The impact of value chain integration on the responsible business behaviour of SMEs: An exploratory study

Abstract

This thesis sets out to explore the impact of value chain integration on the responsible business behaviour of SMEs and therefore its contribution to the sustainable development goals (SDGs). To that end, the thesis conducts an empirical investigation of UK SMEs in different value chain configuration across the global agri-foods industry, experience varying forms of governance vis-à-vis their partnering MNEs. The thesis reviews the literature on issues pertaining to responsible business in order to categorise degrees of responsible business behaviour along different types of responsible business activities (width) and levels of responsibility (depth). This forms a framework for measuring degrees of responsibility and is used as the basis for the development of a flexible pattern-matching template to guide data analysis. The findings demonstrate that when firms are more highly integrated and tightly governed by the MNEs, they comply with buyer-led ethical requirements via standards and certifications. Although compliance may provide benefits to developing country producers through improving farm management processes and access to export markets, they produce unintended negative consequences and their influence in driving responsible business outcomes is limited. The findings show when SMEs are more independent or only marginally integrated within a value chain, they leverage close supplier-based relationships to minimise labour violations, ensure farmers receive better prices for their products and drive sustainable farming practices in producers. These outcomes lead to positive SDG impacts. The study contributes to the existing IB and GVC literatures on how MNEs may best leverage their SME suppliers to facilitate SDG impacts and provides support for policy makers and managers alike on how to design policies that are more effective and strategies that account for the idiosyncrasies of responsible business behaviour in SMEs.

Date of Award	6 Jan 2021
Original language	English
Awarding Institution	The University of Manchester
Supervisor	Rudolf R. Sinkovics (Supervisor) & Noemi Sinkovics (Supervisor)