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Social sustainable supply chain management in the textile and apparel industry : a literature review
(2017)
So far, a vast amount of studies on sustainability in supply chain management have been conducted by academics over the last decade. Nevertheless, socially related aspects are still neglected in the related discussion. The primary motivation of the present literature review has arisen from this shortcoming, thus the key purpose of this study is to enrich the discussion by providing a state of-the-art, focusing exclusively on social issues in sustainable supply chain management (SSCM) by considering the textile/apparel sector as the field of application. The authors conduct a literature review, including content analysis which covers 45 articles published in English peer-reviewed journals, and proposes a comprehensive map which integrates the latest findings on socially related practices in the textile/apparel industry with the dominant conceptualization in order to reveal potential research areas in the field. The results show an ongoing lack of investigation regarding the social dimension of the triple bottom line in SSCM. Findings indicate that a company’s internal orientation is the main assisting factor in sustainable supply chain management practices. Further, supplier collaboration and assessment can be interpreted as an offer for suppliers deriving from stakeholders and a focal company’s management of social risk. Nevertheless, suppliers do also face or even create huge barriers in improving their social performance. This calls for more empirical research and qualitative or quantitative survey methods, especially at the supplier level located in developing countries.
After considering significant literature on sustainable supply chain management (SSCM), it is evident that research has neglected the social dimension and still lacks in highlighting the role of sourcing intermediaries in supply chains. The apparel supply chain has increased enormously in length and complexity, driving apparel retailers to employ sourcing intermediaries who manage their sourcing activities with suppliers from developing countries overseas. Thus, the purpose of this study is to enrich existing findings on SSCM by exploring the management of social sustainability when sourcing intermediaries are in between the focal company and the respective developing country factories. More specifically, this study aims to understand the role of apparel sourcing intermediaries for the implementation of social management strategies based on the perception of multiple supply chain actors. Qualitative data was collected through semi-structured interviews conducted in Vietnam and Europe. Ultimately ten propositions are presented, all explicitly concentrating on the apparel intermediary’s role as a significant enabler for social sustainability in apparel supply chains. The roles are social sustainability, supplier developer and coordinator, gatekeeper and safeguard, cultural broker, and social risk manager. The social sustainability roles assumed by the apparel sourcing intermediary offer great opportunities to both apparel retailers and developing country factories.
This paper explores why and how dominant international social standards used in the fashion industry are prone to implementation failures. A qualitative multiple-case study method was conducted, using purposive sampling to select 13 apparel supply chain actors. Data were collected through on-site semi-structured face-to-face interviews. The findings of the study are interpreted by using core tenets of agency theory. The case study findings clearly highlight why and how multi-tier apparel supply chains fail to implement social standards effectively. As a consequence of substantial goal conflicts and information asymmetries, sourcing agents and suppliers are driven to perform opportunistic behaviors in form of hidden characteristics, hidden intentions, and hidden actions, which significantly harm social standards. Fashion retailers need to empower their corporate social responsibility (CSR) departments by awarding an integrative role to sourcing decisions. Moreover, accurate calculation of orders, risk sharing, cost sharing, price premiums, and especially guaranteed order continuity for social compliance are critical to reduce opportunistic behaviors upstream of the supply chain. The development of social standards is highly suggested, e.g., by including novel metrics such as the assessment of buying practices or the evaluation of capacity planning at factories and the strict inclusion of subcontractors’ social performances. This paper presents evidence from multiple Vietnamese and Indonesian cases involving sourcing agents as well as Tier 1 and Tier 2 suppliers on a highly sensitive topic. With the development of the conceptual framework and the formulation of seven related novel propositions, this paper unveils the ineffectiveness of social standards, offers guidance for practitioners, and contributes to the neglected social dimension in sustainable supply chain management research and accountability literature.