Sustainable Innovation in Supply Chain

Management within the Food Industry

Vidyasagar University

REPORT SUBMITTED BY
SUSHOVAN DHARA

BENGAL INSTITUTE OF
BUSINESS STUDIES

THIS REPORT IS SUBMITTED

FOR THE PARTIAL FULFILMENT
OF
MASTER OF BUSINESS
ADMINISTRATION FROM
VIDYASAGAR UNIVERSITY

Roll No:
 Registration No:

Sustainable Innovation in Supply Chain

Management within the Food Industry
Abstract
This study has a dual purpose: first, to systematically review the
literature regarding critical factors, practices, and performance of SSCM;
second, to construct an integrative model of SSCM in relation to the food
industry. The research conducted consisted of a study of literature
review and case-study analysis. The results of the literature review
suggest a hypothetical model to connect SSCM critical factors, practices
as well as performance. Case study: towards the sustainability of two
food supply chain leaders in Greece the case under consideration
includes two key players of the Greek food supply chain and aims to
explore all three practices derived from SSCM. New pioneering SSCM
practices in the Greek food industry are detected: daily conversation,
local sourcing, and HR investments. The result of this research proposes
a testable model that sheds light on SSCM in the food industry and is
based on a set of propositions.

Keywords: sustainable supply chain management, food industry,

literature review, case study, Greece.

1. Introduction
Over the past decades, sustainable supply chain management (SSCM)
has attracted much attention from academics and practitioners.
Globalization allowed processes to be dispersed around the world,
linking all supply chain members, from suppliers to end customers,
through information sharing and material and capital flows. As a result,
pressures from stakeholders, such as regulatory bodies, non-
governmental organizations (NGOs), community organizations,
suppliers, customers, and global competition, have prompted companies
to reconsider the balance of environmental, social and economic issues
in their supply chains and adopt sustainable supply chain management
practices. SSCM is defined as “the management of material, information
and capital flows 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”.

As in all business operations, SSCM tries to achieve clearly defined

performance goals. However, this is not an easy task due to the
complexity of supply chains, where individual members have different
and often conflicting goals from other members of the chain and hence
different performance measures. Different measures are not always
seen as positive regarding the entire chain’s performance, because a
single company’s outcomes may be harmful for other supply chain
members. Hence, the performance of the entire chain can only be
improved if the supply chain is conceptualized as a whole, outside the
boundaries of the firm level.

SSCM practices such as environmental purchasing and sustainable

packaging often have positive outcomes regarding supply chain
sustainability performance. The development of SSCM practices can
either be enabled or inhibited by various contingent factors. A variety of
industries face specific enabling or inhibiting factors from different
points of view based on their size, culture, location and supply chain
partners. Many researchers have studied SSCM in several sectors such as
manufacturing, the automotive industry, oil and gas, energy and the food
industry. The food industry is one of the most important sectors that
faces significant environmental, economic, social and political
challenges. This is due to the focus of public attention on food safety,
production practices, environmental issues such as deforestation,
climate change and energy consumption and social issues such as fair
wages and population growth. Furthermore, globalization, technological
advances, the use of agricultural chemicals and improved transportation
have simultaneously raised concerns regarding the sustainability of food
supply chains, since “changes at one stage in a supply chain will have
knock-on effects on other stages in the chain”.

Other critical issues are related to the measurement of supply chain

impacts, to supply chain collaboration and networking, to stakeholder
engagement, to sustainable development goals, etc. These challenges
confirm the differentiability of food supply chains, which lies upon
variability and risk factors due to the product-specific characteristics
such as perishability, seasonality in production, transportation, and
storage conditions. In addition, customers and firms have raised their
concerns regarding the origin of products, food safety, quality, and
sustainable production, including animal welfare and environmental
pressure.

Numerous studies have investigated the relationship between SSCM

practices and sustainability performance. However, limited work has
been conducted on the empirical investigation of industry and location
specific SSCM critical factors and practices and their relationship to
sustainability performance. The food industry is characterized by
enhanced supply chain relationships that aim at achieving high
sustainability performance. Earlier findings demonstrate that
environmentally friendly purchasing and sustainable packaging result in
improved economic and social performance. Direct and indirect impacts
between the dimensions of sustainability performance are also observed
in the literature. A positive relationship is found between corporate
social performance and financial performance. In the wine industry,
found that employee practices related to social sustainability result in
reduced costs; found that environmental practices have positive
environmental performance outcomes and indirect impacts on cost
performance based on quality improvements. The authors suggest an
alignment between goals that lead to improved environmental and
financial performance. On the other hand, highlights “the complexity of
sustainability impacts on performance and suggest that performance
benefits from sustainability programs may be difficult to recognize”.

With the above in mind, the aim of this study is to gain insight into the
SSCM critical factors and practices that are implemented in the food
industry and their possible relationship to sustainability performance.
To support the purpose of this research, two methods were used. A
literature review of the key SSCM topics and a case study to demonstrate
the experience of two leaders in SSCM. The aim of this research will be
achieved by addressing the following research questions (RQ):

RQ1: What are the factors that influence the adoption of SSCM practices
in the food industry?

RQ2: Which practices do companies in the food industry adopt to

develop SSCM?

RQ3: What measures can be used to measure SSCM performance in the

food industry?

2. Materials and Methods

The research methodology that was applied in this study is based on the
following steps:(i) a literature review; (ii) identification of the gaps; (iii)
concepts synthesis; and (iv) a case study.

2.1. Literature Review Method

The first reason an understanding of SSCM is still ambiguous is the
ambiguity in SSCM identification and conceptualization leading to a
literature review about the key sustainable supply chain management
topics dimensions (critical success factors, practices, and performance)
Although other reviews on the SSCM are published, this review is
needed to update and close any gap in informant of current knowledge
based on SSCM aspects. Search for related scientific articles: Used
keywords and authors' names in major bibliographical databases
&publishers (Scopus, Elsevier, Emerald, Springer, Wiley, Taylor &
Francis, springer, Sage Publications, and powered by Inderscience).
From the year 2000 to date. With respect to creating some consistency
in search process, the keywords used for searching were “sustainable
supply chain management”, “drivers or barriers or enablers or
motivators critical success factors of sscm” and “sustainable supply
chain management practices sustainability performance” and a
mandatory keyword considering the theme of paper also related to food
industry. She selected some authors while searching like Seuring S.,
Beske P., Gualandirs J., Govindan, K, Pagell M. etc. bcz they always
manifest the issues related to SSCM in their research work. Searching
secondary references was also performed. The review only includes
papers in peer-reviewed English scientific journals. While this work
primarily focuses on the food industry as an ontology application
domain, these articles are more than just applicable to that area. The
analysis also looked at articles from across a variety of fields.

The measures identified by the comprehensive literature review were

named and grouped based on the affinity method, which is utilized to
organize into categories common themes from a large amount of
information. In addition to the affinity method, the naming and grouping
of the constructs were based on interviews of five professionals of the
food industry and five academics.
2.2. Case Study Method

Taking into account that the analysis of a supply chain as a whole is a

complex and difficult task and in order to explore the SSCM critical
factors, practices and performance in the food industry, a case study was
selected as the most appropriate research method. This study
investigates a sustainable supply chain in order to capture the critical
factors of SSCM, the SSCM practices adopted and their influence on
sustainability performance. The research has been carried out in a
supply chain that is comprised of two SSCM leaders that operate in
Greece (Table 1). This is particularly useful, because it offers empirical
contributions within the Greek-business context, where SSCM literature
is limited. The names of the companies were not disclosed in order to
protect confidentiality and encourage the openness of responses. The
unit of analysis in this study is the food supply chain. The study
investigates the particular food supply chain, comprised of two
companies, and the findings will concern the supply chain as a whole.

Table 1
Sample characteristics.

Company Description Size/Ownership

Soft drinks and Multinational producer and distributor of

Large/Private
beverages (SB) soft drinks and beverages

Multinational distribution centre and

Super Market (SM) Large/Private
retailer

The authors propose a five-stage process for case studies that is used for
structuring this research. Figure 1 depicts the various research steps.
Figure 1

The five stages of the research process model.

1. 1. The first step is related to the research objective. This research

uses a single case study to investigate the critical factors that
influence companies in the food industry to implement SSCM
practices, which are these practices and how do they influence
sustainability performance.

2. The second step is related to the research instrument development.

A single case research design is used to guide this study and provide
an in-depth understanding of a complex phenomenon, through the
observation of actual practices in real-world settings, without any
kind of control or manipulation, considering both temporal and
 contextual dimensions. Case studies provide researchers with the
opportunity to closely analyze the data within a specific context. In
the authors define the case study research method “as an empirical
inquiry that investigates a contemporary phenomenon within its real-
life context; when the boundaries between phenomenon and context
are not clearly evident; and in which multiple sources of evidence are
used.” Furthermore, the detailed qualitative accounts often produced
in case studies not only help to explore or describe the data in real-life
environments but also help to explain the complexities of real-life
situations, which may not be captured through experimental or
survey research. For the reasons referred to above, a single case study
comprised by two leaders in the food industry was selected as the
most appropriate research method for this study. The firms are both
sustainability leaders in the Greek food industry and members of
multinational groups. The companies were selected as they have
received a series of recognitions regarding sustainability, such as
Environmental Awards, Supply Chain Sustainability Awards,
distinctions in CSR actions, etc. Furthermore, both companies play a
crucial role in the Greek industry, society, and economy. An interview
protocol was developed on the basis of the reviewed literature and
closely following previous research on SSCM.

3. The third step refers to the data analysis. The data analysis was
filtered and guided by the identified SSCM constructs.

3. Results and Discussion

This section begins with the literature review results, highlighting the
concepts of the sustainable supply chain management and continues
with the case study results of the food supply chain.
3.1. Literature Review Results

The results of the literature review are classified in three main SSCM
content categories, namely, critical factors, practices, and performance.

3.1.1. Critical Factors

In studying the literature, many terms are found to be used

interchangeably by researchers. For example, the factor top
management commitment is considered as enabler, driver, success
factor, critical factor, enabling factor, reason, motivator and firm-level
strength. In contrast, most researchers in the SSCM literature use the
term barrier when describing factors that inhibit SSCM, such as the lack
of top management commitment. As observed, there are several terms
to describe the same factor, indicating a lack of agreement on how these
terms should be used in SSCM research. Furthermore, these factors are
classified in more than one category, such as internal and external,
regulatory, resource, market and social, stakeholder, process or product.

The identified factors are named critical factors, including enablers,

drivers, success factors, motives as well as barriers and inhibiting
factors. More specifically, in this study critical factors are defined as the
factors that are responsible for enabling or inhibiting the successful
implementation of SSCM. This is the rationale for grouping the enablers,
drivers, success factors, motives, barriers and inhibiting factors in one
group. This approach is also applied in other studies that investigate
SSCM. A total of 83 critical factors were identified in the literature from
34 papers. The critical factors are classified into three groups. The first
group is related to firm-level critical factors (FLCF), the second to supply
chain-level critical factors (SCLCF) and the third to external critical
factors (ECF). All three groups of factors play a major role in the success
or failure of the implementation of SSCM.

Firm-Level Critical Factors (FLCF)

Sustainable supply chain management scholars have asserted that firms

should consider multiple factors that will enable or hinder the successful
implementation of SSCM practices. Several critical factors from various
industries and countries have been identified in the literature. Top
management commitment and support is considered the most common
FLCF. In the authors have highlighted that top management is
responsible for directing sustainability efforts also found that senior
corporate management’s attitude can foster plant-level sustainability
management. Indeed, the implementation of SSCM is an internal
decision that has to be supported at the firm level. From a supply chain-
level perspective have found that top management is a factor that drives
purchasing and supply management sustainability initiatives. On the
other hand, low or lack of top management commitment is considered
by many researchers as a barrier for the successful implementation of
SSCM. In the food industry have found that the most common critical
factors for SSCM adoption are the operational cost reduction and market
drivers, such as customer requirements, retailer pressure and brand
image and corporate reputation. Meeting customer demands,
expectations and requirements is one of the most cited critical factors
for the implementation of SSCM. It is widely accepted that customers are
the stakeholder group that influences most a company’s performance by
buying or rejecting a specific product. For example, there are customers
that desire to have environmentally friendly products and services and
they are willing to pay more for their demand. If companies fail to meet
this specific requirement, they may face customer boycotts. In the
authors identified knowledge and expertise regarding sustainability as a
driving force for developing an organization’s SSCM strategy, while
highlighted knowledge as a critical intangible asset for SSCM
implementation. Indeed, competences, knowledge and expertise are
crucial factors for the successful or unsuccessful implementation of
SSCM. The recent study has shown that companies that invest in human
capital with professional expertise and capabilities on sustainability
issues can enable the implementation of SSCM practices. In the same line
mentions that the lack of knowledge about sustainability issues hinders
the development of SSCM. Training and education are other key firm-
level critical factors that are closely related to sustainability
performance. Training and development about sustainability allow for
sustainability improvements in job performance and helps companies
minimize errors and waste. A lack of training and education, on the
other hand, hinders successful SSCM implementation. In the authors
found that despite the fact that social sustainability practices, including
participation and training of employees, indirectly impact firm
performance, they are positively related. More specifically, social
sustainability practices are considered quality-enablers in the food
sector. Reputation critical factors are related to brand name and
reputation, or minimization of the risk of negative publicity. The authors
highlight that corporate reputation and image are positively related to
eco-brand developments. Being proactive regarding sustainability issues
can bring a good reputation and image and offer easier market access
and develop a good network of suppliers and partners. In the authors
further explain that “organizations build a reputation of ‘good citizen’ by
promoting environmental and social sustainability in their supply chain.
This reputation improves legitimacy and access to key resources”. Firm-
level critical factors related to financial issues include cost savings from
operational and material efficiencies and the increased resource
utilization. On the opposite side, companies that desire to adopt SSCM
practices often struggle to overcome the high costs related to the
upstream supply chain greening or the development of supply chain
infrastructure, systems and processes.
Supply Chain-Level Critical Factors (SCLCF)

Supply chain-level CFs are closely linked to firm-level CFs. The literature
posits that firm level and supply chain-level alignment strongly affect
their successful integration. Information sharing has been identified as
one of the most important enablers to adopt SSCM practices. In the
authors suggest that information sharing enables the development of
new ideas regarding sustainability and enhances collaboration
throughout the supply chain. In the food industry, information sharing
among supply chain members is described as a novel form for
traceability and it is linked to improved supply chain performance. It
mentions that product traceability is strongly related to social
sustainability and ensures food safety. The limited or lack of information
and transparency on sustainability related issues, on the other hand, has
a negative impact on SSCM implementation. Trustful relationships and
commitment among supply chain partners is mentioned as a key factor
for implementing SSCM in the food industry. This is due to the criticality
of ingredient quality in the food production. According to this who
investigated sustainability in the Italian meat supply chain, building
trust amongst supply chain firms is a core component for implementing
exceptional supply chain practices, such as supplier collaboration, for
sustainability. On the contrary, highlights that poor supplier
commitment is one of the most common inhibiting factors. In the
authors found that the lack of trust and commitment between supply
chain members is an important obstacle, especially when customers
audit suppliers. Agreeing on a common SSCM strategy is another
important supply chain critical factor. The authors found that it is more
likely for companies that signal sustainability initiatives to their supply
chain partners and stakeholders to develop a common SSCM strategy
with them. Developing a common SSCM strategy ensures that all supply
chain partners pursue the same strategic goal. Indeed, policy sharing,
and the subsequent establishment of common goals, was found to be a
key factor for the implementation of SSCM practices such as
environmental collaboration. It found that pro-activity is a key factor
when pursuing an SSCM strategy in the food industry (e.g., organic food
or fair trade) since new processes and technologies need to be
established. The lack of agreement on an SSCM strategy hinders the
adoption of SSCM. Another factor that significantly affects the adoption
of SSCM practices is geographical distance. The findings show that when
geographical distance between suppliers increases, a negative impact is
observed on data gathering, assessment and collaboration. More
specifically found that when visiting distant farms or manufacturing
plants is required, significant travel effort and resources are needed and
as a result it is more difficult to check the partners’ operations and
processes. On the contrary, shorter supply chains often lead to the
successful implementation of sustainability practices.

External Critical Factors

External CFs originate from a variety of stakeholders, such as

government, customers, suppliers, media, non-governmental
organizations (NGOs), etc. Two of the most common external critical
factors for SSCM are the existence of regulatory frameworks and the
awareness of and compliance to government policy and legislations.
Pressure from governments in the form of legislation, such as energy
and waste directives, international regulations such as the UN
Declaration of Human rights and International Labour Organization
conventions, or the EU’s Sustainable Consumption, Production and
Sustainable Industrial Policy Action Plan are critical factors for the
implementation of SSCM in the food industry. Furthermore, pressure
from investors and interaction with NGOs and other external
stakeholders may exert pressure on companies to implement SSCM.
Pressures from investors, such as increased investor appeal on
sustainability criteria, are considered a driving force to initiate and
maintain SSCM. Food scares regarding pesticide residues, unhealthy
ingredients, chemical residues, etc., result in cautious measures. Other
studies have identified competitor’s pressure as a market factor that
may lead to the development of SSCM practices posit that the adoption
of SSCM practices by competitors motivates companies to develop SSCM.

Additional SSCM critical factors are identified in the literature but are
not included here, since the concentration in this paper is on those
factors that are relevant for sustainable supply chain management in the
food industry. A comprehensive list would have to include critical
factors such as innovativeness, technology and equipment, employee
involvement and traditional accounting methods, additional human
resources, personnel commitment, Industry 4.0 solutions, including the
Internet of Things (IoT), sustainability data and information, and the
supply chain cultural and language differences among others.

3.1.2. Practices

In supply chain management practice is defined as “a set of activities

undertaken in an organization to promote effective management of its
supply chain”. In combination with the definition of SSCM that has been
provided in the introduction, SSCM practice is defined as a set of
sustainability (i.e., economic, environmental and social) activities
undertaken in an organization in cooperation with each stakeholder, to
promote effective sustainability management of its supply chain. SSCM
practices have their origins in green supply chain management (GSCM).
It have examined the relationships between GSCM practices and
organizational performance in the Chinese manufacturing and
processing sectors. In their study they categorized GSCM practices into
four groups: (1) Internal environmental management; (2) External
GSCM practices; (3) Investment recovery; and (4) Eco-design. Their
results have shown that GSCM practices tend to have a positive
relationship with environmental and economic outcomes. The same
authors three years later used internal environmental management,
green purchasing, eco-design, cooperation with customers and
investment recovery to represent GSCM practices in their empirical
study. Ref. investigated the impact of GSCM practices on organizational
performance in the electrical and electronic sector. Their results indicate
that green procurement and green manufacturing practices have a
positive influence on environmental and financial performance. The
authors identified 47 different logistics social responsibility (LSR)
practices and developed a taxonomy of five categories including socially
responsible purchasing, sustainable transportation, reverse logistics,
sustainable packaging, and sustainable warehousing. The authors have
empirically investigated the influence of environmental collaboration
practices in the supply chain on environmental and manufacturing
performance. In five bundles of SSCM practices were identified through
case studies of ten exemplar firms: (1) commonalities, cognitions and
orientations; (2) ensuring supplier continuity; (3) re-conceptualize the
chain; (4) supply chain management practices including sourcing
management, operations and investments in human capital; and (5)
measurement. In their list of SSCM practices in the food industry,
included both social and environmental issues. More specifically, they
have identified four types of SSCM practices, namely, land management,
recycling, facility conservation and social practices, and tested their
relationships to environmental, quality and cost performance. Focusing
on a more social perspective of supply chains, developed a construct of
supplier socially responsible practices, including human rights, labour
practices, codes of conduct and social audits. In the authors suggest that
a positive effect on supply chain sustainability performance could be
achieved when firms adopt environmental purchasing and sustainable
packaging practices.

The concept of SSCM includes material, information, and capital flows;

cooperation across the supply chain; economic, environmental and
social performance; and customer and stakeholder requirements. The
extant body of literature portrays a variety of different SSCM practices,
but all have one central objective, namely, the improvement of supply
chain sustainability performance. A total of 96 SSCM practices were
identified in the literature from 21 papers. In order to conceptualize and
develop a sound construct based on the literature and on five practices
that cover the aspects of SSCM emerged: (1) strategic orientation; (2)
supply chain continuity; (3) collaboration; (4) risk management; and (5)
pro-activity. This set of practices emphasizes enhancing the
relationships among supply chain partners, the flow of goods and
information, and the sustainability aspects.

Despite the major aspects of SSCM that the above practices cover, it
should be highlighted that the set of practices that will be described
below is not considered complete. Several other practices that have
been discussed previously are investigated in the extant literature. In
this paper, the SSCM practices as proposed are used for two reasons: (1)
these practices are applied to food supply chains; and (2) the aim of this
paper is to further enhance the empirical content of these practices.

Strategic Orientation

Strategic orientation refers to the commitment of organizations to SCM,

as well as to their dedication to the Triple Bottom Line (TBL) concept. In
the authors proposed that, in order to create a sustainable supply chain,
a management orientation towards sustainability is required. The
balance of environmental, social and economic issues, i.e., the Triple
Bottom Line (TBL), plays a crucial role for companies that want to
implement a sustainability strategy, and support their decision making.
In SSCM practices in the automotive sector were investigated and found
that supply chain orientation and the TBL approach are the most
important practices for supply chain sustainability. Furthermore,
conducted a survey to investigate the impact of SSCM practices from
manufacturing companies in various sectors on dynamic capabilities and
enterprise performance. Their results showed a positive relationship
between supply chain strategic orientation and sustainability
performance. In the food industry found that TBL orientation, which is
driven by the consumer’s demand, the company’s motivation and the
stakeholders’ pressure, is addressing the sustainability needs of the food
industry.

Continuity

Supply chain continuity is related to the design and structure of the

supply chain network. Ensuring supplier continuity is identified as one
of the top sustainable supply chain management practices for exemplar
firms. Continuity has to do with the interaction of supply chain members
on a permanent base. The core elements of supply chain continuity are
the long-term relationships with supply chain partners, the supply chain
partner development and the partner selection. Long-term relationships
include trust and commitment among the supply chain members, which
endeavours information sharing and enhances the collaborative design
of products or processes. Supplier development refers to the
improvement in supplier environmental and social performance. In
traditional supply chain management, the development of suppliers is
found to be one of the best practices, which is also connected to
sustainability through mentoring approaches. In the food industry, for
example, the assistance and teaching of new farming methods or the
funding of costs related to more sustainable farming practices are
included in the development of partners. Partner selection is based on
their supply chain competency and their desire to develop sustainable
practices. Focusing on activities that enhance transparency, traceability,
supplier certification and decommunization is important for ensuring
supplier continuity. As described, organizations that are pursuing
continuity in their supply chains, “are trying to ensure that all members
of their chain not only stay in business, but that they do so in a manner
that allows them to thrive, reinvest, innovate and grow”. Furthermore,
focal firms are positively affected by supply chain continuity due to the
fact that the supply chain base is stable and capable. It also found a
positive relationship between supply chain continuity and sustainability
performance.
Collaboration

The importance of collaboration in supply chains has been recognized as

a key factor but also as a great challenge for supply chain success.
Collaboration goes beyond the traditional modus operandi between
organisations. First of all, collaboration as an SSCM practice is not
restricted only to new product development but also to the development
and enhancement of business processes. The literature suggests that
efficient and responsive supply chains rely on the creation of close and
long-term relationships and partnerships with various members of the
supply chain in order to increase the customer value. Joint development
is a key enabler for long-term partnerships. It defines it as the
collaborative development of new technologies, processes and products.
As point out, specific resources from each supply chain partner are
required in order to jointly address sustainability issues. The
implementation of collaborative development is based on knowledge
sharing in order to enable the development of sustainable products and
processes. Moreover, suppliers and customers can jointly plan the
decrease of their operations’ impact on the environment or support the
information exchange and the logistical and technical integration.
Collaboration is also characterized by enhanced communication—a very
important practice regarding the management of supply chain partners.
The quality of information sharing is critical in order to achieve
transparency in the supply chain. Transparency regarding the origin and
ingredients of food, the production methods, etc., is also important for
consumers. Despite the need for collaboration to achieve sustainable
supply chain management, significant barriers arise that are mainly due
to the complexity of supply chains. For example, found that the structure
of the food industry and the nature of products have a negative impact
on the intensity of collaboration and restrict it to the more tactical-
operational, tactical and logistical level.
Risk Management

Supply chain risk management includes the adoption of risk mitigation

practices to avoid exposure to risks. The adoption of standards and
certifications is identified as the most common risk management
practice in the literature. This is due to the fact that standards and
certifications such as ISO 9001 and ISO 14001 can be applied to a broad
range of sectors and they can also be managed (if companies wish) by
external consultants, who enhance the level of credibility. Monitoring of
specific suppliers in order to explore their needs and identify their
progress on specific goals is another practice identified within the risk
management category. As authors mentioned, individual monitoring of
suppliers is particularly important in food supply chains, where
traceability is a crucial factor to guarantee sustainable production.
Despite this fact, individual monitoring is not frequently addressed in
the extant literature. Pressure group management is another key
characteristic of risk management, which can affect the company’s
reputation or performance. It is pointed out that stakeholders such as
NGOs and government should not only be monitored but actively
engaged and managed through the implementation of specific practices
that address their pressures. It should be noted that the interests of a
company and its stakeholders do not always align, and their pressure is
seen from a negative perspective.

Proactivity

Proactivity refers to the actions taken by a company in order to control

and manage a specific situation regarding sustainability before it
happens, rather than responding to it after it happens. The literature
shows that Life Cycle Assessment (LCA) is the most common tool of the
pro-activity practice. LCA is used to measure the environmental impacts
of the life cycle of a product or service. While LCA is a commonly
discussed topic in the literature, found that exemplar firms are using life
cycle analysis at the basic level, and only to address the environmental
impacts of the chain and not the social ones. It highlights the necessity of
supply chain orientation for LCA. If supply chain orientation is not
implemented, the information between the supplier, buyer and focal
company will not be shared. As a result, joint contributions should be
made by all members of the supply chain. Stakeholder management is
found to be one of the most frequent practices in the literature. When
companies decide to adopt proactive practices, the management of
stakeholder requirements is acting as an important factor for
performance, products and processes improvement. Innovation is
another key factor of proactivity and it has been investigated in the field
of sustainable supply chain management literature. Innovation includes
the capability of a company to generate and implement new ideas and
develop or apply new technologies. It is a prerequisite for dynamic
market environments such as sustainable supply chain management. An
example of supply chain innovation is the adoption of new innovative
technologies, such as the Internet of Things or Industry 4.0 tools, which
make both internal and external processes more efficient and result in
improved sustainability performance. Learning from partners and
stakeholders is another important dimension of proactivity. The
acquisition of new knowledge is the key characteristic of learning.
Companies can learn from supply chain partners, local communities,
NGOs, government, researchers, etc. The authors showed that when
firms wish to implement a sustainability strategy, they should be pro-
active in the first steps of the product’s development and in its whole life
cycle. Overall, highlight that proactivity and commitment can only be
effective if companies achieve an alignment between business models
and environmental and social sustainability aspects. It further explains
that in sustainable food supply chains, such as organic or fair trade,
which are dynamic in nature and still young industries, proactive
measures are necessary, since many new processes and technologies are
under development.
3.1.3. Performance

Sustainability performance refers to how well an organisation achieves

its environmental, economic and social goals. Most studies in the
literature focus on the economic and environmental performance
aspects, whereas the social dimension and the integration of the three
sustainability dimensions are still lagging. However, the review revealed
a rising interest in studies that investigate the social dimension and the
combination of all three dimensions; however, more research is needed
in the field. The present section proposes sustainability performance as
a three-dimensional construct. A more detailed discussion of the
environmental, economic and social performance is provided below. In
total, 684 SSCM measures were identified from 55 papers, which were
grouped in the following three categories.

Environmental Performance

A wide variety of research papers has focused on the environmental

performance of supply chains. As argues, this can be explained due to
the fact that environmental issues have been on the research agenda for
many years. This could be further supported by the fact that, in many
countries, organizations are obliged to meet specific thresholds on their
environmental impacts; e.g., toxi-chemical releases. The most frequently
used measure is related to either the reduction or avoidance of
hazardous/harmful/toxic materials. The second most cited measure is
water consumption, followed by energy consumption, recycled
materials, Life Cycle Analysis (LCA) and environmental penalties. Energy
efficiency, air emissions and greenhouse gas emissions are also some of
the most cited measures in the literature.

A variety of other measures that appear less in the literature have

addressed themes such as waste, environmental management systems,
eco-design, biodiversity etc.
Economic Performance

Economic performance is typically the most important factor that all

companies are aiming to improve. Since the focus of this research is on
supply chain management, the economic dimension is an integral part.
In the context of SSCM, the comprehensive literature review shows that
economic issues were addressed in all the studied papers. At this point,
it should be mentioned that possible trade-offs between the three
sustainability dimensions can occur. Especially for the economic
dimension, economic incentives could be hidden behind a variety of
environmental and social measures. For example, economic
performance measures such as procurement costs might increase when
deciding to use environmentally friendly materials. The most frequent
measure regarding the economic performance is quality. Measures that
focus on quality may refer to the quality of products provided by
suppliers or to the quality of the production process. Sales, market share
and profit are the second most frequent measures, followed by delivery
time and customer satisfaction.

Other measures that appeared less in the literature include

responsiveness number of employees, transportation costs etc.

Social Performance

As mentioned before, previous studies have revealed that little research

has focused on the social performance of supply chains. The authors
argue that this could be due to the fact that social issues are frequently
hard to measure. The literature shows that only a few measures are
frequently used confirming the fact that little attention has been given to
the social dimension of SSCM. The most frequently used measure is
recordable accidents followed by training and education and labour
practices.
Other social issues that appeared in the literature include human rights,
local communities influence, fair trade, philanthropy etc. A recent study
has shed light on modern slavery in supply chains, a new area in the
agenda of SSCM that has gained a lot of attention lately.

Table 2 lists the proposed constructs described in, Section 3.1.1, Section
3.1.2 and Section 3.1.3, along with their definitions and supporting
literature.

Table 2
Proposed SSCM constructs, along with their definitions and supporting
literature.

Referen
Constructs Definitions
ce

SSCM Critical
Factors

Firm-level critical factors refer to internal factors that

firms should take into consideration for the successful
Firm-Level implementation of SSCM practices. Top management
Critical Factors commitment, customer demand, knowledge and
expertise, training and efficiency are some of the most
common firm-level critical factors for SSCM.

Supply chain-level critical factors are closely linked to

firm-level critical factors and refer to the supply chain’s
Supply Chain- motivational activities that promote the implementation
Level Critical of SSCM practices. Some of the most common supply
Factors chain-level critical factors identified in the literature are
information sharing, trust, supply chain strategy and
geographical distance.

External External factors refer to the external considerations that

 Referen
Constructs Definitions
ce

firms do not control but, should take into account for the
successful implementation of SSCM practices.
Government policy, international/national regulations,
Critical Factors
stakeholders, competitors, investors and food incidents
are identified as some of the most common in the SSCM
literature.

SSCM
practices

Supply chain collaboration is dealing with the design and

the government of supply chain activities as well as the
establishment and maintenance of long-term supply
Collaboration chain relationships. Collaboration allows the joint
development, the technical and logistical integration, the
enhanced communication and the knowledge and
information sharing among supply chain partners.

Supply chain continuity refers to the design and structure

of the supply chain network in order to achieve successful
interaction of supply chain members on a permanent
Continuity
base. Key characteristics include the long-term
relationships with supply chain partners, the partner
development and selection.

Strategic orientation refers to the commitment of

organizations to supply chain management, as well as to
Strategic
their dedication to the Triple Bottom Line (TBL) concept,
orientation
which promotes the balance of environmental, social and
economic issues.

Risk Supply chain risk management includes the adoption of

management risk mitigation practices to avoid exposure to risks. The
 Referen
Constructs Definitions
ce

adoption of standards and certifications, the monitoring

of supply chain partners and the engagement of
stakeholders are some of the key practices.

Proactivity refers to the actions taken by a company in

order to control and manage a specific situation
Pro-activity
regarding sustainability before it happens, rather than
responding to it after it happens.

SSCM
Performance

Economic performance refers to how well an organisation

achieves its economic goals. Productivity, delivery time,
product quality, sales & market share, customer loyalty,
Economic
flexibility, profit rates and investment yield are some of
the most frequently used indicators to measure economic
performance.

Environmental performance refers to how well an

organisation achieves its environmental goals.
Hazardous/harmful/toxic materials, compliance to
Environmental standards, energy, water, emissions, waste production,
environmental accidents and use of recycled materials,
are identified as the most common environmental
performance indicators.

Social Social performance refers to how well an organisation

achieves its social goals. Product safety, accident rate,
training rate, health and safety, employment
contribution, benefits, loyalty, turnover rate, corporate
image, human rights screening (suppliers and
contractors) and community support have been identified
 Referen
Constructs Definitions
ce

in the literature as some of the most common social

performance measures.

Figure 2

Figure 2
Proposed theoretical framework linking critical factors, practices, and
performance (based on the literature).

3.2. Case Study Results

The empirical results of the food supply chain case study reflect all the
SSCM constructs that have been presented in the theoretical framework.
In addition, some new “pioneering” SSCM practices emerged from the
data. In Section 3.2.1, the first research question is answered regarding
the critical factors for engagement and implementation of SSCM
practices. The second and third research questions are answered
in Section 3.2.2 and Section 3.2.3, by addressing which SSCM practices
are implemented and what measures can be used for SSCM performance
measurement in the food industry.

3.2.1. Critical Factors

Firm-Level Critical Factors (FLCF)

The commitment and support of top management is reported as

predominant firm-level critical factor for SSCM implementation. As
highlighted, “sustainability is seen as an integral part for the future of
our business. You cannot produce like there is no tomorrow, you
produce because you want tomorrow to exist” (CSR Manager, SB). SSCM
requires “proactive top management that understands that
sustainability is an organizational commitment”. Indeed, top
management is a critical firm-level factor for the promotion of SSCM and
its absence may act as an obstacle for SSCM adoption.

Customer-driven orientations, in order to meet customer demands and

needs, have been confirmed as critical factors of SSCM implementation,
by all the interviewees. Previous studies have found that customer
demands and requirements drive the development and implementation
of SSCM practices. For example, found that customer expectations are
some of the most important driving forces for SSCM implementation.
Similarly it have confirmed that customer demand and expectations are
market drivers for corporate supply chain responsibility. In other
words, adapting to what customers want is necessary for the
implementation of SSCM at all supply chain stages.
According to the managers and the companies’ records, expertise and
knowledge on environmental and social issues of supply chains is
required to implement SSCM practices. Knowledge about how suppliers
and other partners work regarding sustainability, is a critical SSCM
factor that exemplar firms are adopting to improve their entire supply
chains.

Employee training and development was also confirmed by both

companies as another important firm-level critical factor. All key
informants highlighted the continued efforts of their companies to offer
a variety of programs in order to improve employee satisfaction and
raise the sustainability awareness. Training and development can lead
to engagement in SSCM practices, which, as mentioned by the
interviewees, is a crucial part of the corporate strategy. It was evident by
both the participants and the companies’ records that training and
development programmes improve job performance and reduces errors
and waste.

Efficiency in operations and material management was mentioned by

the participants. Efficient energy management and electricity generated
from renewable energy sources were the top mentioned factors of SSCM.
Another element of efficiency is technology. Both companies exploit the
available technologies to improve and optimize operational processes.
This leads to cost savings and resource reduction and thus offers the
ability for new investment plans.

Supply Chain-Level Critical Factors (SCLCF)

The sampled supply chain is involved in traceability actions with their

suppliers. Previous literature suggests that traceability is a new form of
information sharing. There is a requirement for information sharing on
the living conditions of the animals, on the production of products, on
the materials used, the locality information, information related to
product labelling, etc. As reported, clear information about the products
and their ingredients are provided on the front and back of the
packages.

According to the interview data, the key to successful solutions to the

daily problems is trust. Trusted partnerships and long-term cooperation
build relationships of trust and confidence with suppliers. In this way,
both companies achieve their goals, while at the same time “pushing”
their suppliers to develop and improve as individuals. The same logic
applies to the customers as well. Several systems are applied in the
sampled companies, such as, compliance management system as well as
anti-corruption and antifraud systems. In general, both companies are
trying to create a climate of mutual trust among their stakeholders
(employees, customers, suppliers, local communities, etc.).

Both companies have managed to establish a common supply chain

strategy with their supply chain partners. The improvement in
environmental and social standards across the supply chain is in the
core element of the SSCM strategy. The organisations implement a
sustainability strategy in their partnerships that includes goal-oriented
actions. As reported, the suppliers are a crucial part of the supply chain,
and through continuous dialogue with them, the added value of the
products and services reducing one’s environmental footprint and
effects on society is enhanced. Geographical distance was not mentioned
by the participants. However, both companies use local sourcing in more
than 80% of their operations. This creates additional added value in the
local economy, with the indirect creation of jobs.

External Critical Factors

The interview data revealed that legislation requirements very often

force companies to transform their business by applying sustainable
practices; e.g., water saving. This is further identified in the secondary
data, where strong focus is given on information regarding the legal
penalties or fines for non-compliance with environmental and social
regulations. Information is also provided regarding the compliance to
European and national legislation on consumer products and the non-
promotion and communication to minors (aged under 18 years old). The
literature suggests that regulations and legislations can act as strong
driving forces for the implementation of SSCM practices. Examples, such
as the British Petroleum (BP) oil spill, have shown that there is as huge
negative impact on the supply chain economic performance, estimated
at around $90 billion, including civil and criminal penalties.

Furthermore, the trends of stakeholders undoubtedly constitute an

important pressure as they can also change a company’s strategy. For
example, an interviewee mentioned that when there was an intensive
debate about obesity, the company realized that it could not ignore it
and decided to develop new products for consumers who do not want to
get extra calories. In this way, the consumer had the choice of choosing
the suitable product regarding his/her wishes. The sampled companies
engage stakeholders in active dialogues throughout the year, to
determine and redesign their sustainability strategy and actions and
understand how to meet their needs and expectations. Stakeholder
management is critical for maintaining a healthy and sustainable
business. As declared with the CSR reports of the two companies and
corroborated by the interview data, producing a positive value for
stakeholders and creating the conditions for a healthy competitive
environment enhance sustainable development.

The risk of changing product quality after production is mentioned as a

key external critical factor for implementing SSCM practices. As
reported, a company makes significant investments in order to offer the
customer the right product, in the right package, at the right point of
sales and at the right price, with its primary concern being safety.
Another interviewee highlighted that the company is developing and
implementing systems, standards and practices to ensure food quality
and safety and avoid actual and reputational risks such as child labour.
3.2.2. Practices

The data analysis suggests the development of two main groups of

practices: the traditional SSCM practices and the pioneering SSCM
practices. The first group includes the SSCM practices as identified in the
literature, while the second group encompasses SSCM practices that are
adopted by leaders. The term “pioneering” is used only to describe these
practices in the Greek food industry context. In the following sections, a
description of both groups of practices is provided.

Traditional SSCM practices

 Collaboration

Collaborations with supply chain members such as suppliers and

customers as well as with a range of stakeholders such as NGOs and
other entities are identified as key practices that help both companies
and their supply chains to achieve sustainability goals. Long-term
collaborations and contact with suppliers and stakeholders create
relationships of trust and confidence. Development and improvement of
suppliers as individuals is another characteristic of collaboration that
emerged from the data. Joint development and training of suppliers is
found to add value in the supply chain management performance. The
data revealed that the companies are already deploying traceability
practices for specific products. In parallel, they both are in the process of
digital transformation, which will help them to increase supply chain
traceability, transparency, quality, speed and efficiency.
  Continuity

Practices regarding suppliers’ and external partners’ selection are

reported in the continuity category. According to an interviewee from
SB, “There are guiding principles for all suppliers which include a wide
range of requirements such as the confirmation that children are not
working at a supplier’s company”. SB is implementing a “continuous
development” approach, which deploys corrective actions to ensure that
all suppliers comply with the company’s environmental, social and
labour policy. Furthermore, the data suggest that partnering with
reliable suppliers, especially in quality and safety issues, is necessary for
a continuous relationship.

 Strategic orientation

As reported, both companies are engaged in strategic supply chain

management, which promotes the balance among environmental,
economic and social issues. The data reveal that an SSCM strategy was
already in place and three common characteristics were identified. First,
a continuous business model alignment with economic, environmental
and social issues is in place. For example, SB has re-designed a series of
their products towards reducing plastic in packaging and this resulted in
environmental and economic benefits, while at the same time allowed
the company to apply similar techniques to other products. This is
consistent with previous studies that found that alignment of
environmental, social and economic goals is needed for managerial
orientation towards sustainability. The second and third component is
that both companies treat suppliers as key strategic partners and focus
on strategic sustainability issues related to the local communities.

 Risk management
The implementation of management systems is used as a risk
management tool for both companies. Food quality management
systems (e.g., ISO 22000), environmental management systems (e.g.,
14001) and health and safety (OHASAS 18001) are identified as key risk
analysis tools. Furthermore, a strict supplier selection criteria system is
supporting the risk management practices along with supplier
monitoring through tactical inspections. Apart from the risk mitigation
outcomes, tactical inspections are a pre-requisite for the successful
interaction and long-term relationships among the supply chain
members.

 Proactivity

In this group of practices, the key component is to go beyond compliance

with current legislation requirements by engaging in more advanced
sustainable practices. Product innovation (e.g., products with reduced
calories) and process innovation especially in the logistics domain are
identified as key for SSCM. Supplier codes of conduct, including
environmental, health and safety, labour and social issues, as well as
partners’ coaching to adopt and implement SSCM practices are also
included in proactive practices. Finally, energy- and water-saving
practices and efficient fleet management are implemented to reduce the
negative outcomes. Another set of practices that is related to proactivity,
as stated by the CSR Manager of the SB and the Logistics Project
Manager of the SM, is employee welfare, human rights practices, and the
supporting actions for young people and local communities.

Pioneering SSCM Practices

 Conversation
Sustainability is part of the daily conversation in the two companies.
Discussions of noneconomic issues is shared across all departments. As
the CSR Manager of the SB company mentioned, “the basic principle in
our company is social and environmental responsibility in our daily
transactions”. Daily conversations about sustainability issues are part of
all decision-making processes in a way that all employees consider
social and/or environmental impacts of their decisions. As proposed,
“management orientation is evidenced by sustainability being part of the
day-to-day conversation”.

 Local sourcing

Local sourcing was evidenced by a focus on sourcing from Greek

suppliers in more than 80%. Clear sustainability benefits of local
sourcing include minimization of transport, increase of freshness and
contributions to environmental and social improvements.

 Investing in Human Resources

Investing in human resources is considered a key SSCM practice. As in

previous studies on sustainability leaders, the internal focus in this
sample is on employee investments. Both companies provided
information regarding their programmes for employee training, skills
development and benefits. They both recognised positive outcomes
regarding the employees’ personal development and well-being and
their commitment to the organisations’ goals. As an interviewee
mentioned, “investing in employee training and development not only
serves as a motivation, but it also enables the organization to create a
highly skilled workforce”.
3.2.3. Performance

By analysing the companies’ records, it became evident that

sustainability performance was measured through specific indicators
and standards. More specifically, both companies follow the GRI and UN
Global Compact principles. This is evidenced by the sustainability
reports, which reveal that the companies are adapting to international
sustainability reporting standards. This should be no surprise since both
companies are sustainability leaders.

Economic Performance

Both companies have mentioned that SSCM is related to a direct

increase in costs. Many of the afore mentioned practices, apart from the
financial resources, include investments in human, and time resources.
For example, practices regarding suppliers’ and external partners’
selection, such as the suppliers guiding principles of the SB, which
require the confirmation that children are not working at the supplier’s
company, as well as the tactical supplier inspections, increase costs.
However, as the CSR Manager of SB mentioned, “sometimes you pay
more to have the best suppliers and this contributes to added value for
costumers, which increases customer loyalty”. Supporting local
suppliers to adopt SSCM practices (employee protection and security,
human rights, etc.) also contributes to the local economy through
indirect job creation.

On the contrary, energy-saving practices are found to have a positive

financial impact by means of cost reduction, which increases the profit
rates. This is due to the fact that energy-efficiency investments are
producing results from the first day of implementation. For instance,
both companies have invested huge amounts in LED lighting, which is
considered a highly energy-efficient technology.
Quality improvement is another important economic factor that both
companies are engaged in. For instance, SM has mentioned that
compliance with quality standards and reduction of defective products
are key quality measures.

Not surprisingly, sales and market share, is also found to be a key

economic measure. Other measures discussed under the economic
dimension are the annual R&D investments, productivity, delivery time
and flexibility.

Environmental Performance

As expected from both companies, as sustainability leaders, they have

environmental performance systems in place that manage not only the
environmental “basic” indicators (hazardous/harmful/toxic materials,
energy, water, CO2 emissions, compliance to standards, environmental
accidents and use of recycled materials) but the advanced ones as well,
such as the re-design of products towards a reduction in plastic and the
reuse of it through circular processes. A key characteristic of both
companies is that most of the indicators are measured at the
organizational level. For example, energy use is measured in both
companies’ facilities but not in their suppliers’ operations. It is also
reported that the energy consumed comes from renewable energy
sources at a level of 100% in SB’s facilities and 97% in SM’s facilities.
Managers from SM have reported that the company is planning to
measure the indirect emissions of its supply chain. As propose, a useful
tool to measure the impact of a supply chain as a whole is life-cycle
analysis (LCA).

A variety of other measures have addressed themes such as waste

recovery, waste environmental management systems, eco-design,
biodiversity etc.
Social Performance

In the social sustainability dimension, the data suggested indicators such

as product safety, employee accident rates, employee training rates,
health and safety issues, employment contribution, employee benefits,
loyalty and turnover rate, corporate image, human rights screening
(suppliers and contractors) and community support. Several projects
both internal and external are implemented in both companies. For
example, an excellent working environment that is fair, safe and
enjoyable with prospects for development (such as job rotation,
promotions, new roles, etc.) is a key performance measure for SB. From
an external point of view, supplier social assessment is performed from
SB regarding the suppliers’ human right policies and broader social
issues. Furthermore, SM reported that local community support in the
form of volunteering or charity actions is another key performance
indicator.

Table 3
presents the SSCM aspects as identified in the case study.

Table 3
Aspects of SSCM as identified in the case study.
Constructs SSCM Aspects as Identified in the Case Study

Critical
Factors

 Top management beliefs and behaviors related to sustainability

is a key starting point in order to create sustainable supply
chains.
 Building a customer-driven sustainability orientation is a key
factor for developing SSCM.
 Knowledge and expertise on sustainability issues is at the core
of SSCM. This is the way to overcome sustainability challenges.
Firm Level  Employee training and development programs including social
and environmental issues should be embedded across the
organization.
 Efficiency in operations and resources through the use of state-
of-the-art technologies is a critical factor for SSCM.

 Traceability and transparency are considered key sustainability

factors for providing crucial information about the product’s
safety, environmental footprint and animal welfare. Information
sharing through traceability helps companies identify supply
chain risks.
 Creating and maintaining trust with customers, suppliers and
Supply Chain local communities, through the development of systems and
standards is critical for building a sustainable supply chain.
Level  A common goal-oriented sustainable supply chain strategy,
through the continuous dialogue with supply chain partners, is
enhancing the added value of products and services.
 Geographical distance enables the development of SSCM. Both
companies source from local suppliers to support the local
economy, improve quality and minimize transport

 Compliance with government policy, international and national

regulations is a prerequisite for developing SSCM.
 Stakeholder management includes internal and external
customers, suppliers, business associations, NGOs, local and
External governmental authorities. The companies use several tools of
stakeholder engagement such as customer and supplier
Level surveys, focus groups, emails and personal meetings. The SB
company has identified itself as a key stakeholder and the
analysis is following the same procedure as in other
stakeholder groups.
Constructs SSCM Aspects as Identified in the Case Study

SSCM practices

 Partnership and long-term collaboration and contact builds

relationships of trust and confidence with suppliers.
 Collaborating with supply chain members helps in achieving
supply chain sustainability goals while at the same time
contributes to the development and improvement of suppliers
as individuals.
 Joint development and training (e.g., on recycling practices) is
Collaboration implemented to foster the supply chain added value.
 The companies are deploying traceability practices for specific
products. They are in the process of digitalizing their
procurement/supply chain systems in order to increase supply
chain traceability, transparency, quality, speed and efficiency.
 Reduction in actual and reputational risk (e.g., child labour) is
triggering SSCM

 A “continuous development” approach is adopted by SB which

is implementing corrective actions trying to ensure that all
suppliers comply with the company’s environmental, social and
Continuity labour policy.
 Partnering with reliable suppliers especially in quality and
safety issues is necessary.

 Aligning the business model with sustainability considerations

Strategic  Treating suppliers as key strategic partners
orientation  Focusing on strategic issues related to the local community

 The adoption of management systems is used as a key risk

Risk management tool to mitigate supply risks
 Strict supplier selection criteria system
management  Supplier monitoring (tactical inspections)

 Going beyond compliance with current legislation requirements

by engaging in more advanced sustainable practices.
 Supplier codes of conduct including environmental, health and
safety, labour, social issues, etc.
 Coaching potential partners to adopt and implement practices
Pro-activity
and initiatives aiming at sustainable supply chain development
 Energy-saving practices
 Water-saving practices
 Efficient fleet management

Pioneering
Constructs SSCM Aspects as Identified in the Case Study

practices
HR  Investments in human capital through several programs and
investments actions is part of the companies’ organizational culture

 Discussions of environmental and social issues is shared across

Daily all departments in a systematic way. Sustainability is not an
conversation occasional issue

Local  80% of sourcing comes from Greek suppliers

sourcing
SSCM
Performance
 Increased direct costs
 Reduced energy costs
 Productivity
 Delivery time
 Product quality
Economic  Sales and market share
 Added value for customers
 Increased customer loyalty
 Flexibility
 Profit rates
 Investment yield

 Minimization of hazardous/harmful/toxic materials

 Energy savings
Environment  Water savings
 CO2 Emissions
al  Waste production
 Use of recycled materials

Social  Improved product safety

 Improved employee welfare
 Employee accident rate
 Employee training rate
 Health and safety
 Employment contribution
 Employee benefits
 Employee loyalty
 Employee turnover rate
 Corporate image
 Human rights screening (suppliers and contractors)
Constructs SSCM Aspects as Identified in the Case Study

 Community support

3.3. Discussion
The results of this study offer empirical evidence regarding the
identified constructs and their interrelationships. More specifically, the
data analysis suggests a model of SSCM in the food industry, providing a
first step toward defining three constructs (critical factors, practices and
performance) that can create sustainability in the food industry. The
proposed model is depicted in Figure 3 .
Figure 3
Conceptual model of sustainable supply chain management in the food
industry.
The model is developed based on the extant literature and the case
study data. Figure 3 presents specific relationships between the
constructs, which contribute to a better understanding of SSCM in the
food industry. In the following paragraphs, the relationships of the
proposed constructs are conceptualized in propositions that need to be
tested in future research.

The ability of a company to identify and understand the factors that

enable and inhibit the creation of sustainability across supply chain is
critical for SSCM. A variety of SSCM critical factors is identified and
categorized at the firm level, the supply chain level and the external
level. These factors are linked to the implementation of SSCM practices.
In line with prior literature, the commitment of top management or the
knowledge and expertise regarding sustainability are identified as
important firm-level critical factors for SSCM. For example, suggest that
the lack of top management commitment and support hinder the
development of SSCM. SSCM requires “proactive top management that
understands that sustainability is an organizational commitment”.

At the supply chain level there is evidence that information sharing and
trust between partners are two of the key critical factors for
implementing SSCM. The literature posits that that information sharing
enables the development of new ideas regarding sustainability and
enhances collaboration throughout the supply chain. On the opposite
side, the lack of information sharing is found to have a negative impact
on SSCM implementation.

Regarding the external environment, three key factors have been

confirmed by the dataset: compliance with international and national
regulations, stakeholder management and reduction in actual and
reputational risk. The identification, engagement and communication
with customers, local community and NGOs were reported as critical
factors for the successful implementation of SSCM practices. This is
consistent with prior literature which confirmed that stakeholders are
driving forces for the integration of SSCM practices. Especially in the
food retail industry NGO pressure is critical for the adoption of SSCM.

Based on the above, the first set of propositions is developed below.

Proposition 1.

SSCM critical factors are directly related to the implementation of SSCM

practices.

Proposition 1a.

Firm-level critical factors are directly related to the implementation of

SSCM practices.

Proposition 1b.

Supply chain-level critical factors are directly related to the

implementation of SSCM practices.

Proposition 1c.

External critical factors are directly related to the implementation of

SSCM practices.

Considering the adopted SSCM practices, the findings suggest two main
groups, namely, the traditional SSCM practices and the pioneering SSCM
practices. Traditional SSCM practices include the five categories
proposed in the literature. This is not a surprise, since the sample of this
study is comprised by leaders in sustainability. In this case study, the
SSCM practices as proposed and are used as a key starting point and as a
guiding tool for developing a model of SSCM in the food industry. What
is interesting in this case study, is the possible trade-offs between the
SSCM practices. For example, the focus on supplier continuity requires
long-term relationships which is a key element of collaboration. This is
also consistent with prior literature which suggests that supply base
continuity long-term relationships are critical for the successful
implementation of SSCM. Continuity was also evidenced by a focus on
supplier risk management. Both companies have in place a supplier
selection criteria system, which is also related to the supplier codes of
conduct that comprise environmental, health and safety, labour and
social issues. Regarding the three identified pioneering SSCM practices
(conversation, local sourcing and HR investments), it should be noted
that they could have been encompassed in the traditional SSCM
practices. However, it was decided to be separately presented since both
companies engage in these practices in significant amounts.
Furthermore, the purpose was to show what sustainability leaders in the
food industry are doing regarding SSCM. In no way do these three
practices constitute something new or unique.

The findings underline that SSCM performance is linked to SSCM

practices. Despite the fact that all participants agreed on a direct
increased cost of implementing SSCM, their general perspective was that
SSCM practices have the ability to enhance environmental and social
performance. This is also supported by who found that environmentally
friendly purchasing and sustainable packaging have a positive effect on
sustainable performance. Another example based on the results is food
safety, which is linked to improved sustainability and can be achieved
through traceability practices. Evidence of similar results is also
provided, who found that traceability practices in the meat supply chain
are closely associated with social sustainability and food safety. It can
also be argued that traceability is the end-result of sharing information,
which is related to enhanced supply chain performance. Based on the
above observations, the following propositions are developed.

Proposition 2.
SSCM practices are positively associated with sustainability performance.

Proposition 2a.

Strategic orientation is positively associated with sustainability

performance.

Proposition 2b.

Continuity is positively associated with sustainability performance.

Proposition 2c.

Collaboration is positively associated with sustainability performance.

Proposition 2d.

Risk management is positively associated with sustainability performance.

Proposition 2e.

Pro-activity is positively associated with sustainability performance.

Proposition 2f.

Conversation is positively associated with sustainability performance.

Proposition 2g.

Local sourcing is positively associated with sustainability performance.

Proposition 2h.
Investing in HR is positively associated with sustainability performance.

Another interesting finding is the interrelationships between the three

dimensions of sustainability performance. The data suggest that
environmental performance improvements, such as energy efficiency
practices, have visible cost reductions in the short term. This contradicts
the results of [24], who found that in the food industry environmental
performance is not affecting costs directly. Continuing with a study in
the Italian meat supply chain, ref. [34] found that SSCM practices, such
as cleaner technologies, offer a competitive advantage, since they
contribute to improved economic and environmental or social
performance. Ref. [109] also found a positive correlation between
corporate social performance and corporate financial performance.
Based on the above arguments, the following propositions are
developed.

Proposition 3.

Environmental performance is positively associated to economic

performance.

Proposition 4.

Social performance is positively associated to economic performance.

4. Conclusions

4.1. Theoretical Contributions

This research has examined the SSCM critical factors, practices and
performance through a literature review and a case study comprised of
sustainability leaders in the food industry. The study has identified the
SSCM critical factors and practices that sustainability leaders implement
and what measures are used in sustainability performance in the food
industry. In line with ref. [32], who highlights the deductive nature of
case studies, this research investigated the applicability and validity of
the three SSCM constructs as identified in the literature review, in a
specific Greek food supply chain. The case study implies direct and
indirect links among the three key constructs, namely, SSCM critical
factors, SSCM practices and sustainability performance. Furthermore, in
line with the developed propositions, the three constructs are
conceptualized within a model that needs to be quantitatively tested.

It can be argued that it is not a surprise that the two sustainability

leaders are more committed to SSCM. Both have identified common
factors that are critical for developing SSCM practices. This study has
also identified a new set of pioneering SSCM practices in the Greek food
industry. Daily conversations, local sourcing and investing in HR are
common practices for SSCM leaders in the Greek food supply chain,
however industry specific.

The developed SSCM conceptual model can be exploited by researchers

that wish to investigate the proposed constructs individually or
together, both at the firm level and the supply chain level, and either
through quantitative (surveys) or qualitative research methods
(replicate the case study in other geographical locations or other
industries). Researchers may also take advantage of the developed
model and use it as an evaluation framework or as an SSCM roadmap for
the design of future research projects.

4.2. Managerial Implications

Apart from the theoretical contributions, this study provides some

managerial implications regarding the deployment of the proposed
model. While the identified constructs in this research are not new and
can be characterized as SSCM traditional, they have been studied in a
food supply chain considering all the three sustainability dimensions.
The developed model can be used by companies in the food industry
that want to promote or determine the best way to develop SSCM and
improve their sustainability performance. The results can be utilized by
food industry professionals and assist them in the development of SSCM
by identifying the critical factors of SSCM implementation, the practices
adopted, and the sustainability performance measures.

4.3. Limitations and Future Research Directions

This study, as in any other research, suffers from limitations that will be
presented along with future research propositions. First, the sample is
small, industry and location specific, and the results cannot be
transferred or used to generalize the overall food industry. Future
studies may conduct research in other industries or world regions, using
larger samples, in order to achieve generalization of the results. Second,
this study focused on food sustainability leaders. It is likely that in more
typical organizations—not sustainability leaders—different SSCM
factors, practices and performance measures will be identified. Third,
the traditional and pioneering practices should be investigated in other
industries to check their applicability as well as the possible trade-offs.
Finally, in this study, specific interrelationships among the constructs
are addressed. However, the small sample does not allow for deeper
investigations. Future research should examine the importance of each
of the constructs and the strength of their inter-relationships.

Appendix A

Interview Protocol
 (1)

General information about the company

 (2)
Critical factors of SSCM
 What are the factors that push the company to implement
SSCM practices?
 What are the factors that hinder the company to implement
SSCM practices?
 (3)
SSCM practices:
 What are the SSCM practices implemented in your company?

Strategic orientation
 Supply chain continuity

Collaboration

Risk management

Pro-activity

 (4)
Impact on performance:
 What measures/indicators does your company use to measure
SSCM performance?
 How has the implementation of SSCM practices affected the
environmental, social and economic performance of your
company?
 Is there any observed relationship between environmental,
social and economic performance (win–win, win–lose)?
Conclusion
In conclusion, sustainable food supply chains are critical for addressing
the complex challenges facing the global food system, including food
security, environmental degradation, and social inequality. By adopting
sustainable practices throughout the food supply chain, stakeholders can
reduce waste, promote efficient resource use, and promote
environmental and social responsibility. There is a critical need for
greater investment and adoption of sustainable practices in the food
industry. To achieve this, stakeholders across the food system must work
together to promote sustainability as a core value and prioritize
sustainable practices in their operations.