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In the field of Sustainable Supply Chain Management (SSCM) it is well established that sustainability is a source of competitive advantage for companies. In the field of strategic management, capabilities that lead to such competitive advantage are called dynamic capabilities. In this paper we emphasize firms’ internal capabilities to obtain more environmentally sustainable supply chains based on the dynamic capabilities for sensing, seizing and transforming. We create a holistic framework focusing on both internal and external capabilities in three hierarchical levels of organizational structure. We illustrate an application of the framework with a case study on the “zero waste to disposal” initiative of Nestlé. We argue that the behavior of any supply chain entity is governed by its internal routines and processes, and conclude that internal and external capabilities for information transparency and integration are crucial in firms’ environmental sustainability efforts.
Kırcı et al. (Thu,) studied this question.