City Research Online

Abstract

With increasing public attention to corporate sustainability, environmental, social, and governance (ESG) controversies emerging in global supply chains present a growing problem for multinational enterprises (MNEs). This paper investigates whether MNEs with geographically dispersed suppliers are more likely to be exposed to supplier-related ESG controversies. It also explores structural characteristics of global supply chains that can mitigate MNEs’ exposure to such controversies. Building on the literature on supply chain complexity and small-world networks, we suggest that the small-worldness of an MNE’s supply chain network can mitigate the impact of the geographical dispersion of suppliers on supplier-induced ESG controversies. Our analysis of the Fortune 500 largest U.S. companies from 2010 to 2019 reveals that MNEs with geographically dispersed suppliers suffer from more supplier-induced ESG controversies, while small-worldness attenuates such impact. Our findings contribute to the international business literature by highlighting small-worldness as a network structural characteristic that can be deployed by MNEs to mitigate the negative impacts of supply chain spatial complexity.

Publication Type:	Article
Additional Information:	This is a post-peer-review, pre-copyedit version of an article that will be published in Journal of International Business Studies. The definitive publisher-authenticated version will be available online at: www.palgrave.com/gb/journal/41267
Publisher Keywords:	ESG controversies, supplier geographical dispersion, small-world networks, global supply chain
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments:	Bayes Business School Bayes Business School > Management
SWORD Depositor:	Symplectic Administrator

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