Social sustainability in the oil and gas industry: institutional pressure and the management of sustainable supply chains
- 214 Downloads
This article addresses certain gaps highlighted in the literature relating to the investigation of supplier selection through a theoretical lens, based on contextual factors, institutional pressure, and industrial features. Consequently, this article sheds light on how a government’s strategic plans can drive organisations to incorporate elements of social sustainability into their supply chains. A successful case from Oman which demonstrates the social dimension of sustainability in selecting suppliers in the oil and gas sector is presented, along with the government’s role and the mechanisms it has applied. A survey of purchasing, procurement and supply chain managers in Oman’s major oil and gas organisations was conducted, along with interviews. The results of this research were further analysed through the lens of institutional theory, addressing a genuine research gap. It was found that: (a) coercive governmental pressure is not sufficient to truly develop socially sustainable practices in organisations if the organisations themselves do not show initiative, as this leads to compliant rather than innovative practice; and (b) policy makers need to be aware that coercive pressure alone does not lead to continuous improvement of social sustainability performance, due to the ceiling effect, i.e. organisations meeting only the minimum governmental requirements.
KeywordsSustainable operations Supply chain Sustainability Social responsibility Coercive pressure Government
- Amos, N., & Sullivan, R. (2015). Managing social standards in global supply chains: Risk identification and mapping. https://blogs.thomsonreuters.com/answerson/global-supply-chain-risk-identification-mapping/. Accessed August 11, 2017.
- APICS. (2015). APICS supply chain council. http://www.apics.org/sites/apics-supply-chain-council. Accessed April 16, 2016.
- British Standards Institution. (2015). BSI Global Supply Chain Intelligence report reveals global business impact of security, human rights and environmental violations. http://www.prnewswire.com/news-releases/bsi-global-supply-chain-intelligence-report-reveals-global-business-impact-of-security-human-rights-and-environmental-violations-300068965.html. Accessed August 11, 2017.
- CIPS. (2015). CIPS sustainability index. https://www.cips.org/en-GB/cips-for-business/supply-assurance/cips-sustainability-index/. Accessed June 2017
- Dubey, R., Gunasekaran, A., Childe, S. J., Papadopoulos, T., Hazen, B., Giannakis, M., et al. (2017). Examining the effect of external pressures and organizational culture on shaping performance measurement systems (PMS) for sustainability benchmarking: Some empirical findings. International Journal of Production Economics, 193, 63–76.CrossRefGoogle Scholar
- GRI. (2017). Official website. https://www.globalreporting.org/Pages/default.aspx. Accessed June 2017.
- ISO. (2016). First International Standard for sustainable procurement nears publication. http://www.iso.org/iso/home/news_index/news_archive/news.htm?refid=Ref2105. Accessed November 10, 2016.
- McKinsey. (2014). Sustainability’s strategic worth: McKinsey Global Survey results. http://www.mckinsey.com/business-functions/sustainability-and-resource-productivity/our-insights/sustainabilitys-strategic-worth-mckinsey-global-survey-results. Accessed December 1, 2016.
- MOG—Ministry of Oil and Gas. (2013). Standardisation of ICV requirements in contracting and procurement Oman oil and gas sector suppliers engagement session. http://www.incountryvalueoman.net/getattachment/201de0ad-a3a8-4c06-bfbb-82209858a056/Standardisation-of-ICV-Requirements-in-C-P. Accessed 1 July 2017.
- Oxford Business Group. (2014). The Report: Oman.Google Scholar
- Oxford Business Group. (2016). The Report: Oman.Google Scholar
- Seles, B. M. R. P., de Sousa Jabbour, A. B. L., Jabbour, C. J. C., & Dangelico, R. M. (2016). The green bullwhip effect, the diffusion of green supply chain practices, and institutional pressures: Evidence from the automotive sector. International Journal of Production Economics, 182, 342–355.CrossRefGoogle Scholar
- Tseng, M.-L., Tan, K.-H., Lim, M., Lin, R.-J., & Geng, Y. (2013). Benchmarking eco-efficiency in green supply chain practices in uncertainty. Production Planning and Control, 7287, 1–12.Google Scholar
- World Business Council for Sustainable Development (WBCSD) and World Resources Institute (WRI) (2009). The Greenhouse gas protocol initiative: Scope 3 Accounting and Reporting Standard. Geneva, Switzerland.Google Scholar