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Front. Eng    2024, Vol. 11 Issue (2) : 311-325    https://doi.org/10.1007/s42524-024-3069-z
Logistics Systems and Supply Chain Management
Supporting factors model for the sustainable step development of supply chain: An empirical study from China with grounded theory
Xiaohong CHEN1, Chunfang LU2, Weihua LIU3(), Siyu WANG3(), Shangsong LONG3(), Jingcheng QIU3, Yujie WANG3
1. Hunan University of Commerce, Changsha 410205, China
2. Chinese Academy of Engineering, Beijing 100088, China
3. College of Management and Economics, Tianjin University, Tianjin 300072, China
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Abstract

The ongoing stability of supply chains faces significant challenges from trade protectionism, anti-globalization trends, and the COVID-19 pandemic. To remain resilient in this dynamic market environment, supply chains must evolve through iterative upgrades and transition to a higher level of sustainability, a process termed “step development.” The current literature, however, offers limited insights into achieving such step development in supply chain sustainability and its critical supporting elements. This study, grounded in theory, involved interviews with representatives from eight diverse Chinese enterprises. We introduce a model delineating supporting factors and a roadmap for Sustainable Step Development of Supply Chains (SSDSC). Our findings highlight three pivotal categories of support for SSDSC: institutional, technological, and social factors. Additionally, we observed that external influences in these categories positively modulate their internal counterparts. The study identifies industrial technology, digital intelligence technology, corporate responsibility, and stakeholder needs as key elements in this process. We conclude by offering theoretical and practical recommendations to foster SSDSC.
Keywords supply chain      sustainable development      supporting factors      grounded theory     
Corresponding Author(s): Weihua LIU,Siyu WANG,Shangsong LONG   
Just Accepted Date: 24 April 2024   Online First Date: 29 May 2024    Issue Date: 26 June 2024
 Cite this article:   
Xiaohong CHEN,Chunfang LU,Weihua LIU, et al. Supporting factors model for the sustainable step development of supply chain: An empirical study from China with grounded theory[J]. Front. Eng, 2024, 11(2): 311-325.
 URL:  
https://academic.hep.com.cn/fem/EN/10.1007/s42524-024-3069-z
https://academic.hep.com.cn/fem/EN/Y2024/V11/I2/311
Paper Research method Single factor of sustainable development Supporting factor framework Sustainable stage of the supply chain Mechanism of interaction between factors
Chen et al. (2019) Mathematical model √
Sarkis (2020) Literature review √
Kumar and Rahman (2017） ISM&AHP √
Saeed and Kersten (2019） Literature review √
Srai et al. (2013) Case study √ √
Edgema and Eskildsen (2014) Case study √ √
This paper Case study √ √ √
Tab.1  Comparison between this study and the most relevant literature in this paper
No. Enterprise code Enterprise scale (billions) Industry Industry ranking (number of enterprises) Ranking of China’s Top 500 Sample source
1 A 60.85 Steel 7 99 General manager Business director
Sustainability reporting
2 B 2.91 Car 3 58 General manager Business director
Sustainability reporting
3 C 11.92 Foodstuff 10 456 General manager Business director
Sustainability reporting
4 D 486.90 Chemistry 6 2 General manager Business director
Sustainability reporting
5 E 2.44 Electron 1 352 General manager
Sustainability reporting
6 F 4.61 Electrical equipment 2 117 General manager Business director
Sustainability reporting
7 G 11.70 Integrated logistics / 111 General manager Business director
Sustainability reporting
8 H 11.00 Shipping logistics / 37 Deputy general manager Business director
Sustainability reporting
Tab.2  Interviewed enterprise information and sample sources
Initial category Initial concept Original sentence
Energy management Control carbon emissions H: The group formulates a carbon peak and carbon neutrality target plan and implements various energy-saving and consumption reduction measures.
Risk management Strengthen risk Control F: Enterprises conduct annual risk compliance self-inspections and develop internal control manuals.
Human resources management Outstanding effect B: The company comprehensively stimulates employees’ abilities and raises recruitment thresholds through incentive system reform.
Organizational management Optimize department responsibility G: The company continuously strengthens the collaborative ability of multiple departments through organizational reform.
Supplier management Ensuring supply Safe and timely C: The company establishes an inventory management system and shares inventory with suppliers.
Energy policy National Dual Carbon Target B: The Dual Carbon Targets released by the government are indeed a great positive push for us.
Financial policy Financial support from the government and banks C: The development situation of the country in the international arena, such as the improvement of the international status of the RMB, can significantly improve transaction stability if trade settlement can be directly carried out through the RMB. Financial institutions strengthen their support for the real economy.
Industrial policy Professional policy support G: The enterprise belongs to the type of comprehensive logistics business, involving many categories, so the change of an industrial policy will not have a significant effect on the enterprise, but the policies of intelligent logistics, platform economy and other aspects will help the enterprise to transform and develop.
Industrial technology Autonomous knowledge property right F: Maintain technological research and development in core areas, such as 5G wireless, core network, and chips, and ensure that core software and hardware are replaceable.
Standard setting Set technology standard B: The company ensures technological leadership by developing standard application columns.
Digital technology Various types intelligent technology B: The application of industrial internet technology to enhance the level and ability of automation and informatization, and achieve digital and intelligent applications; industry level data connectivity.
Green technology Energy power mode B: The substitutability of technology has a significant effect on the sustainable development of enterprises, such as the trend of replacing fuel vehicles with new energy vehicles and the technological development level of peers.
Corporate responsibility To do for society contribution A: As a state-owned enterprise, we promote enterprises to become “pioneers of green steel,” “leaders of low-carbon technology,” and “guardians of a beautiful home” in green and sustainable aspects according to government policies and arrangements.
Stakeholders demand Customer requirements H: Pay attention to understanding the needs of relevant parties and understand customer concerns. Relevant stakeholders include the government, shareholders, employees, customers, suppliers, associations, organizations, the public, communities, and the media. Fully consider the expectations and needs of stakeholders to update the system, responsibilities, and measures.
Collaborate with stakeholders Upstream and downstream cooperation G: Strengthen cooperation with peers and leading enterprises in various fields, jointly enhance market recognition, meet the low-carbon requirements of upstream and downstream members, and develop synchronously.
International trade relationship Trade barrier F: Global trade relations have a significant effect on the sustainable development of enterprises. The industry’s core products are still in the hands of foreign countries, and the risk of supply interruption needs to be controllable.
International organization call Organizational regulations H: The International Maritime Organization has issued a call for sustainable development and formulated multiple international and domestic regulations on marine protection.
Tab.3  Open coding
Main category Subcategory Initial category Connotation
Institutional factor Internal institutional factors Energy management Enterprise’s energy consumption management system and “carbon peak and carbon neutrality” plan
Risk management Risk management systems, such as internal control management measures and compliance management systems
Human resource management Human resource management systems, such as talent introduction and performance incentive optimization
Organizational management Organizational management capabilities, such as task division and departmental collaboration in enterprises
Supplier management Optimization system for supply-side procurement management, supplier inventory management, etc.
External institutional factors Energy policy The national goal of “Carbon Peak and Carbon Neutrality” and its related policy requirements
Financial policy Financial policies launched by the country in areas, such as tax incentives, financial support, and bank loans
Industrial policy National support policies for different industries
Technology factor Internal technological factors Industrial technology Enterprises achieve innovation and upgrading of industrial processes, technologies and tools by self-research or collaborative research
Standard setting Relevant technological standards extracted by enterprises through their practical operation summary
External technological factors Digital technology Various digital and intelligent technologies represented by modern information technology have undergone iterative upgrades
Green technology Including fundamental updates in energy methods, power technology, and other aspects
Social factors Internal social factors Corporate responsibility The sense of responsibility of enterprises to contribute to society is influenced by the characteristics of central enterprises or corporate culture
Collaborate with stakeholders Closer cooperation and sharing between enterprises and upstream and downstream stakeholders
External social factors International trade relations The situation of international trade relations is caused by global political, economic and other factors
International organization call The call and regulations of domestic and foreign industry organizations on the development trends and basic requirements of this industry
Stakeholders demand New demands from various stakeholders, including suppliers, customers, consumers, etc.
Tab.4  Main categories formed by axial encoding
Core category Main category Connotation
Supporting factors for SSDSC Institutional factors Enterprises optimize and upgrade their management systems or rely on government policy support to achieve sustainable leapfrog development of the supply chain
Technological factors Enterprises achieve sustainable leapfrog development of their supply chain through technology self-research or relying on industry-related technology iteration and upgrading
Social factors Enterprises actively respond to the needs of relevant stakeholders or passively respond to changes in international trade relations to promote sustainable development of the supply chain
Tab.5  Typical relationship structure of main categories
Internal factors External factors
Technological factors C: By using digital means to digitize and make transactions transparent, the entire grain inventory and transportation situation can be digitized and collected, directly promoting the sustainable development of the supply chain.
B: The core independent intellectual property rights of an enterprise are very important, as they determine your position in the supply chain and directly affect the sustainable development of the supply chain		 C: Due to the development of digital technology and equipment, including AI cameras, digital lock and seal management machines, and the Internet of Things, it has provided basic conditions for enterprises to promote digital supply chains.
B: We need to fully integrate industry-leading technology with our scenarios, and it can be said that external technology indirectly affects our supply chain
Institutional factors D: The internal process system of enterprises will have a direct effect on the sustainability of the supply chain, such as the transition from passive procurement to active procurement, and the elimination of traditional high-energy consumption and high-pollution devices.
F: We have gradually established our leading position in the supply chain through reforms and the construction of business systems, environmental management systems, and inventory management systems, directly promoting the sustainable development of the supply chain.		 D: The national dual carbon goals and other related policies have put forward clear requirements for the annual carbon reduction of energy enterprises, which makes us constantly innovating and reforming toward this goal.
B: The national support policies for new energy vehicles have indeed helped us further promote the sustainable development of the supply chain.
Social factors A: As an important national steel enterprise, corporate responsibility directly determines that we must ensure the sustainable development of the supply chain.
H: The most important domestic shipping enterprise, in addition to economic development, has an important responsibility to ensure the stable operation of the supply chain. For example, during the epidemic, we tried our best to ensure stable freight rates, which directly affects the sustainable development of the supply chain.		 A: We will update our internal systems, responsibilities, and measures based on the needs of external stakeholders.
G: We will customize corresponding requirements for social development and ecological environment based on customer needs, and integrate them into the entire supply chain.
H: To respond to the needs of relevant stakeholders, we can only intensify cooperation with other shipping companies to promote the sustainable development of the entire shipping industry.
Tab.6  Relationship between supporting factors
Company Institutional factors Technological factors Social factors
Internal External Internal External Internal External
A Corporate responsibility
B Industrial technology
G Stakeholder demand
H Corporate responsibility
C Digital technology
D Stakeholder demand
E Corporate responsibility
F Stakeholder demand
Frequency None* 1/8 (12.5%) 1/8 (12.5%) 3/8 (37.5%) 3/8 (37.5%)
1/4 (25%) 3/4 (75%)
Role Tertiary role Secondary role Primary role
Tab.7  Key supporting elements for SSDSC
Fig.1  Model of supporting factors for SSDSC.
Fig.2  Roadmap for SSDSC.
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