When Global is Not Enough: Applying a Paradox Lens to Sustainability Transitions in Interorganizational Systems

Sustainability transitions within global interorganizational systems, such as supply chains, networks, or industries, often face various knotted tensions. These include both sustainability tensions and global-local tensions that multinational enterprises (MNEs) and their business partners, often small and medium enterprises (SMEs), must navigate. Particularly, the tension between global strategies and local contexts challenges MNEs' proactive approaches to managing sustainability emerges. We apply a paradox lens to understand how MNEs address sustainability tensions within global interorganizational systems. Our study focuses on an interorganizational system operating in Europe and China, directed by four MNEs within the food packaging industry, as it transitions to using bio-based plastics. Our findings reveal that while the MNEs adopt a global approach to sustainability, their efforts are often hampered by local circumstances, stalling the sustainability transition. This study contributes to the literature in two ways: (1) We conceptualize tensions as potential breaking points in sustainability transitions within interorganizational systems, arguing that MNEs can effectively address these tensions by adopting a glocal approach to paradox management. (2) We demonstrate that tensions within interorganizational systems often form part of complex, knotted chains that MNEs and their business partners must collaboratively address.