IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i8p2716-d161481.html
   My bibliography  Save this article

What Does the Sustainability-Risk Interaction Look Like? Exploring Nuanced Relationships in Emerging Economy Sustainability Initiatives

Author

Listed:
  • Aysu Göçer

    (Department of Logistics Management, Business Faculty, Izmir University of Economics, Sakarya Street, No. 156, Balçova, 35330 İzmir, Turkey)

  • Stanley E. Fawcett

    (Goddard School of Business, Weber State University, Ogden, UT 84408, USA)

  • Okan Tuna

    (Department of Logistics Management, Maritime Faculty, Dokuz Eylul University, Adatepe District, Doğuş Street, No. 207, Tınaztepe Campus, Buca, 35390 İzmir, Turkey)

Abstract

To be viable long-term, sustainability programs must be profitable. Unfortunately, current sustainability practices increase risk, increasing costs and threatening revenues. Higher costs and lower revenues negatively impact profitability and, thus, the viability of sustainability. To understand how sustainability-induced risks affect food production systems, sustainability-induced risks in food production systems are identified and classified. It is also explored how sustainability risks interact, making it especially costly and difficult to eradicate them. An inductive, interview-based method was employed, which relies on 41 semi-structured interviews, with managers at 32 companies. The study documents the interaction between sustainability and risk in five risk categories—behavioral, opportunism, organizational routines, safety and traceability routines and systems design. The negative impact of intensive interactions among these risk categories threatens food production systems’ sustainability initiatives. Behavioral risks are particularly pervasive and harmful as they either induce or exacerbate other risk clusters. Elaborating the interaction between sustainability and risk, as well as documenting risk types and interactions, provides a more holistic view of sustainability implementation. This nuanced view will lead to a more accurate and insightful costing of sustainability programs. Lamentably, the most pervasive risk category—i.e., behavioral risks—are often overlooked in the supply chain management literature. However, this research shows a clear need to delve more deeply into the behavioral dimension to improve risk management and to increase the viability of sustainability. This study identifies and categorizes sustainability-induced risk factors in food production systems, and shows how they interrelate, providing the foundation for better planning and execution of viable sustainability programs.

Suggested Citation

  • Aysu Göçer & Stanley E. Fawcett & Okan Tuna, 2018. "What Does the Sustainability-Risk Interaction Look Like? Exploring Nuanced Relationships in Emerging Economy Sustainability Initiatives," Sustainability, MDPI, vol. 10(8), pages 1-26, August.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:8:p:2716-:d:161481
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/8/2716/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/8/2716/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jianli Luo & Chen Ji & Chunxiao Qiu & Fu Jia, 2018. "Agri-Food Supply Chain Management: Bibliometric and Content Analyses," Sustainability, MDPI, vol. 10(5), pages 1-22, May.
    2. Dan R. Anderson & Kenneth E. Anderson, 2009. "Sustainability Risk Management," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 12(1), pages 25-38, March.
    3. Houghton, J.R. & Rowe, G. & Frewer, L.J. & Van Kleef, E. & Chryssochoidis, G. & Kehagia, O. & Korzen-Bohr, S. & Lassen, J. & Pfenning, U. & Strada, A., 2008. "The quality of food risk management in Europe: Perspectives and priorities," Food Policy, Elsevier, vol. 33(1), pages 13-26, February.
    4. William Ho & Tian Zheng & Hakan Yildiz & Srinivas Talluri, 2015. "Supply chain risk management: a literature review," International Journal of Production Research, Taylor & Francis Journals, vol. 53(16), pages 5031-5069, August.
    5. Hrabrin Bachev, 2013. "Risk Management in the Agri-food Sector," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 7(1), March.
    6. Ganesan, Shankar & George, Morris & Jap, Sandy & Palmatier, Robert W. & Weitz, Barton, 2009. "Supply Chain Management and Retailer Performance: Emerging Trends, Issues, and Implications for Research and Practice," Journal of Retailing, Elsevier, vol. 85(1), pages 84-94.
    7. Julia Wolf, 2011. "Sustainable Supply Chain Management Integration: A Qualitative Analysis of the German Manufacturing Industry," Journal of Business Ethics, Springer, vol. 102(2), pages 221-235, August.
    8. Hassini, Elkafi & Surti, Chirag & Searcy, Cory, 2012. "A literature review and a case study of sustainable supply chains with a focus on metrics," International Journal of Production Economics, Elsevier, vol. 140(1), pages 69-82.
    9. Sanjay W. Rajurkar & Rakesh Jain, 2011. "Food supply chain management: review, classification and analysis of literature," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 6(1), pages 33-72.
    10. Djalma Araújo Rangel & Taiane Kamel de Oliveira & Maria Silene Alexandre Leite, 2015. "Supply chain risk classification: discussion and proposal," International Journal of Production Research, Taylor & Francis Journals, vol. 53(22), pages 6868-6887, November.
    11. Andrew M. Pettigrew, 1990. "Longitudinal Field Research on Change: Theory and Practice," Organization Science, INFORMS, vol. 1(3), pages 267-292, August.
    12. Frank Krysiak, 2009. "Risk Management as a Tool for Sustainability," Journal of Business Ethics, Springer, vol. 85(3), pages 483-492, April.
    13. Surya Prakash & Gunjan Soni & Ajay Pal Singh Rathore, 2017. "A critical analysis of supply chain risk management content: a structured literature review," Journal of Advances in Management Research, Emerald Group Publishing Limited, vol. 14(1), pages 69-90, February.
    14. Ko, Eunju & Hwang, Yoo Kyung & Kim, Eun Young, 2013. "Green marketing' functions in building corporate image in the retail setting," Journal of Business Research, Elsevier, vol. 66(10), pages 1709-1715.
    15. Giannakis, Mihalis & Papadopoulos, Thanos, 2016. "Supply chain sustainability: A risk management approach," International Journal of Production Economics, Elsevier, vol. 171(P4), pages 455-470.
    16. Paul C. Godfrey & Craig B. Merrill & Jared M. Hansen, 2009. "The relationship between corporate social responsibility and shareholder value: an empirical test of the risk management hypothesis," Strategic Management Journal, Wiley Blackwell, vol. 30(4), pages 425-445, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aysu Göçer & Yao Henry Jin & Stanley E. Fawcett, 2019. "How Does the Contingent Sustainability–Risk–Cost Relationship Affect the Viability of CSR? An Emerging Economy Perspective," Sustainability, MDPI, vol. 11(19), pages 1-25, September.
    2. Marta Negri & Enrico Cagno & Claudia Colicchia & Joseph Sarkis, 2021. "Integrating sustainability and resilience in the supply chain: A systematic literature review and a research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 2858-2886, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aysu Göçer & Yao Henry Jin & Stanley E. Fawcett, 2019. "How Does the Contingent Sustainability–Risk–Cost Relationship Affect the Viability of CSR? An Emerging Economy Perspective," Sustainability, MDPI, vol. 11(19), pages 1-25, September.
    2. Neungho Han & Juneho Um, 2024. "Risk management strategy for supply chain sustainability and resilience capability," Risk Management, Palgrave Macmillan, vol. 26(2), pages 1-26, May.
    3. Sara Al-Haidous & Tareq Al-Ansari, 2019. "Sustainable Liquefied Natural Gas Supply Chain Management: A Review of Quantitative Models," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    4. Qazi, Abroon & Dickson, Alex & Quigley, John & Gaudenzi, Barbara, 2018. "Supply chain risk network management: A Bayesian belief network and expected utility based approach for managing supply chain risks," International Journal of Production Economics, Elsevier, vol. 196(C), pages 24-42.
    5. Nishat Alam Choudhary & Shalabh Singh & Tobias Schoenherr & M. Ramkumar, 2023. "Risk assessment in supply chains: a state-of-the-art review of methodologies and their applications," Annals of Operations Research, Springer, vol. 322(2), pages 565-607, March.
    6. Tobias Rebs & Marcus Brandenburg & Stefan Seuring & Margarita Stohler, 2018. "Stakeholder influences and risks in sustainable supply chain management: a comparison of qualitative and quantitative studies," Business Research, Springer;German Academic Association for Business Research, vol. 11(2), pages 197-237, September.
    7. Giannakis, Mihalis & Papadopoulos, Thanos, 2016. "Supply chain sustainability: A risk management approach," International Journal of Production Economics, Elsevier, vol. 171(P4), pages 455-470.
    8. Marta Negri & Enrico Cagno & Claudia Colicchia & Joseph Sarkis, 2021. "Integrating sustainability and resilience in the supply chain: A systematic literature review and a research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 2858-2886, November.
    9. A. M. Alamdari & Y. Jabarzadeh & B. Adams & D. Samson & S. Khanmohammadi, 2023. "An analytic network process model to prioritize supply chain risks in green residential megaprojects," Operations Management Research, Springer, vol. 16(1), pages 141-163, March.
    10. Chand, Pushpendu & Thakkar, Jitesh J. & Ghosh, Kunal Kanti, 2020. "Analysis of supply chain sustainability with supply chain complexity, inter-relationship study using delphi and interpretive structural modeling for Indian mining and earthmoving machinery industry," Resources Policy, Elsevier, vol. 68(C).
    11. Silvia Carpitella & Ilyas Mzougui & Joaquín Izquierdo, 2022. "Multi-criteria risk classification to enhance complex supply networks performance," OPSEARCH, Springer;Operational Research Society of India, vol. 59(3), pages 769-785, September.
    12. Andrzej Lis & Agata Sudolska & Mateusz Tomanek, 2020. "Mapping Research on Sustainable Supply-Chain Management," Sustainability, MDPI, vol. 12(10), pages 1-26, May.
    13. Shafiee, Mohammad & Zare-Mehrjerdi, Yahia & Govindan, Kannan & Dastgoshade, Sohaib, 2022. "A causality analysis of risks to perishable product supply chain networks during the COVID-19 outbreak era: An extended DEMATEL method under Pythagorean fuzzy environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    14. Marcelo Werneck Barbosa, 2022. "A Critical Appraisal of Review Studies in Circular Economy: a Tertiary Study," Circular Economy and Sustainability,, Springer.
    15. El Baz, Jamal & Ruel, Salomée, 2021. "Can supply chain risk management practices mitigate the disruption impacts on supply chains’ resilience and robustness? Evidence from an empirical survey in a COVID-19 outbreak era," International Journal of Production Economics, Elsevier, vol. 233(C).
    16. André Luiz Romano & Luís Miguel D. F. Ferreira & Sandra Sofia F. S. Caeiro, 2021. "Modelling Sustainability Risk in the Brazilian Cosmetics Industry," Sustainability, MDPI, vol. 13(24), pages 1-26, December.
    17. Asterios Stroumpoulis & Evangelia Kopanaki & George Karaganis, 2021. "Examining the Relationship between Information Systems, Sustainable SCM, and Competitive Advantage," Sustainability, MDPI, vol. 13(21), pages 1-21, October.
    18. Donna Marshall & Lucy McCarthy & Marius Claudy & Paul McGrath, 2019. "Piggy in the Middle: How Direct Customer Power Affects First-Tier Suppliers’ Adoption of Socially Responsible Procurement Practices and Performance," Journal of Business Ethics, Springer, vol. 154(4), pages 1081-1102, February.
    19. Mohammad Izadikhah & Reza Farzipoor Saen & Razieh Roostaee, 2018. "How to assess sustainability of suppliers in the presence of volume discount and negative data in data envelopment analysis?," Annals of Operations Research, Springer, vol. 269(1), pages 241-267, October.
    20. Chih-Hung Hsu & An-Yuan Chang & Ting-Yi Zhang & Wei-Da Lin & Wan-Ling Liu, 2021. "Deploying Resilience Enablers to Mitigate Risks in Sustainable Fashion Supply Chains," Sustainability, MDPI, vol. 13(5), pages 1-24, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:8:p:2716-:d:161481. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.