GLOBAL SUSTAINABLE SUPPLY CHAIN GOVERNANCE, EFFECTIVENESS OF SOCIAL RESPONSIBILITY, AND PERFORMANCE IN EMERGENT MARKETS: AN EXPLORATORY MULTIPLE CASE STUDY

Yongsheng, Xiang; Yingquan, Liu

doi:10.1590/S0034-759020250602

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ARTICLES • Rev. adm. empres. 65 (6) • 2025 • https://doi.org/10.1590/S0034-759020250602 linkcopy

GLOBAL SUSTAINABLE SUPPLY CHAIN GOVERNANCE, EFFECTIVENESS OF SOCIAL RESPONSIBILITY, AND PERFORMANCE IN EMERGENT MARKETS: AN EXPLORATORY MULTIPLE CASE STUDY

Gobernanza mundial sostenible de la cadena de suministro, eficacia de la responsabilidad social y desempeño de los mercados emergentes: Un estudio exploratorio de casos múltiples

Authorship SCIMAGO INSTITUTIONS RANKINGS

ABSTRACT

We selected eight toy suppliers from three emerging markets: China, Vietnam, and India, as research objects and adopted grounded analysis and multi-case study to explore the effectiveness, interrelationship, and function contexts of the global supply chain governance model. The study found that (1) contractual governance and relational governance affect the performance of suppliers’ social responsibilities and the overall performance of the supply chain; (2) the relationship between the two governance models can have a substitute view and a complementary view. They have similar functions and unique functions, which can have different advantages under different circumstances; and (3) in global supply chain governance of emergent markets, three combinations of the two governance models effectively promote social responsibility and performance: the combination of high relational and low contractual governance, the combination where relational and contractual governance are balanced, and the combination of high contractual and low relational governance. The conditions required to select an appropriate combination of governance models for a supply chain include the supplier’s capability, the cooperation time and experience of the two parties, the goal congruence, and the institutional distance. The selection of an adequate combination for supply chain governance must consider the complexity and variability of the emerging market environment. Additionally, the weight of contractual governance and relational governance should be reasonably selected and dynamically adjusted to effectively play their respective roles and functional superposition. Our research may reduce exploitation in global supply chains, accelerate green transitions, and improve livelihoods and strengthen long-term resilience by aligning profit motives with social and environmental good.

Keywords:
sustainable supply chain governance; supply chain governance; social responsibility; supply chain management; case study.

Serial number	Enterprise name	Home country	Years of operation	years of cooperation	Number of employees
1	LX Co., Ltd	China	24	>10	600
2	ST Co., Ltd	China	6	>3	500
3	WHS Co., Ltd	China	40	>10	2500
4	SL Co., Ltd	Vietnam	3	>10	3500
5	YZ Co., Ltd	Vietnam	15	>5	4500
6	JYP Co., Ltd	Vietnam	7	>5	1700
7	AFC Co., Ltd	India	4	>3	500
8	FKL Co., Ltd	India	30	>3	1000

Serial number	Interview Date	Interview enterprise	Interviewee and job title
1	Aug. 16, 2023	YZ Co., Ltd	Mr.King (Executive Director, Human Resources)
2	Aug. 17, 2023	JYP Co., Ltd	Amin (Social Responsibility Sênior Manager), Miss Yun (HR Manager)
3	Aug. 31, 2023	ST Co., Ltd	Mr. Zhou (General Manager of Plant Operations)
4	Aug. 23, 2023	SL Co., Ltd	Ah Hui (Plant Administration Manager)
5	Sep. 6, 2023	LX Co., Ltd	Jack (Plant Operations General Manager), Miss Tan (HR Administration, CSR Manager)
6	Sep. 7, 2023	WHS Co., Ltd	James (Operations Manager), Amy (Social Responsibility Management Lead), Tracy (HR Manager)
7	Sep. 23, 2023	AFC Co., Ltd	Miss Naha (Social Responsibility Manager)
8	Sep. 26, 2023	FKL Co., Ltd	Mr. Prabakaran (Senior Audit Manager)

Main category	Subcategory	Interviewees’ statements
Contractual governance	Contracts clarifying liabilities	“After establishing a contract relationship, the relevant requirements are very clear.”
	Contracts protecting benefits	“Contracts will protect the interests of both of us.”
	Contracts specifying standards	“All of our final standards are based on the requirements of the contract.”
	Binding contracts	“We signed a contract with the buyer means to comply with the specifications and standards.”
Relational governance	Trust building and relationship development	“The relevant parties trust each other.”
	Good communication	“The most important thing is the continuous communication behind.”
	Training guidance	“Buyers give us training guidance.”
	Evaluation and audit	“Regular evaluations and regular training help us to improve further.”
	Sharing and feedback	“Feedback from buyers is very important to us.”
SSCG model to support CSR	Safety responsibility	“The customers give us suggestions, we immediately carry out safety checks.”
	Environmental responsibility	“Buyers track our performance and remind us to renew our CSR certification.”
	Human rights responsibility	“We improve the working conditions and benefits of our employees.”
CSR to improve competitiveness	Employee loyalty and productivity	“When their working hours are comfortable, the employees are more loyal to the company.”
CSR to improve competitiveness	Competitive products and enterprises	“To fulfill the requirements of social responsibility, our competitiveness and profits have also increased.”
CSR to increase income	Sales/Orders	“They can order more, because if they think we can do these things well.”
CSR to increase income	Reward	“We need to meet the standards in order for us to get orders.”
Internal driving force	Impact of corporate motivation awareness	“Business owners have a strong desire to do well is important.”
Internal driving force	Influence of firm practice intention	“We should take social responsibility into the our firm’s strategy.”
External driving force	Impact of government inspection	“The government actually checks us more strictly than our customers.”
External driving force	Influence of external agencies	“Third party audit is very important, they help our enterprise.”
Goal congruence	Interests congruence	“If we do a good job, the customer can make money, and our business is good. It’s win-win.”
	Development congruence	“The supplier provides support to the purchaser, and the two can develop better.”
	Cooperation congruence	“We agreed on the importance of cooperation throughout the supply chain.”
	Task congruence	“Our factory meet the requirements, and we can earn money, buyers can also make money.”
Institutional distance	Norm distance	“Suppliers must take into account local cultural traditions.”
	Legal distance	“The problem is the differences in laws.”
	Cognitive distance	“We don’t understand why they want to limit our overtime hours.”

Combinations of sustainable governance models		Companies analyzed and their countries	Data Evidence	Years of cooperation	Social responsibility certification level	Proportion of buyers’ orders to the company’s total products
High relational and low contractual governance WHS Co., Ltd(China) SL Co., Ltd(Vietnam) YZ Co., Ltd(Vietnam)		LX Co., Ltd(China)	Thereby establishing a relatively longterm, close relationship, the two sides formed a longterm trust	>10	A+	30%(in2022) 25%(in2023)
		The communication is based on mutual understanding	>10	A+	10%(in2022) 10%(in2023)
		The relevant parties trust each other, and the contract needs to be signed, but it is just a formality	>10	A	5%(in2022) 20%(in2023)
		We may sometimes do more than the requirements of the contract itself, more because of mutual cooperation and mutual trust	>5	A	26%(in2022) 45%(in2023)
Balanced contractual and relational governance	Slightly more contractual	ST Co., Ltd(China)	At the level of our company, I think the ratio of [contractual and relationals] is something like 6 to 4	>3	A+	15%(in2022) 20%(in2023)
Balanced contractual and relational governance	Slightly more relational	JYP Co., Ltd(Vietnam)	[contractual and relational governance] (…) both are needed, and both sides should cooperate	>5	B	67%(in2022) 80%(in2023)
High contractual and low relational governance FKL Co., Ltd(India)		AFC Co., Ltd(India)	Clients do business with our company, contracts are basically more important	>3	A	50%(in2022) 43%(in2023)
		We talk more about evidence and contracts. We put more emphasis on contracts.	>3	A	100%(in2022) 95%(in2023)

Combinations of sustainable governance models		Supplier’s capability	Time and experience of cooperation	Institutional distance	Social responsibility	Supplier’ performance
High relational and low contractual governance		Strong	Long time, good experience	Small	Good	Good
Balance between relational and contractual governance	Slightly more contractual	Relatively strong	Short time, good experience	Small regulative and cognitive distance	Relatively good	Good
Balance between relational and contractual governance	Slightly more relational	Relatively strong	Long time, good experience	Relatively large regulative and cognitive distance	Relatively good	Relatively good
High contractual and low relational governance		Strong	Short time, experience normal	Relatively large regulative and cognitive distance	Relatively good	Relatively good

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Fundação Getulio Vargas, Escola de Administração de Empresas de S.Paulo Avenida Nove de Julho, 2.029, Bela Vista, CEP: 01313-902, Telefone: +55 (11) 3799-7718 - São Paulo - SP - Brazil
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