Drivers and barriers for lower-tier suppliers’ sustainability compliance in emerging countries : a narrative review
Vanonen, Maiju (2025)
2025
All rights reserved. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025121235276
https://urn.fi/URN:NBN:fi:amk-2025121235276
Tiivistelmä
The purpose of the thesis was to increase the researcher’s expertise by reviewing published research literature and identifying external factors in emerging countries’ institutional environments which have an impact on lower-tier suppliers’ ability to comply with sustainability requirements imposed by focal companies.
To achieve the objective of the thesis, narrative literature review method was applied. The searches were conducted in three databases, Scopus, EBSCO Business Source Elite and ABI/INFORM Collection. Only qualitative peer-reviewed research articles were eligible to the review. Thematic analysis was applied as a synthesis method, and the main themes were derived from institutional theory.
The findings reveal that there are three institutional forces stemming from the institutional environment of emerging countries which drive lower-tier suppliers to adopt sustainability practices. These forces are coercive pressure, mimetic pressure and normative pressure. Coercive pressure is stemming from government legislation, buying companies’ sustainability requirements and from external stakeholders’ sustainability requirements. Mimetic pressure is stemming from competitors’ sustainability practices and from the preferences of the market. The sources of normative pressure are cooperation between buying companies and lower-tier suppliers, cooperation between external stakeholders and lower-tier suppliers and cooperation among lower-tier suppliers. Further, the findings suggest that there are four types of institutional voids stemming from the institutional environment of emerging countries which hinder the ability of lower-tier suppliers to adopt sustainability practices. These barriers are corruption, weak or absent legislation, lack of government involvement and volatility regarding sustainability standards and criteria.
To achieve the objective of the thesis, narrative literature review method was applied. The searches were conducted in three databases, Scopus, EBSCO Business Source Elite and ABI/INFORM Collection. Only qualitative peer-reviewed research articles were eligible to the review. Thematic analysis was applied as a synthesis method, and the main themes were derived from institutional theory.
The findings reveal that there are three institutional forces stemming from the institutional environment of emerging countries which drive lower-tier suppliers to adopt sustainability practices. These forces are coercive pressure, mimetic pressure and normative pressure. Coercive pressure is stemming from government legislation, buying companies’ sustainability requirements and from external stakeholders’ sustainability requirements. Mimetic pressure is stemming from competitors’ sustainability practices and from the preferences of the market. The sources of normative pressure are cooperation between buying companies and lower-tier suppliers, cooperation between external stakeholders and lower-tier suppliers and cooperation among lower-tier suppliers. Further, the findings suggest that there are four types of institutional voids stemming from the institutional environment of emerging countries which hinder the ability of lower-tier suppliers to adopt sustainability practices. These barriers are corruption, weak or absent legislation, lack of government involvement and volatility regarding sustainability standards and criteria.