Does Stakeholder Pressure Matters in Adopting Sustainable Supply Chain Initiatives? Insights from Agro-Based Processing Industry

Abstract

Over the past few years, sustainable supply chain initiatives (SSCIs) have grabbed attention in the domestic, as well as global, marketplace of the food sector. Nowadays, the success of the entire food supply chain depends on the prosperity of farms, local communities, trader processors, and agro-based industries. Despite its importance, food processing industries (FPIs) are encountering various hurdles in achieving sustainable business goals due to the sheer number of potential barriers. Due to this reason, stakeholders are continuously pressuring the management of FPIs to embrace sustainable food processing activities. In light of this, the present study aims to apply a hybrid fuzzy analytical hierarchy process (F-AHP) framework, based on fuzzy technique for order preference by similarity to the ideal solution (F-TOPSIS), for analyzing the barriers and prioritizing the possible pathways in adopting the SSCIs for the development of FPIs. Based on the extensive review of literature and panel consultation with experienced experts, a total of seven main barriers, forty-two sub barriers, and five possible pathways as strategic tools were finalized and ranked. An empirical case investigation of a Pakistani-based food processing company has been taken to check the practical application of the proposed framework along with sensitivity analysis. The findings of this study reveal that the lack of sustainable outsourcing factors were found as the top-ranked barrier in implementing SSCIs, and the possible pathway to overcome this barrier is the appropriate management of the procurement cycle. The major contribution of this study is to establish a barriers prioritization framework and suggest possible pathways to overcome these barriers for the successful implementation of SSCIs. Finally, the theoretical, managerial, and policy implications are provided as a way forward for the concerned stakeholders and policymakers.