Lecture 4: Wilhelm, Miriam M., Blome, C., Bhakoo, V., & Paulraj, A. (2016) "Sustainability in multi- tier supply chains: Understanding the double agency role of the first-tier supplier.

Question 1

What does the author investigate and what is the problem?

Answer 1

To further the understanding for the first-tier supplier in regard to taking responsibility for sustainability.
Double-agency role of the supplier = The first tier supplier has the role to act as an agent towards the lead firm when implementing sustainability in its own operations

Question 2

What is the aim?

Answer 2

To discern conditions under which the first-tier supplier acts as an agent toward fulfilling the lead firms sustainability requirements and implementing them in the supplier’s operations (double-agency)

Question 3

What are the main theories?

Answer 3

Agency theory

Tripple bottom line

Institutional theory

Question 4

Explain agency theory

Answer 4

Agency theory

• The problem arises when the principal delegates work to the agent.
• The agents actions are driven by self-interest and opportunism
• Difficult and expensive for the principal to verify what the agent is doing.

Question 5

Explain what is included in the Tripple bottom line:

Answer 5

• Social issues
• environmental issues
• Economic issues