Unravelling Mickey Mouse: The Effect of Supply Chain Position and Organisational Slack on the Uneven Balance of Sustainability Dimensions

Abstract

This paper contributes to a less-studied area on how a firm’s position in the supply chain influences triple-bottom-line considerations in strategic decision making. We also contribute to previous research on a nuanced understanding of unabsorbed organisational slack as an antecedent to the triple-bottom-line dimensions of sustainability. The research data comprises survey data and financial reporting data from 508 manufacturing and trading firms operating in Finland, divided among four supply chain tiers. The economic dimension dominates the decision making on all tiers, followed by social and environmental considerations, resembling the shape of Mickey Mouse. Unabsorbed organisational slack is negatively related to the importance of economic considerations and positively related to environmental considerations. The results help firms in evaluating their position in terms of sustainability and in their redesigning efforts accordingly. The findings will also be useful in terms of promoting sustainability practices among supply chain members and policymakers in their practical efforts towards sustainable development.