INOM
EXAMENSARBETE DESIGN OCH PRODUKTFRAMTAGNING, AVANCERAD NIVÅ, 30 HP
STOCKHOLM SVERIGE 2021,
A strategy for sustainability
A Case Study of an Industrial Supplier
LINNEA DITTRICH
REBECCA WALLESDOTTER NILSSON
KTH
A Strategy for Sustainability
A case study of an industrial supplier
by
Linnea Dittrich
Rebecca Wallesdotter Nilsson
Master of Science Thesis TRITA-ITM-EX 2021:352 KTH Industrial Engineering and Management
Industrial Management SE-100 44 STOCKHOLM
En Strategi för Hållbarhet
En fallstudie för en industriell leverantör
av
Linnea Dittrich
Rebecca Wallesdotter Nilsson
Examensarbete TRITA-ITM-EX 2021:352 KTH Industriell teknik och management
Industriell ekonomi och organisation SE-100 44 STOCKHOLM
Master of Science Thesis TRITA-ITM-EX 2021:352
A Strategy for Sustainability
A Case study of an industrial supplier
Linnea Dittrich
Rebecca Wallesdotter Nilsson
Approved
2021-06-08
Examiner
Henrik Blomgren
Supervisor
Anna-Maria Nyquist
Commissioner
Anonymous
Contact person
- Abstract
The need to address sustainability related issues have increased during the last decades. This originates from increased awareness regarding climate change and the effects of sustainability in strategic agendas.
With this, businesses have experienced an accelerating pressure from stakeholders to adopt sustainability measures and actions into their everyday operations. The stakeholder pressure has also accelerated the use of reporting on sustainability in organizations. Though, companies are still not sure how to implement sustainability in current businesses. There is also a lack of studies looking into how companies can include sustainability in business strategies, considering sustainability in all three perspectives.
The study has the purpose of increasing the understanding of possible sustainability actions at the case company, and in the supply chain, to constitute the important elements of a sustainability strategy. To fulfil the purpose, the study aimed to answer the questions on what activities that could be included in a sustainability strategy of an industrial supplier that considers the entire supply chain, and which managerial aspects that are important to consider. The research has been conducted as a single case study supported by a literature review, semi structured interviews, and a benchmarking study. The literature review covers sustainability to define the researcher’s definition, sustainable supply chains and industrial sustainability strategies. The literature review presents two frameworks for sustainable strategy that has been the core of this study. The interviews have been conducted at the case company and with its suppliers and customers.
The conclusion of this study answers the research questions on sustainable activities to be included in a sustainability strategy and further managerial aspects that are necessary. For the first question, there is a four-step guide on the initiation of integrating sustainability in businesses. The first three steps conclude categories of areas that must be in place for the sustainability strategy to succeed. The fourth and last step concludes the elements to be included for a sustainability strategy, for an industrial supplier.
Further, to answer the sub research question, a managerial framework named ROME, is presented emphasizing the importance of Reporting, Owning, Measuring and Educating, in terms of sustainability.
The study concluded that using these tools will guide an industrial supplier in how to implement a sustainability strategy in a successful way. By implementing sustainability with these, the company could become a sustainable part of the supply chain, which both the company and the industry will benefit from.
Key-words
Sustainability, Sustainability strategy, Sustainable Supply chain, Industrial supplier, Sustainability activities
Examensarbete TRITA-ITM-EX 2021:352
En Strategi för Hållbarhet
En fallstudie för en industriell leverantör
Linnea Dittrich
Rebecca Wallesdotter Nilsson
Godkänt
2021-06-08
Examinator
Henrik Blomgren
Handledare
Anna-Maria Nyquist
Uppdragsgivare
Anonym
Kontaktperson
- Sammanfattning
Behovet av att ta itu med hållbarhetsrelaterade problem har ökat under de senaste decennierna.
Detta har sitt ursprung i en ökad medvetenhet kring klimatförändringar och effekterna av hållbarhet i strategiska frågor. Med detta som grund, har företag upplevt accelererade påtryckningar från intressenter att vidta hållbarhetsåtgärder i det dagliga arbetet. Påtryckningarna från intressenter har även lett till en accelerering kring användandet av hållbarhetsrapporter.
Trots detta är företag fortfarande osäkra på hur dom ska implementera hållbarhet i nuvarande verksamhet. Det saknas också studier där man kollar på hur företag kan inkludera hållbarhet i alla tre perspektiv i sina företagsstrategier.
Syftet med denna studie är att öka förståelsen för möjliga hållbarhetsåtgärder för ett fallstudieföretag, och likväl kring försörjningskedjan för att identifiera viktiga beståndsdelar i en hållbarhetsstrategi. För att uppfylla detta syfte så ska studien besvara frågor om vilka aktiviteter som kan inkluderas i en hållbarhetsstrategi hos en industriell leverantör, med hela försörjningskedjan i åtanke, samt vilka aspekter som är viktiga att överväga för en lyckad implementering av en hållbarhetsstrategi. Denna studie har utförts som en enskild fallstudie, med stöd av litteraturgranskningar, semistrukturerade intervjuer och en benchmarkingstudie.
Litteraturgranskningen behandlar ämnet hållbarhet, med definitioner, hållbara försörjningskedjor och industriella hållbarhetsstrategier. Litteraturgranskningen presenterar två ramverk inom hållbarhetsstrategi som också är grunden för denna studie. Intervjuerna har genomförts hos fallstudieföretaget samt med deras leverantörer och kunder.
Slutsatsen av denna studie besvarar forskningsfrågorna om hållbara aktiviteter som kan ingå i en hållbarhetsstrategi och vidare aspekter som är nödvändiga att se över. För den första frågan finns en guide i fyra steg om implementering av hållbarhet i företag. De tre första stegen inkluderar kategorier av områden som måste finnas på plats för att hållbarhetsstrategin ska lyckas. Det fjärde och sista steget inkluderar de element som kan ingå i en hållbarhetsstrategi, för en industriell leverantör. Vidare presenteras ett ramverk som heter ROME för att svara på den andra frågan och betonar vikten av att rapportera, äga, mäta och utbilda när det gäller hållbarhet.
Studien drog slutsatsen att användning av dessa verktyg kommer att vägleda en industriell leverantör i hur man implementerar en hållbarhetsstrategi på ett framgångsrikt sätt. Genom att implementera hållbarhet med dessa kan företaget bli en hållbar del av leveranskedjan, som både företaget och branschen kommer att dra nytta av.
Nyckelord
Hållbarhet, Hållbarhetsstrategi, Hållbara försörjningskedjor, Industriell leverantör, Hållbarhetsaktiviteter.
Acknowledgements
We would like to express our greatest thank you to the case company who initiated this study and put their trust in us to study this case. With this, we would also like to thank our supervisors at the case company who supported us throughout the process. Additionally, we would like to thank all the employees at the case company who took their time to have interviews with us and enriched the study. Further, we would like to express our greatest thank you to our supervisor at KTH, Anna Maria Nyquist, for her engagement with this master thesis. With her engagement, she guided us throughout the study, and supported us when needed. We would also like to thank our examiner at KTH, Henrik Blomgren, and all our fellow students for interactive seminars and support in the writing process.
Linnea Dittrich & Rebecca Wallesdotter Nilsson May 2021
Table of content
1. Introduction 1
1.1 Background 1
1.2 Problem Formulation 3
1.3 Purpose and research questions 3
1.4 Outline of the thesis 4
2. Literature review 5
2.1 Sustainability 5
2.1.1 Sustainable development 5
2.1.2 Sustainability in connection to the SDGs 7
2.1.3 Corporate activities for sustainability 8
2.2 Sustainable Supply Chains 9
2.2.1 Activities for supply chain sustainability 10
2.2.2 Barriers and drivers for sustainability in supply chains 11
2.3 Industrial Sustainability Strategies 11
2.3.1 Two frameworks for sustainability strategies 12
Framework A - a corporate sustainability strategy 12
Framework B - a framework for sustainable supply chain management 13
2.4 Literature review summary 14
3. Methodology 16
3.1 Research setting 16
3.2 Research design and approach 16
3.3 Research process 17
3.4 The case study 19
3.5 Data collection 20
3.6 Data analysis 22
3.7 Research quality 24
3.8 Ethical Considerations 25
4. Empirical findings 26
4.1 Interviews 26
4.1.1 Case company 27
Strategic direction 27
Operational performance 28
Value chain performance 29
Stakeholders 29
4.1.2 Customers and suppliers 30
Strategic direction 30
Operational performance 31
Value chain performance 31
Stakeholders 31
4.2 Annual and sustainability reports 31
5. Analysis and discussion 35
5.1 Key takeaways from interviews with case company, customers, and suppliers 35
5.1.1 Strategic direction 35
5.1.2 Operational performance 39
5.1.3 Value chain performance 42
5.1.4 Stakeholders 43
5.2 Benchmarking 44
6.3 Analysis summary 49
6. Conclusion 52
6.1 Limitations and Future research 53
6.1.1 Limitations 53
6.1.2 Future research 53
References 55
Appendix A - Interview guide 60
Appendix B - Quotes from case company interviews 62
Appendix C - Citat från benchmarking intervjuer 77
List of figures
Figure 1. Economic, social, and environmental benefits (Placet et al, 2005). 6 Figure 2. An overview of the 17 SDGs (United Nations, 2020b). 7 Figure 3. The SSCM framework by Carter and Rogers (2008). 14
Figure 4. The chosen research process. 18
Figure 5. The coding tree 23
Figure 6. Steps to constitute a sustainability strategy 50
Figure 7. The framework ROME. 51
List of tables
Table 1. Outline of the thesis. 4
Table 2. Table of interviews conducted 21
Table 3. The annual- and sustainability reports included in the benchmarking study 22
Abbreviations
CO2Carbon dioxide
NDA Non-Disclosure Agreement SDG Sustainable Development Goals GRI Global Reporting Index
CDP Carbon Disclosure Project SCM Supply Chain Management
SSCM Sustainable Supply Chain Management KPI Key Performance Index
HR Human Resources LCA Life Cycle Analysis R&D Research & Development SCM Supply Chain Management
1. Introduction
This chapter contains a descriptive background followed by a problem formulation connecting to the purpose of the study. Thereafter, the research questions are posed. The chapter ends by describing the expected contribution of the research to literature and theory.
1.1 Background
Sustainability is considered a complex and multidimensional issue (Ahi & Seracy, 2015). The need to address sustainability-related issues, such as climate change and decreased availability of materials, has become widely recognized as an essential issue for businesses (Ibid). During the last two decades there has been a steady increase in sustainable business activities (Shields & Schelleman, 2015) and an overall interest in sustainability (Mahajan &
Bose, 2018). The integration of sustainability activities in businesses has received more attention because of businesses’ market positioning interest and strategic agendas (Stewart et al, 2016). Further reasons for businesses to adopt sustainability into their strategies, using sustainable technologies or activities, may be competitive opportunities or to achieve compliance with regulations (Rosati & Faria, 2018; Adesanaya et al, 2020). By addressing sustainability, companies aim to achieve cost efficiencies and reputation effects (Shields &
Schelleman, 2015) with reputation being a valuable corporate asset (Kashmanian et al, 2012).
A driver for implementing sustainability activities are the business stakeholders adding pressure (Rosati & Faria, 2018; Adesanaya et al, 2020; Stewart et al, 2016), as well as more specifically adding pressure for the reporting of sustainability (Kashmanian, 2018). In fact, larger corporations have for long periods been under scrutiny by stakeholders regarding sustainable development due to the scale of their operations and thereby their possible impacts (Talbot et al, 2021). The stakeholders, adding pressure on companies to address their operations, in terms of environmental, economic, and societal aspects, could be customers, employees, suppliers, shareholders, communities and shareholder groups (Adesanaya et al, 2020). It is crucial for companies to satisfy their customers and meet requirements, as neglecting these may lead to a market loss (Adekiya, 2016). Considering this, companies must meet the needs and requirements of stakeholders (Barbosa et al, 2020).
Even though there is an increased interest in sustainability, companies have doubts and indecency in how to achieve sustainability (Mahajan & Bose, 2018). For many years, many business models have neglected sustainability-related issues (Shields & Schellerman, 2015).
One challenge with the concept of sustainability, as stated by Mahajan and Bose (2018), is that the results of a sustainability strategy often have a long timeframe. Further, as economic success is the foremost aim for companies, difficulties of interest arise when incorporating social and environmental aspects in strategies (Njoroge et al, 2019). To reach commitment to sustainability initiatives, management needs setting a vision, defining goals, and creating guidelines (Mahajan & Bose, 2018).
Furthermore, companies are also under pressure to reach sustainability goals set by the company, and to keep up with the global sustainable development goals (Nosratabadi et al, 2019). By using the sustainable development goals (SDGs) and integrating these in strategies and operations, organizations can play an essential role in the sustainable development challenge, and for the global agenda (Rosati & Faria, 2018). This as business participation is a key driver in achieving the global goals (UNGC, 2021). Moreover, addressing these challenges can enable companies to reach new customer segments and create more sustainable business models (Rosati & Faria, 2018).
Except for reaching new customer segments, Schaltegger et al (2012) states that a sustainability strategy can be successful when it guides the organization in sustainability-related requirements within areas of politics, economics, law, and society. A successful implementation of sustainability should as stated by Ukko et al (2019) consider an integration of sustainability in the business operations and be a part of the strategy. With a successful implementation of sustainability, fulfilling the demand on sustainable business, it is possible to increase the profit by marketing the business accordingly Kumar and Rahman (2015). This creates a competitive advantage and could increase profit through an increase in sales, employee retention, good reputation, and thereby an increase in profit Kumar and Rahman (2015).
Although, creating a sustainable business model is not something for a single organization to be working alone with (Danese et al, 2019). Hence, to achieve great results, businesses cannot ignore the actors in their supply network (Danese et al, 2019). As stated by Krause et al (2009), a company is only as sustainable as its supply chain. Further, a positive impact on businesses’ environmental, and economic performance could be achieved by extending sustainability activities to suppliers as doing so could be a competitive advantage (Gimenez
& Tachizawa 2012). Considering the influence of supply chain management (SCM) on an organization's economic, environmental, and social impacts, it becomes essential to consider SCM’s relation to sustainability (Ahi & Searcy, 2015). This has further put supply management in the central role of achieving companies’ objectives regarding sustainability (Adesanaya et al, 2020).
In connection to supply chain networks, previous research is lacking when it comes to addressing sustainability through a holistic lens, and rather focuses on separating social and environmental activities (Cantele & Zardini, 2020). Also, as a company is only as sustainable as its supply chain (Krause et al, 2009), businesses should address their supply network (Danese et al, 2019). Hence, to address sustainability and meet the demand of stakeholders on this matter (Rosati & Faria, 2018; Adesanaya et al, 2020; Stewart et al, 2016), it should be made through a holistic view, and as stated by Ahi and Seracy (2015) by considering the practice of supply chain management, as such practices imposes economic, environmental, and social impacts for organizations (Ahi & Seracy, 2015).
1.2 Problem Formulation
Given the ongoing transformation of business strategies and the integration of sustainability, the demand for sustainability strategies has emerged (Shields & Schellerman, 2015). This, as sustainability-related issues, has become an essential issue to address (Ahi & Seracy, 2015).
There is increased awareness and pressure from stakeholders and supply chain members to address sustainability and meeting those requirements are vital for an organization's survival.
However, there is a lack of knowledge on how organizations effectively can integrate sustainability in current business strategies (Cantele & Zardini, 2020; Mahajan & Bose, 2018) and how it can be integrated throughout the supply chain.
One way to guide organizations in the integration of sustainability in current businesses is through using the SDGs. However, companies are facing the challenge to align business strategies with the SDGs (Pedersen, 2018), and other sustainability related goals, which guides the direction of sustainability initiatives. Sustainability initiatives are needed to generate competitive advantage and improve financial performance (Adesanaya et al, 2020), which makes sustainability important to research and implement. Lastly, when addressing sustainability in organizations, there is a lack of studies addressing sustainability from a holistic perspective, equally addressing the economic, social and environmental perspective, since previous research treats sustainability as separate social and environmental issues (Cantele & Zardini, 2020). This also emphasizes the importance of considering the practice of supply chain management as such practices impose economic, environmental, and social impacts for organizations (Ahi & Seracy, 2015).
1.3 Purpose and research questions
The overarching purpose of this study is to advance the understanding of what sustainability initiatives can be integrated into a supply chain. A further purpose is to contribute to industrial suppliers’ ability to form a sustainability strategy in line with their sustainability practices within their supply chain. To achieve this purpose, the following research questions has been stated:
RQ1: What sustainability activities could be part of a successful supplier’s sustainability strategy when considering an entire supply chain?
RQ2: What aspects are necessary to consider for a successful implementation of a sustainability strategy, considering an industrial supplier?
1.4 Outline of the thesis
Here follows a presentation of the distribution of the report, see Table 1.
Table 1. Outline of the thesis.
Chapter 1 - Introduction The first chapter describes the subject of research through a problematization. Here, the reader also gets to take part in the purpose and research questions of the study.
Chapter 2 - Literature and Theory The literature and theory section aims to describe the current knowledge on the research area through secondary sources such as published academic articles. This contributes to the understanding of current know-how on the subject as well as concepts and frameworks. Here, all the literature has been reviewed through a critical lens.
Chapter 3 - Methodology
The chapter describes how the study has been performed in the form of research design, approach and process. Furthermore, the process of data collection and analysis is presented. Included is also how quality and ethics has been taken into consideration throughout the performed study.
Chapter 4 - Empirical findings The findings from the performed interviews with the case company, suppliers and customers, and results from the benchmarking study is presented in this chapter.
Chapter 5 - Analysis and
discussion The chapter contains a mix of analysis and discussion on the empirics from interviews and from the benchmarking study. Here, connection is made with the theory and literature section as results are analyzed.
Chapter 6 - Conclusion The final chapter contains a finalizing discussion on findings and proposed further studies. A conclusion is made where research questions are answered.
2. Literature review
The purpose of the study is to advance the understanding of where sustainability initiatives can be integrated into a supply chain, and to contribute to industrial suppliers’ ability to form a sustainability strategy, being in line with their sustainability practices. To fulfill this purpose the areas of sustainability, sustainable supply chains and industrial sustainability strategies have been researched as these areas have been identified by the researchers as important.
The literature review on sustainability explained the definition of sustainability chosen for this study. Further on, the area of sustainable development is introduced as it is connected to the area of sustainability, constituting, and introducing the three perspectives in sustainability.
Another important connection to sustainability, for this study, is the SDGs which connect to sustainability as it contributes to framing the researcher’s definition of sustainability and sustainable practices. Further, the literature review connected to sustainability also includes activities connected to sustainability to incorporate the practical perspective to the theoretical.
Literature revolving around sustainable supply chains is presented including a definition of sustainable supply chains, as a guiding foundation for the study. This is followed by literature on activities in sustainable supply chains enabling advancement in sustainability. Thereafter follows literature on barriers and drivers exist for such activities. Lastly, the area of sustainability strategies is reviewed in the form of two frameworks. The frameworks have been chosen as they have been reoccurring in literature about sustainability strategies and chosen to be suited for this specific study. Thereby, a framework of corporate sustainability is reviewed as well as a framework for sustainable supply chain management.
2.1 Sustainability
One definition of sustainability is “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” stated in the report “Our common future” written by the World Commission on Environment and Development (WCED, 1987). Which from now on also will constitute the definition that this paper will refer to when addressing sustainability. Regarding sustainability and firms, a sustainable firm uses terms of environmental, social, and economic outcomes when they express their purpose and vision (Stubbs & Cocklin, 2008), which is a starting point in establishing a strategy. Environment, economic and societal, constitute three aspects of sustainability (Jaramillo et al, 2018; Kashmanian et al, 2012; Long et al, 2019; Placet et al, 2005).
2.1.1 Sustainable development
Regarding sustainable development, Placet et al (2005) state that there are three principal goals of sustainability which consist of environmental stewardship, social responsibility, and economic prosperity. Firstly, environmental stewardship is about successfully managing
natural resources which also includes responsibility for protecting ecosystems as well as water and land (Placet et al, 2005). This dimension is referred to by Long et al (2019) as the ecological dimension, with activities that either prevent or cause environmental impacts such as recycling. The second principal goal about social responsibility, for an enterprise, refers to the responsibility to improve quality for the society, but also the equity and quality of life for their employees (Placet et al, 2005). In a sustainable strategy, Long et al (2019) further states that the social dimension is partly internal with aspects such as employee safety and health, and partly external with focus on external stakeholders and ethical actions within society.
Lastly, with the third principal goal about economic prosperity, the goal is to create economic opportunities (Placet et al, 2005). These opportunities should be both for the enterprise and the stakeholders (Placet et al, 2005). Further, Long et al (2019) explains the economic dimension as the dimension which constitutes activities needed to remain operating in the market. Without these activities it would not be possible to finance the company (Long et al, 2019).
In Figure 1, the three goals of sustainability and associated descriptions can be seen. This figure illustrates the three cornerstones of sustainable development: economic benefits, social benefits, and environmental benefits (Placet et al, 2005). To have a successful sustainability business strategy, these three should support and be interrelated with each other (Placet et al, 2005).
Figure 1. The relations between economic benefits, social benefits, and environmental benefits (Placet et al, 2005).
Regarding sustainable development at the corporate level, Henry et al (2019) describes it as being able to balance social, environmental, and financial performance. Furthermore, Henry et al (2019) it is described that organizations nowadays should balance the three perspectives in the triple bottom line, not prioritizing one another. Though, a challenge for sustainability strategies is to equally recognize social, environmental, and economic sustainability (Schaltegger et al, 2012), as benefits for employees or environmental measures are often seen as unnecessary and costly (Placet et al, 2005).
2.1.2 Sustainability in connection to the SDGs
As a part of the sustainability involvement in businesses and industries is the sustainable development. For companies to achieve such development, goals and targets are needed.
There are 17 Sustainable Development Goals (SDGs) stated in the UNs Agenda 2030 (United Nations, 2020a). The SDGs incorporate targets from all three sustainability perspectives:
economic, social, and environmental including sub-targets summing up to a total of 169 associated targets (United Nations, 2020a). The SDGs aim to guarantee human rights for all, by transforming the systems of politics, financials, and economics that the societies are governed by (United Nations, 2020a). The SDGs treat areas such as gender equality, good health and well-being, responsible consumption and production, and climate action (United Nations, 2020a). In Figure 3, all 17 sustainable development goals can be seen.
Figure 2. An overview of the 17 SDGs stated in UN Agenda 2030 (United Nations, 2020b).
The SGDs are, as of today, a common subject in business agendas. Integrating the SGDs into business strategies and operations can provide solutions to global sustainability challenges but also, for the organizations, generate a reinvention of value propositions, reaching new customer segments, and creating new collaborations (Rosati & Faria, 2019). One way of incorporating the SDGs in current business is through sustainability reporting which is a result of the increased market pressure for firms to present annual sustainability reports (Mattera & Alba Ruiz-Morales, 2020). Performing such reporting using the SDGs is the most widespread and commonly used method as of today (Mattera & Alba Ruiz-Morales, 2020).
To communicate and state how an organization addresses the SDGs in the business, sustainability reporting can be used, which is defined as the practice of reporting publicly on an organization’s economic, environmental, and social sustainability impacts (Rosati & Faria, 2019). Sustainability reporting is also considered to be an important driver for organizational sustainability adaption (Rosati & Faria, 2019). Considering this, such reports work well to measure, drive and communicate organizational SGD efforts and at the same time to set goals and manage the development towards sustainability (Rosati & Faria, 2019).
2.1.3 Corporate activities for sustainability
White (2009) states that companies have a responsibility to be ethical in their operations and make sure that their products as well as operations do not harm neither the environment nor humans. Though, sustainability is not just a responsibility but also an opportunity (White, 2009). The opportunities lie within cost reductions, meeting new customer needs and providing a greater value to shareholders and society in general (White, 2009). When market competition is present, a sustainability strategy will be useful since it will guide the organization in sustainability-related requirements within areas of politics, economics, law, and society (Schaltegger et al, 2012).
Typically, strategies within a business setting have a focus on cost reduction and the expansion of activities creating value (Placet et al, 2005). Though, these can enhance each other (Placet et al, 2005). One example of this is how lower production costs can be achieved by increasing resource productivity with waste reduction and material being more efficiently used (Placet et al, 2005). Kumar and Rahman (2015) state how companies fulfilling the demand on performing sustainable business can successfully market their business accordingly which is to be considered as a competitive advantage leading to an increase in sales, employee retention, good reputation, and thereby an increase in profit. Further, Placet et al (2005) argue that it is possible for a firm to improve its chances to site new facilities in developing countries if they have a proven record of environmental compliance. Therewith would they also increase their operations that generate revenue (Placet et al, 2005).
Furthermore, Ukko et al (2019) states that sustainability must be integrated in the business operations and be a part of the strategy, this as sustainability as a concept is both far reaching and complex. A business strategy with a fragmented or disconnected sustainability approach will conceal many opportunities, in which the company could have created benefits for the society (Murthy, 2012). Besides, White (2009) states that rather than use sustainability as an additional activity, the key is to integrate sustainability into the business.
For organizations to introduce and frame the construct of sustainability, sustainability literature states that top managers are crucial (Tollin & Vej, 2012; Mahajan & Bose, 2018).
As stated by Kashmanian et al (2012), the top segment of management at a firm establishes priorities, sets directions, allocates resources, approves projects, and influences the corporate culture. Furthermore, as stated by Schaltegger (2012), the management of a firm realizes
different activities based on decisions connected to the organization’s vision and strategies which influence the organizational development and shape the business model. This includes setting a vision accounting for the forces affecting the firm's future to ensure that the firm stays on track to achieve the set goals (Kashmanian et al, 2012). Hence, the management's decisions are crucial as neglecting issues related to society and the environment will prevent sustainable development, making sustainability strategies vital for a firm's sustainable development (Schaltegger, 2012). Therefore, top management can engage with the firm sustainability managers on a routine to, as Kashmanian et al (2012) called it, “set the tone at the top''.
In 2010, Haugh and Talwar published an article about integrating and embedding sustainability across corporations. This is a rather interesting subject of research as organizations are to pursue more sustainable practices although an understanding of sustainability amongst employees is non-existing. For employees in large corporations to gain knowledge regarding sustainability, Haugh and Talwar recommend further consideration of the following four aspects. (Haugh & Talwar, 2010)
Firstly, knowledge regarding sustainability should be considered company-wide not being a necessity only for managers and leaders, but for all employees. Secondly, methods used for raising awareness need to be spread across the whole of organizations being cross-functional.
Thirdly, as employee knowledge regarding sustainability increases so does their interest and commitment for sustainability, thereby integration of sustainability should include technical and action learning opportunities. Fourthly, to integrate sustainability in long term strategies, the learning should include opportunities for social learning. (Haugh & Talwar, 2010)
2.2 Sustainable Supply Chains
The supply chain operations in businesses, sustainable supply chain management, from now on referred to as SSCM, is defined by Carter and Rogers (2008) as “The strategic, transparent integration and achievement of an organization’s social, environmental, and economic goals in the systemic coordination of key inter-organizational business processes for improving the long-term economic performance of the individual company and its supply chains''. Another definition by Seuring and Müller (2008) is that SSCM is “The management of material, information and capital flow as well as cooperation among companies along the supply chain while taking goals from all three dimensions of sustainable development, i.e., economic, environmental and social, into account which are derived from customer and stakeholder requirements''. Each company has a value chain, which is a subset from its supply chain (McGee, 2014), further explained in section 2.2.1.
Reconnecting to the definitions by Carter and Rodgers (2008) and Seuring and Müller (2008), Kumar and Rahman (2015) state that the sustainability regarding supply chains is divided by literature into the three perspectives environmental, economic, and social as the concept has its foundation in the triple bottom line by Elkington (1994) which is the foundation of all three definitions. For a supply chain to be considered sustainable it needs to consider
environmental and social aspects and at the same time hold the capabilities to produce and deliver products in an economic way (Kumar & Rahman, 2015).
One key area of research in the field of supply chain management over the last three decades is the sustainability impact that businesses generate (Graham, 2020). The environmental aspect of the supply chain, often referred to as environmental supply chain management considering environmental impacts in supply chain practices (Graham, 2020). This, through the functions of purchasing, logistics, material management, manufacturing, and disposal (Côté et al, 2008). The economical supply chain is, as stated by Kumar and Rahman (2015),
“one that enables a firm to timely deliver a product of the best possible quality at least possible cost”. This includes indicators which are the utilization of assets, reducing resource usage, reducing costs, late deliveries, and minimum quality-based rejection (Kumar &
Rahman, 2015). The indicators of the social aspect of sustainable supply chains are, amongst others, working conditions, career opportunities, minority-related issues, and the difficulties regarding poverty (Kumar & Rahman, 2015).
2.2.1 Activities for supply chain sustainability
There are many ways in which a company can engage within their supply chain to manage risks as companies advance in sustainability. Examples of such activities could be:
- Improving understanding of its supply chain and associated environmental impacts.
- Setting of expectations for its suppliers.
- Monitoring and evaluating supplier environmental performance and conformance to/compliance with its expectations/requirements.
- Engaging with suppliers to build their capacity and capability to improve their performance.
- Driving improvements through use of various tools and strategies.
- Integrating sustainability across its supply chain. (Kashmanian, 2018)
It can be highly rewarding to advance sustainability within a supply chain, as the supply chain of a company has a close connection to the company's success and growth. One key strategy to be able to advance through these key elements is to engage with suppliers and integrate sustainability throughout the supply chain. To further integrate sustainability in a company’s supply chain, the use of supplier codes of conduct is widespread. A supplier code of conduct is a set of guidelines where one can state expectations and requirements. A company can use such standards to engage with their suppliers. When the supplier code of conducts first occurred, they were focusing on labor related issues, though as the use of them has grown so has the content within them, as they now also focus on environmental issues.
(Kashmanian, 2018)
Further, to be able to verify if suppliers meet the expectation stated in the signed code of conduct, other tools and actions can be used. These tools and actions can be supplier audits, monitoring and self-assessments, supplier performance scorecards, collaboration for
leveraging resources and transparency to publicly disclose supply chain information. To further increase transparency, companies can incorporate elements such as mapping of supply chain, tracing material flows, achieve commodity/product certification, report publicly on suppliers and set public goals for supply chain including reports of made progress.
(Kashmanian, 2018)
2.2.2 Barriers and drivers for sustainability in supply chains
To achieve a successful sustainability adoption in supply chain practices, it is important to consider the factors that act as barriers and which ones that support such development (Seuring & Müller, 2008). In the research performed by Seuring and Müller (2008) higher costs, coordination effort and complexity and insufficient or missing communication were frequently mentioned barriers. The supporting factors mentioned by Seuring and Müller (2008) also relate to the same aspects which are communicating, monitoring, evaluating, reporting and the use of sanctions.
Kumar and Rahman (2015) state that regulatory bodies, consumer groups, and competitors are the external factors that influence such practice the most. This influence can be expressed in different forms such as the threat to reputation, penalties, and a fear of loss of business (Kumar & Rahman, 2015). Carter and Rodgers (2008) state that incorporating sustainability practices will increase as energy costs continuously rise, pressure from customer groups increase because of more transparent supply chains, and the holistic view of costs and benefits regarding social and environmental projects increase within firms. One main barrier is the knowledge gap which can be located either in the organization or at partners in the supply chain (Kumar & Rahman, 2015). Resistance in the organization, from employees and partners is another barrier (Kumar & Rahman, 2015). Regarding the partners in the supply chain, barriers can occur due to the lack of interest and resources to develop sustainable practices (Kumar & Rahman, 2015).
The driving factors of supply chain management are referred to as triggers in the conceptual framework posed by Seuring and Müller (2008). The pressure on having sustainable practices for a supply chain comes from government, customers, and other stakeholders (Seuring &
Müller, 2008). Pressures and incentives that drive sustainable supply chains were concluded by Seuring and Müller (2008) as legal demands and regulations, customer demands, response to stakeholders, competitive advantage, environmental and social pressure groups, and reputation loss. Drivers are defined by Kumar and Rahman (2015) as factors that initiate a process and help to develop commitment. Another factor that drives companies to incorporate sustainability in their business strategy is the benefits including new market opportunities, customer satisfaction and premium pricing (Kumar & Rahman, 2015).
2.3 Industrial Sustainability Strategies
A sustainability business strategy is a strategy of a firm's activities, goals, and planning, where environmental, economic, and social aims are integrated (Long et al, 2019).
Furthermore, Ukko et al (2019) states that a sustainability strategy is a strategy where the business operations are integrating sustainable development principles. With this, the aim is to create long-term value for both the firm and stakeholders, as well as for the wider society (Long et al, 2019). This entails that the aim is to balance social, environmental, and economic needs from both society and the firm (Saunila et al, 2019), for all activities (Barbosa et al, 2020). To achieve this, the strategy should be expressed and executed in such a way that the current needs of the firm and stakeholders are met, but at the same time, the resources that will be needed in the future are protected and sustained (Long et al, 2019).
2.3.1 Two frameworks for sustainability strategies
Here follows two frameworks, Framework A and Framework B, which constitutes strategies regarding sustainability for organizations.
Framework A - a corporate sustainability strategy
Kashmanian et al (2012) discuss elements of corporate sustainability strategy which can be divided into four categories. These are Set strategic direction, improve operational performance, improve value chain performance, relate effectively to internal and external stakeholders (Kashmanian et al, 2012).
First category is about aligning the company's overall business strategy with sustainability strategy, setting a strategic direction (Kashmanian et al, 2012). Setting a strategic direction is crucial for a company to maximize its effectiveness (Kashmanian et al, 2012). Furthermore, the company should be distinct on how the overall business strategy is affected by the sustainability goals and how they contribute (Kashmanian et al, 2012). How these connect with each other and can be measured is set and communicated by top-level management (Kashmanian et al, 2012).
Elements within this category are (Kashmanian et al, 2012):
- Provide top management leadership
- Establish a publicly available sustainability policy
- Identify and respond to emerging sustainability challenges - Create capacity for transformational innovation
- Plan for long-term sustainability
The second category is about aligning the company's environmental performance strategies and management systems, improving operational performance (Kashmanian et al, 2012).
Corporate functions such as R&D, marketing, operations, and strategic planning, should address certain key sustainability management functions (Kashmanian et al, 2012).
Elements within this category are (Kashmanian et al, 2012):
- Enhance awareness and engage employees - Develop metrics for sustainability
- Establish facility sustainability standards - Understand the landscape
The third category is about the company acknowledging the amplitude of their environmental footprint, improving value chain performance (Kashmanian et al, 2012). With this, also the width of the sustainability strategy will be recognized (Kashmanian et al, 2012). As stated by Jaramillo et al (2018) one barrier to overcome when implementing sustainability is the lack of awareness regarding the business impact on sustainability. Integration of sustainability in the value chain takes place when the company integrates sustainability across its different business functions (Kashmanian et al, 2012). A company must access the value chain and understand how each part contributes to the overall footprint and prioritize sustainability activities to reduce its footprint and be sustainable (Kashmanian et al, 2012). Though, as stated by Kashmanian et al (2012) there are different abilities for companies to influence decisions regarding sustainability within their value chain. A company can use different measurement tools such as carbon foot printing and life-cycle assessment to understand and recognize its value chain and which areas to prioritize (Kashmanian et al, 2012).
Elements within this category are (Kashmanian et al, 2012):
- Assist suppliers in becoming more sustainable
- Improve products and assist customers in reducing environmental impacts
The fourth category is about recognizing the fact that the sustainability strategy will benefit from not only being internal but rather relate to both internal and external stakeholders effectively (Kashmanian et al, 2012). Building strong relationships with stakeholders and effectively engaging with each other makes the company more up to date with information, expectations as well as emerging issues (Kashmanian et al, 2012). Further, Kashmanian et al (2012) states that these relationships are an opportunity for companies to inform about their environmental priorities.
Elements within this category are (Kashmanian et al, 2012):
- Set publicly available sustainability goals
- Report publicly on progress towards sustainability goals and sustainability strategy - Partner with local communities
- Partner with non-governmental organizations - Collaborate with other companies
Framework B - a framework for sustainable supply chain management
Carter and Rodgers (2008) conceptualize the practices of SSCM constituting a framework based on the triple bottom line by Elkington (1994), see Figure 3. Here, four facets are identified as literature on the subject was reviewed, these four were significant in the reviewed literature (Carter & Rodgers, 2008). The four facets are strategy, organizational culture, risk management, and transparency (Carter & Easton, 2011; Carter & Rodgers, 2008). Risk management which is defined by Carter and Rodgers as a firm's ability to understand and manage economic, environmental, and social risks in the supply chain.Thereafter is transparency which includes communicating with stakeholders and ensuring traceability and visibility in both up-and downstream operations (Carter & Easton, 2011;
Carter & Rodgers, 2008).
Furthermore, strategy needs to be taken into consideration since the organizational sustainability initiatives need to align with the business strategy (Carter & Rodgers, 2008).
This includes holistically and purposefully identifying initiatives in SCCM that are aligned with overall strategy (Carter & Easton, 2011; Carter & Rodgers, 2008). Lastly, culture is included since the organizational culture is deeply rooted including high ethical standards with respect for society and environment (Carter & Easton, 2011; Carter & Rodgers, 2008).
The conceptual framework can be applicable for management to investigate what is needed to develop SSCM practices in their organizations (Carter & Rodgers, 2008). Using the framework, Carter and Rodgers (2008) propose that firms that strategically undertake this practice incorporating all three components of the triple bottom line will achieve higher economic performance than firms that pursue only one or two of the three components.
Figure 3. The SSCM framework, for supply chains aiming towards sustainability by Carter and Rogers (2008).
To ensure sustainability regarding social and environmental activities, these need to belong to the intersection with the economic bottom line. If performing such activities economic advantages such as cost savings could arise in several areas. The first area regards material in the form of packaging, reuse, and disassembly which considers the product life cycle.
Another area is health and safety where costs are reduced regarding recruitment and labor turnover because of better working conditions and safer practices. The improvement of working conditions can also lead to increased motivation and productivity and thereby lower the costs of labor. Also, implementing certifications such as ISO 14000, which can be used to create an environmental management system, can lead to reduced costs, shorter lead times, and higher product quality. As implementing sustainable practices leads to new marketing possibilities, another benefit could be greater reputation and increased attraction from suppliers, customers, employees, and shareholders. (Carter & Rodgers, 2008)
2.4 Literature review summary
The literature review is aligned with the purpose and research question of this study. The overarching purpose is to advance the understanding of where sustainability initiatives can be integrated into a supply chain of an industrial supplier, and to contribute to the supplier’s ability to form a sustainability strategy in line with their sustainability practices within their supply chain. The research questions aim to answer what sustainability activities that could be a part of a successful supplier’s sustainability strategy when considering an entire supply chain, and what managerial aspects that are necessary to consider for a successful implementation of a sustainability strategy.
To achieve the purpose and reach answers to the questions the literature review has presented two frameworks, one for corporate sustainability and one for sustainable supply chain management. These two frameworks will constitute the foundation of the forthcoming analysis of this study. The first framework frames corporate sustainability using four categories which are Strategic direction, Operational performance, Value chain performance and Stakeholders. These four categories outline the areas to be investigated in terms of corporate sustainability in this research.
Further, the four categories include elements to consider for a sustainability strategy. These are elements such as, Top management leadership, Awareness and engagement, Metrics, Facility standards, Assist suppliers and customers, Sustainability goals, Sustainability challenges and Report publicly. The second framework regarding sustainable supply chain management emphasizes the importance of the three perspectives of sustainability:
environmental, social, and economic, in this study. Further, the framework includes facets which are Strategy, emphasizing the integration of sustainability in strategies, Organizational culture, pointing out the importance of Values and ethics, Risk management, emphasizing sustainability to be risk managing for organizations and lastly transparency, showing importance of traceability and Stakeholder management.
3. Methodology
This chapter describes the methodology for the study using motivating factors behind methods of choice. First, the research setting, and research design and approach is presented.
Thereafter, the research process and case study are presented where connections are made to the research purpose. This describes in general how posed research questions are to be answered as well as how a case study is applied in this research. Furthermore, the data collection and analysis are presented. The chapter is finalized with presenting quality and ethical considerations in the research.
3.1 Research setting
This study considers a company’s whose main business is providing large and small business customers with supplies in the manufacturing industry. At the time of the report, the company is at the starting point of including sustainability in the business where sustainability has had no or very little space on the agenda. Hence, this study was initiated as a starting point. More about the initiation of this case study can be read in section 3.4. Through incorporating and revising the strategy regarding sustainability, the company aims to integrate sustainability in the current business strategy.
The integration of sustainability considers the whole organization. The case study is performed at management level focusing on their main market which is Sweden. At the main market is also where the case company perceives the most pressure from customers on incorporating sustainable practices. Therefore, most of the interviewees from the case company are in the Swedish organization as the study focuses on the Swedish market and since the researchers are located in Sweden. This creates a possible geographical delimitation as laws, regulations and financials and other drivers may differ between countries. Hence, the results are mainly relevant for companies operating under similar conditions, facing similar problems of implementing sustainability throughout their supply chain.
3.2 Research design and approach
Saunders et al (2015) describes the research design as the plan of how to answer the research questions and fulfill the purpose of the study and to ensure good research quality. This is further described by Yin (2003) to be the logical plan of how to proceed from the initiation of research questions to the end of the study in a conclusion. This study was conducted as a case study, which is a beneficial method to capture the complexity of a phenomenon (Blomkvist and Hallin, 2015). The case study is further explained in section 3.4. Through the case study, qualitative data for this research project was gathered. Qualitative methods could help researchers gather in-depth data for the phenomenon to be studied (Watkins, 2018). Hence, such a method was decided upon as this would allow the researchers to gather in-depth data from different qualitative data sources.
This study has been conducted using exploratory research, which is suitable when assessing a specific matter or phenomena, with the aim of generating insights and creating knowledge (Saunders et al, 2007). This has been performed in this study as it aimed to generate insights and understanding of sustainable activities and managerial tools for an industrial supplier.
The exploratory research was considered fitting as this research aimed to create knowledge to provide a legitimate solution, as this research method would incorporate a large amount of data to be gathered, covering several aspects. One way of conducting exploratory research is by searching in literature (Saunders et al, 2007). In this study, to capture the complexity and generate valuable insights from several aspects, this was used together with the insights and observations, accessed through collaboration with the company.
The study has been conducted using an abductive approach. This is a combination of the inductive approach and the deductive approach (Saunders et al, 2015). In an inductive approach, the researcher gathers data to imply patterns and theoretical concepts (Bhattacherjee, 2012). In a deductive approach, the researcher gathers new empirical data to test the patterns and concepts that already exist within the theory (Bhattacherjee, 2012). One can distinguish these research approaches with inductive being referred to as theory-building research and deductive as theory-testing research, with testing referring to improve, refine and extend (Bhattacherjee, 2012). Hence, this approach, combining both inductive and deductive elements allowed for the possibility to evaluate gathered theory and empirics continuously and for theory to confirm data and vice versa. Using this nonlinear process, allowed for justification of empirics gathered along the case study, which were helpful when combining theory and field studies, aiming to address complexity of a phenomenon.
3.3 Research process
The research process for this qualitative study has been based on the 4-phase model by Blomkvist and Hallin (2015) which has been developed for degree projects. The model divides the research in four phases further consisting of prototypes. The model describes an iterative process since the stages in the model are initiated with a revision of earlier prototypes. The model including phases, prototypes and feedback loops are visualized in Figure 4. This process was applied for the study during a 20-week period, constituting a time delimitation.
Figure 4. The chosen research process, the 4-phase model by Blomkvist & Hallin (2015).
The first phase was initiated by the case company presenting the problem which was then connected to research areas. Thereafter, extensive background research was conducted regarding the case company, the industry of the case company and the scientific areas of the topic. During this phase, the first prototype was starting to form which consists of a problematization including background, problem formulation, purpose, and research questions (Blomkvist & Hallin, 2015). The problematization was thereafter discussed in accordance with supervisors. The next step of the research process included the next prototype with a thesis proposal. This included a revision of the problematization as feedback was given. At this stage, the literature review was conducted on chosen areas according to the research scope. The research proposal was also complemented with an extensive methodology. As this was finalized, the first phase of the study was completed.
The second phase of the research proposal was first off revised in terms of smaller adjustments. Thereafter, the methodology was further extended, and the data collection process was initiated which is further described in section 3.5. This included creating the interview questions and planning for the upcoming interviews. Besides the interviews, a benchmarking study was conducted which included gathering data from annual and sustainability reports. Furthermore, the literature and theory section were analyzed in coherence with the collected data. Thereby, relations and themes were identified creating the foundation for the data analysis further described in section 3.6. As this phase was completed, the mid-term report was finalized as the prototype 2:1.
Phase three was initiated with a review of the midterm report together with feedback from supervisors and the case company. In this phase, the empiric section was established, and the analysis of the data took place. This phase also included reviewing the report in terms of structure, layout, and language. This means that the sectioning of the report was reviewed to create the most profitable set up. After the analysis and discussion was finalized, a conclusion and answers to the posed research questions were established. After a last review of the introduction chapter, the third phase was finalized. The fourth and last phase consisted of preparing the presentation material.
Further, here follows a description of how the research process is to be answering the research questions posed in the introductory chapter.
Research question 1: This research question aims to answer what activities that can be included in a sustainability strategy to constitute a sustainability strategy, considering a successful industrial supplier. The activities can be found along the entire supply chain of an industrial supplier. This research question is being answered through the interviews and benchmarking study as every part of the supply chain is being investigated in terms of looking into the current situation at the case company and influences from other companies of sustainable practices in these areas.
Research question 2: This research question answers which aspects that are necessary to consider for a successful implementation of a sustainability strategy. These aspects are investigated through the case company interviews and thereafter confirmed through literature and theory. Although these implications are customized for the specific case company, the generality in the formulation increases their applicability for other companies and organizations.
3.4 The case study
This study was initiated by the case company seeking help to investigate how they can incorporate sustainability in their current business. The case in this study refers to an industrial supplier, who will implement a sustainability business strategy. At the starting point of this study, the case company was immature within the field and were seeking guidance and expertise knowledge. As the case company was lacking within the field of sustainability on so many levels, the study was decided to be conducted as a case study with exploratory research, previously described in section 3.2.
A case study can be described as an investigation of either a topic or phenomenon where the investigation takes place within a real-life setting and is in-depth (Saunders et al, 2015).
Blomkvist and Hallin (2015) argue that a case study is suitable when aiming to capture the complexity of a problem since it allows the researchers to analyze all aspects of a phenomenon. Further, case studies have great potential for gathering empirical data which makes it a popular method within social science (Blomkvist & Hallin, 2015; Levy, 2008).
With a problem being investigated through in-depth research and real-life context, a case study can produce insights which can be valuable to both theory development and empirical descriptions (Eisenhardt, 1989; Saunders et al, 2015), making an appropriate fit with the study's purpose.
Further, the case company offered a somewhat foundation to build upon, though, the method for how to reach this and what to be included were floating. A case study has the character of involving several types of data collection, in different ways (Blomkvist & Hallin, 2015;
Eisenhardt, 1989) with methods such as interviews (Eisenhardt, 1989), making it appropriate
for this study and its initial position. This setup left room for the study to start off with a wide scope and with time narrowing it down to fulfill the purpose of the study and reach answers to the research questions. Additionally, the goal was to develop this paper in symbiosis with the case company’s requested product, a guidance for their sustainability strategy.
3.5 Data collection
The data collected in this study is only qualitative, excluding quantitative data from this research. The study contains interviews and a benchmarking study which are multiple techniques for data collection as, according to Bhattacherjee (2012) case research should include data collection through a combination of interviews and external documents. The external documents used in the benchmarking study were published annual- and sustainability reports.
The first choice of method was semi-structured interviews as it is useful for case studies (Saunders, et al, 2007). The interviews were conducted with selected managers at the case company and with a few sustainability managers of their customers and suppliers. Since the interviews were semi-structured, preparatory questions were prepared using the posed research questions and theory, see Appendix A. This ensured that questions of importance were asked giving coherence to the collected data. Using this semi structure of interviewing allows for follow up questions but still ensures to gather the right amount of data (Bryman &
Bell, 2013). This allows variation in interview questions and variation in the order of how questions are posed (Saunders et al, 2007), which made it possible for interviewers to ask spontaneous follow up questions.
The interviewed managers from the case company were chosen based on their position within the company, see Table 2, to facilitate data from several perspectives from different departments. This kind of set up for the interview enabled the researchers to obtain a wide perspective of the case. Thereby, the range of interview candidates varied from top management positions to lower managerial positions. Most of the interviewees from the case company were with people who originated from the Swedish organization since this department was the initiator to the case study, although other Nordic managers from other organizations were also included since they also possess valuable insights about the operations.
Further, customers and suppliers to the case company were interviewed to cover the value chain and gain knowledge about how to address sustainability, which enriched the data by incorporating perspectives from the industry where the case company acts, see Table 2. The interviewees chosen at the customer and supplier companies were sustainability directors or sustainability managers.
Table 2. Table of interviews conducted. The table contains four sections; One that states whether the interviews were held with a case company, customer, or supplier, one states the interview date, one states what business unit the interviewee works at, and one states the duration of the interview.
Company Date Business unit Duration
Case company 2021-01-27 Supply chain
management 55 min
Case company 2021-01-26
2021-03-23 Quality and environment 60 min 60 min
Case company 2021-02-23 Transport 55 min
Case company 2021-03-10 Managing director 30 min
Case company 2021-02-24 OEM 31 min
Case company 2021-02-26 Logistics 24 min
Case company 2021-02-26 Supply chain
management 53 min
Customer 2021-03-05 Sustainability 44 min
Case company 2021-03-08 Business development 46 min
Case company 2021-03-08 Supply chain
management
27 min
Case company 2021-03-09 Area management 22 min
Case company 2021-03-09 Store management 23 min
Case company 2021-03-17 Communication 37 min
Case company 2021-03-17 Production 44 min
Case company 2021-03-18 Warehousing 39 min
Case company 2021-03-18 Warehousing 38 min
Customer 2021-03-22 Sustainability 37 min
Customer 2021-03-23 Sustainability 25 min
Supplier 2021-03-29 Quality and EHS 20 min
Case company 2021-04-07 Communication 31 min
Case company 2021-04-08 HR 31 min
Case company 2021-04-08 Marketing 18 min
Supplier 2021-04-19 Sustainability 21 min
According to Bhattacherjee (2012) secondary data could be industry reports and internal documents. Given this, the second method for collecting qualitative data was to study the 11
annual and sustainability reports of companies included in the case company’s supply chain, see Table 3. Thereby, the sustainability work performed by the companies was mapped in categories based on areas in the value chain. This was executed to gain knowledge on current sustainability strategies used in the presence of the case company. Through this, data was collected on which SDGs the companies connect to, if they have any ISO certifications, and how they work with sustainability with customers, suppliers, in transport, in production etc.
See section 5.2 for all categories. These categories were also used in the analysis where these sections were analyzed using the literature review.
Table 3. The annual- and sustainability reports included in the benchmarking study. Here, company description, nature of the report, publication year and source can be found.
Company Report Year
Freight Sustainability 2019
Freight Sustainability 2019
Customer Sustainability 2020
Customer Annual and sustainability 2019
Customer Sustainable progress 2019
Customer Sustainability 2019
Customer Annual 2020
Supplier Sustainability 2019
Supplier Sustainability 2020
Supplier Sustainability 2019/2020
Supplier Annual 2019
3.6 Data analysis
The data collected through interviews was analyzed using a systematic method and a thematic approach. This approach has been chosen as it is found to be suitable for qualitative empirics. To analyze the collected data the researchers need to understand the collected data, categorize by coding, search for themes and relationships and reorganize (Saunders et al, 2007). The analysis started off by transcribing the interviews manually which had been audio recorded. This was done by only transcribing the sections that were relevant to the study to stay efficient (Bryman & Bell, 2013). This is the first step of the data analysis as the process is described by Saunders et al (2007).
The analysis continued with the search for recurring themes which constituted coding categories. The categories were chosen based on literature and theory in combination with the
