Challenges in extending sustainability across a transport supply chain

Abstract

Purpose: Sustainability approaches across product supply chains are well-known, while similar knowledge on transport supply chains (TSC) is limited. The purpose of this paper is to explore sustainability approaches and managerial challenges in extending sustainability across a TSC. Design/methodology/approach: This paper presents a case study of a TSC with a shipper, a third-party logistics firm and a hauler. Each actor’s views on sustainability-related communication and relations with other TSC actors are analyzed through the lens of agency theory. Findings: Each dyad in the TSC reveals different, more or less collaboration-based approaches. Challenges are revealed, including the lack of shipper understanding for the TSC context and the use of immature contracts, which disincentivizes sustainability compliance. The multi-tier study object reveals the silencing of distant actors and the need for actors to take on mediating roles to bridge information asymmetries. Research limitations/implications: Combining literature perspectives (relations, communication and agency theory) provides a deeper understanding of the approaches applied and identifies different challenges. The inclusion of agency theory reveals principal problems such as information asymmetries between agents and less-informed principals and suggests complementary labels of supply chain actors. Practical implications: Practical contributions include the highlighting of managerial challenges, which can aid managers in extending sustainability across TCSs. Social implications: The case study method offers insights into collaboratively improving sustainability in supply chains (such as using contracts), thus having social and environmental implications. Originality/value: The paper narrows knowledge gaps about managing sustainability among logistics service providers and analyzes data from multi-tier actors.