Exploring Information Processing and Decision Making for Sustainable Supply Management

Jan Meinlschmidt, European Business School
Kai Foerstl, European Business School
Christian Busse, European Business School

ABSTRACT
Since supply networks are highly complex, buying firms face information deficits regarding the actual environmental and social conduct at supplier premises. We investigate sustainable supply management from an information processing perspective to discover (1) how firms reduce sustainability-related information deficits, and (2) how a strategy to achieve that goal is chosen. Building on four in-depth case studies including 20 interviews we found that firms lower their sustainability-related information deficits by (a) reducing their information processing needs using supply chain (re)-design, standardization and supplier development, and (b) by creating information processing capacity using employee management, information exchange, IT support, and supplier evaluation. We hypothesize that decisions on which strategy to pursue are derived from idiosyncratic assessments of costs and benefits associated with the available measures.

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Updated 07/09/2013