Microfoundations of supply chain sustainability practices: A social capital perspective

Despite the growth of supply chain sustainability (SCS) research, exactly how supply chain (SC) relationships lead to sustainability is not yet clearly understood. Although interest in investigating sustainability performance and practice in a broader manner is evident, little attention has been given to the microfoundations of SCS. To address this knowledge gap, our study was grounded on social capital theory because microfoundations are related to individual behaviours and choices. This paper describes our investigation into ways that micro foundations of social capital operationalise SCS practices in both honey and cashew nuts SCs. We employed a dual case study method comprising 39 interviews, direct observations and an examination of secondary data, which allowed for empirical data triangulation. An inductive analysis of the data uncovered seven micro foundations of SCS: trust, reciprocity, close relationships, honesty, commitment, compliance and networks. These microfoundations triggered SC processes (i.e. supplier selection, transparency, supplier loyalty, leadership, training, learning, research and development, regular meetings, joint partnerships and certifications) towards enhanced sustainability outcomes on a macro level. Based on these results, an analytical framework was developed to illustrate how SCS practices are operationalised by microfoundations and to foster managers' awareness of their SC relationships (i.e. familiar, institutional, commercial or normative). This paper contributes to both theory and practice by carving out the microfoundations of SCS and SC processes that lead to enhanced sustainability outcomes.