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Social sustainability in the oil and gas industry: institutional pressure and the management of sustainable supply chains

Author

Listed:
  • Athanasios Rentizelas

    (University of Strathclyde)

  • Ana Beatriz Lopes Sousa Jabbour

    (Montpellier Research in Management)

  • Ahmed Darwish Al Balushi

    (Occidental Oman, Inc.)

  • Andrea Tuni

    (University of Strathclyde)

Abstract

This article addresses certain gaps highlighted in the literature relating to the investigation of supplier selection through a theoretical lens, based on contextual factors, institutional pressure, and industrial features. Consequently, this article sheds light on how a government’s strategic plans can drive organisations to incorporate elements of social sustainability into their supply chains. A successful case from Oman which demonstrates the social dimension of sustainability in selecting suppliers in the oil and gas sector is presented, along with the government’s role and the mechanisms it has applied. A survey of purchasing, procurement and supply chain managers in Oman’s major oil and gas organisations was conducted, along with interviews. The results of this research were further analysed through the lens of institutional theory, addressing a genuine research gap. It was found that: (a) coercive governmental pressure is not sufficient to truly develop socially sustainable practices in organisations if the organisations themselves do not show initiative, as this leads to compliant rather than innovative practice; and (b) policy makers need to be aware that coercive pressure alone does not lead to continuous improvement of social sustainability performance, due to the ceiling effect, i.e. organisations meeting only the minimum governmental requirements.

Suggested Citation

  • Athanasios Rentizelas & Ana Beatriz Lopes Sousa Jabbour & Ahmed Darwish Al Balushi & Andrea Tuni, 2020. "Social sustainability in the oil and gas industry: institutional pressure and the management of sustainable supply chains," Annals of Operations Research, Springer, vol. 290(1), pages 279-300, July.
    • Handle: RePEc:spr:annopr:v:290:y:2020:i:1:d:10.1007_s10479-018-2821-3
    DOI: 10.1007/s10479-018-2821-3
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    References listed on IDEAS

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    Cited by:

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    3. K. Koppiahraj & S. Bathrinath & V. G. Venkatesh & Venkatesh Mani & Yangyan Shi, 2023. "Optimal sustainability assessment method selection: a practitioner perspective," Annals of Operations Research, Springer, vol. 324(1), pages 629-662, May.
    4. Sakib, Nazmus & Ibne Hossain, Niamat Ullah & Nur, Farjana & Talluri, Srinivas & Jaradat, Raed & Lawrence, Jeanne Marie, 2021. "An assessment of probabilistic disaster in the oil and gas supply chain leveraging Bayesian belief network," International Journal of Production Economics, Elsevier, vol. 235(C).
    5. Khai, Dinh Cong & Thanh, Ngo Quang, 2021. "The impact of institutional pressures and top management regulations on firm performance," MPRA Paper 109673, University Library of Munich, Germany.
    6. Khan, Syed Abdul Rehman & Yu, Zhang & Sharif, Arshian, 2021. "No Silver Bullet for De-carbonization: Preparing for Tomorrow, Today," Resources Policy, Elsevier, vol. 71(C).

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