Building Sustainability into the Value Co-creation in Supply Chains

This study investigates the sustainability initiatives implemented by various firms in a food supply chain in relation to the value creation activities. As there is increasing interest on how organizations, particularly focal firms, instill or drive sustainable efforts among partner firms in the supply chain, we aim to derive a deeper understanding of how both sustainability strategies and value propositions are inter-related. A qualitative, exploratory case study is employed to address various operations and initiatives evident among firms in a single supply chain in Australia to gain deeper insights into their activities and management approach; and also to understand the context and motivations for sustainability implementation. Our findings depict that sustainability provides both tangible and intangible benefits alongside with enhanced operations. While the rewards are deemed as marginal upstream, it is the downstream players that reap most of these benefits and enhanced reputation. It is well known that focal firms drive sustainable practices in their supply chains for strategic reasons and to enhance value. However the collaborative co-creation of value along the chain requires a focus on achieving both firm and stakeholder value propositions as well as optimal outcomes for all.