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Competitive Advantage or Public Domain? Role of Supply Chain Visibility in Preparing for the Corporate Sustainability Due Diligence Directive

Kojima, Kai (2024) Competitive Advantage or Public Domain? Role of Supply Chain Visibility in Preparing for the Corporate Sustainability Due Diligence Directive.

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Abstract:This year, the Corporate Sustainability Due Diligence Directive was voted in at the EU parliament. This mandates large companies in the EU to identify, plan and address any adverse risks to human rights and the environment, in the upstream supply chain. The EU suggests companies collaborate within industries to comply with the directive. However, previous academic research argues that having supply chain visibility (SCV) leads to a competitive advantage. The study investigated 1) whether the companies think that SCV is a competitive advantage amid the introduction of the CSDDD, and 2) how they could collaborate with the competitors. The data was collected through interviews with representatives from ten companies that have to comply with the directive. The analysis used the lens of the Resource-Based View. The study showed that 1) many companies no longer find the SCV to be a source of sustained competitive advantage, and 2) companies are willing to indirectly collaborate with competitors through sharing best practices, supplier information and a framework for evaluating suppliers, through the help of an industry association and third-party organisations. The study therefore agrees with the suggestion of the EU to join forces to comply with the competitors.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:https://purl.utwente.nl/essays/100191
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