INCREASINGLY, SUSTAINABILITY IS BECOMING A NECESSITY TO THE CORPORATE WORLD. THE NOTION OF SUSTAINABILITY HAS

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1 Business Strategy and the Environment Bus. Strat. Env. 24, (2015) Published online in Wiley Online Library (wileyonlinelibrary.com).1898 Sustainable Supply Chain Management: Motivators and Barriers Aymen Sajjad,* Gabriel Eweje and David Tappin School of Management, Massey Business School, Massey University, Auckland, New Zealand ABSTRACT Sustainable supply chain management (SSCM) is increasingly becoming a topical issue for business research and practice. However, there is a dearth internationally of empirical research that has investigated the factors propelling companies to integrate or inhibiting them from integrating sustainability principles in their supply chain management (SCM). Therefore, this study examines the motivators for and barriers to SSCM adoption in the New Zealand business context and aims to contribute to an improved understanding of the motivators of and barriers to SSCM implementation. To this end, an exploratory case study was conducted and senior managers of four large New Zealand based companies were interviewed. The results reveal that sustainability values of top management, a desire to reduce risk and stakeholder management are salient motivators for SSCM adoption. Conversely, a lack of supplier awareness, negative perceptions and inadequate government support are identified as barriers to SSCM implementation. Copyright 2015 John Wiley & Sons, Ltd and ERP Environment Received 25 October 2013; revised 24 September 2014; accepted 17 February 2015 Keywords: sustainable supply chain management; motivators; barriers; corporate social responsibility; stakeholder theory; supply chain management; New Zealand Introduction INCREASINGLY, SUSTAINABILITY IS BECOMING A NECESSITY TO THE CORPORATE WORLD. THE NOTION OF SUSTAINABILITY HAS garnered increased corporate attention for two key reasons. The first reason is a company s desire to achieve competitive advantage by improving its operational efficiency, cost reduction and reputational gain. Scholars argue that investments in sustainability initiatives make a company competitive and profitable in the long run (Dauvergne and Lister, 2013; Hervani et al., 2005). Accordingly, the competitive advantage of a company is no longer exclusively determined by corporate practices and actions within its premises, but rather it depends on how well a company manages its relationships with supply chain partners to improve sustainability. The second key reason is that, to acquire societal legitimacy, businesses are responding to the growing economic, social and environmental needs of stakeholder groups (Amaeshi et al., 2008). Therefore, this changing business landscape requires companies to take social responsibility more seriously than ever before. Moreover, there is a rising awareness in the corporate sector that a strong commitment and shared efforts would be needed to surmount existing supply chain sustainability issues (Andersen and Skjoett-Larsen, 2009; Hervani et al., 2005; Wolf, 2014). *Correspondence to: Aymen Sajjad, School of Management, Massey Business School, Massey University, Auckland, New Zealand. a.sajjad@massey. ac.nz Copyright 2015 John Wiley & Sons, Ltd and ERP Environment

2 644 A. Sajjad et al. This has given rise to the concept of SSCM, which is defined as the management of material, information and capital flows as well as cooperation among companies along the supply chain while taking goals from all three dimensions of sustainable development, i.e., economic, environmental and social, into account which are derived from customer and stakeholder requirements (Seuring and Müller, 2008a, p. 1700). However, as theories of SSCM evolve, the empirical research on corporate motives and barriers to SSCM implementation is rather limited (Giunipero et al., 2012) or fragmented. The majority of research conducted on SSCM motivators and barriers is theoretical in nature, and this topic is hardly explored in the New Zealand business context. Against this background, the study examines the factors that motivate or hinder New Zealand companies efforts to implement a successful SSCM strategy. The research questions are the following. (i) What factors motivate companies to implement SSCM strategy? (ii) What barriers do companies encounter during the implementation of SSCM strategy? The study contributes to the SSCM body of knowledge in a number of ways. The study is timely, as both practitioners and policy-makers need to have an up-to-date knowledge of what factors motivate and inhibit SSCM implementation and how these factors affect the overall sustainability performance of companies that engage in the implementation of SSCM practices. Further, this study contributes to a fragmented body of knowledge regarding implementation of the SSCM approach. The paper is organized into five sections. Next, the literature review section provides an outline of theoretical and empirical research that explores SSCM motivators and barriers. Then, in the research method section, an overview of the research approach is discussed. After this, the empirical findings are presented in the findings section. Then, the discussion section presents an analysis of the results in relation to relevant literature on SSCM. Finally, the paper concludes with a section on conclusions, research limitations and directions for future research. Motivators for Implementation of Sscm Practices Scholars have categorized sustainability motivators into internal versus external motivators (e.g. Walker et al., 2008). Internal sustainability motivators are further classified into two sub-categories: instrumental and normative motivators. Instrumental rationality assumes that the corporation is an instrument of wealth creation with CSR conceived as a strategic tool to promote economic objectives (Jamali, 2008, p. 219). Normative motivations, on the other hand, are governed by ethical and moral values of owners/managers of a company (Donaldson and Preston, 1995). Similarly, external forces may also drive companies to adopt SSCM strategy. These factors include market drivers (e.g. competition, customers and consumer demands), government (e.g. regulations and legislations) and social factors (e.g. civil society organizations and media), which may trigger organizational proactivity towards improving sustainability (Chkanikova and Mont, 2015). The following sub-sections further explore the relevant literature on internal and external motivators. Internal Motivators Economic optimization and the management of business risk are instrumental factors that drive companies to implement SSCM practices. Several studies have revealed that investments in SSCM initiatives improve a company s performance and competitive advantage (e.g. Pullman et al., 2009; Zhu and Sarkis, 2004). On the other hand, the perception of potential risk or business loss that results from unethical supply chain practices is a critical factor, which influences companies to adopt SSCM strategy (Hofmann et al., 2014). Companies may avoid, mitigate and manage social and environmental risks by utilizing SSCM strategies (Cheung et al., 2009). Maloni and Brown (2006) observed that SSCM issues increase a threat of public campaigns or protests, which may pose a substantial reputational risk to well known brands. Accordingly, a company s reputation and brand image can be tainted by the actions of another member who engages in activities that result in public sentiment or outcry or,

3 Sustainable supply chain management 645 even worse, is accused of criminal behaviour where liability is extends up and down the supply chain (Spekman and Davis, 2004, p. 418). The support of senior management is a critical factor in the successful introduction and implementation of social or environmental programs in the SCM activities of a company (Dey et al., 2011; Pagell and Wu, 2009). These commitments are governed by either normative or instrumental rationality, or both at the same time. However, in the normative context, value-based orientations of the management team including self-worth, integrity, pride and well-being of the community inspire them to adopt corporate citizenship behaviour in their organizations (Lieb and Lieb, 2010; Sharfman et al., 2009). External Motivators Corporate brand value involves intangible assets such as reputation and customer loyalty (Dey et al., 2011). A company s SSCM vulnerabilities may have potentially negative influence over its reputation and brand value (Andersen and Skjoett-Larsen, 2009). Conversely, an active response to sustainability issues helps a company to increase its product sales (Dey et al., 2011), and improve reputation and brand value (Heikkurinen, 2010; Hoffman, 2005). Customers are one of the most influential stakeholder groups for any company, and they can positively or negatively affect organizational performance by buying or boycotting a particular product or company (Collins et al., 2007). In addition, public sentiments and pressure of NGOs are also significant forces that may influence companies to adopt SSCM practices (Sharfman et al., 2009). For example, this is evident from a recent campaign launched by Greenpeace against Nestle, blaming the organization for sourcing unsustainable palm oil, which has led to rainforest deforestation (Wolf, 2014). A significant body of research has revealed that regulation and legislation act as a strong driver for the adoption of SSCM practices (Ageron et al., 2011; Giunipero et al., 2012). Walker et al. (2008) claimed that environmental regulations play a significant role in the implementation of environmental practices. Moreover, companies face strong legal penalties and fines for non-compliance with environmental regulations, which may negatively impact their performance. A recent example is the British Petroleum (BP) oil spill in the Gulf of Mexico, which gradually eroded the economic performance of the company (Gosden, 2013). Gosden (2013) estimated that the supply chain incident cost more than $90 billion, including civil and criminal penalties on the company. Barriers for Implementation of Sscm Practices SSCM barriers are also grouped into internal and external barrier categories (Walker et al., 2008). The internal barriers involve organization related issues such as financial constraints, lack of knowledge and awareness, and inadequate support of top management (Ageron et al., 2011; Giunipero et al., 2012). Conversely, external barriers involve forces present in the external environment, which sometimes impede corporate ability to engage in SSCM practices. These factors include factors such as lack of supplier capability, inadequate consumer demand for sustainable products or services and lack of government support (Faisal, 2010; Seuring and Müller, 2008b; Walker et al., 2008). The following two sections further explore the relevant literature on internal and external barriers. Internal Barriers Previous studies have reported that there are several factors that may hinder companies ability to embrace SSCM practices. However, the review of literature suggests that theoretical and empirical research on SSCM barriers is relatively rare compared with that on motivators of SSCM implementation. The support and commitment of management is instrumental for the introduction of SSCM strategy in a company (Wittstruck and Teuteberg, 2011). However, a lack of interest by top and middle level management may reduce

4 646 A. Sajjad et al. organizational capacity to engage in sustainability initiatives. Correia et al. (2013) claimed that strategic leadership is a significant issue for sustainable procurement. The implementation of SSCM strategy requires development of supply chain infrastructure, systems and processes, which may increase the costs of operations. However, due to monetary constraints or high costs, companies often struggle to engage in SSCM practices (Ageron et al., 2011). Walker and Brammer (2009) in a study of the UK public sector procurement practices reported financial constraint as a leading barrier to sustainable procurement. Lower upfront costs encourage a buyer to purchase a cheaper product which is of lower efficiency or holds poor environmental attributes. Thus, short-termism entrenched in the traditional purchasing system acts as an obstacle to sustainable procurement practices. Legal and administrative complexities, risk-aversion behaviour, lack of awareness and negative perceptions about environmental procurement are some of the important issues inhibiting a company s sustainable procurement efforts (Correia et al., 2013). Zhu and Sarkis (2004) found that companies recognize the significance of embedding GSCM strategy; however, most of them lack management skills, experience and essential tools to execute GSCM practices. External Barriers External factors also create obstacles to the implementation of SSCM strategy. Barriers such as insufficient or inappropriate regulations, lack of sustainable supply chain performance measures and weak demand for sustainable products or services perhaps limit an organization s involvement in SSCM programs (Brewer and Speh, 2001; Faisal, 2010). Environmental regulations are often cited as a prime driver for SSCM adoption (Wittstruck and Teuteberg, 2011). However, some authors argue that costly and inflexible environmental regulations restrain environmental proactivity of a company (Porter and van der Linde, 1995). Companies are only required to meet the minimum regulatory criteria, which reduces their capability to develop innovative technologies and solutions to improve environmental performance beyond regulatory standards. Performance measurement in supply chains is a challenging task, as it involves measuring the performance across the supply chain operations at supplier, manufacturer, distributor and retailer levels. Brewer and Speh (2001) and Hervani et al. (2005) argue that lack of understanding, geographical and cultural differences, nonstandardized performance measures, and multifarious priorities, goals and objectives of supply chain members are some of the challenges in implementing consistent performance measurement tools and systems across the supply chain. Companies may charge a price premium by selling differentiated sustainable products or services to their customers. However, some scholars have noted that there is no price premium for sustainable or organic produce (Doonan et al., 2005), and that there is a lack of customer demand for sustainable products or services (Seuring and Müller, 2008b). At the same time, factors such as a lack of time for research, higher prices and inadequate information sometimes discourage consumers from purchasing green products (Young et al., 2010). Stakeholder Theory This study utilizes stakeholder theory to explore the motivations for corporations to adopt SSCM practices. Freeman (1984, p. 46) defines a stakeholder as any group or individual who can affect or is affected by the achievement of an organization s objectives. Stakeholder theory endorses the importance of CSR, which not only requires an organization to fulfil its economic duty towards its shareholders but also recognizes the significance of the ethical or moral obligation of companies to other stakeholder groups (Freeman, 1984). Donaldson and Preston (1995) distinguish stakeholder theory into three types descriptive theory, normative theory and instrumental stakeholder theory. However, two perspectives (i.e. normative and instrumental dimensions) of stakeholder theory are particularly useful to examine factors that influence companies to integrate SSCM practices in their supply chain operations. Instrumental stakeholder theory identifies the impact of proactive

5 Sustainable supply chain management 647 stakeholder management on the economic bottom line of a company (Donaldson and Preston, 1995). On the other hand, normative stakeholder theory postulates that the interests of all the stakeholders are of intrinsic value (Clarkson, 1995; Freeman and Phillips, 2002) and societal expectations merit corporate attention on ethical or moral grounds (Donaldson and Preston, 1995). Methodology A multiple exploratory case study design was adopted in this study to explore the motivators and barriers for the implementation of SSCM practices (Eisenhardt, 1989; Yin, 2009). A case study approach is a particularly useful method to explore how and why companies are integrating sustainability practices into their SCMs (Yin, 2009) and what barriers they encounter while integrating SSCM practices. Furthermore, a multi-industry design was used to capture assorted perspectives regarding SSCM implementation in different sectors. The companies were purposefully selected on the basis of their sustainability profile and industry leadership. Eisenhardt (1989, p. 537) has argued that a random sampling technique is neither necessary, nor preferable in qualitative research. In this study, four large New Zealand based companies were chosen for data collection (see Table 1). The sample cases represent three sectors, including postal and communications services, financial services and food retail. Alpha is a public sector organization that operates as a commercial entity, while beta, gamma and delta are private sector organizations. The four organizations are considered as industry leaders in sustainability. They are members of one or both of the leading sustainability forums in New Zealand: the Sustainable Business Council (SBC) and Sustainable Business Network (SBN). These forums provide support, advice and networking opportunities for stakeholder dialogues to help their member businesses to become more sustainable. Furthermore, semi-structured interviews were conducted in Auckland and Wellington between January and December 2012 with senior managers whose responsibilities were in sustainability and SCM related areas. The interviews ranged in length between 60 and 80 min. The analysis was performed at two levels, that is, within case analysis and cross case analysis (Yin, 2009). Initially, interviews were digitally recorded and transcribed, and then a data reduction technique was applied, which includes summarizing, condensing and simplifying the data so that key aspects of the data can be focused on (Miles and Huberman, 1994). In this regard, initial codes were developed by analysing the transcripts and other documentary data by which important information was clustered into a coding scheme for each case. Thematic analysis was applied to a list of codes and themes were developed. At the second level, cross case analysis was performed to identify interrelating themes and contrasting themes appearing from the within case analysis of sample companies (Eisenhardt, 1989). Moreover, tables were used to encapsulate the key points reported in the findings section. The tabular representation was utilized with the aim to make it earlier and clearer for readers to follow the key findings of this research. Findings The findings of this study are presented into two sub-sections. The first relates to the motivators for SSCM implementation (see Table 2), while the second presents the barriers to SSCM implementation (see Table 3 later). Motivators for SSCM Implementation The findings suggest that there are several motivators encouraging companies to pursue a SSCM approach (see Table 2). Value-driven motives and top management support are key internal motivators reported by informants, followed by a desire to manage risk, and corporate long-term orientation. Conversely, customers and community expectations are found to be external factors for SSCM adoption.

6 648 A. Sajjad et al. Company Alpha Beta Gamma Delta Primary business postal and communication insurance food retail banking Private or public public private private private organization Size large large large large Number of employees in New Zealand Membership SBN SBC SBN SBN Sustainability awards NZ Institute of Charted Accountants Award for Best Sustainability SBC signatory of the United Nations Principles of Sustainable Insurance New Zealand Sustainability 60 Award Winner EECA Award for Energy Management and Transport Greenpeace Award for Sustainable Tuna Initiative Lincoln Envirotown Responsibility Business Award SBC member of United Nations Environment Program Finance Initiative Table 1. Case profile

7 Sustainable supply chain management 649 Internal motivators No Company Normative Instrumental External motivators 1 Alpha moral/ethical obligation to do risk management customers and community the right thing brand differentiation benefits expectations top management team and board members are sustainability focused 2 Beta CEO is very sustainability focused increased new business enhanced reputation and increased efficiency and costs reduction a strengthened employer brand brand value 3 Gamma reputational risk NGOs pressure good media publicity tool 4 Delta the commitment of the board customers expectations moral/ethical obligation to do the right thing long-term orientation Table 2. Motivators of SSCM implementation No Company Organizational/internal barriers External barriers 1 Alpha lack of suppliers capability to deliver desired services/products higher prices by suppliers 2 Beta lack of awareness and understanding 3 Gamma behavioural barriers: people are not willing to change 4 Delta psychological barriers (negative perception about sustainability): (a) costs more money and (b) offers no real benefits lack of customer interest lack of government leadership Table 3. Barriers to SSCM implementation Internal Motivators Value-driven orientations and commitment/support of top management were reported as predominant internal reasons for companies to implement SSCM practices. As one of the senior managers of Alpha asserted, We see sustainability as a non-negotiable part of our business our chief executive and board believe that it is the right thing to do. We also know that there is an increase in the expectations from our customers and communities that we should be doing the right thing. The comment of the manager recognized that support and ethical values of senior management team and board members were important factors to SSCM implementation (Dey et al., 2011; Giunipero et al., 2012; Lieb and Lieb, 2010). However, it is difficult to determine whether this aspiration is exclusively motivated by ethical motives or stakeholders concerns. The manager of Beta also recognized the importance of top management in adopting

8 650 A. Sajjad et al. sustainability strategy, and particularly the role of the CEO in introducing SSCM practices into the company. The manager remarked Our CEO is very sustainability focussed. He started to put the foundation in place and promoted the idea of sustainable supply chain strategy he strongly believes that you cannot be sustainable if your supply chain is not sustainable. Although managers recognized managerial sustainability values as a key cornerstone to SSCM introduction and implementation, nonetheless they also reported that they envisage SSCM as a strong risk management strategy. Past evidence has suggested that companies can experience serious losses from the sustainability problems that exist in their supply chains (e.g. Hofmann et al., 2014). As the manager of Alpha indicated, We are quite an iconic New Zealand brand. Our reputation and image is very important to us well no one wants to be a Nike or a Foxconn so really it [SSCM] is about risk management but in my perception it is a strong risk management and a brand protection function in the first instance and the once you get that right there is definitely room for creating a brand differentiation. In these comments, the managers consider SSCM as a strong risk management approach but also draw attention to the benefit of achieving brand differentiation from implementing a SSCM approach. However, brand differentiation may be accomplished in the long term when SSCM practices are ingrained at the strategic and operational levels, as well as when an organization is able to ensure that its supply chain partners are also actively addressing sustainability issues. Essentially, Gamma s manager noted Until 2010 sustainability was not really on the corporate agenda, however due to growth in that area, media publicity and associated great reputational risk, its considered that we needed to invest resources in the sustainability and also we have reputational risk associated to our supply chain, if we do not have good standards and monitoring measures to ensure that those standards are enforced. For some other participants, a long-term strategic orientation was a central reason for SSCM implementation and collaborating with supply chain partners. Breton-Miller and Miller (2006) described the concept of strategic orientation as developing long-term cordial relationships with society including customers, employees, suppliers or the community to reduce risk or develop corporate resources. Wolf (2014, p. 325) further substantiated this argument by stating that organizations build a reputation of good citizen by promoting environmental and social sustainability in their supply chain. This reputation improves legitimacy and access to key resources. In line with these assertions, the manager of Delta affirmed that As an organization we want to be kind of the bank for New Zealand that will continue to be around for years it will be very short term and short minded of us to think that we can just continue to make lots of profits now and then down the track we stuff our system I think as a result of that there is definitely even priority on making sure that supply chain sustainability is something that is embedded now. Other than this, the sustainability report of Beta revealed that the company was motivated to engage in SSCM practices because SSCM strategy would benefit the company to grow business, increase efficiency and reduce costs, as well as attracting competent employees. However, these factors were not explicitly mentioned as such during the interviews with managers. External Motivators Community and customers expectations were highlighted as prime external triggers for SSCM implementation by the managers of Alpha and Delta. As one of the managers asserted, We know that our customers expect it and that our stakeholders and communities also expect it of us. We have used sustainability just as part of how we do business.

9 Sustainable supply chain management 651 Another manager commented on the customers expectations regarding sustainability: We are doing it more because we are adapting to what customers want and how they want to interact sort of thing. Interestingly, only managers of Gamma mentioned that their company was facing NGOs pressure, as a consequence of recent developments in the sourcing of sustainable palm oil and concerns about deforestation of tropical forests, erosion of biodiversity and violation of human rights (Wolf, 2014). This pressure may be because the practices of supermarkets and large retailers are often under the radar of NGOs and public interest groups (Chkanikova and Mont, 2015) compared with small suppliers or retailers. In this regard, one of the managers commented that Lots of our private label products have palm oil in them as an ingredient we have NGOs such as Greenpeace and WWF raising these issues and creating a quite a lot publicity around it so as an organization we regard that this is a high risk area. Barriers for SSCM Implementation Turning to the analysis of SSCM implementation barriers, the findings suggested that a smaller number of barriers are acting as an obstacle for companies to adopt SSCM strategies (see Table 3). Internal Barriers Lack of awareness and understanding as well as negative perceptions are mentioned as strong internal barriers to SSCM implementation. Behavioural and psychological issues with the organizational workforce often act as a barrier to the implementation of sustainability strategy (see, e.g., Muduli et al., 2013). Often, negative perceptions and organizational cultural change issues create hurdles for management to introduce and implement SSCM practices. The managers of Gamma and Delta indicated these concerns in the following statements: Behavioural barriers and behaviour change are significant issues. You have particular practice there has been adopted for the last 20 years and to actually do something differently that obviously you have to manage behavioural change so I guess behaviour change is often a significant challenge to supply chain sustainability (Gamma). I think there is often a psychological barrier for a lot of people who kind of see sustainability as a nice fluffy thing that we can do but it costs more money and there is no real benefit (Delta). External Barriers External barriers often restrain companies to integrate SSCM practices in their supply chains. For example, suppliers and customers specific issues may inhibit companies to implement SSCM practices (Balasubramanian, 2012; Seuring and Müller, 2008b; Walker et al., 2008; Walker and Brammer, 2009). The findings of this study revealed a lack of supplier ability and higher prices by suppliers as barriers that inhibit SSCM implementation. The manager of Alpha described that Obviously pricing is quite a strong driver and ability of suppliers. So a number of companies turn up service to sustainability in their RFPs [request for proposals], but actually when it comes to delivery may not be able to deliver what they have promised and other entities may attempt to charge premium for the same outcome I think that presents a bit of a barrier. On the other hand, a manager of Delta argued that sustainability was not a priority to the New Zealand government. Although it was not acting as a barrier, the government has an important role in influencing top management to promote sustainability in a company. The manager argued that

10 652 A. Sajjad et al. It is not much of a priority to the government Obviously it is easier to get that support if you can point to the government saying this is really important whereas if they are actually saying this is not so important and we do not care about that, then it becomes a much harder sell. Discussion and Analysis This study revealed that top leadership has an important role in the adoption of SSCM practices. Previous studies have found that the support and commitment of leadership is an integral element in the implementation of SSCM strategy (Ageron et al., 2011; Chan, 2007; Giunipero et al., 2012). In addition, the results further suggested that ethical values and moral beliefs as well as sustainability principles encourage management to embrace the SSCM approach. This finding is consistent with past studies, which suggest that sustainability values (Caniato et al., 2012) and a managerial desire to do the right thing (Lieb and Lieb, 2010) stimulate a corporate tendency towards the adoption of sustainability practices. In particular, this result also conforms to normative stakeholder theory, which supports a need for ethical propriety and high moral values while making decisions which impact the various stakeholder groups in a society (Donaldson and Preston, 1995). Moreover, informants refer to a concept of long-term orientation and its significance in the SSCM adoption. This orientation may be driven by normative or instrumental factors and can be viewed as a middle ground or a move towards a reconciliation of normative and instrumental stakeholder perspectives. The findings also indicate that supply chain risk management is becoming a significant issue for companies. Thus, in order to minimize and manage potential social or environmental risks companies are now more cognisant of these threats and liabilities. The governance of risk is no longer perceived as an intra-organizational management concern; rather, supply chain sustainability issues pose a substantial reputational risk to companies, which can negatively impact on a company s performance (Maloni and Brown, 2006; Spekman and Davis, 2004). Interestingly, despite prior evidence (Nidumolu et al., 2009; Pullman et al., 2009), economic benefits were not reported in the findings as central to SSCM implementation. During the interviews, managers referred to a few positive outcomes such as brand differentiation, but only the sustainability report of Beta highlighted the economic significance of the SSCM approach. Thus, it can be argued that the business case of SSCM has not yet surfaced in the case companies or they are still in the rudimentary phase of SSCM development. It is further suggested that SSCM investments need to be substantiated by economic returns and that organizations need to clearly link these investments with financial benefits. The results showed that external factors are also driving companies to embrace an SSCM approach. In particular, stakeholders such as customers, community and NGOs were reported by respondents as driving forces for the integration of SSCM practices in their companies. These findings are consistent with the argument that customers and community are primary motivators for companies to implement SSCM practices (Oelze et al., 2014; Sharfman et al., 2009). In addition, previous research indicates that those companies that are operating in a food retail industry or other sensitive sectors are susceptible to NGO pressure (Leadbitter and Benguerel, 2014; Wolf, 2014). Moving on to the discussion of barriers to SSCM implementation, the findings reported lack of awareness, supplier and customer issues, and inadequate government support as obstacles to the successful implementation of SSCM strategy. Several past studies have reported the issue of understanding and awareness of sustainability principles and practice (e.g. Cheung et al., 2009). The perception of economic uncertainty resulting from the adoption of sustainability practices may hinder companies efforts regarding espousal of these practices (Giunipero et al., 2012). Accordingly, it is argued that some companies are sceptical, and in certain cases are reluctant to participate in SSCM practices because of cultural, behavioural or psychological issues or due to uncertainties associated with the benefits of these practices. With reference to suppliers and customers, a similar set of issues is reported in previous research, including lack of green suppliers and developers (Balasubramanian, 2012), lack of supplier commitment (Walker et al., 2008) and higher prices of sustainable products from suppliers (Walker and Brammer, 2009), as well as a lack of customer interest in sustainable products or services (Faisal, 2010). These concerns can only be resolved when supply chain

11 Sustainable supply chain management 653 network members develop close relationships with each other rather than falling into hostile and opportunistic behaviour (Oelze et al., 2014). Government influence may be a strong driver for improving SSCM practices for companies. However, the lack of regulation may reduce the pace of SSCM adoption (Cheung et al., 2009; Faisal, 2010). It is contended that, to stimulate the demand for sustainable practices and products at the supply chain level, the government can play a significant role by promoting public and customer awareness campaigns about environmental and social sustainability issues. Moreover, the government can also use tools such as market incentives (e.g. grants and incentives), fiscal measures (e.g. levies and taxes) or direct regulations to strengthen SSCM adoption. Conclusions, Limitations and Future Research This study has examined the motivators for and barriers to SSCM implementation in four large companies in New Zealand. The findings of the study revealed that there are numerous motivators for and barriers to SSCM implementation. The ethical values of top management and risk management are key internal reasons for companies to adopt the SSCM approach. Interestingly, this study reported a long-term orientation as a new motivator for SSCM adoption. Stakeholders expectations and pressures were reported as external factors that motivate companies to embrace SSCM practices. On the other hand, lack of awareness and negative perceptions were internal barriers to SSCM implementation, while suppliers issues, lack of government and customers support are revealed as external barriers to SSCM strategy. Corporate SSCM motivations may be driven by either normative or instrumental factors. However, it is argued in this paper that normative and instrumental arguments are complementary to each other. This assertion implies that commitment to SSCM may be initiated by value driven motives but the improved monetary outcomes as a result of SSCM implementation would strengthen the business case for SSCM and vice versa. Moreover, it is also suggested that government needs to promote SSCM practices by using various tools. This study has three main limitations. First, the small sample limits the generalizability of the research findings. Therefore, additional research is suggested to test these findings further, preferably by the use of large surveys. Moreover, future research might be helpful in different sectors to identify the motivators and barriers specific to a particular sector. Second, the findings are subject to social desirability bias, as managers might have offered a positive opinion about the SSCM practices in their organizations. Third, this study only focused on leading organizations, and this may not allow us to reflect on the general state of SSCM adoption and barriers in companies that are not leading in their industry. Thus, future research would be needed to examine the issues related to adoption of SSCM practices in companies other than industry leaders. References Ageron B, Gunasekaran A, Spalanzani A Sustainable supply management: an empirical study. International Journal of Production Economics 140(1): Amaeshi KM, Osuji OK, Nnodim P Corporate social responsibility in supply chains of global brands: a boundaryless responsibility? Clarifications, exceptions and implications. Journal of Business Ethics 81(1): Andersen M, Skjoett-Larsen T Corporate social responsibility in global supply chains. Supply Chain Management 14(2): Balasubramanian S A hierarchical framework of barriers to green supply chain management in the construction sector. Journal of Sustainable Development 5(10): Breton-Miller L, Miller D Why do some family businesses out-compete? Governance, long-term orientations, and sustainable capability. Entrepreneurship: Theory and Practice 30(6): Brewer PC, Speh TW Adapting the balanced scorecard to supply chain management. Supply Chain Management Review 5(2): Caniato F, Caridi M, Crippa L, Moretto A Environmental sustainability in fashion supply chains: an exploratory case based research. International Journal of Production Economics 135(2): Chan H A pro-active and collaborative approach to reverse logistics a case study. Production Planning and Control 18(4): Cheung DK, Welford RJ, Hills PR CSR and the environment: business supply chain partnerships in Hong Kong and PRDR, China. Corporate Social Responsibility and Environmental Management 16(5):

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