Sustainability implementation within the value chain using continuous improvement - A case study of MNCs implementation of sustainability

Abstract: The implementation of sustainability is closely connected to an MNC’s value chain and continuous improvement. There are academic studies that address sustainability in relation to the value chain and studies that highlight the importance of continuous improvement when implementing sustainability. Still, not much attention has been directed towards the interconnection between the three concepts and there is a need for research that fully recognizes the relevance and interconnection between them. This study investigates how MNCs have implemented sustainability within their value chains using continuous improvement. The study was conducted using a multiple case study, analysing five MNCs. The result of this study shows fairly strong evidence that MNCs implement sustainability within their value chains using continuous improvement. The value chain has been considered through the steps of Value Chain Analysis, although not performed in order. This does not however seem to have been a major impediment since the outcome of analysing the value chain has still been to create sustainable value. Also, the MNCs integrate sustainability to some extent along the whole value chain. The result from analysing the value chain feeds into continuous improvement which is done at several levels within companies and monitored by some type of sustainability board at the top of the organisation. The PDCA-cycle facilitates consolidation of sustainable practices through standardization and quality improvement related to sustainability over time. The study contributes to the existing literature by investigating the interconnection between sustainability, value chain and continuous improvement.