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Living with Complexities and Uncertainties Read chapter Read first chapter

2017 | OriginalPaper | Chapter

Towards Sustainability Governance in Value Networks

Authors : Katri Valkokari, Padmakshi Rana

Published in: Value Networks in Manufacturing

Publisher: Springer International Publishing

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Abstract

No organization is an island—all need relationships with other organizations to survive and grow. Furthermore, in the present networked environment the traditional focus on firms as discrete entities is increasingly inappropriate, and multiple values and conflicting interests must be considered at both value network and business ecosystem levels (Valkokari et al. 2012). In particular, sustainability as future-oriented business development task challenges companies to rethink their current business operations and network structures.

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previous chapter Sustainable Manufacturing: Challenges, Approaches and a Roadmap
next chapter Products and Services in a Sustainable World
Footnotes
1
In the context of manufacturing industry, this supply–demand network is typically defined with the term supply (or value) chain. Originating from the automotive and aerospace industries, the aim of the linear manufacturing-based supply chains was to optimize the material and information flow and utilization of resources to satisfy the customer. Instead of “supply chain”, the term value network is utilized in this chapter in order to emphasize that (i) supply systems are more complex than the term chain addresses, (ii) within them co-operation and collaboration should be interactive rather than sequential, (iii) both downstream (customer) and upstream (supply) operations should be considered and (iv) the role of the other actors than direct suppliers and customers should be considered.
 
2
A stakeholder is any group or individual who is affecting or can be affected by the achievement of organization objectives.
 
3
Researchers employ different definitions also to the term collaboration. Here, collaboration is defined as any joint, interactive activity, where two or more organisations are working together in order to create value to all involved actors.
 
4
The word “commoditization” means transformation of differential goods or services into commodities.
 
5
The term communities of practice have been initially represented by Wenger (1998).
 
6
For example, in its annual report PUMA presents the ambitious goals initiated by the PUMA Sustainability Scorecard for their suppliers to reduce 25 % of their environmental KPIs leading up to 2015, including water, waste and energy. To assist its suppliers, PUMA has initiated programs with third-party service providers and arranged capacity building programs in the countries where they do their sourcing. Similarly, NIKE points out its future vision of a closed-loop business model, which includes the upfront design of products that can be manufactured using materials reclaimed throughout the manufacturing process and at the end of a product’s life.
 
7
For instance, the year 2013 occurred “horse meat scandal” within European food retailing is one example of need for traceability in complex supply networks. Thus, there have been several same kinds of cases, where products have been contained wrong ingredients or the production facilities have been insufficient.
 
8
At the moment, closed-loop or reverse systems are still typically isolated from the companies’ core business as well as from the value network.
 
9
The main principle of industrial ecosystems (or ecology) is similar to closed-loop supply chain, e.g. waste of one process can be used as resources for another process. Industrial symbiosis refers to networked material and energy exchange structures progressing to a more eco-efficient industrial system.
 
10
A workbook, entitled “Towards sustainability governance in manufacturing networks” summarizes the appropriate tools. It can be accessed: http://​www.​sustainvalue.​eu/​publications/​SustainValue_​Governance_​Workbook.​pdf.​
 
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Metadata
Title
Towards Sustainability Governance in Value Networks
Authors
Katri Valkokari
Padmakshi Rana
Copyright Year
2017
Book
Value Networks in Manufacturing

Print ISBN: 978-3-319-27797-4

Electronic ISBN: 978-3-319-27799-8

Copyright Year: 2017

DOI
https://doi.org/10.1007/978-3-319-27799-8_4

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