Fahian Huq

PurposeAs focal firms in supply networks reflect on their experiences of the pandemic and begin to rethink their operations and supply chains, there is a significant opportunity to leverage digital technological advances to enhance socially responsible operations performance (SROP). This paper develops a novel framework for exploring the adoption of Industry 4.0 technologies for improving SROP. It highlights current best-practice examples and presents future research pathways.Design/methodology/approachThis viewpoint paper argues how Industry 4.0 technology adoption can enable effective SROP in the post-COVID-19 era. Academic articles, relevant grey literature, and insights from industry experts are used to support the development of the framework.FindingsSeven technologies are identified that bring transformational capabilities to SROP, i.e. big data analytics, digital twins, augmented reality, blockchain, 3D printing, artificial intelligence, and the Internet of Things. It is demo...

Purpose In spite of the increased attention on knowledge management processes as important variables for firms to generate performance benefits within supply chain literature, little is known about how these variables could impact offshoring innovation (OI) relationships held by small and medium-sized enterprises (SMEs). Considering their growing importance, this study aims to investigate the interplay between the internal knowledge creation capability, absorptive capacity and formal knowledge routines in attaining OI performance benefits for SMEs. Design/methodology/approach Grounded in the knowledge-based view theory, this study forwards various hypotheses between the variables of interests. The authors test the hypotheses using survey data collected from 200 European SMEs that engage in offshore supplier relationships. Findings The findings suggest that internal knowledge creation capability is positively associated to absorptive capacity. Not only is absorptive capacity positive...

Purpose – The purpose of this paper is to determine the state-of-the-art in socially responsible sourcing (SRS) research, leading to an agenda for further work; and to evaluate the use of theory in this context. SRS is defined as the upstream social issues within the sustainability literature, where social issues include human rights, community development and ethical issues but exclude environmental concerns. Design/methodology/approach – A systematic literature review of 157 papers that include SRS published in ABS listed journals. The papers have been analysed according to their research content, with a particular focus on the use of pre-existing theories. Findings – Key findings for researchers and managers alike include an analytical discussion of strategies developed to date to embed SRS in an organisation; and key research gaps include a particular need to consider the supplier perspective in developing countries. In terms of the use of theory, a typology is proposed, which (...

Even though total cost reduction is the primary reason for outsourcing, historically firms have not taken into account the possible uncertainty and risk related costs (supply chain disturbance factors) present in their global supply chains. This paper investigates through AHP how an European based high value engineering firm rates supply chain disturbances while using two alternate supply chain design strategies - insource/near-shore, and outsource/offshore. Interestingly, our findings show that quality defects are weighed higher when the former strategy is adopted. Results from our sensitivity analysis show that a decrease in firm related disturbances increase supply network related disturbances.

Purpose: To investigate why developing country suppliers are adopting socially sustainable practices and how the implementation process is both impeded and enabled. Design/methodology/approach: A multi-case study approach is adopted based on four Ready Made Garment (RMG) industry suppliers in Bangladesh and the Bangladeshi buying houses of two large UK retailers. The primary mode of data collection is exploratory face-to-face interviews with 14 senior representatives. Findings are later interpreted using the Transaction Cost Economics (TCE) theory lens. Findings: One factor motivating implementation is labour retention – a skilled labour shortage means employees will migrate to other factories if suppliers do not improve certain social standards. Barriers to implementation include a misalignment between the requirements of Western codes of conduct and the cultural and socio-economic context in Bangladesh. Enablers include a shift from auditing and monitoring to more open dialogue an...

Social sustainability has become an issue of paramount importance to Western firms who source globally, but there is a dearth of empirical and theoretical research in this field. Most prior studies have been in the context of developed country buying firms. This study attempts to fill this gap by looking at the implementation of social sustainability in the apparel industry of Bangladesh through the institutional theory lens. A broad range of stakeholders are investigated, including Western buyers, developing country suppliers, NGOs, trade bodies, workers and trade unions. This paper identifies barriers, enablers and institutional forces of social sustainability implementation.

Purpose This study aims to investigate how contract complexity and relational trust could impact offshore outsourcing innovation (OOI) performance of small and medium enterprises (SMEs). This study further examines the moderating effects of knowledge routines and joint actions on the relationships between contract complexity, as well as relational trust and OOI performance. Design/methodology/approach The empirical investigation extends transaction cost economics and the relational view of buyer-supplier dyads in the context of offshore outsourcing SMEs. To test the hypotheses, the authors collected and analysed survey data from 200 European manufacturing SMEs that have existing offshore supplier relationships. Findings The results suggest that both complex contracts and relational trust as governance structures positively affect SMEs’ OOI performance. Additionally, while both formal knowledge routines and joint actions help strengthen the relationship between complex contracts and ...

Managing change in suppliers is a challenging issue for firms. In particular, there is a lack of understanding of how to manage organisational change amongst distant suppliers based in developing countries. One such organisational change management process that has become an area of growing interest is the implementation of socially sustainable practices. The consequences of failure to effectively implement socially sustainable practices in the supply chain were highlighted by the recent collapse of the Rana Plaza in Bangladesh in April 2013, which killed 1,229 workers of factories supplying apparel to Western retailers like Primark and Benetton. The thesis contributes to this emerging research area by taking a significant step forward in understanding the implementation of socially sustainable practices in a complex, dynamic supply chain context. The overarching research question asked is: “How are socially sustainable practices implemented in complex global supply chains?” To answ...

PurposeSupply chain integration (SCI) is key to implementing omni-channel retailing (OCR) strategy. In this paper, the authors explore the role of digitalization as a driver of SCI, as well the role of human capital (HC) in digitalization, using a knowledge management (KM) perspective.Design/methodology/approachAn empirical study was conducted using survey research. A sample of 188 omni-channel retailers in the Chinese market was analyzed using factor analysis and structured equation modeling (SEM) to examine the hypotheses presented in the conceptual model.FindingsThis study reveals that HC is positively related to the level of a firm's digitalization in OCR, and that digitalization is positively related to the retailer's SCI. Moreover, the authors found that employees' capital has a greater impact on digitalization than managers' capital, while digitalization has a stronger driving effect on internal and customer integration.Research limitations/implicationsThe fin...

PurposeWhile the significance of organizational resources and capabilities is widely discussed, little is known about their interrelationships as well as benefits for firms that are involved in coopetitive relationships. Against this backdrop, the purpose of this paper is to investigate the performance effects of entrepreneurial orientation, strategic intent and potential absorptive capacity as well as their complementarity effects on operational and innovation performance for firms involved in horizontal coopetitive relationships.Design/methodology/approachDrawing upon the resource-based-view, dynamic capabilities and the relational view theories, this study forwards numerous hypotheses between the constructs of interest. The proposed hypotheses are tested utilizing survey data collected from 313 horizontal coopetitive relationships.FindingsThe results clearly suggest that entrepreneurial orientation, strategic intent and potential absorptive capacity could positively impact innova...

Most social sustainability studies are from the developed country buying firm perspective and lack theoretical underpinning. We examine the implementation of social sustainability in the apparel industry of Bangladesh using institutional theory, investigating how institutional pressures exerted by actors, e.g. developing country suppliers, NGOs and trade bodies, impact the diffusion of socially sustainable practices; and, how changes in institutional logics affect implementation. Preliminary findings reveal, for example, that conflicts between the social and (traditionally dominant) economic logic impact implementation. Although the economic logic is still prevalent, the social logic is gaining in importance, leading to more effective diffusion of practices.

The implementation of socially sustainable practices in suppliers situated in challenging institutional contexts is examined using institutional theory, both in terms of how institutional pressures affect implementation and what explains the decoupling of practices from the day-to-day reality. A multi-case study approach is employed based on seven apparel industry suppliers in Bangladesh. Cross-case analysis highlights the coercive, mimetic, and normative pressures on suppliers to implement socially sustainable practices. A key pressure identified that has not previously been highlighted in the literature is horizontal collaboration between buyers, which intensifies coercive pressure on suppliers and increases the consequences of non-compliance. The factors that contribute to decoupling are categorized into firm, supply chain, and environment related factors. Further, six propositions are developed on how specific forms of institutional pressure can tackle particular decoupling fact...

Social business orchestrators (SBO) help social businesses of various sizes to tackle major societal issues by filling gaps in knowledge and resources. However, research has overlooked these types of collaboration. Situated within a bottom of the pyramid (BoP) context in Bangladesh, the current study sheds light on the process of value creation for SBO-social businesses partnerships by comparing different collaboration partners. Multiple case study research through the lens of the relational view was used to ask how SBOs facilitate value creation in social businesses by flexibly adapting resource inputs and governance mechanisms to the specific endowment and size of partners; this approach was informed by interviews and field note analyses. The combined deductive-inductive analysis enhances knowledge of idiosyncrasies of SBO-social business collaborations. Our study draws attention to the role of large orchestrators, whose model could be scaled and transferred to other world regions, including industrialised countries.

The study investigates the significance of strategic intent, manager's ambidexterity, and knowledge sharing routines for firms in their quest to pursue coopetition. We utilize the resource-based view and the dynamic capabilities theory to ground our hypotheses. We test the hypotheses using the data collected from 313 firms that engage in coopetition relationships through an online survey. The findings forward knowledge sharing and ambidextrous managers as intervening variables, in that when complemented with knowledge sharing, a firm's strategic intent could better guide the firm's managers to pursue coopetition successfully. Findings further advocate that knowledge sharing complements to enable the relationship between a firm's strategic intent and its ambidextrous managers, as well as the relationship between strategic intent and coopetition. Furthermore, results also indicate that ambidextrous managers, with a skillset of a combination of exploration and exploitation, are positively associated to coopetition. Overall, the findings make important theoretical as well as empirical contributions to the coopetition and strategic alliance literature.

Despite scholarly agreement that complementary capabilities are essential to successful collaborations, little is known about how small and medium-sized enterprises (SMEs) manage collaborative innovation through offshoring. Besides, the innovation management literature remains generally silent about when supplier joint actions could work in enhancing offshoring innovation (OI) performance. The purpose of this study is twofold. First, we aim to delineate why supplier’s asset specificity and goal compatibility predict supplier’s complimentary capabilities in OI. Second, we empirically explore the role of supplier joint actions in enhancing OI performance. Based on data collected from 200 SMEs having active OI relationships spanning four developed European countries, our results propose that supplier’s complementary capabilities mediate the relationship between critical relational antecedents (supplier’s asset specificity and goal compatibility) and OI performance. It should be noted, however, that despite their incentivising power, supplier joint actions can be a “double-edged sword” in SMEs’ OI relationships.

Outsourcing research has recognised that selecting the right offshore supplier (outsourcee) in low-cost distant developing countries is complex, but central to outsourcing success. More specifically, the combination of outsourcee contextual internal factors (e.g. capabilities) with outsourced-to country contextual external factors (e.g. political, legal, economic, socio-cultural) as two fundamental and interconnected decisions firms make when outsourcing remains an underexplored research gap. Therefore, through a rigorous three-tier qualitative approach we, firstly, develop a contextual Environmental Separation Index (ESI) decision tool to help outsourcing firms in making more informed decisions when selecting outsourcees and outsourcing locations. Secondly, we operationalise the ESI as intuitive and easy to use decision tool, yet with a provision to deliver a truly context proof outsourcee selection decision. Thirdly, we adopt a complexity theory lens to explain that narrowing the contextual outsourcer-outsourcee gap facilitates a mind-set shift in outsourcing relationships from hierarchies to networks and from controlling to empowering developing country outsourcees. We show from a complexity theory perspective how contextual separation gaps between developed country outsourcers and developing country outsourcees can be an effective way to grasp the evolutionary path of outsourcing relationships.

The implementation of socially sustainable practices in suppliers situated in challenging institutional contexts is examined using institutional theory, both in terms of how institutional pressures affect implementation and what explains the decoupling of practices from the day-to-day reality. A multi-case study approach is employed based on seven apparel industry suppliers in Bangladesh. Cross-case analysis highlights the coercive, mimetic, and normative pressures on suppliers to implement socially sustainable practices. A key pressure identified that has not previously been highlighted in the literature is horizontal collaboration between buyers, which intensifies coercive pressure on suppliers and increases the consequences of non-compliance. The factors that contribute to decoupling are categorized into firm-, supply chain-, and environment-related factors. Further, six propositions are developed on how specific forms of institutional pressure can tackle particular decoupling factors to support implementation. The paper responds to recent calls for greater scrutiny of why and how firms decouple ethical practices and supports the development of the literature specifically on social sustainability, which lags behind that on environmental sustainability and has been largely focused on the Western buyer perspective. The findings have implications for the diffusion of ethical practices into supply chains, especially distant suppliers in very different and challenging institutional contexts.

Purpose:  To determine the state-of-the-art in Socially Responsible Sourcing (SRS) research, leading to an agenda for further work; and, to evaluate the use of theory in this context. SRS is defined as the upstream social issues within the sustainability literature, where social issues include human rights, community development and ethical issues but exclude environmental concerns.

Design/methodology/approach: A systematic literature review of 157 papers that include SRS published in ABS listed journals. The papers have been analysed according to their research content, with a particular focus on the use of pre-existing theories.
Findings: Key findings for researchers and managers alike include an analytical discussion of strategies developed to date to embed SRS in an organisation; and key research gaps include a particular need to consider the supplier perspective in developing countries.  In terms of the use of theory, a typology is proposed, which (in ascending order of effectiveness) is as follows: theory dressing, theory matching, theory suggesting/explaining and theory expansion.

Research limitations/implications: The review is limited to papers published in the ABS list; and the analysis of the use of theory is limited to the SRS literature. The findings suggest that insightful papers can be written without any use of theory but that as a field develops, a greater depth of application of theory is needed to aid understanding.

Originality/value: This is the only review that focuses exclusively on SRS, excluding environmental issues, thus allowing for a greater depth of discussion on social issues; and is unique in its detailed critical analysis of the use of theory.

Purpose: To investigate why developing country suppliers are adopting socially sustainable practices and how the implementation process is both impeded and enabled.

Design/methodology/approach: A multi-case study approach is adopted based on four Ready Made Garment (RMG) industry suppliers in Bangladesh and the Bangladeshi buying houses of two large UK retailers. The primary mode of data collection is exploratory face-to-face interviews with 14 senior representatives. Findings are later interpreted using the Transaction Cost Economics (TCE) theory lens.

Findings: One factor motivating implementation is labour retention – a skilled labour shortage means employees will migrate to other factories if suppliers do not improve certain social standards. Barriers to implementation include a misalignment between the requirements of Western codes of conduct and the cultural and socio-economic context in Bangladesh. Enablers include a shift from auditing and monitoring to more open dialogue and trust between buyers and suppliers. We also reveal evidence of mock compliance, e.g. suppliers keeping two sets of timesheets, and of the complexities of social sustainability. For example, while some initiatives are unanimously positive, removing child labour from RMG industry suppliers has simply diverted it to other, less regulated and more hazardous industries like construction.

Research implications: An early, exploratory contribution is provided. The work could be extended, e.g. to other stakeholders like third-party auditors and Non-Governmental Organisations (NGOs).

Practical implications: Being aware of the motivations, barriers and enablers will help Multi-National Corporations (MNCs) promote good practice and anticipate the challenges they are likely to face in improving the social sustainability of their supply chains. Use of TCE leads to suggesting MNCs need to move beyond immediate suppliers and incorporate tier-two suppliers in their implementation efforts.

Social implications: Social sustainability improvements should benefit vulnerable workers, help suppliers develop longer term relationships with MNCs, and contribute to economic growth.

Originality/value: Most prior studies have been in the context of developed countries and focused on the perspective of the buying firm only.

Keywords: Social Sustainability; Developing Country Suppliers; Ready Made Garments Industry; Bangladesh; Exploratory Case Study; Transaction Cost Economics.

Article Classification: Research Paper