Model Based Analysis of Innovation in Sustainable Supply Chains

Abstract

Innovation supports the development of Sustainable Supply Chains (SSCs) through Sustainability-Oriented Innovation (SOI) practices. This study aims to validate and further develop, through its practical application, a baseline SOI practices framework, which can be used as a benchmark model. While applying and validating this framework, several new, conceptually distinctive SOI practices were identified that were not included in the proposed baseline model. This led the authors to propose expanding the initial baseline model with a new category of “transversal” SOI practices, so that the expanded model provides a more comprehensive view of the mechanisms that foster innovation at SSCs. These “transversal” SOI practices are highly contingent on the adopting company’s traits and strategy, thus suggesting that they might be a major conduit through which its strategy is reflected in its SSCM. Besides their transversal and contingent nature, another key trait of the identified SOI practices is their integrated, dynamic, time-dependent, feedback-loop-based interrelationship. These findings suggest the potential effectiveness, for processes such as sustainability innovation that involve substantial time lags, to reposition top management focus and performance evaluation “upstream” in the causal chain. This potentially promising approach involves shifting focus from results (particularly short-term results) to its causes (processes, methods), and systematically managing the ensuing feedback loops.