Understanding Diffusion of Corporate Sustainability Standards through Sub- Supplier Management in the Food Supply Chain

The food industry and its supply chains have significant sustainability implications. Effective supply chain management requires careful consideration of multiple tiers of partners, especially with respect to sustainability issues. Firms increasingly approach their sub-suppliers to drive compliance with social and environmental efforts. A number of complexities make subsupplier management more difficult than direct supplier management. The literature has not investigated from either a sustainability or standards perspective the critical success factors for firms’ sub-supplier management. Using data and information from a one-year field study in two food supply chains, our research identified 14 critical success factors (CSF) that potentially influence the success of the sub-supplier management outcome of sub-suppliers’ compliance with corporate sustainability standards (CSS). The identified CSF can be classified into (1) focal firm-related, (2) relationship-related, (3) supply chain partner-related, and (4) context-related CSF. We expand on the theory of critical success factors by expanding the theory to sustainability and sub-supplier management. For each CSF we provide a foundational definition and analyze them with respect to existent literature. CSF’s unique importance to sub-supplier management success was highlighted and exemplified by field study insights from practitioners. Respective research avenues are highlighted.