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This study explores drivers of supply chain sustainability during COVID-19 in both the Australian and Saudi Arabian fashion industries. COVID-19 is the most recent global crisis to amplify sustainability issues in a very polluting sector. This qualitative, comparative study draws on 44 semi-structured interviews with fashion brands across the fashion spectrum, evenly distributed between Australia and Saudi Arabia. A grounded approach to analysis was applied. Findings indicate reactive and proactive approaches to dealing with COVID-19 and its impacts. A reactive approach, or dealing with a situation when faced with it, is guided by isomorphic pressures, which are classified as external forces that shape and influence how an organisation operates within society, but also can lead to changes in internal practices. A proactive approach implies foresight and acts upon a situation prior to being 'forced' to make changes and encourages social sustainability along the supply chain. To overcome challenges intensified by the pandemic, fashion organisations need to increase flexibility and collaborative approaches. This study makes a novel contribution to the literature through its cross-cultural comparison, exploring sustainability drivers with institutional theory. • Comparison (Australia, Saudi Arabia) exploring sustainability drivers during COVID-19. • Reactive and proactive approaches form baseline for dealing with COVID-19. • Isomorphic pressures (external driving forces) guide reactive approach. • Proactive approaches imply foresight and encourage social sustainability. [ABSTRACT FROM AUTHOR]

The purpose of this study is to understand how suppliers respond to institutional pressure in an uncertain environment and what impact do these responses have on their financial performance as well as on cleaner production. Semi-structured interviews were conducted with 20 Tier 1 suppliers to automotive companies (OEM) in India, which is widely cited for having a highly uncertain environment. The collected data was analyzed using the grounded theory approach. Implications for the financial performance of the suppliers were examined using net profit margin data. While some tier 1 suppliers respond by adopting institutional isomorphism (acquiescence) and follow the rules of the game, others respond reactively (ignorance) and facilitate the building and strengthening of networks with low-cost suppliers (tier 2 suppliers). The adoption of reactive response was hidden by tier I suppliers from the original equipment manufacturers (OEMs). Based on the insights from data, propositions were developed on the supplier's response to institutional pressure in an uncertain environment. Current research discusses the implications that supplier's response will have on the buyer-supplier relationship and inter-organizational coordination, which is expected to influence their financial performance. Although bypassing essential regulations through non-regulated suppliers can reduce the cost significantly in the short term, it is expected that non-regulated suppliers would hamper the cleaner production compliance due to lack of expertise. The current study provides unique insights for procurement managers that would change the way they coordinate with supply chain partners operating under institutional pressure in an uncertain environment and handle sustainable production. The study is novel in describing how suppliers respond to institutional pressure in environments with high uncertainty. [ABSTRACT FROM AUTHOR]

This article addresses whether, which and when peer firms matter for the focal firm's corporate social performance (CSP), to modify the underlying assumption among prior studies that firms invest in CSP in isolation. Building on institutional isomorphism theory, legitimacy theory and knowledge spillover theory, we argue that the focal firm learns from peers in dealing with stakeholder demands due to uncertainty, while legitimacy pressure and knowledge spillover could help cope with uncertainty. Meanwhile, different from the leader-follower model, the followers are more prone to be affected by the average CSP level, due to restricted resources and abilities. Lastly, the more the uncertainty level is, the more obvious mimicking behaviors can be observed. By employing the instrumental variables regression, these arguments have been supported. Our study contributes to the state-of-the-art corporate social performance literature by introducing a critical, albeit widely neglected explanatory variable. In addition, we advance scientific knowledge on the thus far under-researched question in literature of inter-organizational imitation, namely which firms are emulated. The conclusions based on China can also provide important implications for other emerging countries with great uncertainty and initial stage of social responsibility fulfillment. Image 1030000 • The focal firm's CSP is positively affected by their peers. • Peer effects can amplify prior CSP determinants by 13% and 19% at most. • The focal firm mainly mimics the average level of CSP. • Rural firms are more likely to mimic, compared with their urban rivals. [ABSTRACT FROM AUTHOR]