Sustainability under pressure: resource allocation and environmental turbulence in response to supply chain controversies
This study investigates how sustainable supply chain management (SSCM) controversies influence firms' sustainability practices. It explores the moderating roles of value-creating (R&D) and value-appropriating (advertising) resource investments, as well as environmental turbulence, in shaping these relationships. Drawing on stakeholder theory, the resource-based view (RBV) and contingency theory, this study employs archival firm-level data to examine how SSCM controversies interact with resource investments and environmental conditions to influence sustainability practices. SSCM controversies have varying impacts on sustainability practices, contingent on the strategic resources firms allocate and the degree of environmental turbulence. This study contributes to the research on SSCM by highlighting the critical roles of strategic resources and environmental contexts. It provides actionable insights for managers to develop tailored SSCM strategies, enhancing their ability to navigate today's complex and dynamic supply chain environments.