Institutional logic for sustainable purchasing and supply management: Concepts, illustrations, and implications for business strategy

Abstract

Amidst the number of studies on sustainable purchasing and supply management (PSM), we have yet to learn how sustainability becomes a logic for organisations and their stakeholders. Thus, this paper offers an extended approach on the emergence of an institutional logic of sustainability (ILS). Our contribution includes the macro mechanisms supporting the robust and continuous adoption of an ILS for procurement. Three distinct trajectories of an ILS emerged from the literature, and their application to sustainable PSM is illustrated using real-world examples. The trajectories rely upon the evolution of (1) institutional entrepreneurs or (2) PSM structures but also can happen through (3) the co-evolution of both. By offering a conceptual model and a set of research propositions for future theory and empirical testing, this paper helps scholars and practitioners to advance their knowledge on managing purchasing departments according to sustainability values and making it a competitiveness factor. Lastly, this paper adds value to both implementation and formulation of sustainable business strategies as the application of our conceptual framework can lead to better strategic alignment of PSM practices.