The purpose of this paper is to answer this question: How great is the potential of sustainable supply chain management (SSCM) to impact a firm‘s competitiveness? In other words, can it be considered as something a firm can implement to influence their competitiveness and if so in which way and strength?
To assess this, first a theoretical background will be given on SSCM as well as a definition for the underlying concept of competitiveness for this thesis in chapter 2. In chapter 3 an overview of practices that can be accounted to SSCM will be outlined and complemented by research findings that cover the influence of SSCM practices on corporate competitiveness. Factors that are also of relevance to ultimately determine the potential of SSCM shall be included as well. To this theoretical perspective the examination of two practical examples shall be added in chapter 4 in order to be able to discuss the magnitude of SSCM’s potential to impact corporate competitiveness in chapter 5. Finally, concluding remarks, the final answer to the initial question as well as an outlook for the future development will be given in chapter 6.
Sustainable supply chain management (SSCM) is a growing field of research as well as already implemented by several firms. In order to help a firm determine if SSCM should be considered as something to implement the question shall be answered if and in which magnitude SSCM holds potential for a firm’s competitiveness. Competitiveness is deter-mined by the chosen sources of cost savings, image and customer loyalty as well as human resources and innovation. Through a review of literature existing influences of SSCM practices on competitiveness have been collected and other factors to consider determined. Two practical examples are also given. Two main findings have been made: Mainly positive influences of SSCM practices on defined sources of competitiveness could be found; hence potential of SSCM for corporate competitiveness exists. Taken into consideration the aforementioned factors SSCM’s potential for corporate competitiveness is high, if SSCM itself is successfully implemented, if the firm acts as first mover and if it acts now.
Table of Contents
1 Introduction
2 Theoretical Background
2.1 SSCM Definition
2.2 Concept of Competitiveness
3 Impact of SSCM Practices on Competitiveness – Theoretical Perspective
3.1 Triggers and Relevance of SSCM
3.2 Overview of SSCM Practices
3.2.1 Internal Practices
3.2.2 Practices along the Supply Chain
3.3 Influence of SSCM Practices on Sources of Competitiveness
3.3.1 Cost Savings
3.3.2 Image and Customer Loyalty
3.3.3 Human Resources and Innovation
3.3.4 Covering multiple Sources of Competitiveness
3.4 Factors that influence the Potential of SSCM Practices
3.4.1 Focal Firm Factors
3.4.2 External Factors
4 Impact of SSCM Practices on Competitiveness – Practical Perspective
4.1 Nike
4.2 Scandic Hotels
5 Discussion
6 Conclusion and Outlook
Research Objectives and Key Topics
The primary goal of this thesis is to examine whether Sustainable Supply Chain Management (SSCM) serves as an effective instrument for firms to enhance their corporate competitiveness. By investigating the relationship between SSCM practices and various competitiveness sources, the work aims to determine the magnitude of this impact and the conditions under which implementation is most beneficial.
- Theoretical definition of SSCM and its integration into corporate strategy.
- Identification of key SSCM practices spanning purchasing, manufacturing, and logistics.
- Analysis of influences on cost savings, corporate image, customer loyalty, and human resources.
- Evaluation of focal firm and external factors that affect the potential of SSCM.
- Case study examinations of Nike and Scandic Hotels as practical benchmarks.
Excerpt from the Book
3.1 Triggers and Relevance of SSCM
This section shall address the question which factors can be seen as triggers for the development of SSCM and why firms should consider it in the first place.
First of all environmental changes shall be recognized. There is strong evidence that we are moving from a world with abundant, cheap energy to a world of restricted and expensive energy (Hartmann, 2009). As Beamon (2008) notes, nowadays existing society is built majorly on fossil fuels, but supplies are not infinite. Firms therefore face challenges such as price fluctuations of traditional energy resources (Wu, & Pagell, 2011). Businesses also have an important role in conserving resources since they transform natural capital into man-made capital by the means of production processes (Winkler, 2010).
Furthermore today’s firms face pressures and incentives from different groups (Seuring, & Müller, 2008). Firstly firms have to comply with all modes of governmental control, ranging from regulations and legislation from local municipalities to national and multinational governments (ibid.). Linton, Klassen and Jayaraman (2007) for example observe the development of the European Union as a very important proponent of sustainability. The authors point out that changes in policy force manufacturers to deal with restrictions, new requirements for their products or to address new issues such as take-back laws.
Secondly firms face increased transparency of their environmental and social actions (Carter, & Liane Easton, 2011). Stakeholders put increased pressures on firms to incorporate sustainability aspects (Reuter, Foerstl, Hartmann, & Blome, 2010). Consumers are making buying decisions at least partly based on perceived environmental stewardship of firms as well as corporate responsibility aspects (Beamon, 2008).
Chapter Summaries
1 Introduction: This chapter outlines the growing importance of sustainability in a globalized economy and sets the research question regarding the potential of SSCM to impact corporate competitiveness.
2 Theoretical Background: Defines SSCM within the context of the triple bottom line and establishes the underlying concept of competitiveness used for the remainder of the analysis.
3 Impact of SSCM Practices on Competitiveness – Theoretical Perspective: Explores the triggers for adopting SSCM and categorizes various practices before analyzing their theoretical influence on specific sources of competitive advantage.
4 Impact of SSCM Practices on Competitiveness – Practical Perspective: Provides a real-world application of SSCM concepts through the analysis of Nike and Scandic Hotels to demonstrate positive corporate outcomes.
5 Discussion: Synthesizes findings from the literature and case studies, highlighting the dominance of positive impacts while addressing the scarcity of research regarding failed sustainability initiatives.
6 Conclusion and Outlook: Summarizes the thesis, concluding that the potential of SSCM is high when implemented as a proactive, first-mover strategy, while noting that its future utility may shift from a differentiator to a strategic necessity.
Keywords
Sustainable Supply Chain Management, SSCM, Corporate Competitiveness, Cost Savings, Triple Bottom Line, Environmental Management, Green Supply Chain Management, Nike, Scandic Hotels, Resource Efficiency, Stakeholder Pressure, Corporate Sustainability, Strategic Management, Competitive Advantage, Reverse Logistics
Frequently Asked Questions
What is the core focus of this research?
This work examines the link between Sustainable Supply Chain Management (SSCM) and corporate competitiveness, specifically analyzing how sustainable practices can influence a firm's long-term performance.
What are the central thematic fields covered?
The research explores environmental triggers, specific SSCM practices in purchasing and manufacturing, and the resulting impacts on cost, brand image, customer loyalty, and human resource management.
What is the primary research question?
The study asks how great the potential of SSCM is to impact a firm's competitiveness and whether it can be used by firms to gain a strategic advantage in the market.
Which methodology is employed?
The thesis utilizes a comprehensive review of existing scientific literature alongside a qualitative analysis of two specific practical corporate examples.
What topics are discussed in the main body?
The main body covers the definition of SSCM, theoretical impacts on various competitiveness metrics, influential firm-specific and external factors, and empirical evidence from industry leaders.
Which keywords best describe the document?
The core keywords include Sustainable Supply Chain Management (SSCM), corporate competitiveness, triple bottom line, cost savings, stakeholder pressure, and environmental strategy.
How does the study categorize competitiveness?
Competitiveness is analyzed through categories such as cost savings, image, customer loyalty, and human resources, acknowledging that these sources are often intertwined.
What do the case studies of Nike and Scandic Hotels reveal?
Both cases demonstrate that proactive SSCM implementation can lead to improved profitability, better public relations, and successful business turnarounds, highlighting the value of collaborative supplier relationships.
Why is the role of the "focal firm" highlighted?
The focal firm is responsible for governing the supply chain; its strategic mindset, company size, and ability to act as a first-mover are critical factors in realizing the potential of SSCM.
What is the author's final conclusion regarding SSCM's future?
The author concludes that while SSCM currently offers a competitive advantage, future market developments may eventually render it a standard necessity rather than a tool for differentiation.
- Quote paper
- Charlotte Palm (Author), 2016, The Potential of Sustainable Supply Chain Management for Corporate Competitiveness, Munich, GRIN Verlag, https://www.grin.com/document/376867
