walker et al., 2008). On the other hand, the potential risk or business loss that can come from unethical sustainability practices in supply chains can also push organizations to adopt SSCM practices.

11 Focusing on creating sustainability in supply chains offers organizations the possibility to strengthen their reputation and brand and act as an important driver in some market sectors, resulting in enhanced competitive advantage and profitability (Chkanikova & Mont, 2015). Risk management is critical in organizations with value attributes with customers, which receive their value from brand recognition and reputation expectations (Alzawawi, 2014). Sajjad et al. (2015) and Alzawawi (2014) found that one of the primary drivers for SSCM practices is risk management. They therefore suggest that companies use sustainability initiatives as a tool to manage social and environmental risks and improve reputation and brand (Sajjad et al., 2015). The governance of risk may also not be perceived as an intraorganizational issue anymore, but rather a supply chain sustainability issue (Sajjad et al., 2020).

Organizational and ethical motivation

According to the literature, it may be the performance benefits that pressures a majority of organizations to embrace sustainability practices. However, studies show that performance-related targets and internal support are needed to realize operational and economic benefits from SSCM practices. Hence, the integration of sustainability principles at a strategic level is required for organizations to fulfill their sustainability goals (Saeed & Kersten, 2019; Saeed et al., 2017). Some organizational and ethical factors that are expected to influence the adoption of SSCM practices include organizational strategy, culture, size, structure, incentive systems, top management commitment, and employee motivation.

Research has identified two types of strategies that reflect a response to sustainability initiatives, namely, a proactive or reactive strategy. Organizations with a proactive approach are generally saturated with a culture that values sustainability, and sustainability activities are initiated on their own accord. Organizations with a reactive strategy are, on the other hand, driven by a need to comply with regulations and legislation (Abdul-Rashid, Sakundarini, Ariffin, & Ramayah, 2017). The integration of sustainability issues in the overall corporate strategy has also been shown by Oelze (2017) to positively affect SSCM implementation and employee motivation towards a commonly shared and promoted sustainability mission. Thus, they conclude that effective supply chain management must be incorporated in the corporate strategy and continuous alignment with strategic areas of action (Oelze, 2017). The literature postulates that successful integration of SSCM initiatives is strongly affected by the level of alignment between the organization and its supply chain. Information sharing, collaborative relationships, and supplier trust are all factors that have been identified as enablers of the development of SSCM practices (Mastos & Gotzamani, 2018).

12 The change in how organizations view their approach towards sustainability has been largely dependent on organizational culture (Abdul-Rashid et al., 2017), in which top management plays a vital role in forming. Leaders' personal commitment and ethical values can spread through the entire organization (Walker et al., 2008). Top management decides and plans every activity across the organization, giving them a great deal of power and responsibility. Hence, top management possesses a crucial role in adopting SSCM practices (Kausar, Garg, & Luthra, 2017). Research frequently finds top management commitment and support to be a key driver of SSCM implementation (Narimissa et al., 2019; Oelze, 2017; Somsuk & Laosirihongthong, 2017; Vargas et al., 2018). According to Oelze (2017), commitment refers to open-mindedness towards social and environmental issues and the implementation of adequate resources (Oelze, 2017). Top management also has the capacity and ability to motivate employees to implement SSCM practices by using incentives and reward systems (Kausar et al., 2017). Employees can also be an important driver of adopting sustainability practices.

Walker et al. (2008) claim that employee involvement positively influences SSCM performance.

Employees can pressure organizations to undertake sustainability initiatives to improve the organization’s sustainability performance. Employees can apply pressure either individually or through unions (Saeed & Kersten, 2019).

Emamisaleh and Rahmani (2017) believe that the successful implementation of organizational change depends on top management attitude and support, making it a major driver of SSCM implementation (Emamisaleh & Rahmani, 2017). Data from (Moktadir, Ali, Rajesh, & Paul, 2018) indicates that top management as a driver is more influential for large-scale companies than for small-scale companies.

Findings also show that the complexity of top management as a driver of sustainability practices could be higher for small-scale companies compared to large-scale companies (Moktadir, Ali, et al., 2018).

Company size can also indirectly influence the adoption of SSCM practices as it is one of the factors that affect the relevancy of various external drivers, and thereby also the external pressure that different companies face (Moktadir, Rahman, Rahman, Ali, & Paul, 2018).

To summarize this sub-chapter addressing internal drivers, the identified research on SSCM drivers indicates that performance pressures stemming from a desire to achieve operational and cost-related benefits are likely the strongest internal drivers of SSCM. However, the integration of sustainability at a strategic level and top management commitment is also identified as major drivers for SSCM. Hence, internal support and strategic alignment are likely needed to ensure that the implementation is successful, and yields benefits in the mid and long term.

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