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Environmental sustainability and supply chain management A framework of cross-functional integration and knowledge tran

Environmental sustainability and supply chain management A framework of cross-functional integration and knowledge transfer. 7 th International Environmental Management Leadership Symposium Dorli Harms Rochester Institute of Technology in Rochester 2 nd – 3 rd May, 2011. Outline.

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Environmental sustainability and supply chain management A framework of cross-functional integration and knowledge tran

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  1. Environmental sustainability and supply chain managementA framework of cross-functional integration and knowledge transfer 7th International Environmental Management Leadership Symposium Dorli Harms Rochester Institute of Technology in Rochester 2nd– 3rd May, 2011

  2. Outline • Sustainable supply chain management & cross-functional integration • Research objective • Theoretical background • Framework • Conclusion & future research

  3. Sustainablesupplychainmanagement • Management of material, information and capital flows • Considering all three dimensions – environmental, social and economic –of sustainable development • Meet customer and stakeholder requirements • Cooperation among companies along the supply chain • Internal integrationbetweendemand-focusedandsupply-focusedprocesses (Carter et al. 1998; Carter & Rogers 2008; Seuring & Müller 2008; Esper et al. 2010)

  4. Sustainable internal and external supply chains upstreamflow of informationdownstream Potential employees Legislative NGOs General public/localcommunity Universities Media/press R&D PR HR CSR/CR Legal Disposal/Recycling Con-sumers Purcha-sing Logis-tics Manufac-turing Sales/Mar-keting 2nd tiersuppliers 1st tiersuppliers Custo-mers external supply chain (supply side) external supply chain (demand side) Internal supplychain Legend Focalcompany Stakeholderconventional SCM StakeholderSSCM (according to the understanding of Harland, 1996, p. S63; Seuring & Müller, 2008, p. 1700) 3

  5. Cross-functionalintegration • Collaboration of employees “with varying functional specialization” (Takeuchi & Nonaka, 1986, p. 5) • Internal supply chains include purchasing, production, and sales/marketing (Harland, 1996) • Every functional unit covers its own area of specialization • Specialization increases interdependencies and the need for coordination (Olsen, 1995) • Balance needed between benefits derived from specialization and the integration costs (Galbraith, 1970, pp. 118–119; Thompson, 1967, 2003, p. 64; Turkulainen, 2008, p. 16) • Transfer of information and knowledge is demanded (Hsu & Hu, 2008)

  6. Research objective • Research question How does cross-functional integration play a role in intra-organizational transfer of SSCM relevant information and knowledge? • Conceptual approach • Referring to knowledge-based theory of the firm (Grant, 1996) “assumption that the critical input in production and primary source of value is knowledge” (Grant, 1996, p. 112). • Discussion of potential measurements to cross-communicate SSCM relevant information and knowledge between functional units

  7. Knowledge transfer in sustainable supply chains internal sustainable supply chain 2 2 1 external sustainable supply chain (demand side) external sustainable supply chain (supply side) 3 individual competences (modified from Sveiby, 2001, p. 347)

  8. Mechanismsofknowledgetransfer • Rules and directives: e.g. internal rules concerning purchasing restrictions to suppliers who exploit child labor • Sequencing: e.g. production planning or inventory management could be measurements which affect energy consumption • Routines: can help to evaluate the environmental performance within a company • Problem solving by groups and decision making: building of cross-functional task force teams for product development or crisis management (according to Grant, 1996)

  9. Framework

  10. Conclusion & futureresearch • Cross-functional integration can improve the understanding for (internal and external) SSCM information • Learning to speak a common language across the supply chain with regard to sustainability information • Different mechanisms for information and knowledge transfer • Award systems might help to foster such cross-functional integration • Further research on • What are similarities and differences of environmental, social, and economic related information in the internal and external supply chain? • Who are the employees and organizations which exchange information? • In which structure and culture do they act?

  11. Thankyou verymuchforyourattention Dorli Harms Centre for Sustainability Management (CSM) Leuphana University Lüneburg Germany Tel. +49 (0)4131 677-2248 dharms@uni.leuphana.de

  12. References • Carter, C.R.; Ellram, L.M.; Ready, K.J. (1998): Environmental Purchasing. Benchmarking Our German Counterparts. In: Journal of Supply Chain Management, Vol. 34, No. 4, 28–38. • Carter, C.R. & Rogers, D.S. (2008): A framework of sustainable supply chain management. Moving toward new theory. In: International Journal of Physical Distribution & Logistics Management, Vol. 38, No. 5, 360–387. • Esper, T.L.; Ellinger, A.E.; Stank, T.P.; Flint, D.J. & Moon, M. (2010): Demand and Supply Integration. A Conceptual Framework of Value Creation Through Knowledge Management. In: Journal of the Academy of Marketing Science, Vol. 38, No.1, 5–18. • Galbraith, J.R. (1970): Environmental and Technological Determinants of Organizational Design. In: J.W. Lorsch & P.R. Lawrence (eds.): Studies in Organization Design. Homewood, IL: Richard D. Irwin and The Dorsey Press, 113–139. • Grant, R.M. (1996): Toward a Knowledge-Based Theory of the Firm. In: Strategic Management Journal, Vol. 17, Winter Special Issue, 109–122. • Harland, C.M. (1996): Supply Chain Management. Relationships, Chains and Networks. In: British Journal of Management, Vol. 7, Special Issue, S63–S80. • Hsu, C.-W. & Hu, A.H. (2008): Green supply chain management in the electronic industry. In: International Journal of Environmental Science and Technology, Vol. 5, No. 2, 205–216. • Olson, E.M.; Walker, Or.C. Jr. & Ruekert, Robert W. (1995): Organizing for Effective New Product Development. The Moderating Role of Product Innovativeness. In: Journal of Marketing, Vol. 59, No. 1, 48–62. • Seuring, S. & Müller, M. (2008): From a Literature Review to a Conceptual Framework for Sustainable Supply Chain Management. In: Journal of Cleaner Production, Vol. 16, No. 15, 1699–1710. • Sveiby, K.-E. (2001): A knowledge-based theory of the firm to guide in strategy formulation. In: Journal of Intellectual Capital, Vol. 2, No. 4, 344–358. • Takeuchi, H. & Nonaka, I. (1986): The New New Product Development Game. In: Harvard Business Review. Vol. 23, No. 1, 137–146. • Thompson, J.D. (1967, 2003): Organizations in Action. Social Science Bases of Administrative Theory. 2. print, New Brunswick, NJ: Transaction Publishers. • Turkulainen, V. (2008): Managing cross-functional interdependencies. The Contingent Value of Integration. Doctoral Dissertation Series 2008/8, Helsinki University of Technology, Department of Industrial Engineering and Management. http/lib.tkk.fi/Diss/2008/isbn9789512295333 (April 11, 2011)

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