Sustainability performance measurement in the food supply chain: Trade-offs, institutional pressures, and contextual factors

Abstract

This study investigates the trade-offs that firms face in measuring their sustainability performance at different stages of the food supply chain as a result of institutional pressures. We analyzed eight firms in the Italian organic wine supply chain to map the sustainability performance measurement (SPM) indicators adopted along the environmental, social, and economic dimensions of sustainability. We then examine how SPM is influenced by institutional pressures and the resulting trade-offs in three supply chain stages: winery, distributor, and retailer. Our findings indicate a prevalence of normative pressures from the market and from other stages in the supply chain in terms of SPM prioritization caused by institutional pressures (i.e., isomorphic) and contingent on other factors, such as the firm's size and culture. In particular, SPM trade-offs vary according to the supply chain stage, whereby wineries prioritize the environmental and economic dimensions, distributors—the economic dimension, and retailers—the social dimension. SPM adoption is also motivated by the firm's commitment to the environment and connection with the local region, over and above the perceived institutional pressures.