Sustainable value creation through information technology-enabled supply chains in emerging markets

Abstract

Purpose While the impact of information and communication technology (ICT) on logistics and supply chain management (SCM) is recently much discussed, this is hardly linked to emerging economies and base of the pyramid (BoP) settings. The paper aims as offering a framework linking different conceptual elements to each other for explaining how ICT enables sustainable value creation in emerging economy supply chains (SCs). Design/methodology/approach The paper builds on conceptual reasoning linking constructs from the different fields to each other. Findings Using conceptual reasoning linking constructs, six elements are identified: (1) SC flows, (2) BoP challenges and (3) ICT services as starting points, and environmental conditions driving sustainable value creation. The application of ICT within BoP SC operations drives the process of sustainable value creation by enabling new ways of (4) electronic business (e-business) transactions and (5) SSCM behaviors. This leads to (6) sustainable value for businesses using ICT applications and their respective stakeholders. Research limitations/implications Empirical testing by collecting field data in emerging economy contexts would be demanded to address the limitation of building on conceptual reasonings. Practical implications The framework provides various SC-related measures driving e-business value creation for managers of businesses, charity organizations and policymakers in emerging communities. Social implications Understanding the use of smartphones and other mobile devices for businesses and their supply chains in emerging markets would have wide ranging social implication addressed in the sustainable value creation of the framework offered. Originality/value The conceptual framework brings different elements together offering insights into ICT applications in BoP SCs. Linking SCM, ICT and BoP to each other is a novel contribution having wider implications for the future development of emerging economies.

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