Using Country Sustainability Risk to Inform Sustainable Supply Chain Management: A Design Science Study

The sustainability of our global supply chains is an essential concern in strategic supply chain management research. Modern information and communication technologies enable stakeholders to punish buying firms for any sustainability-related grievances at their suppliers, even in remote locations. This study investigates how the notion of country sustainability risk can inform sustainable supply chain management, in particular with respect to sustainability risk assessment at the individual supplier level. Drawing on institutional theory, we provide insights surrounding the emergence of environmental, social and governance-related country-level sustainability risks and show their implications for and application in sustainable supply chain management. The study employs a design science methodology, based on cooperation with a multi-divisional German technology firm, to develop a supply chain sustainability risk (SCSR) map as technological solution design. This paper contributes to the study of SCSR by reconciling the scholarly SCSR discourse with the buying firms’ pursuit of efficiency. Moreover, it elucidates the augmentation of a research agenda through a design science approach. In practical terms, the technological solution design can directly inform managers about SCSR at the country level, and serves as a decision basis for the management of individual suppliers.