Author: Moritz Petersen
, Sebastian Brockhaus
, Stanley E. Fawcett
& A. Michael Knemeyer
Summary:
Consistently bringing sustainable products to market is a preeminent challenge to effectively pursuing the triple bottom line. As most companies lack the know-how and resources to develop and launch sustainable products, they are dependent on trading partners. Resource Integration and Resource Dependence Theory posit that reliance on external trading partners dictates careful governance. Effective collaboration with supply chain partners can theoretically mitigate the threat of resource dependence. The current manuscript, grounded in interview data from the consumer goods industry, however, identifies a persistent collaboration deficit. Rather than working together, many firms try to coerce suppliers into improving sustainability. Coercion sours relationships, impeding joint sustainability efforts and harming progress towards product sustainability. The good news: a few companies are beginning to invest in trust as a collaborative governance mechanism to broaden collaboration and reduce the costs of sustainable product development.
