IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v55y2024i4d10.1057_s41267-024-00708-4.html
   My bibliography  Save this article

Sensemaking along global supply chains: implications for the ability of the MNE to manage sustainability challenges

Author

Listed:
  • Lutz Preuss

    (Kedge Business School)

  • Ralf Barkemeyer

    (Kedge Business School)

  • Bimal Arora

    (Manchester Metropolitan University)

  • Shilpi Banerjee

    (Hult International Business School)

Abstract

Multinational enterprises (MNEs) are increasingly called upon to address sustainability issues along their supply chains. We advance prior literature on this topic by building on the argument that comprehending individual-level sensemaking is the foundational step for understanding the design and execution of corporate sustainability strategy. Hence, we undertook a qualitative study of one European agri-food MNE and captured how internal and external stakeholders along two entire supply chain segments, reaching into India and Ethiopia, respectively, make sense of farmer livelihoods as one particular sustainability issue. Using Weick’s stages of sensemaking as our theoretical lens, we find a high degree of diversity in interpretations regarding (1) the nature of the sustainability challenge, (2) the MNE’s motives for addressing it, and (3) the potential solutions to it. However, consistent patterns emerge for the three sensemaking stages in relation to the individual’s position in the supply chain. As a result of our analysis, we develop a conceptual model that elucidates differences in sensemaking of sustainability challenges by actors at different positions along global supply chains. Building on our findings, we offer a detailed explanation of how individual sensemaking influences collective sensemaking and, in turn, the direction and effectiveness of corporate strategy on sustainability.

Suggested Citation

  • Lutz Preuss & Ralf Barkemeyer & Bimal Arora & Shilpi Banerjee, 2024. "Sensemaking along global supply chains: implications for the ability of the MNE to manage sustainability challenges," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(4), pages 492-514, June.
  • Handle: RePEc:pal:jintbs:v:55:y:2024:i:4:d:10.1057_s41267-024-00708-4
    DOI: 10.1057/s41267-024-00708-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41267-024-00708-4
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41267-024-00708-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ans Kolk & Miguel Rivera-Santos & Carlos Rufín, 2018. "Multinationals, international business, and poverty: A cross-disciplinary research overview and conceptual framework," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 92-115, June.
    2. Joep P. Cornelissen, 2012. "Sensemaking Under Pressure: The Influence of Professional Roles and Social Accountability on the Creation of Sense," Organization Science, INFORMS, vol. 23(1), pages 118-137, February.
    3. Michelle Rodrigue & Michel Magnan & Charles Cho, 2013. "Is Environmental Governance Substantive or Symbolic? An Empirical Investigation," Journal of Business Ethics, Springer, vol. 114(1), pages 107-129, April.
    4. Andrew J. Hoffman & William Ocasio, 2001. "Not All Events Are Attended Equally: Toward a Middle-Range Theory of Industry Attention to External Events," Organization Science, INFORMS, vol. 12(4), pages 414-434, August.
    5. Peter Tashman & Valentina Marano & Tatiana Kostova, 2019. "Walking the walk or talking the talk? Corporate social responsibility decoupling in emerging market multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 153-171, March.
    6. Ivan Montiel & Alvaro Cuervo-Cazurra & Junghoon Park & Raquel Antolín-López & Bryan W. Husted, 2021. "Implementing the United Nations’ Sustainable Development Goals in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 999-1030, July.
    7. Dimitrios Georgakakis & Mads E. Wedell-Wedellsborg & Tommaso Vallone & Peder Greve, 2023. "Strategic leaders in multinational enterprises: A role-specific microfoundational view and research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 514-537, April.
    8. Tobias Hahn & Jonatan Pinkse & Lutz Preuss & Frank Figge, 2015. "Tensions in Corporate Sustainability: Towards an Integrative Framework," Journal of Business Ethics, Springer, vol. 127(2), pages 297-316, March.
    9. Christian Asmussen & Tailan Chi & Rajneesh Narula, 2022. "Quasi-internalization, recombination advantages, and global value chains: Clarifying the role of ownership and control," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1747-1765, October.
    10. Dennis A. Gioia & Kumar Chittipeddi, 1991. "Sensemaking and sensegiving in strategic change initiation," Strategic Management Journal, Wiley Blackwell, vol. 12(6), pages 433-448, September.
    11. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    12. Jean-François Hennart, 2009. "Down with MNE-centric theories! Market entry and expansion as the bundling of MNE and local assets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1591-1591, December.
    13. Gabriela Gutierrez-Huerter O & Jeremy Moon & Stefan Gold & Wendy Chapple, 2020. "Micro-processes of translation in the transfer of practices from MNE headquarters to foreign subsidiaries: The role of subsidiary translators," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 389-413, April.
    14. Lankoski, Leena & Smith, N. Craig & Van Wassenhove, Luk, 2016. "Stakeholder Judgments of Value," Business Ethics Quarterly, Cambridge University Press, vol. 26(2), pages 227-256, April.
    15. Obara, Louise J. & Peattie, Ken, 2018. "Bridging the great divide? Making sense of the human rights-CSR relationship in UK multinational companies," Journal of World Business, Elsevier, vol. 53(6), pages 781-793.
    16. Welch, Catherine & Piekkari, Rebecca, 2017. "How should we (not) judge the ‘quality’ of qualitative research? A re-assessment of current evaluative criteria in International Business," Journal of World Business, Elsevier, vol. 52(5), pages 714-725.
    17. Rajneesh Narula, 2019. "Enforcing higher labor standards within developing country value chains: Consequences for MNEs and informal actors in a dual economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1622-1635, December.
    18. Bebbington, Anthony, 1999. "Capitals and Capabilities: A Framework for Analyzing Peasant Viability, Rural Livelihoods and Poverty," World Development, Elsevier, vol. 27(12), pages 2021-2044, December.
    19. Linda Rouleau & Julia Balogun, 2011. "Middle Managers, Strategic Sensemaking, and Discursive Competence," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 953-983, July.
    20. Catherine Welch & Rebecca Piekkari & Emmanuella Plakoyiannaki & Eriikka Paavilainen-Mantymaki, 2011. "Theorising from case studies: Towards a pluralist future for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(5), pages 740-762, June.
    21. James P. Walsh, 1995. "Managerial and Organizational Cognition: Notes from a Trip Down Memory Lane," Organization Science, INFORMS, vol. 6(3), pages 280-321, June.
    22. Marlys K. Christianson & Maria T. Farkas & Kathleen M. Sutcliffe & Karl E. Weick, 2009. "Learning Through Rare Events: Significant Interruptions at the Baltimore & Ohio Railroad Museum," Organization Science, INFORMS, vol. 20(5), pages 846-860, October.
    23. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 577-622, June.
    24. Karl E. Weick & Kathleen M. Sutcliffe & David Obstfeld, 2005. "Organizing and the Process of Sensemaking," Organization Science, INFORMS, vol. 16(4), pages 409-421, August.
    25. Elizabeth Maitland & André Sammartino, 2015. "Managerial cognition and internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(7), pages 733-760, September.
    26. Jean-Pascal Gond & Assâad El Akremi & Valérie Swaen & Nishat Babu, 2017. "The psychological microfoundations of corporate social responsibility: A person-centric systematic review," Post-Print halshs-01698534, HAL.
    27. Dustin J. Bluhm & Wendy Harman & Thomas W. Lee & Terence R. Mitchell, 2011. "Qualitative Research in Management: A Decade of Progress," Journal of Management Studies, Wiley Blackwell, vol. 48(8), pages 1866-1891, December.
    28. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Correction to: Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1353-1353, October.
    29. Natalie Slawinski & Pratima Bansal, 2015. "Short on Time: Intertemporal Tensions in Business Sustainability," Organization Science, INFORMS, vol. 26(2), pages 531-549, April.
    30. Teagarden, Mary B. & Von Glinow, Mary Ann & Mellahi, Kamel, 2018. "Contextualizing international business research: Enhancing rigor and relevance," Journal of World Business, Elsevier, vol. 53(3), pages 303-306.
    31. Julia Balogun & Kathryn Fahy & Eero Vaara, 2019. "The interplay between HQ legitimation and subsidiary legitimacy judgments in HQ relocation: A social psychological approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 223-249, March.
    32. Haridimos Tsoukas & Gerardo Patriotta & Kathleen M. Sutcliffe & Sally Maitlis, 2020. "On the way to Ithaka[1]: Commemorating the 50th Anniversary of the Publication of Karl E. Weick’s The Social Psychology of Organizing," Journal of Management Studies, Wiley Blackwell, vol. 57(7), pages 1315-1330, November.
    33. Valentina Marano & Tatiana Kostova, 2016. "Unpacking the Institutional Complexity in Adoption of CSR Practices in Multinational Enterprises," Journal of Management Studies, Wiley Blackwell, vol. 53(1), pages 28-54, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soliman, Salma & Papanastassiou, Marina & Saka-Helmhout, Ayse, 2023. "The role of subsidiaries in Global Value Chains (GVCs): An institutional voids perspective on LVC upgrading and integration," Journal of International Management, Elsevier, vol. 29(2).
    2. Fortwengel, Johann & Gutierrez Huerter O, Gabriela & Kostova, Tatiana, 2023. "Three decades of research on practice transfer in multinational firms: Past contributions and future opportunities," Journal of World Business, Elsevier, vol. 58(3).
    3. Valentina Marano & Miriam Wilhelm & Tatiana Kostova & Jonathan Doh & Sjoerd Beugelsdijk, 2024. "Multinational firms and sustainability in global supply chains: scope and boundaries of responsibility," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(4), pages 413-428, June.
    4. Magnani, Giovanna & Gioia, Denny, 2023. "Using the Gioia Methodology in international business and entrepreneurship research," International Business Review, Elsevier, vol. 32(2).
    5. Cuervo-Cazurra, Alvaro & Dieleman, Marleen & Hirsch, Paul & Rodrigues, Suzana B. & Zyglidopoulos, Stelios, 2021. "Multinationals’ misbehavior," Journal of World Business, Elsevier, vol. 56(5).
    6. Marty Reilly & Esther Tippmann & Pamela Sharkey Scott, 2023. "Subsidiary closures and relocations in the multinational enterprise: Reinstating cooperation in subsidiaries to enable knowledge transfer," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 997-1026, August.
    7. Tina C Ambos & Sebastian H Fuchs & Alexander Zimmermann, 2020. "Managing interrelated tensions in headquarters–subsidiary relationships: The case of a multinational hybrid organization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(6), pages 906-932, August.
    8. Stephanie Lu Wang, 2023. "Digital technology-enabled governance for sustainability in global value chains: a framework and future research agenda," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(1), pages 175-192, March.
    9. Joseph Lampel & Jamal Shamsie & Zur Shapira, 2009. "Experiencing the Improbable: Rare Events and Organizational Learning," Organization Science, INFORMS, vol. 20(5), pages 835-845, October.
    10. Gino Cattani & Daniel Sands & Joe Porac & Jason Greenberg, 2018. "Competitive Sensemaking in Value Creation and Capture," Strategy Science, INFORMS, vol. 3(4), pages 632-657, December.
    11. Rong (Ratchel) Zeng & Birgitte Grøgaard & Ingmar Björkman, 2023. "Navigating MNE control and coordination: A critical review and directions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1599-1622, December.
    12. Mary Ann Glynn & Lee Watkiss, 2020. "Of Organizing and Sensemaking: From Action to Meaning and Back Again in a Half‐Century of Weick’s Theorizing," Journal of Management Studies, Wiley Blackwell, vol. 57(7), pages 1331-1354, November.
    13. Mai, Nhat Chi, 2020. "Unpacking the process of overseas knowledge recontextualisation in returnee entrepreneurship - a learning perspective : a study of returnee entrepreneurs in Vietnam," OSF Preprints y5psh, Center for Open Science.
    14. Hoorani, Bareerah Hafeez & Plakoyiannaki, Emmanuella & Gibbert, Michael, 2023. "Understanding time in qualitative international business research: Towards four styles of temporal theorizing," Journal of World Business, Elsevier, vol. 58(1).
    15. Eero Vaara & Andrea Whittle, 2022. "Common Sense, New Sense or Non‐Sense? A Critical Discursive Perspective on Power in Collective Sensemaking," Journal of Management Studies, Wiley Blackwell, vol. 59(3), pages 755-781, May.
    16. Lorena Bezerra de Souza Matos, 2017. "Visible Expressions of Urban Invisibility: Exploring Pixação," Post-Print hal-03111870, HAL.
    17. Joep P. Cornelissen & Saku Mantere & Eero Vaara, 2014. "The Contraction of Meaning: The Combined Effect of Communication, Emotions, and Materiality on Sensemaking in the Stockwell Shooting," Journal of Management Studies, Wiley Blackwell, vol. 51(5), pages 699-736, July.
    18. Nguyen, Duc Cuong & Tull, John, 2022. "Context and contextualization: The extended case method in qualitative international business research," Journal of World Business, Elsevier, vol. 57(5).
    19. Julia Balogun & Claus Jacobs & Paula Jarzabkowski & Saku Mantere & Eero Vaara, 2014. "Placing Strategy Discourse in Context: Sociomateriality, Sensemaking, and Power," Journal of Management Studies, Wiley Blackwell, vol. 51(2), pages 175-201, March.
    20. François Maon & Valérie Swaen & Kenneth de Roeck, 2021. "Coporate branding and corporate social responsibility: Toward a multi-stakeholder interpretive perspective," Post-Print hal-03275858, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:55:y:2024:i:4:d:10.1057_s41267-024-00708-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.