Adoption of social sustainability practices in developing countries a case study of vietnamese handicraft organisations

Adoption of Social Sustainability Practices in Developing Countries: A Case Study of Vietnamese Handicraft Organisations A thesis submitted in fulfilment of the requirements of the de

Adoption of Social Sustainability Practices in Developing Countries: A Case Study of Vietnamese Handicraft Organisations

A thesis submitted in fulfilment of the requirements of the degree of

Doctor of Philosophy

Thi Ha Uyen Tran

Bachelor of Foreign Trade (University of Economics Ho Chi Minh city) Bachelor of English (University of Sciences, Hue University)

Master of Applied Commerce (International) (University of Melbourne)  

School of Accounting, Information Systems, and Supply Chain

College of Business and Law RMIT University, Melbourne, Australia

September 2020

Declaration

I, Thi Ha Uyen Tran, except where due acknowledgement has been made, hereby certify that:

(a) the work is that of the author alone;

(b) the work has not been submitted previously, in whole or in part, to qualify for any other academic award;

(c) the content of the thesis is the result of work which has been carried out since the official commencement date of the approved research program;

(d) any editorial work, paid or unpaid, carried out by a third party is acknowledged; and (e) ethics procedures and guidelines have been followed

Thi Ha Uyen Tran

25th September 2020

Acknowledgements

I wish to welcome this opportunity to extend my sincere appreciation to all organisations and people who have assisted me during my PhD journey First and foremost, I would like to thank the College of Economics - Hue University, Vietnam International Education Department - Ministry of Education and Training, and RMIT University for their generous funding support and general advice throughout my research I acknowledge the support I have received for my research through the provision of a joint scholarship between RMIT University and Vietnam International Education Department (RMIT-VIED)

I would like to extend my heartfelt thanks to my amazing supervisors, Dr Kwok Hung Lau and

Dr Chin Eang Ong, who have encouraged and guided me throughout this PhD I cannot express

my gratitude in words for their immense academic knowledge, invaluable guidance, dedicated support, and constructive motivation in helping me to overcome challenges related to research and writing up the thesis My life is so blessed to have both of them as my supervisors

My next deep gratitude goes to the academics of the School of Accounting, Information Systems, and Supply Chain at RMIT University for their critical comments to my research and pre-test phases In particular, I would like to express my sincere thanks to Professor Hepu Deng who provided help, guidance, and support in the first three years of my doctoral program My gratitude also goes to Dr Konrad Peszynski, Dr Huan Vo Tran, Dr Zaheed Halim, Dr David Truong Ton, and Associate Professor Abdullahi Ahmed for their support throughout my candidature

There is a multitude of other individuals who helped me to arrive at this point, and I would like

to express my special appreciation to Dr Phan Thanh Hung - CEO of Fagi Corporation for

agreeing to participate and introducing me to participants for this study My warmest thanks are due to my fellow colleagues at the College of Economics - Hue University and RMIT University for their support, encouragement, and assistance, including Giang Hoang, Ngoc My Hang Le, Alvedi Sabani, Benjamin Wu, and Le Dung just to name a few, during my time as a doctoral candidate I would also like to acknowledge that this thesis was professionally copyedited and proofread by Dr Kate van Dooren The professional editing complies with the Guidelines for Editing Research Theses and is restricted to Standards D and E of the Australian Standards for Editing Practice

Most importantly, I would not have been able to undertake this endeavour without supports from my family I am truly thankful to my husband who provides me with enormous support and unconditional love I owe a great deal to him when my research gave him a tough time with two kids This journey would not have been possible without his emotional support and encouragement I am also extremely grateful to my mother, father, mother-in-law, father-in-law, my dearest two kids, and other family members for their unconditional love and support I want to dedicate this thesis to my beloved family

Table of Contents

Declaration i

Acknowledgements ii

Table of Contents iv

List of Abbreviations xi

List of Tables xiii

List of Figures xvi

List of Publications xviii

Abstract xix

  Chapter 1 Introduction 1

1.1 Research Background 1

1.2 Research Motivation 5

1.3 Research Objectives and Questions 7

1.4 Research Methodology 8

1.5 Research Contributions 10

1.5.1 Theoretical Contributions 10

1.5.2 Practical Contributions 11

1.6 Structure of the Thesis 11

  Chapter 2 Literature Review 15

2.1 Introduction 15

2.2 Sustainable Development and SSP 16

2.2.1 Overview of Sustainable Development 16

2.2.2 Overview of SSP 17

2.2.2.1 Labour Condition-Based Practices 20

2.2.2.2 Human Rights-Based Practices 21

2.2.2.3 Working Environment-Based Practices 22

2.2.2.4 Community Development-Based Practices 23

2.2.2.5 Diversity Support-Based Practices 24

2.2.2.6 Ethical Behaviour-Based Practices 25

2.2.2.7 Product Responsibility-Based Practices 26

2.2.2.8 Supply Chain Responsibility-Based Practices 27

2.3 SSP Adoption in Developing Countries 28

2.4 Overview of Vietnamese Handicraft Organisations 31

2.5 SSP Adoption Research 36

2.5.1 Function-Oriented Research 37

2.5.2 Organisation-Oriented Research 40

2.5.3 Integrated Supply Chain-Oriented Research 42

2.5.3.1 Behaviour-Based Research 43

2.5.3.2 Pressure-Based Research 44

2.5.3.3 Readiness-Based Research 46

2.5.3.4 SSP Adoption Research in Developed Countries 48

2.5.3.5 SSP Adoption Research in Developing Countries 50

2.5.3.6 Inadequacy of Extant SSP Adoption Research 53

2.6 Concluding Remarks 55

  Chapter 3 Conceptual Framework 56

3.1 Introduction 56

3.2 Theoretical Foundation 57

3.3 A Conceptual Framework 65

3.3.1 Conceptualisation and Operationalisation of First-Order and Second-Order Constructs 67

3.3.1.1 Organisational Behaviour 67

3.3.1.2 Stakeholder Pressures 70

3.3.1.3 Organisational Readiness 74

3.3.2 Hypothesis Development 77

3.4 Concluding Remarks 82

  Chapter 4 Research Methodology 83

4.1 Introduction 83

4.2 Research Paradigm 84

4.2.1 Definition and Dimension of Research Paradigm 85

4.2.2 Classification of Research Paradigm 86

4.2.3 Selection of Research Paradigm 88

4.3 Research Methodology 89

4.4 Data Collection 91

4.4.1 Instrument Design 91

4.4.1.1 Survey Instrument Development 91

4.4.1.2 Survey Instrument Refinement 93

4.4.2 Sampling Design 96

4.4.2.1 Sampling Method 96

4.4.2.2 Sampling Frame 98

4.4.2.3 Sample Size 98

4.4.3 Survey Administration 99

4.5 Data Analysis 100

4.5.1 Data Analysis Procedures 101

4.5.2 Data Analysis Methods 103

4.5.2.1 Cluster Analysis 103

4.5.2.2 Discriminant Analysis 109

4.5.2.3 SEM Analysis 111

4.6 Concluding Remarks 113

  Chapter 5 Preliminary Data and Demographic Analyses 114

5.1 Introduction 114

5.2 Preliminary Data Analysis 115

5.2.1 Missing Data Assessment 115

5.2.2 Outlier Assessment 116

5.2.3 Normality Assessment 117

5.2.4 Non-Response Bias Assessment 120

5.3 Demographic Analysis 121

5.3.1 Profile of Surveyed Respondents 122

5.3.2 Profile of Surveyed Organisations 126

5.3.3 Current Status of SSP Adoption 132

5.4 Concluding Remarks 136

  Chapter 6 Emerging Adoption Patterns of SSP 138

6.1 Introduction 138

6.2 Results of Cluster Analysis 139

6.3 Results of Discriminant Analysis 143

6.4 Concluding Remarks 144

  Chapter 7 SEM Model Validation and Findings 146

7.1 Introduction 146

7.2 Dimensionality Assessment 147

7.3 Measurement Model Analysis 151

7.3.1 Assessment of the First-Order Reflective Constructs 153

7.3.1.1 Indicator Reliability 153

7.3.1.2 Internal Consistency Reliability 155

7.3.1.3 Convergent Validity 157

7.3.1.4 Discriminant Validity 158

7.3.2 Assessment of the Second-Order Formative Constructs 161

7.3.2.1 Convergent Validity 162

7.3.2.2 Multicollinearity 163

7.3.2.3 Relevance and Significance of Outer Weights 164

7.4 Assessment of Common Method Bias 166

7.5 Assessment of the Structural Model 167

7.5.1 Multicollinearity Issues 168

7.5.2 Significance and Relevance of the Path Coefficients 168

7.5.2.1 Direct Impacts 169

7.5.2.2 Mediating Impacts 169

7.5.2.3 Controlling Impacts 171

7.5.3 Coefficient of Determination R 2 172

7.5.4 Effect Size f 2 173

7.5.5 Predictive Relevance Q 2 174

7.5.6 Effect Size q 2 174

7.6 Concluding Remarks 175

  Chapter 8 Discussion 177

8.1 Introduction 177

8.2 SSP Adoption Patterns 177

8.3 Direct Roles of Constructs 182

8.3.1 Direct Role of Organisational Behaviour 184

8.3.1.1 Specific Role of Organisational Awareness 185

8.3.1.2 Specific Role of Organisational Attitude 187

8.3.1.3 Specific Role of Organisational Commitment 188

8.3.2 Direct Role of Stakeholder Pressures 190

8.3.3 Direct Role of Organisational Readiness 192

8.3.3.1 Specific Role of Financial Readiness 194

8.3.3.2 Specific Role of Knowledge Readiness 195

8.3.3.3 Specific Role of Internationalisation Readiness 196

8.4 Indirect Roles of Constructs 198

8.4.1 Indirect Role of Stakeholder Pressures 198

8.4.1.1 Specific Role of Government Pressures 201

8.4.1.2 Specific Role of Labour Pressures 202

8.4.1.3 Specific Role of Market Pressures 203

8.4.1.4 Specific Role of Supplier Pressures 205

8.4.2 Indirect Role of Organisational Behaviour 206

8.5 Controlling Roles of Factors and Adoption Pattern 209

8.6 Concluding Remarks 212

  Chapter 9 Conclusion 214

9.1 Introduction 214

9.2 Answering the Research Questions 215

9.2.1 Subsidiary Research Question 1 216

9.2.2 Subsidiary Research Question 2 217

9.2.3 Subsidiary Research Question 3 219

9.2.4 Subsidiary Research Question 4 220

9.3 Contributions and Implications of the Research 221

9.3.1 Contributions to Research and Theory 222

9.3.2 Implications for Owners and Managers 226

9.3.3 Implications for Government and Policymakers 234

9.3.4 Implications for Sustainability Practitioners 235

9.4 Limitations and Directions for Future Research 236

9.5 Concluding Remarks 239

  References 240

Appendices 264

Appendix A – Ethics Approval Letter 264

Appendix B – Survey Questionnaire 265

Appendix C – Results of EFA 273

Appendix D – Results of Indicator Reliability 275

Appendix E – The Bootstrap Confidence Interval Results of HTMT Values 277

Appendix F – Technical Details of Mediating Approach 279 

List of Abbreviations

ADPT Adoption

ANOVA Analysis of variance

ATT Organisational attitude

AVE Average variance extracted

AWA Organisational awareness

BSCI Business Social Compliance Initiatives

BTOS Bartlett's Test of Sphericity

CB-SEM Covariance-based SEM

CEO Chief Executive Officer

COM Organisational commitment

DOI Diffusion of innovations

EFA Exploratory factor analysis

EN71 European Standard 71

FSC Forest Stewardship Council

HTMT Heterotrait-monotrait ratio

ICS Initiative Clause Sociale

INT Internationalisation readiness

ISO International Organisation for Standardisation

KMOMSA Kaiser-Meyer-Olkin Measure of Sampling Adequacy

MNCs Multinational corporations

NGOs Non-governmental organisations

PCA Principal components analysis

PLS-SEM Partial least squares SEM

R2 Coefficient of determination

SEM Structural equation modelling

SMETA Sedex Members Ethical Trade Audit

SPSS Statistical Package for the Social Sciences

SSP Social sustainability practices

TOE Technology-Organisation-Environment

UNIDO United Nations Industrial Development Organisation

VAF Variance accounted for

VIF Variance inflation factor

List of Tables

Table 2.1 Overview of Labour Condition-Based Practices 21

Table 2.2 Overview of Human Rights-Based Practices 22

Table 2.3 Overview of Working Environment-Based Practices 23

Table 2.4 Overview of Community Development-Based Practices 24

Table 2.5 Overview of Diversity Support-Based Practices 25

Table 2.6 Overview of Ethical Behaviour-Based Practices 26

Table 2.7 Overview of Product Responsibility-Based Practices 27

Table 2.8 Overview of Supply Chain Responsibility-Based Practices 28

Table 2.9 Overview of Vietnamese Handicrafts 32

Table 2.10 Summary of SSP Adoption Studies from the Function-Oriented Perspective 39

Table 2.11 Summary of SSP Adoption Studies from the Organisation-Oriented Perspective…… 42

Table 2.12 Summary of SSP Adoption Studies from the Integrated Supply Chain-Oriented Perspective 47

Table 2.13 Summary of SSP Adoption Studies from the Integrated Supply Chain-Oriented Perspective in Developed Countries 49

Table 2.14 Summary of SSP Adoption Studies from the Integrated Supply Chain-Oriented Perspective in Developing Countries 52

Table 3.1 Summary of the TOE Framework-Based Studies 61

Table 3.2 Summary of Institutional Theory-Based Studies 64

Table 3.3 Summary of the Measurement Items for AWA 68

Table 3.4 Summary of the Measurement Items for ATT 69

Table 3.5 Summary of the Measurement Items for COM 70

Table 3.6 Summary of the Measurement Items for GOV 71

Table 3.7 Summary of the Measurement Items for LAB 72

Table 3.8 Summary of the Measurement Items for MAR 73

Table 3.9 Summary of the Measurement Items for SUP 74

Table 3.10 Summary of the Measurement Items for FIN 76

Table 3.11 Summary of the Measurement Items for KNO 76

Table 3.12 Summary of the Measurement Items for INT 77

Table 4.1 Overview of Positivism and Interpretivism Paradigms 88

Table 4.2 Components of the Research Design 90

Table 4.3 Internal Consistency Reliability of the Pilot-Test 96

Table 5.1 Normality Results at the Univariate Level 119

Table 5.2 Normality Results at the Multivariate Level 120

Table 5.3 Summary of the Non-Response Bias Assessment Results 121

Table 5.4 Overview of the Respondents’ Profile 123

Table 5.5 Cross-Tabulation of the Position of Respondents and Organisational Size 125

Table 5.6 Overview of Organisational Profiles 127

Table 5.7 Mean and Rank Values of Individual Product Responsibility-Based Practices 133

Table 5.8 Mean and Rank Values of Individual Employee-Oriented Practices 134

Table 5.9 Mean and Rank Values of Individual Community-Oriented Practices 135

Table 5.10 Mean and Rank Values of Individual Supply Chain Responsibility-Based Practices………… 136

Table 6.1 Results of the Hierarchical Clustering Analysis 139

Table 6.2 Results of Cluster Analysis 141

Table 6.3 Organisational Characteristics of Clusters 141

Table 6.4 Results of the Wilks’ Lambda Tests 143

Table 6.5 Results of Discriminant Loadings 144

Table 7.1 Results of the Suitability of Factor Analysis 149

Table 7.2 Summary of the EFA Results 150

Table 7.3 Psychometric Properties of the First-Order Reflective Constructs 156

Table 7.4 Results of Fornell-Larcker Criterion for First-Order Reflective Constructs 158

Table 7.5 Cross-Loadings of First-Order Reflective Constructs 159

Table 7.6 HTMT Ratios of First-Order Reflective Constructs 160

Table 7.7 Results of Adequacy Coefficients 163

Table 7.8 Results of Multicollinearity 164

Table 7.9 Outer Weights of the First-Order Constructs to the Second-Order Constructs 165

Table 7.10 VIF Values in the Structural Model 168

Table 7.11 Results of Direct Impacts 169

Table 7.12 Results of Mediating Impacts 170

Table 7.13 Results of Controlling Impacts 171

Table 7.14 Results of R2 Values 172

Table 7.15 Results of f2 Values 173

Table 7.16 Results of q2 Values 175

Table 8.1 Average Mean Values of SSP Categories across Patterns 178

Table 8.2 The Different Foci of the Five SSP Adoption Patterns 180

Table 8.3 Summary of Discussion on the Emerging Adoption Patterns Identified 182

Table 8.4 Summary of Discussion on the Direct Roles 197

Table 8.5 Summary of Discussion on the Indirect Roles 208

Table 8.6 Summary of Discussion on the Controlling Roles 212

Table 9.1 Summary of Contributions to Sustainability Research and Theory 225

Table 9.2 Summary of Implications for Owners and Managers 233

Table 9.3 Summary of Implications for Government and Policymakers 235

Table 9.4 Summary of Research Limitations and Future Directions 238

List of Figures

Figure 1.1 Overview of the Research Process 9 

Figure 1.2 Overview of the Thesis Structure 12

Figure 2.1 Summary of the Development of Vietnamese Handicraft Organisations 35 

Figure 2.2 Classification of Existing SSP Adoption Research 37

Figure 3.1 The Theoretical Background of the Framework 57 

Figure 3.2 Overview of the TOE Framework 58 

Figure 3.3 A Conceptual Framework for the Adoption of SSP 65

Figure 4.1 Overview of the Survey Instrument Design 92 

Figure 4.2 Overview of Data Analysis Procedures 101 

Figure 4.3 Hierarchical Cluster Analysis Flowchart 105 

Figure 4.4 Non-Hierarchical Cluster Analysis Flowchart 107 

Figure 4.5 Discriminant Analysis Flowchart 110

Figure 5.1 Gender Profile of the Respondents 122 

Figure 5.2 Age Profile of the Respondents 123 

Figure 5.3 Education Profile of the Respondents 124 

Figure 5.4 Position Profile of the Respondents 125 

Figure 5.5 Position Length Profile of the Respondents 126 

Figure 5.6 Founded Length Profile of Organisations 127 

Figure 5.7 Organisational Size Profile 128 

Figure 5.8 Total Capital Profile of Organisations 129 

Figure 5.9 Sales Revenue Profile of Organisations 129 

Figure 5.10  Exportation Orientation Profile of Organisations 130 

Figure 5.11  Standard Adoption Profile of Organisations 131 

Figure 5.12  Average Mean of SSP Categories 132

Figure 6.1 Five Emerging Adoption Patterns 140

Figure 7.1 A Five-Step Guideline for EFA 149 

Figure 7.2 Reflective-Formative Type II Model and Repeated-Indicator Approach 154 

Figure 7.3 Final Measurement Model of the First-Order Reflective Constructs with Outer Loadings 155 

Figure 7.4 Measurement Model of the Second-Order Formative Constructs and Disjoint Two-Stage Approach 161 

Figure 7.5 Overall Structural Model 167

Figure 8.1 Direct Role of Organisational Behaviour and Its Associated Predictors 185 

Figure 8.2 Direct Role of Stakeholder Pressures and Their Associated Predictors 191 

Figure 8.3 Direct Role of Organisational Readiness and Its Associated Predictors 193 

Figure 8.4 Indirect Role of Stakeholder Pressures 200 

Figure 8.5 Indirect Role of Organisational Behaviour 207 

Figure 8.6 Controlling Roles of Factors and Adoption Pattern 210   

List of Publications

Refereed Conference Papers

1 Tran, T, Deng, H & Ong, C 2018, ‘A Conceptual Framework for Investigating the Awareness and Attitudes of Vietnamese Handicraft Organisations towards the Adoption

of Social Sustainability Practices’, in Belt and Road Initiatives (BRI) Conference on

Connectivity in Asia: Trade, Transport, Logistics and Business, 24-26 June, Ho Chi

Minh city, Vietnam

2 Tran, T, Deng, H & Ong, CE 2018, 'Critical Factors for the Adoption of Social

Sustainability Practices in Vietnamese Handicraft Organizations', in 2018 IEEE

Conference on e-Learning, e-Management and e-Services (IC3e), 21-22 November,

and Practice, 3-6 December, Cairns, Australia, pp 1026-1045

Reviewed Research Book Chapter

1 Tran, T, Lau, KH & Ong, CE 2020, ‘Diffusion of Social Sustainability Practices in

Vietnamese Handicraft Organisation’, in Walsh, J & Dang, QT (eds), International

Business in the Greater Mekong Subregion: Opportunities and Challenges in the New

Context, Social Science Publishing House (forthcoming)

Abstract

Globalisation of the world economy has raised concerns about social sustainability incidents in business organisations in developing countries These incidents are mainly due to repeated accidents resulting from poor labour conditions and unsafe working environments, the presence

of child labour, and the use of unfriendly environmental manufacturing processes The consequences of such incidents have indicated that the adoption of social sustainability practices (SSP) is discouraging This reality shows an urgent need for better understanding the adoption of SSP by organisations and along multiple tiers of supply chains in the pursuit of sustainable development

The objective of this study is to holistically investigate the adoption of SSP by organisations in developing countries Taking Vietnamese handicraft organisations as a case study, the study specifically aims to (a) identify the emerging adoption patterns of SSP; (b) explore the direct roles of organisational behaviour, stakeholder pressures, and organisational readiness in SSP adoption; (c) examine the indirect roles of stakeholder pressures and organisational behaviour

in SSP adoption; and (d) investigate the controlling roles of organisational size, exportation orientation, standard adoption, and adoption pattern in SSP adoption

To achieve the aims of this study, a comprehensive review of the related literature leads to the development of a conceptual framework built on the technology-organisation-environment (TOE) framework, which is widely used for the investigation of innovation adoption by business organisations The institutional theory is further employed to underpin the proposed framework for providing a better understanding of the adoption of SSP by organisations in institutional settings commonly found in developing economies The framework is then tested

and validated using cluster analysis, discriminant analysis, and structural equation modelling with data collected from a survey of 310 Vietnamese handicraft organisations

The study reveals five emerging adoption patterns of SSP in the surveyed organisations, namely proactive adoption, high average adoption, average adoption, low average adoption, and laggard adoption It provides sufficient evidence that organisational behaviour and readiness impact directly on the adoption of SSP, while stakeholder pressures show a significant indirect impact The study further confirms the mediating roles of organisational behaviour and readiness in the adoption It highlights the controlling roles of organisational size, exportation orientation, standard adoption, and adoption pattern in such adoption

This study contributes to the sustainability research from both theoretical and practical terms Theoretically, the study is novel in that it leverages the TOE framework and incorporates the institutional theory to comprehensively examine the adoption of SSP in organisations in the context of developing countries It is the first attempt to identify the critical role of internationalisation readiness in predicting organisational readiness for the adoption of SSP This, therefore, sheds new light to the application of the TOE framework and offers a new research avenue related to the role of internationalisation readiness in social sustainability and supply chain management Practically, the findings provide useful guidelines on how to improve the adoption of SSP by organisations in developing countries Such guidelines can assist owners, managers, policymakers, and sustainability practitioners to formulate specific policies and strategies in promoting the adoption of SSP in organisations from the perspective

of integrated supply chains

Keywords: Social sustainability practices, Sustainable development, Critical factors,

Innovation adoption, Adoption pattern, Internationalisation readiness

Introduction | 2020  

of social sustainability practices (SSP) by organisations in developing countries is unsatisfactory As a consequence, growing global attention has been paid to the adoption of SSP by these organisations and along their wider supply chains (Huq & Stevenson 2020; Mani

et al 2020; Sardana et al 2020) Nevertheless, the adoption of SSP by organisations in the developing country context is complex and challenging It becomes critical to investigate the adoption of SSP by these organisations to improve such adoption

SSP are about the actions and procedures that organisations take for promoting social sustainability responsibilities (Klassen & Vereecke 2012) An examination of SSP reveals that there are eight categories, including labour conditions, human rights, working environments, community development, diversity support, ethical behaviour, product responsibilities, and supply chain responsibilities (Ayuso & Navarrete‐Báez 2018; Govindan et al 2020b; Nakamba

Introduction | 2020  

et al 2017; Yawar & Seuring 2017) These practices are embedded in products or processes of organisational operations for enhancing the safety and welfare of individuals, while contributing to the development of communities (Croom et al 2018; Shafiq et al 2014) The adoption of SSP provides organisations with numerous benefits including sustained competitive advantages (Mangla et al 2018), strengthened reputation (Hwang et al 2016), and enhanced employee satisfaction (Huq & Stevenson 2020; Yuen et al 2017), leading to improved overall organisational performance (Nejati et al 2017; Roxas et al 2017) As a result, SSP are widely adopted in organisations (Johnson & Schaltegger 2016; Mani et al 2020; Shafiq et al 2019)

Numerous studies have been undertaken to better understand the adoption of SSP by organisations (Govindan et al 2020b; Mani & Gunasekaran 2018; Nakamba et al 2017) These studies have identified various critical factors for such adoption, such as organisational awareness (Gadenne et al 2009; Johnson 2015), attitude (Hasan et al 2020; Yuen et al 2017), commitment (Croom et al 2018; Huq & Stevenson 2020; Zhang et al 2020b), government pressures (Li et al 2019; Mani & Gunasekaran 2018), labour pressures (Aboelmaged 2018; Shafiq et al 2014), market pressures (Agarwal et al 2018; Yawar & Kauppi 2018), supplier pressures (Chu et al 2017; Raab et al 2018), financial readiness (Hwang et al 2016; Leonidou

et al 2017), and knowledge readiness (Huq & Stevenson 2020; Yuen et al 2017) Among the various critical factors identified by previous studies, the most important ones can be categorised into organisational behaviour, stakeholder pressures, and organisational readiness

A further review of the existing literature reveals that studies on the adoption of SSP can be approached from the perspectives of function (Aboelmaged 2018; Marshall et al 2019; Walker

& Brammer 2009), organisation (Agudo-Valiente et al 2017; Johnson 2015; Pan et al 2018), and integrated supply chains (Croom et al 2018; Leonidou et al 2017; Li et al 2019) There

is, however, lack of a framework providing a comprehensive understanding of the adoption of

Introduction | 2020  

SSP, particularly from the integrated supply chain-oriented perspective (Nakamba et al 2017; Tseng et al 2019) The integrated supply chain-oriented perspective examines critical factors for the adoption of SSP by organisations and along their supply chains with a specific focus on collaboration among stakeholders (Mani & Gunasekaran 2018; Yawar & Seuring 2017) This perspective is widely regarded as the most beneficiary strategy for sustainable development under globalisation of supply chains (Ansari & Kant 2017; Carter & Rogers 2008; Seuring 2012)

Most existing studies on the adoption of SSP by organisations from the integrated supply oriented perspective focus on developed countries (Huq & Stevenson 2020; Nakamba et al 2017) Their findings are not entirely applicable to the context of developing countries due to differences among countries in terms of social, economic, and legal conditions (Huq & Stevenson 2020; Masocha 2019) Further, social standards adopted by organisations in developing countries are often lower than those in developed countries (Ehrgott et al 2011; Govindan et al 2020b) There is an emerging need to extend the existing literature by focusing

chain-on the perspective of developing country organisatichain-ons to achieve a more complete understanding of SSP adoption across supply chains (Huq & Stevenson 2020; Koster et al 2019; Nakamba et al 2017)

A growing number of studies have investigated the adoption of SSP by organisations from the integrated supply chain-oriented perspective in developing countries (Govindan et al 2020b; Huq et al 2014; Mani & Gunasekaran 2018; Zhu et al 2013) Hasan (2016), for example, examines the adoption of SSP by Bangladeshi organisations, showing that organisational awareness, along with public, customer, and government pressures are critical to such adoption Nejati et al (2017) investigate the adoption of SSP by Malaysian organisations, emphasising that organisational commitment, labour and customer pressures are behind the formulation of

Introduction | 2020  

SSP policies and strategies Zhang et al (2020b) explore the adoption of SSP by Chinese organisations, stating that organisational awareness, commitment, government, labour, and customer pressures have positive impacts on the adoption Previous studies, however, look at the adoption of SSP in a piecemeal manner As such, the interrelationships between organisational behaviour, stakeholder pressures, and organisational readiness are unknown This limitation requires an integrated framework that combines organisational behaviour, stakeholder pressures, and organisational readiness into a single study for better understanding

of the interrelated importance among these factors

Further, little is known about the critical role of internationalisation readiness in determining organisational readiness for the adoption of SSP by organisations (Ayuso & Navarrete‐Báez 2018; Pinho et al 2018; Tan et al 2007) Internationalisation readiness is about the potential shift from purely domestic organisations to international ones, which is determined by the allocation of sufficient resources for export activities (Tan et al 2007) Previous research reveals that international-based organisations are more proactive in achieving SSP adoption than domestic-based organisations (Darnall et al 2010; Marshall et al 2010) Whether organisations under the shift are more likely to adopt SSP remains unclear in the existing literature This inadequacy highlights the need for further research to consider internationalisation readiness for better understanding of SSP adoption

Disparities exist among organisational behaviour, stakeholder pressures, and organisational readiness with respect to their interrelated importance on the adoption of SSP Previous studies (such as Walker et al (2008) and Hwang et al (2016)) claim that stakeholder pressures have a direct impact and are more influential to the adoption of SSP by organisations On the contrary, several other studies (see Gadenne et al (2009), Sarkis et al (2010), Agarwal et al (2018), and

Li et al (2019)) highlight the indirect impact of stakeholder pressures on such adoption Sarkis

Introduction | 2020  

et al (2010), for instance, indicate that organisational readiness functions as a vital mediation

in the relationship between stakeholder pressures and SSP adoption Agarwal et al (2018) provide empirical evidence that organisational behaviour plays a bridging role in the impact of stakeholder pressures on the adoption of SSP It should be noted that there remains a dearth of studies addressing the disparities from the developing country setting in a holistic manner Furthermore, the indirect role of organisational behaviour in the relationship between organisational readiness and the adoption of SSP remains unclear in the literature related to developing countries

In sum, although previous studies on SSP have identified many critical factors affecting its adoption, holistic views of the issue are scarce There is also no conceptual framework providing a comprehensive understanding of SSP adoption from the integrated supply chain-oriented perspective Diverse views exist on the role of organisational behaviour, stakeholder pressures, and organisational readiness on SSP adoption in developing countries Empirical analysis investigating these relationships is limited To address these inadequacies, the current study draws on the Technology-Organisation-Environment (TOE) framework (Depietro et al 1990) and institutional theory (Dimaggio & Powell 1983) to investigate the adoption of SSP, with a focus on the direct and indirect roles of organisational behaviour, stakeholder pressures, and organisational readiness, using Vietnamese handicraft organisations as a research setting

The motivation to undertake this research arises from four key reasons First, with the growing awareness of various stakeholders about environmental conversations and social responsibility, many organisations are concerned about sustainability - hence the adoption of SSP (D'Souza et

al 2020; Huq & Stevenson 2020) This trend is observed not only in developed countries but also in developing countries, such as Vietnam (Nguyen et al 2018; Tencati et al 2010) Since

Introduction | 2020  

handicraft is one of the major exports of Vietnam to developed countries, the adoption of SSP has become mandatory to meet stakeholder requirements (Tran et al 2018; UNIDO 2013b; VIRI 2015) As such, using Vietnamese handicraft organisations as a case study can help reveal the current situation in developing countries and provide insights for promoting SSP

Second, there is an emerging need for developing an integrated framework to adequately investigate the adoption of SSP by organisations in developing countries from the integrated supply chain-oriented perspective Existing literature shows the merits of several frameworks for investigating the adoption of SSP by organisations (Agarwal et al 2018; Hwang et al 2016;

Li et al 2019; Mani & Gunasekaran 2018) These frameworks employ various theories, such

as the stakeholder (Freeman 1984), institutional (Dimaggio & Powell 1983), planned behaviour (Ajzen 1991), diffusion of innovations (DOI) (Rogers 2010), resource-based view (Barney 1991), and the TOE framework (Depietro et al 1990) An analysis of the above frameworks shows lack of an integrated framework that leverages both the TOE framework and institutional theory for a holistic view of organisational perspective on the adoption of SSP (Ceptureanu et

al 2018; Hwang et al 2016) The rationale for such integration is that SSP are widely viewed

as management innovations, while the adoption of such innovations is positively impacted by organisational behaviour, stakeholder pressures, and organisational readiness This implies that the development of such a framework for a comprehensive investigation of the adoption of SSP

by organisations is desirable

Third, increasing research is focusing on the critical factors related to organisational behaviour for motivating the adoption of SSP Extant literature suggests that stakeholder pressures alone may not be sufficient in leading organisations to engage in the adoption of SSP (Ahmad et al 2016; Roman 2017) When it comes to institutionalising SSP, organisational awareness, attitude, and commitment are critical in determining organisational behaviour towards the

Introduction | 2020  

adoption of SSP (Croom et al 2018; Gadenne et al 2009; Roman 2017) Existing frameworks (see Ahmad et al (2016), Gadenne et al (2009), Luo et al (2017), Marshall et al (2010), and Yuen et al (2017)) are designed to identify either organisational awareness or attitude or commitment as prominent factors in driving organisational behaviour for the adoption of SSP

by organisations This creates the necessity of considering a comprehensive organisational behaviour that covers all of the three prominent factors mentioned above for a better understanding of the adoption of SSP and therefore justifies the need for undertaking this research

Last, there is an urgent call for investigating organisational readiness for the adoption of SSP

by organisations with the addition of internationalisation readiness factor A review of existing studies on the adoption of SSP by organisations shows that it is unclear to what extent internationalisation readiness contributes to organisational readiness that predicts the adoption (Ayuso & Navarrete‐Báez 2018; Pinho et al 2018) An examination of the specific role of internationalisation readiness would lead to a better understanding of organisational readiness for the adoption of SSP by organisations in developing countries from the integrated supply chain-oriented perspective

1.3 Research Objectives and Questions

The primary objective of this research is to investigate the adoption of SSP by organisations in developing countries from the integrated supply chain-oriented perspective The specific objectives include the identification of emerging adoption patterns and the exploration of the direct and indirect roles of organisational behaviour, stakeholder pressures, and organisational readiness in SSP adoption The impacts of organisational size, exportation orientation, standard adoption, and adoption pattern will also be investigated To fulfil the primary objective of the research, an overarching research question is:

Introduction | 2020  

 How can the adoption of SSP by organisations in developing countries be improved?

Taking Vietnamese handicraft organisations as the subject of investigation, the following subsidiary research questions are set out to achieve the specific objectives:

1 What are the emerging adoption patterns of SSP in Vietnamese handicraft organisations?

2 What are the direct roles of organisational behaviour, stakeholder pressures, and organisational readiness in encouraging the adoption of SSP by Vietnamese handicraft organisations?

3 What are the indirect roles of stakeholder pressures and organisational behaviour in facilitating the adoption of SSP by Vietnamese handicraft organisations?

4 What are the controlling roles of organisational size, exportation orientation, standard adoption, and adoption pattern in the adoption of SSP by Vietnamese handicraft organisations?

Introduction | 2020  

Bougie 2016) Second, it produces significant research findings that are reliable and objective (Creswell & Creswell 2018; Saunders et al 2016)

The implementation of the quantitative methodology in this research involves a seven-stage process as shown in Figure 1.1 The research process is initiated with the formulation of the research objectives and questions This is followed by a comprehensive review of the related literature on SSP and the adoption of SSP by organisations Drawing from the literature review,

a proposed conceptual framework is developed to investigate the adoption of SSP by organisations This leads to the development of a survey instrument before proceeding to the next stage of data collection from a nationwide survey The conceptual framework is then tested

Formulating research objectives and questions

Reviewing the related literature

Developing a conceptual framework

Developing a survey instrument

Collecting survey data

Analysing survey data

Answering the research questions

Figure 1.1 Overview of the Research Process

Introduction | 2020  

and validated using survey data from 310 Vietnamese handicraft organisations and structural equation modelling (SEM) for data analysis The SEM method is appropriate for examining multiple relationships simultaneously (Bagozzi & Yi 2012; Hair et al 2019) The data collected from the surveyed organisations are also analysed using cluster analysis and discriminant analysis to help reveal the emerging adoption patterns of SSP Finally, the research findings and conclusions drawn from the survey are used to generate answers to the research questions

This study investigates the adoption of SSP by organisations in developing countries from the integrated supply chain-oriented perspective with a specific focus on identifying the emerging adoption patterns and exploring the direct and indirect roles of organisational behaviour, stakeholder pressures, and organisational readiness In doing so, the research contributes critically to both theoretical and practical perspectives

1.5.1 Theoretical Contributions

From a theoretical perspective, this research expands the literature by offering a complete set

of SSP, emerging adoption patterns, and a comprehensive understanding of critical factors of SSP adoption focusing on developing countries, which is presently relatively scarce Further, it highlights the significance of extending the TOE framework with institutional theory in fully explaining SSP adoption from the integrated supply chain-oriented perspective with respect to

a wide range of organisational behaviour, stakeholder pressures, and organisational readiness Finally, this research makes the first attempt to examine the role of internationalisation readiness in determining organisational readiness for SSP adoption Such an attempt could open new opportunities for social sustainability research and supply chain management in general

Introduction | 2020  

1.5.2 Practical Contributions

From a practical perspective, this research provides managerial insights on how the adoption of SSP can be improved in organisations from the integrated supply chain-oriented perspective in several potential ways First, the research endeavours to offer a complete set of SSP and an in-depth understanding of various emerging adoption patterns of SSP, which are beneficial for owners and managers to formulate strategic plans towards SSP adoption Second, the research provides a comprehensive framework for a full examination of organisational behaviour, stakeholder pressures, and organisational readiness when making decisions and actions for adopting SSP Last, the framework serves as a strategic tool that helps owners and managers to determine which areas are of high priority with respect to successful SSP adoption

In addition, the research contributes to all stakeholders of Vietnamese handicraft organisations

as they play an essential role in the development of the national economy by contributing more than two billion United States (US) dollards annually and creating millions of job opportunities Specifically, the developed framework presents a useful guideline for government, policymakers, and sustainability practitioners in their pursuit of sustainable development It assists government and non-governmental organisations (NGOs) to develop appropriate policies and support programs to improve the adoption of SSP by organisations

1.6 Structure of the Thesis

Figure 1.2 outlines the overall structure of the thesis covering nine chapters Chapter 1

highlights an introduction to the study with a specific focus on the background and motivation

of the research, the research objectives and questions, the research methodology, the research contributions, and the structure of the thesis This paves the way for the presentation of the whole thesis

Introduction | 2020  

Chapter 2 presents an overview of sustainable development and SSP, SSP in developing

countries, an overview of Vietnamese handicraft organisations, and a comprehensive review of the related literature on the adoption of SSP by organisations Such a review justifies the need for this study by pinpointing the limitations of the existing research

Introduction | 2020  

Chapter 3 focuses on the development of a conceptual framework for investigating the

adoption of SSP by organisations The chapter begins with a discussion of the TOE framework and institutional theory It then presents the conceptual framework with hypotheses, derived from theories and extant literature

Chapter 4 describes the research methodology employed in this study The chapter begins with

an overview of the research paradigms and methodologies, and aims to provide the rationale behind the selection of appropriate research methodology in the study Following is the discussion of two main steps in the actual implementation of the selected research methodology, including data collection and analysis

Chapter 5 presents the preliminary data and demographic analyses The chapter begins with

the preliminary data analysis to gain a full understanding of the data characteristics The preliminary data analysis is performed in a four-task assessment, including missing data assessment, outlier assessment, normality assessment, and non-response bias assessment The chapter then provides a discussion of the profile of the surveyed respondents and their organisations

Chapter 6 presents the emerging adoption patterns explored according to the analysis of the

quantitative data collected through the survey of owners or managers of Vietnamese handicraft organisations The identification of emerging adoption patterns of SSP is based on the deployment of cluster analysis and discriminant analysis

Chapter 7 shows the SEM model validation and findings examined using the analysis of the

quantitative data collected through the survey of owners or managers of Vietnamese handicraft organisations The chapter begins with dimensionality assessment for ensuring the linkages among variables in the model It is followed by the assessment of the measurement model The

Introduction | 2020  

chapter then demonstrates the assessment of common method bias It concludes with the assessment of the overall structural model of the study

Chapter 8 discusses the findings of the statistical analysis with respect to the research

objectives and questions The chapter discusses the adoption patterns of SSP identified and the hypothesised relationships among the constructs Moreover, it presents a discussion of the roles

of organisational size, exportation orientation, standard adoption, and adoption pattern on the adoption of SSP

Chapter 9 ends the thesis with the conclusion for this study This chapter revisits the research

questions to confirm what has been achieved in this research This is followed by contributions

of the study to theory and sustainability research, as well as practical implications for owners, managers, and other stakeholders of individual organisations It also acknowledges the limitations of the current research This leads to some suggestions for future research in this domain

Literature Review | 2020  

et al 2020; Narimissa et al 2019; Yuen et al 2017)

This chapter provides a comprehensive review of the related literature of SSP and the adoption

of SSP research in organisations Such a review justifies the need for this study and paves the way for the development of a conceptual framework to investigate the critical factors for the adoption of SSP by organisations in developing countries from the integrated supply chain-oriented perspective in their pursuit of sustainable development

This chapter is organised as follows An overview of sustainable development and SSP is first presented in Section 2.2 This is followed by Section 2.3, which provides an overview of SSP

in developing countries, justifying the use of Vietnamese handicraft organisations as the sample

Literature Review | 2020  

for this study An overview of Vietnamese handicraft organisations, with three phases of development and the adoption of SSP, is provided in Section 2.4 The related literature on the adoption of SSP is then analysed in Section 2.5 with a specific focus on the critical factors for such adoption Finally, Section 2.6 presents a conclusion for this chapter

2.2 Sustainable Development and SSP

2.2.1 Overview of Sustainable Development

Sustainable development is about the concerns of organisations in meeting the needs of present stakeholders, such as employees, investors, customers, communities, and suppliers without compromising their ability to also fulfil the needs of their future stakeholders (Dyllick & Hockerts 2002; WCED 1987) Such concerns corroborate the definition suggested by the well-known Brundtland Commission on sustainable development for the United Nations In the context of organisational sustainability, included within this holistic perspective of sustainable development are such pillars as economic sustainability, environmental sustainability, and social sustainability (Hutchins et al 2018) This perspective is taken from the concept of the triple bottom line, coined by Elkington (1997) In this respect, a universal rule among organisations for sustainable development is a wise balance among economic prosperity, environmental integrity, and social justice (Carter & Rogers 2008; Miska et al 2018)

Economic sustainability is about the concerns of organisations with respect to remaining competitive and profitable for achieving long-term economic prosperity, leading to positive impacts on the economic system (Ashby et al 2012; Luthra et al 2011) Numerous economic sustainability practices have been considered in generating competitiveness and profit for organisations such as customer satisfaction, financial transparency, financial performance, and shareholder loyalty and engagement (Miska et al 2018) Economic sustainability must,

Literature Review | 2020  

therefore, be first and foremost addressed by all organisations prior to other pillars of sustainability (Hutchins et al 2018)

Environment sustainability is about the concerns of organisations with respect to environmental integrity in products and processes of specific operations, with the ultimate aim of reducing negative impacts on the natural environment (Ashby et al 2012; Miska et al 2018) A wide range of environmental sustainability practices has been developed to address those concerns, including green purchasing, eco-design, cleaner production, reverse logistics, and internal environmental management (Agarwal et al 2018; Hutchins et al 2018; Zhu et al 2012b) Organisations should align environment sustainability with business strategies to improve organisational performance within organisations and among their supply chain members (Li et

al 2020; Paulraj et al 2017)

Social sustainability is about the concerns of organisations with respect to social justice embedded into products and processes of specific operations that effectively enhance the safety and welfare of individuals, while contributing to the development of communities (Klassen & Vereecke 2012) This pillar has often received less attention from organisations as compared to the economic and environmental pillars (Ashby et al 2012; Nakamba et al 2017) Until recently, organisations have increasingly committed to addressing the challenges of social sustainability with a specific focus on identifying what social sustainability practices are and what motivates organisations to engage in the adoption of such practices (Kim et al 2018; Mani

& Gunasekaran 2018; Parente et al 2018)

2.2.2 Overview of SSP

SSP are about the actions and procedures adopted for effectively addressing social sustainability issues in organisations and across the supply chains (Klassen & Vereecke 2012) These actions

Literature Review | 2020  

and procedures are embedded in the products and processes related to every aspect of operation

in organisations (Klassen & Vereecke 2012; Mani & Gunasekaran 2018)

There is increasing recognition of the importance of SSP as management innovations for improving the sustainable development of organisations (Castka & Corbett 2016; Johnson 2015) This is because the adoption of SSP can improve organisational performance, thus leading to competitive advantage for individual organisations (Mani & Gunasekaran 2018; Nakamba et al 2017) Such competitive advantage leads to better staff retention, improved workplace, and strengthened organisational image (Mani et al 2015b; Yuen et al 2017) Organisations are motivated to incorporate SSP to enhance customer satisfaction (Mani & Gunasekaran 2018; Zorzini et al 2015) As a result, the adoption of SSP becomes popular in organisations (Castka & Corbett 2016; Govindan et al 2020b; Shibin et al 2020)

Various stakeholders are important to the adoption of SSP by organisations, including the government, employees, suppliers, the public, associations, and other individual organisations such as media, customers, competitors, and investors (Ehrgott et al 2011; Mani & Gunasekaran 2018; Nakamba et al 2017) The government, for example, requires individual organisations to comply with specific laws and regulations in their pursuit of sustainable development (Huq et

al 2014; Marshall et al 2015) The employees expect fair working conditions where they are employed; otherwise, they may move to other factories (Huq & Stevenson 2020; Huq et al 2014) Suppliers, with their advanced technical knowledge, can influence the adoption of SSP

by their partners (Agarwal et al 2018; Chu et al 2017; Raab et al 2018) Competitors create pressures that cause other organisations to take the same actions by adopting SSP This is because of the perceived benefits from such an adoption that form a basis for organisations to mimic each other (Fraj‐Andrés et al 2009; Marshall et al 2015) The perceived benefits lead other organisations to follow the behaviour of successful peers in the industry Customers

Literature Review | 2020  

increasingly show their expectations and demands for the adoption of SSP by organisations (Ageron et al 2012; Shafiq et al 2014) When making purchasing decisions, they raise many concerns about safe product design and use, product tracking, and fair working conditions where the products are made (Ehrgott et al 2011; Shafiq et al 2014) In sum, these stakeholders have shown their ability to influence the adoption of SSP by organisations (Mani & Gunasekaran 2018; Meixell et al 2015)

An examination of SSP reveals that there are eight categories, including labour conditions, human rights, working environments, community development, diversity support, ethical behaviour, product responsibilities, and supply chain responsibilities (Ayuso & Navarrete‐Báez 2018; Nakamba et al 2017; Yawar & Seuring 2017) In each category, such practices consist

of the basic practice and advanced practice (Croom et al 2018; Marshall et al 2015) The former focuses on reducing the risks associated with relevant legislation through the adoption

of SSP, which is consistent with the use of a reactive approach to sustainable development in organisations (Holt & Ghobadian 2009; Kähkönen et al 2018) The latter concentrates on the application of a proactive approach for pursuing sustainable development through the adoption

of SSP which is beyond regulatory compliance (Darnall et al 2010; Hwang et al 2016) A detailed discussion of each category is presented from Section 2.2.2.1 to Section 2.2.2.8

The use of both reactive and proactive approaches is significant for sustainable development in organisations (Aguilera-Caracuel et al 2012; Kähkönen et al 2018) The reactive approach is usually taken to address government regulations and laws for being socially sustainable (Holt

& Ghobadian 2009; Mani & Gunasekaran 2018) The proactive approach is adopted for actively collaborating with various stakeholders for sustainable development (Agarwal et al 2018; Huq

& Stevenson 2020; Mani & Gunasekaran 2018) With the use of these approaches, education and training are provided, and formal policies and procedures, such as standards, certifications,