Let Them Know You’re Green: How to Become Competitive by Being Sustainable - a single embedded case study on the chemical industry

Abstract

During the last decades, all industries have experienced increased pressure from their stakeholders towards acting more sustainable, and much research has been done to understand what can be gained from listening to those stakeholders. Yet, the chemical industry is underrepresented in business research in terms of possible advantages from sustainability positioning. The chemical industry is predicted to experience an increased demand for sustainable products and solutions, since by incorporating the right chemicals into a manufacturing process, several sustainable benefits arise. This single embedded case study, with an abductive research approach, serves to answer how a chemical firm can strengthen its position and make its supply chain more competitive by communicating its sustainability contribution in novel ways. The empirical findings and analysis of this study conclude that sustainability actions are not considered to be a source of competitive advantage in the chemical industry but rather a hygiene factor, and a requirement for engaging in trade. For chemical firms to make both themselves and their supply chains more competitive, there are three interconnected solutions to utilize and gain from sustainability actions: collaboration, system thinking, and transparency. Engaging in sustainability collaboration, both horizontally and vertically, can solve the sustainability definition and measurement discrepancy identified in the chemical industry. Transparent communication will facilitate collaboration and system thinking, which both are sources of possible competitive advantage. In turn, these resources will lead to trust and legitimacy between the actors in the supply chain, and hence, make them more competitive by working together on sustainability.