Sidikat Shitu ICMC 2016

Melaka Conference

1. Implementation of Sustainability Standards into Supply Chain Networks: A Case of the Nigerian Shea Butter Industry. Presented by: Sidikat Shitu 1 and Rohaya Mohd-Nor 2 1 PhD Candidate, Faculty of Economics and Business, UNIMAS 2 Senior Lecturer, Faculty of Economics and Business, UNIMAS     1 st International Conference on Management and Communication (ICMC, 2016) 20 th -21 st August 2016 Swiss Garden Hotel, Melaka, Malaysia

2. Presentation Outlines Introduction Overview of the Shea Butter Industry Research Question Literature Review Methodology Conceptual Model Finding Contextual Factors and Implementation Contents Research Implication Conclusion 1st International Conference on Management and Communication ICMC, 2016

3. Introduction Researchers revealed that, the impact of social, economic and environmental aspect of supply chain on people, profit and planet calls concerns. One of the measures to curb this is the standardization of commodity supply chains. The pressure from consumers, media, communities, NGOs and the government led to the emergence of standards in commodity supply chains. however, globalization, industrialization and trade liberalization are considered as the major cause of unethical and irresponsible behaviours related to social and environmental abuse in commodity supply chains. ( Elkington 2004; Pietrobelli & Rabellotti, 2011; Keane, 2013; Afari-Owusu, 2014) ICMC, 2016

4. SHEA BUTTER INDUSTRY African Perspective Enormous potential for investment within the Africa continent Gaining global popularity from the development agencies such as USAID, GIZ, World Bank and FAO due to its economics potential in Africa Nigeria perspective: Largest producer of shea nuts, but least exporter of shea butter Rural women are the key actors in shea industry 1st International Conference on Management and Communication

5. Research Question 1st International Conference on Management and Communication What are the processes involved in the implementation and transmission of sustainable supply chain standards into the supply chain networks in the context of the Nigerian shea butter industry? ICMC, 2016

6. Literature Review 1st International Conference on Management and Communication Research has shown that external stakeholders play a significant role in the transmission and implementation of sustainability standards even though they are not really part of the supply chain network. Research has shown that very few studies have delved into the area of sustainable supply chain management from the perspective of the other external actors. The majority of the studies which are empirical in nature, focused on investigating how companies implement and coordinate suppliers to comply with set codes of conducts (Ayuso et al., 2013; Waddock et al., 2002; Hoejmose et al., 2014 ). Sustainability issues in the shea butter industry includes; human rights violation, poor labour condition, gender discrimination, use of child labour, unfair pricing, health and safety issues, poor community development, pollution, deforestation and in some cases conflict over shea trees which is supposed to be a common property ( Lovett, 2010; Kontagora, 2012; Bello-bravo et al., 2015 ). ICMC, 2016

7. 1st International Conference on Management and Communication Methodology This study is an exploratory processual case study research. Mohr (1982) described processual method as a theory that gives explanation of how events unfold, in terms of sequence of different events which leads to outcome. In management science research, there is a growing priority that is given to the use of processual approach to understand process and outcome in the field of organizational management study (Pettigrew et al., 2001). Processual Case Study Research Design Data Collection Units of Analysis Data Analysis Exploratory Processual Case Study Interviews Secondary Data External Actors (12) Local Suppliers (11) Group Stakeholders Involved Local Suppliers Government NGOs Standard Setting Traditional Institution Transcribing of data QSR Nvivo 10 ICMC, 2016

8. Pettigrew Contextual approach to implementation Proposal Defense Content of change (what) Process of change (how) Context of change (why) Outcome Outer context (S,E,P,C Env ) Inner context ( Str , Cc, Pol Ctxt ) Past Present Future Context and process variability over time ( Actors Interactions & Relationships) This model supports vertical level of analysis ( Global , national and industry environment) and horizontal successive interconnections of events from historic, present and future time of change. ( Walsham , 1993; Pettigrew 1985, 1987) Conceptual Framework: Excerpted from Pettigrew (1985, 1987) ICMC, 2016

9. ICMC, 2016 Standards Setting Organization Uncontrolled SCN Traditional Authorities State Actors   Non-State Actors Adoption Sustainable Supply Chain Standards   Context Influencing Factors Implementation Contents Controlled SCN External Actors Supply Chain Network E A B C D   F Conceptual Model

10. Findings 1st International Conference on Management and Communication The data from this study revealed that: T he nature of supply chain network before the external actors intervention. T here is a traditional supply chain network before the intervention of the external actors which does not respect the principles of sustainability. This traditional supply chain network involves suppliers in the controlled and uncontrolled SCN. supply chain practices is greatly influenced by community culture . This type of supply chain network did not take into consideration the sustainability aspect of supply chain Participation in this supply chain network bettered off the condition of supplier in the controlled SCN and worsened the condition of suppliers in the uncontrolled SCN. There is weak relationship in terms of information sharing between the suppliers in the controlled SCN ICMC, 2016

11. 1st International Conference on Management and Communication Implementation Process Of Sustainability Standards External actors collaboration led to the establishment of the Global Shea Alliance (GSA) in 2011. Though the state actors and non-state actors played passive roles in the Nigerian shea butter industry before the emergence of the Global Shea Alliance (GSA) in the year 2011 Thereafter external stakeholders including the private businesses became important actors in the promotion of sustainability standards in supply chains. Collaborative sustainability initiatives were developed which led to the establishment of the shea-butter-villages in the three political zones of the state Findings Cont’d ICMC, 2016

12. 1st International Conference on Management and Communication Contextual Factors that Promote or Obstructs t he Implementation Process. Historical Context Political Context Socio-Cultural Context Research Implication The external actors, problematized the sustainability challenges in the controlled and uncontrolled supply chain networks. The controlled supply chain network had partially adopted sustainability standards while the implementation process in the uncontrolled supply chain network, is still on-going. The implication of this, is that the implementation of sustainability standard requires the continuous intervention of the external stakeholders.

13. THANK YOU 1st International Conference on Management and Communication