Why companies adopt supply chain sustainability practices: A study of companies in Brazil

Abstract

With the increased concern about social and environmental impacts, managing sustainability in supply chains has become a focus of interest. In consequence, companies are adopting supply chain sustainability practices also due to pressures from various stakeholders. Questions arise about how certain types of pressures can influence the adoption of behavioral and technical practices related to sustainability and how these relationships vary along supply chains. The research utilizes data from Brazilian companies and employs structural equation modelling to investigate the adoption of sustainability practices in supply chains. Normative and mimetic pressures positively affect behavioral and technical practices. On the other hand, coercive pressures have no influence on the adoption of sustainability practices, whether technical or behavioral. The findings enhance the understanding of how institutional pressures shape the adoption of sustainability practices, benefiting companies and policymakers aiming to promote sustainable supply chains.