The hidden side of sub-supplier firms' sustainability – an empirical analysis

Abstract

Purpose The purpose of this paper is to investigate how sub-suppliers decouple the implementation of sustainable supply management practices in supply chains, and what institutional logics permit these suppliers to do so. Design/methodology/approach Following a qualitative design, we conducted 23 in-depth semi-structured interviews with owners and managers of apparel sub-suppliers. To corroborate research findings, the views of owners and managers were triangulated by further interviewing 18 key representatives of wide-ranging institutional actors. Findings The findings suggest that owners and managers of sub-suppliers use two decoupling responses: (1) consensual strategy to compromise sustainability requirements (2) concealment strategy. In addition, this paper identifies multiple institutional types of conflicting logics: instrumental logic, legitimacy logic complexity and gaps in normative logic, which interplay amongst sub-suppliers whereby permit to decouple the implementation of supply management practices. Research limitations/implications While the current paper provides an early contribution from the perspectives of second-tier and third-tier suppliers, future research could be extended to include further upstream sub-suppliers and downstream tiers including the end consumers. Practical implications It is important for brand-owning retailers and first-tier suppliers to predict sub-suppliers' decoupling behaviour and conflicts for supply management practices implementation since they may present potential vulnerability for buyers and lead suppliers. Originality/value This study extends the application of institutional theory and contributes to the literature on extended suppliers' supply management practices in a developing country context, which is an under-researched area.

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