The roles of multinational enterprises in governing the sustainability of global supply chains

Abstract

An extensive but fragmented body of research shows that multinational enterprises (MNEs) engage with multiple sustainability rules in global supply chains (GSCs) spanning the private, social and public governance sectors. MNEs perform diverse roles by either shaping or complying with these rules. In this study, we adopt an international business‐centric perspective to systematically review 257 articles and develop a conceptual framework to advance the understanding of MNEs’ sustainability governance in GSCs. Beyond displaying governance rules and MNE roles within a unified framework, this study makes three key contributions. First, we propose a novel conceptualization of the paths through which rules‐in‐use shape MNE roles and how these roles reinforce the original rules. Second, we discuss how MNEs can enhance and hinder the social and environmental sustainability of GSCs. Consequently, we offer insights into the inconsistent literature on how MNEs bridge the gap between sustainability discourse and concrete actions in GSCs. Third, we theorize that social acceptance, local integration and institutional adaptation enable MNEs’ roles to interact across governance sectors.