Adopting Sustainability-Oriented Innovation in Supply Chain to Enhance Sustainability Performance: A Case Study

The European Green Deal and related EU regulatory initiatives have intensified sustainability requirements for industrial firms, prompting transformative changes in supply chains toward circularity. These regulatory pressures require companies to adopt sustainability-oriented innovations (SOI) that integrate economic, environmental, and social dimensions into business and innovation processes. This paper explores how sustainability-oriented innovations are adopted at the supply chain level through an in-depth qualitative case study of a leading Baltic food manufacturing company operating globally. The study examines supply chain management practices that include implementation of sustainability-oriented innovation that supports sustainability outcomes. The results suggest how product and process SOI enables companies to create sustainable value, respond to regulatory pressures, and promote circular supply chain practices, also highlights the role of a supply chain lead firm, which orchestrates the entire supply chain, in creating SOI. By adopting a contextual supply chain approach, this paper enriches understanding of SOI in the food industry and offers managerial insights relevant to firms navigating sustainability-driven transformation under EU regulatory frameworks.