Table 5.5.
Achieving SSCM in TA industry: Related organizational behavior (OB) theories and implicationsa.
Theories | Features of Traditional Supply Chains in TA Industry | Features of Sustainable Supply Chains in TA Industry |
---|---|---|
Transactions cost economics (TCE) theory | Fashion supply chain members focus on costs in making purchasing and production decisions. | Fashion firms should focus on the three bottom lines in making purchasing and production decisions. |
Agency theory | Interests of different channel agents, in business costs and benefits, are not fully aligned along the fashion supply chain. | Interests of different channel agents, in the three pillars, need to be well aligned along the fashion supply chain. |
Resource dependence theory | Resources tend to be independent among different fashion supply chain members. | Resources are shared and are mutually dependent in fashion supply chains, in order to attain the sustainable development. |
Institutional theory | Rely heavily on successful industrial practices to manage the fashion supply chains. | Seeking breakthroughs and enhance innovations in order to respond to social and environmental pressures in managing fashion supply chains. |
Game theory | Free riding might exist, and supply chain members all give their own benefits the top priority. | Mutual dependence and special caring are critically important for people and the planet in establishing a SFSC. |
Network theory | Strong ties or weak ties among fashion supply chain members are not strategically formed among linked entities. | Network is strategically configured by aligning the economic, social and environmental goals of the fashion supply chain members. |
Strategic choice | Strategic decisions are made from the perspectives of individual fashion supply chain members. | Strategic decisions are made from the fashion supply chain’s perspective, based on 3BL. |
Resource-based view | Focus on creating economic values through certain critical assets and pertinent capabilities among firms in the fashion supply chain. | Creating economic, social, and environmental benefits through certain precious assets and critical capabilities at the fashion supply chain level. |
The choices of theories follow Ketchen and Hult (2007) which are now the classic and well-established empirical theories for supply chain and operations management studies.