From green to good supply chains:

Abstract

Purpose The purpose of this paper is to investigate to what extent dynamic capabilities (DCs) developed in the field of green supply chain management can foster social supply chain performance. In addition, the role of both human and stakeholder capital in enhancing this relationship is investigated. Design/methodology/approach Relying on the theoretical framework of the resource-based view, complemented with the DCs perspective, the authors hypothesize about the benefits of a firm’s environmental management capability for its social supply chain performance, as well as the moderating role of both human and stakeholder capital. Our contentions are tested through a multi-year database of socially responsible investments covering 1,177 multinational corporations. Findings The findings show that companies can sustain positive and superior social performance in their supply chain by leveraging DCs developed in the environmental field. This impact is further shown to be elevated in the presence of both human and stakeholder capital. Research limitations/implications This study represents a snapshot of the transformation process from environmentally to socially responsible supply chains. While the secondary data employed offers unique advantages, secondary data also have limitations. Social implications Developing environmental capabilities not only enhances companies’ profitability, but can also lead to better supply chains through improved labor conditions and well-being. Originality/value The authors’ shift from a company-centric to a sustainability-centric conceptualization of DCs can open up new opportunities to engage research, potentially leading to high-impact results in the field of sustainable supply chain management. In addition, the authors leverage a secondary data source not frequently utilized in prior work.