Sustainable supply chain management in SMEs: A multiple case study of the food industry

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Volume Title

School of Business | Master's thesis

Date

2019

Major/Subject

Mcode

Degree programme

Information and Service Management (ISM)

Language

en

Pages

110

Series

Abstract

In recent years sustainable supply chain management (SSCM) has become an increasingly important means of managing the negative environmental and social impacts of a firm’s operational activities. However, despite the fact that small and medium-sized enterprises (SMEs) make up a significant portion of the world’s employment and turnover, research on sustainable supply chain management has mainly examined the topic from the perspective of large corporations. This is alarming since tackling wicked problems such as climate change necessitates the active involvement of all businesses, regardless of their size. Furthermore, the challenge and complexity of sustainable supply chain management is neither exclusive to large companies, nor can it be assumed to be exactly the same for small businesses. Currently only two empirical studies evaluate the SSCM practices of small businesses as the focal buying firm. In order to address this sizeable research gap, this study aimed to identify the concrete practices adopted by SMEs as well as any contextual factors that frame this adoption, such as drivers and barriers. The research problem was approached through a qualitative multiple case study focusing on the processed food industry. Eight in-depth semi-structured interviews were conducted with representatives of small food businesses in Finland, Estonia, Germany, and the United Kingdom. Both data collection and analysis were guided by the conceptual framework, modified from the SSCM literature and created for the purposes of this study. Thematic coding was the primary method for identifying patterns and emergent themes in the data set. The findings suggest that prior research does not adequately account for the unique implementation of SSCM in small businesses in the food industry. Oftentimes practices (for example supplier selection and assessment) are informal and unsystematic, regardless of the importance attributed to them within the company. Similarly, a sustainability orientation is not necessarily exhibited with distinct management policies, as in larger firms. Small businesses place more emphasis on developing long-term, trusting relationships, particularly with their strategic partners. This trust and closeness can be a substitute for advanced SSCM practices, but also imbues the businesses with bargaining power. Finally, the findings also showed that considerable differences can be found amongst small businesses according to their size; larger small businesses faced fewer resource constraints and were more likely to implement multiple practices than smaller ones.

Description

Thesis advisor

Kuula, Markku

Keywords

supply chain management, sustainable supply chain management, SMEs, food industry

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