Drivers of sub-supplier social sustainability compliance: an emerging economy perspective

Venkatesh, V.G., Zhang, A. , Deakins, E. and Mani, V. (2020) Drivers of sub-supplier social sustainability compliance: an emerging economy perspective. Supply Chain Management: An International Journal, 25(6), pp. 655-677. (doi: 10.1108/SCM-07-2019-0251)

Abstract

Purpose: Tragic incidents such as the Rana Plaza building collapse call into question the value and effectiveness of supplier codes of conduct (SCC) used in multi-tier supply chains. This paper aims to investigate the barriers to sub-supplier compliance and the drivers from the perspective of suppliers that adopt a double agency role by complying with buyer-imposed SCC while managing sub-supplier compliance on behalf of the buyer. Design/methodology/approach: This research adopts a sequential, mixed-methods approach. The qualitative phase develops a conceptual model with the aid of the extant the literature and semi-structured interviews with 24 senior manufacturing professionals. The quantitative phase then uses a hierarchical regression analysis to test the conceptual model using survey data from 159 apparel suppliers based in India. Findings: The findings reveal that sub-supplier compliance is positively impacted by effective buyer–supplier governance and by the focal supplier having a strategic partnership with the sub-supplier. Conversely, price pressure on sub-suppliers adversely impacts their compliance, while institutional pressure on them to comply is generally ineffective. Research limitations/implications: The context of the study is limited to the garment industry in India. Practical implications: To improve SCC compliance rates, buyers and focal suppliers should actively develop strategic partnerships with selected upstream supply chain actors; should set a reasonable price across the supply chain; and, should include specific sub-supplier compliance requirements within the supply contract. The findings also suggest the need to develop social sustainability protocols that are cognisant of regional contexts. Originality/value: The absence of prior research on SCC implementation by sub-suppliers, this study represents a pioneering empirical study into such multi-tier sourcing arrangements. It provides strong support that sub-supplier governance arrangements differ from those typically found in the focal supplier layer. It also provides empirical evidence of the critical factors that encourage sub-supplier compliance within the apparel industry of a regionally developing economy.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Zhang, Dr Abraham
• Authors: Venkatesh, V.G., Zhang, A., Deakins, E., and Mani, V.
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Journal Name: Supply Chain Management: An International Journal
• Publisher: Emerald Group Publishing Ltd.
• ISSN: 1359-8546
• ISSN (Online): 1359-8546