Codes to coordinate supply chains: SMEs' experiences with SA8000

Purpose – Contracts and trust are mechanisms to coordinate processes in supply chains. However, contracts are incomplete and trust takes time to develop. The aim of this paper is to show how Social Accountability 8000 (SA8000) can help to manage supply chains (in particular small and medium‐sized companies as its partners) by solving the problem of incomplete contracts as well as replacing trust in new partnerships, especially with respect to intangible performance indicators.Design/methodology/approach – Supply chain management (with an emphasis on coordination) and corporate social responsibility (with an emphasis on codes, especially SA8000) are briefly described, based on a literature review. These descriptions led to three research propositions. In the second part, four cases describe the practice of SA8000. The richness of the cases provides both literal and theoretical replication. Finally, the theoretical and empirical results are compared, with specific regard to the research propositions.Finding...

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