THE PURSUIT OF TRANSPARENCY WITHIN SUPPLY CHAINS - DIVA
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The pursuit of Transparency within Supply Chains A study of how Transparency influences Sustainability within the Swedish Dairy Supply Chain BACHELOR THESIS WITHIN: Business Administration NUMBER OF CREDITS: 15 ECTS PROGRAMME OF STUDY: Sustainable Enterprise Development AUTHOR: Frida Heed, Victoria Lejon TUTOR: Gershon Kumeto JÖNKÖPING May 2021
Acknowledgments
We wish to extend a special thanks to anyone involved in the proceedings of this study,
not to forget the support and matured collaboration between the authors.
First and foremost, the assistance and guidance provided by our tutor Gershon Kumeto
were greatly appreciated, and we received the feedback with sincere gratitude. Secondly,
we wish to show our appreciation to all interviewees for giving genuine answers and
provide insight into the field. Any finalization of the project could not have been possible
without you.
Last but not least, we are incredibly grateful for the love and support of our friends and
families.
Sincerely,
Frida and Victoria
Frida Heed Victoria Lejon
May 24th 2021, JönköpingBachelor Thesis in Business Administration Title: The Pursuit of Transparency in Supply Chains: A study of how transparency influences sustainability in the Swedish dairy supply chain Authors: Frida Heed and Victoria Lejon Tutor: Gershon Kumeto Date: 2021-05-24 Key terms: Transparency, Sustainability, and Dairy Supply Chain Abstract The unrevealing scandals in the Swedish dairy industry demonstrate severe deficits in terms of animal keeping. Given the advanced code of conduct and sustainability standards presented by Swedish dairy corporations, confusion has arisen, and the demand for transparency within the supply chain has increased. Here is where the concept of transparency becomes relevant and vital. This thesis aims to examine the linkage between transparency and sustainability within dairy supply chains. Further, the aim is to investigate transparency within the supply chain and if and how it influences sustainability within the Swedish dairy industry. This study follows an interpretive research paradigm based on multiple case studies. The approach follows a deductive approach and qualitative method, conducted by semi-structured interviews with different actors along the Swedish dairy supply chain. The main findings of this study show that transparency and sustainability appear to be interrelated. However, as transparency seems to be time and money-consuming, it might emerge in added barriers and complexity in the implementation. Despite this, transparency occurs to prevent any disclosure of information that displays a relation between visibility and trustworthiness.
Table of Contents
1 Introduction 1
1.1 Background 1
1.2 Problem Discussion 3
1.3 Purpose 4
1.4 Research Question 4
1.5 Delimitation 4
1.6 Definition of Key Terms 5
2 Frame of Reference 6
2.1 Search Parameters 6
2.2 Transparency 7
2.2.1 Organizational Transparency 8
2.3 Sustainability 9
2.4 Sustainability and Transparency 9
2.5 Supply Chain 10
2.5.1 Supply Chain Management 11
2.5.2 Sustainability within Supply Chains 12
2.5.3 Transparency within Supply Chains 13
2.5.4 Sustainability and Transparency within Supply Chains 14
2.6 The Swedish Dairy Supply Chain 15
2.7 Theoretical Aspects 16
2.7.1 Legitimacy Theory 16
2.7.2 Stakeholder Theory 16
3 Methodology and Method 18
3.1 Methodology 18
3.1.1 Research Paradigm 18
3.1.2 Research Approach 19
3.1.3 Research Design 19
3.2 Method 20
3.2.1 Data Collection 21
3.2.1.1 Interview Questions 23
3.2.2 Data Analysis 24
3.2.3 Credibility 25
3.2.4 Data Quality 25
3.2.4.1 Validity 25
3.2.4.2 Reliability 26
3.2.5 Ethical Considerations 26
4 Empirical Findings 28
4.1 Swedish Dairy Supply Chains 284.1.1 Farmer perspective 28
4.1.2 Manufacturer perspective 29
4.1.3 Distribution perspective 30
4.1.4 Retailer perspective 31
4.1.5 Customer perspective 31
4.2 Sustainability within Dairy Supply Chains 32
4.2.1 Farmer perspective 32
4.2.2 Manufacturer perspective 33
4.2.3 Distribution perspective 34
4.2.4 Retailer perspective 35
4.2.5 Customer perspective 35
4.3 Transparency within Dairy Supply Chains 36
4.3.1 Farmer perspective 36
4.3.2 Manufacturer perspective 38
4.3.3 Distribution perspective 39
4.3.4 Retailer perspective 39
4.3.5 Customer perspective 40
5 Analysis 42
5.1 Sustainability within Dairy Supply Chains 42
5.1.1 Farmer perspective 42
5.1.2 Manufacturer perspective 43
5.1.3 Distribution perspective 44
5.1.4 Retailer perspective 45
5.1.5 Customer perspective 45
5.2 Transparency within Dairy Supply Chains 46
5.2.1 Farmer perspective 46
5.2.2 Manufacturer perspective 47
5.2.3 Distribution perspective 48
5.2.4 Retailer perspective 48
5.2.5 Customer perspective 49
5.3 Comparison 50
5.3.1 Sustainability within Dairy Supply Chains 50
5.3.2 Transparency within Dairy Supply Chains 51
6 Conclusion 53
7 Discussion 55
7.1 Theoretical Contribution 55
7.2 Managerial Implications 55
7.3 Limitations 55
7.4 Suggestions for Future Research 56
References 57Appendix 65 Interview Questions 65
1 Introduction
In this section, an introduction to the topic of the paper is presented, with the
help of background, problem statement, purpose, research questions, and
delimitations of the study. Additionally, the authors provide a glossary of
definitions used throughout the study.
1.1 Background
In the year 2019, one of the most devastating scandals in the history of Swedish dairy
industry was revealed. Multiple cattle farms demonstrated severe deficits in animal
keeping where numerous deceased cows were found, and reports indicated that the farm
had not been cleaned for three years. The unkept animals include animals with dawn eyes,
swollen udders, and calves found to be apathetic, all of which resulted in a discolored
dairy. In the residual effect of this event, an increased demand occurred on transparency
in supply chains, and the consciousness among customers of dairy products raised.
Customers demonstrate their anger and vanished trust through comments on social media
(SVT, 2020).
Each cattle farm must follow criteria regarding quality of raw materials and fair animal
keeping to ensure high-quality products (LRF, 2019). Despite these criteria, the presented
scandal connects to one of the largest dairy producers in Sweden. They, among other
competitors, communicate that they have high sustainability standards with an advanced
code of conduct, which covers animal keeping.
The result of the revealed scandal and the power of social media points out the
consequences of not conducting business in a transparent manner (SVT, 2020). Here is
where the concept of transparency becomes relevant and vital. Transparency consists of
information acknowledgment and sharing information relevant to the stakeholder’s
engagement (Foscht, Lin & Eisingerich, 2018). In line with this, the observation of
increasing awareness and expectations of responsible actions within the supply chain
among stakeholders put pressure on the organizations (Ebinger & Omondi, 2020).
Transparency can be implemented in different settings. According to Harrison, van Hoek
1and Skipworth (2014), transparency in companies supply chains where all actors along
the progression are responsible for their visibility of actions. Further, underlining the
importance of transparency throughout the supply chain (Lundmark Hedman, Hultgren,
Röcklinsberg, Wahlberg & Berg, 2018).
The supply chain acts as a bridge between all stages in the product line from scratch to
the final product and the end-customer and facilitates returns all along each step. Value
can be added in each step along the supply chain, both upstream and downstream e.g., the
start-, to the final product. As logistics consists of long-, and short-term planning, the end-
customer’s needs must be met by coordinating material- and information flow (Harrison
et al., 2014). Yet, by looking at an organization's logistical design, there is a need to
examine the concept of supply chain management. While the supply chain is looking into
operational logistics, the supply chain management considers operational and strategic
logistics, covering both aspects (Morana, 2013).
The importance of sustainable actions and more long-term thinking arose in the report
written by Brundtland (1987). The authors acknowledged the importance of a more
sustainable way of using the resources. Further, sustainability is defined as “Sustainable
development is development that meets the needs of the present without compromising
the ability of future generations to meet their own needs” (Brundtland, 1987, p. 37).
Hence, the sustainable supply chain is raising its significance, the organization's
economic aspects are not forgotten. The intention is to incorporate all three elements of
sustainable development i.e., economic, social, and environmental. The sustainable
supply chain corresponds to managing the information, material, financial flows, and
collaboration with other companies (Morana, 2013). According to the author, there are a
handful of requirements to consider e.g., governmental pressures and requirements from
stakeholders. In the light of this increased demand on corporation’s actions towards
sustainable supply chains, companies might face certain obstacles such as effective costs
(Morana, 2013). Hence, by conquering these obstacles, companies might gain a
sustainable competitive advantage (Harrison et al., 2014).
Sonesson and Berlin (2003) acknowledge that dairy consumption in Sweden has changed
over time, resulting in changes along the supply chain. The changing customer demands
have pushed the requirement on increased transportation as there are today fewer dairy
2producers, but the ones remaining have more extensive operations. The rising mass
production of dairy products puts pressure and stress on dairy corporations. By that, the
awareness of animal keeping might be the last prioritized aspect in the supply chain to
meet the increased demand for dairy production (SVT, 2013). Harrison et al. (2014)
highlight the importance of time dependency in the dairy industry by operating within
short-dated products, which, together with increased customer demand, pushes supply
chains to speed in order to avoid over-aged products and unsatisfied customers.
1.2 Problem Discussion
Researchers have seen that organizations can benefit from being more transparent. The
increased customer awareness and demand for sustainable products increase, thereby
companies who adopt a transparent supply chain might benefit from being more
transparent (Khosroshahi, Rasti-Barzoki & Hejazi, 2019). In line with this, Relihan
(2020) states that being transparent is advantageous for organizations. By investing in
visibility, the skepticism decreases, and the organization wins the customer’s trust. At the
same time, there are no clear guidelines regarding transparency in Sweden. In 2016 the
Swedish Governance implemented a new constitution regarding sustainable reporting for
larger corporations (Riksdagen, 2016). Consequently, corporations are responsible for
carrying the load of interpretation on legal requirements regarding transparency, hence
no clear guidelines are given. Further, enabling companies to solely be transparent in
specific factors, choosing to leave out visible information in other aspects (Fredriksson
& Edwards, 2019).
Adding the elements of observance and visibility enables stakeholders to follow the
actions within the supply chain and gain an understanding of the process (Ebinger &
Omondi, 2020). As stated by Bergström, Shanahan, and Solér (2010), organizations might
display a sustainable approach, hence, as revealing each step in the supply chain,
unsustainable procedures might demonstrate differences from what is disclosed. The
existing evidence shows proof that transparency strategy is essential since transparency
sheds light on an organization's operations and presents itself as a mechanism for
monitoring and controlling its sustainability strategy. Therefore, it is crucial that
corporations have a clear supply chain transparency strategy in line with their
sustainability strategy. However, the existing literature focuses on sustainability within
3the supply chain. An apparent gap in the literature is recognized as a general lack of
studies on how transparency and sustainability are interrelated, additionally, how
transparency in supply chains can influence sustainability within the Swedish dairy
industry.
1.3 Purpose
The purpose of this study is to examine the linkage between transparency and
sustainability in supply chains. In light of the problems mentioned above, the aim is to
investigate transparency in the supply chain and if and how it influences sustainability
with the help of multiple case studies within the Swedish dairy supply chain.
1.4 Research Question
The following research questions have been developed in line with the paper’s topic in
order to achieve the purpose of this study.
RQ1: How do actors in the Swedish dairy industry implement transparency within the
supply chain?
RQ2: How can transparency influence companies to operate more sustainably within the
Swedish dairy supply chain?
1.5 Delimitation
At the beginning of 2020, the outbreak of Covid-19 was identified in Wuhan, China, and
it rapidly spread worldwide (CDC, 2020). The consequences of the pandemic have been
devastating, with illness and closed borders which constraint the authors from visiting all
selected interviewees, and thereby, the majority of interviews were conducted through
online meetings and phone calls. To solely focus on Swedish located firms is not due to
the pandemic, rather a personal interest of the authors. This research will increase
awareness about Swedish dairy products as learning more about the largest dairy
producers in Sweden.
Furthermore, the context of the research is to investigate the supply chains of the Swedish
dairy industry. Particularly the study is looking into organizations that are dedicated to
4sustainability and have a clear Code of Conduct concerning social, economic, and
environmental focus. Additionally, the research was limited to privately owned
organizations as OECD (1998) considers private actors to be an essential factor in society.
1.6 Definition of Key Terms
Degree of disclosure: It refers to the extent of visibility and how much information the
organization wants to share regarding their business (Marshall, McCarthy, McGrath &
Harrigan, 2016).
Stakeholder - Person that has an interest in developing a given actuality because s(he) is
affected by it (Mielke, Vermaßen & Ellenbeck, 2017).
Stakeholder Engagement - Practices that the organization engage in to involve
stakeholders (Greenwood, 2007).
Supply Chain: Referring to the process of actors who cooperatively work to convert an
asset into a finished product ready to be delivered to end customers (Harrison et al., 2014).
Supply Chain Management: It regards the planning and control in the production flow
of a product or service. It includes coordination and collaboration between different actors
throughout the supply chain. Supply chain management is responsible for the supply and
demand between actors to deliver the needs for the end customers (Harrison et al., 2014).
Sustainability- The ability to pursue out of the environmental, social, and economic
pillars in an integrated approach (Elkington, 1997)
Sustainable Development - “The development that meets the needs of the present
without compromising the ability of future generations to meet their own needs”
(Brundtland, 1987).
Transparency: Refers to disclosing information and actions that a corporation shares
with internal and external actors (Mol, 2015).
52 Frame of Reference
In this part of the study, the frame of reference is presented, pursued with a
theoretical review of existing literature within the research topic and a
presentation of the theoretical aspects used to guide the study.
To shed some light on a relatively complex topic, this frame of reference aims to present
findings from preceding researchers in line with the topic of interest. The authors selected
a large scope of peer-reviewed articles in the field of relevance connected to this study.
A distinct focus was to find relevant and recent research articles and websites to gain
updated knowledge. Following, the two chosen theories: legitimacy theory and
stakeholder theory will be introduced in the end of the chapter.
2.1 Search Parameters
Database and Search Engine Primo (JU library), Google Scholar
Search Words Transparency, Organizational
Transparency, Transparency within the
Food Industry, Sustainable Transparency,
Visibility in Supply Chains, Transparency
Strategies, Sustainability Strategies,
Supply Chain Transparency, Swedish
Dairy Industry, Dairy Supply Chains
Literature types Peer-reviewed articles, Academic books,
and websites
Publication period 1962-2021
Language of publication English and Swedish
6To collect the most relevant articles for this research, the authors glanced over and
browsed through a large span of papers and thereafter selected and prioritized the most
relevant articles according to the chosen field of the research. The purpose of the frame
of reference was to give insight into the research topic. As the concept of transparency
lays the ground for this research, it is essential, to begin with, the definition of this topic.
The authors will navigate the reader through the notion of sustainability, supply chain,
and dairy production in Sweden.
2.2 Transparency
The interest in the concept of transparency has increased in the last two decades, one of
the reasons for this is the increase of customer awareness and engagement in corporations'
activities and actions (Liu, Eisingerich, Auh, Merlo & Chun, 2015). The increasing usage
of the term among researchers has led to a general definition of transparency with varying
understanding depending on the approach of the context (Schnackenberg & Tomlinson,
2016). For example, Berggren and Bernshteyn (2007) explain transparency as openness
and a key for a trustworthy relation between actors. By being transparent, individual
performance and contribution towards the corporation are more conspicuous.
Furthermore, by keeping an open approach within the company, a more collaborative
relationship between employees arises. In line with this, Mol (2015) states transparency
is a kind of disclosure of a corporation’s actions and information in a business situation.
Liu et al. (2015) state that transparency is vital for companies to create an honest and
sustainable relationship with their customers. By being visible to internal and external
actors shows proof of trustworthiness.
Schnackenberg and Tomlinson (2016) acknowledge that the explanation of the concept
of transparency can differ depending on what context it applies. For example, ensuring
transparency within the corporation can result in more accurate behaviors and
contributions between internal actors in the company because of a created relation-based
visibility and accessibility of information. Moreover, transparency among leaders is also
addressed and explained as continuously sharing information and openly communicating
the leader´s feelings and thoughts. To conclude, Schnackenberg and Tomlinson (2016)
construct a definition of transparency based on several explanations: “Transparency is
the perceived quality of intentionally shared information from a sender.” (p.1788).
72.2.1 Organizational Transparency
Berggren and Bernshteyn (2007) state that organizational transparency is attracting and
retaining actors with high performance in the labor market, which leads to driving
company performance forward. The authors underline the importance for a corporation
to ensure fundamental conditions like communication and openness within the
organization to be in place in order to ensure transparency. Organizational transparency
is essential for creating valuable and long-term relations between stakeholders
(Jahansoozi, 2006).
According to Albu and Flyverbom (2019), transparency is synonymous with the quality
and quantity of information communicated to permit the observation of a corporation’s
activities and actions. It reflects on the disclosure and how much visibility the company
is willing to share. Poli, Marangoni, Agostoni, Brancati, Capurso, Colombo, Ghiselli, La
Vecchia, Molinari, Morelli, Porrini, Visioli, and Riccardi (2018) also underline the
importance of transparency to external actors to keep an open and trustworthy profile.
Furthermore, Albu and Flyverbom (2019) write that organizational transparency also
covers the amount of openness within the company. A transparency perspective where
the social parts are communicated, such as conflicts, leads to a more open and trustworthy
environment. Doorey (2011) states a similar understanding of organizational transparency
and describes it as openness and the disclosure of information in a business context. On
the other hand, one negative side of being transparent and having an open business profile
is the loss of competitive advantage. By communicating the organization's actions and
thoughts can be damaging if competitors take advantage of honesty and openness (Gek
& Lok, 2019).
Moreover, Jahansoozi (2006) covers organizational transparency by explaining the
benefit of relationship building. Transparency is a requirement for building trust and
commitment between an organization and stakeholders. The trust between the actors can
lead to increased collaboration, accountability, cooperation, and responsibility resulting
from an honest and trustworthy relationship between the corporation and the external
actors. With an increased demand for strategies of transparency, pressure has come to
arise on corporation’s business profiles. With the expansion of customer demand for
8transparency, social pressure for a more open profile is claimed (Albu & Flyverbom,
2019).
2.3 Sustainability
The definition of sustainability was firstly published in a report by the World Commission
on Environment and Development (WCED) written by Gro Harlem Bruntland (1987).
The Brundtland report put sustainability due to the excessive poverty located in the South
and the North’s contradictory patterns of mass production and overconsumption. The
more affluent part of the population is required to maintain their lives within the means
of the planet, in order words, the population size should be aligned with the dynamics of
the ecosystem to achieve harmony (Bateh, Heaton, Arbogast & Broadbent, 2013).
According to Robertson (2017), sustainability is to be persistent in the direction of the
future, i.e., long-term thinking. Today, sustainability is not solely depending on
environmental factors. It also depends on human beings as well as economic aspects.
There are three dimensions associated with sustainability: ecological, economic, and
social. These dimensions developed into theories in the world of business, for example:
“Triple bottom line” (Elkington, 1997), where the theory points out that organizations
should focus on the social and environmental aspects as much as they do on profits.
Moreover, the “three pillars of sustainability” representing people, planet, and profit
(Elkington, 1997) are examples of a developed theory within the field. As of the increase
in population, sustainability became a constantly changing concept that makes it difficult
to form a particular definition (Bateh et al., 2013). There are various requirements for
sustainability and standards of reporting, hence voluntary schemes exist which put
organizations in different participation levels (Mytton, 2019).
2.4 Sustainability and Transparency
According to Kassoy (2010), an organization cannot reach sustainability without
transparency. Most companies are not fully transparent with their operations but have a
percentage of their product range classified as sustainable. Hence, this does not imply that
the company’s whole product catalog is sustainable. Nonetheless, a sustainable
certification on a particular product does not reflect the total impact on the environment
and community or how the company is treating its employees. By way of explanation, it
9could be challenging to tell the difference between a “good company” and a “good
marketing” (Guercini & Runfola, 2009).
As recent emergencies of social and environmental problems have resulted from lacking
traceability, the need for coupling transparency with the state of sustainability is more
issuing forth than ever (Closs, Speier & Meacham 2011). Schnackenberg and Tomlinson
(2016) mentioned that reaching transparency means; quality in shared information, and
further, Jahansoozi (2006) claims the benefits of building relations. To be successful in
terms of sustainability, Robertson (2017) insists on developing long-term thinking, where
closer relations with stakeholders could be the case.
2.5 Supply Chain
A supply chain includes all stages realized in a customer request issued directly or
indirectly. It consists of all actors needed to reach the final product and end-customer, as
a manufacturer, supplier, warehouse, retailers, customer, and all transporters (Chopra &
Meindl, 2016). Referring to upstream as being closer to the source and downstream as
close to the end-customer. There might be returns at every step in the supply chain, e.g.,
a material rejection from the retailer (Harrison et al., 2014). According to Hugos (2018),
every supply chain faces different needs and requirements. For example, to manage high
levels of inventory or cope with long lead times. Hence, all supply chains have a common
need for simultaneous developments and to adapt to new requirements from both internal
and external stakeholders. However, supply chains face different demands and
difficulties, according to Hugos (2018), five areas where decisions can occur: production,
inventory, location, transportation, and information. By maintaining the areas, an
organization will be able to deliver the right capabilities for the specific supply chain
(Chopra & Meindl, 2016). The supply chain is a dynamic process, constantly exchanging
new information, funds, and products at each step. These processes can either form a:
cycle view or a push/pull view.
10Figure 1. General steps of a supply chain (Harrison et al., 2014)
They are containing: customers, retailers, distributors, i.e., wholesalers, manufacturers,
suppliers of components, and raw materials. These stages could be managed from all
directions and by every external part of the supply chain. According to Chopra and Meindl
(2016), organizations must comply with new technology and customer demand to stay
competitive. This could be accomplished by planning, design, and decisions regarding
operations of the supply chain. The phases of decisions will enhance efficient procedures.
As Chopra and Meindl (2016) mentioned, the process of 1. cycle view and 2. push/pull
views are executed in a supply chain. The cycle view presents that all stages can be added
into replenishment cycles, customer order, manufacturing, and procurement. Hence,
depending on the industry, the cycles will not always be separated and enable an
organization to distribute responsibilities and simplify operational decisions.
Furthermore, the push/pull where the push replies to the expected response and the pull
view represents customer demand.
2.5.1 Supply Chain Management
Supply chain management is a highly relevant concept to get the supply chain to function
and have an operational network. Supply chain management refers to the supply chain
and the network within the supply chain (Schaltegger & Burritt, 2014). Both Harrison et
al. (2014) and Chen and Paulraj (2004) explain supply chain management as the logistics
between internal and external actors in the supply chain. Together with keeping the
information flow and managing the chain of processes, from the raw material supply,
manufacturing the raw material, packaging, and the distribution of the end-customer.
Miles and Snow (2007) argue that organizational performance increases in line with the
11supply chain becoming more efficient. Further, Kim (2007) argues that supply chain
management creates a broader span of efficiency and flexibility through operation quality
and productivity improvement.
2.5.2 Sustainability within Supply Chains
According to Chopra and Meindl (2016), sustainability and its development in supply
chains play greater importance in the 21st century. As the globalization of our market
pushed companies to move production facilities to where cost is low and maximize profit.
In line with this, Elkington (1997) states that three factors are essential to developing
successful logistics: time, quality, and cost. Furthermore, logistics is a central
development in these contexts, as the far distance from production, raw material, and
customers forced logistics for rapid development. To motivate sustainability in supply
chains, Chopra and Meindl (2016) presented three indicators that must be integrated to
reach sustainability:
1. A decreased risk and raised financial impact on supply chain
2. Pressures from society and directives from governments
3. Engage customers who value sustainability
Hence, as Santillo (2007) mentioned, the movement to a sustainable state requires careful
consideration of ethics by all humans, e.g., all employees of a company. To establish a
successful sustainable supply chain, companies need to manage and set a code of conduct
at every step in the supply chain regarding the three pillars of sustainability, which contain
the environmental, social, and economic values (Harrison et al., 2014). As part of social
responsibility, companies are suggested to look over working conditions and the supply
chain. Each manufacturer, wholesaler, or distributor is providing safe and gentle
conditions for its employees.
The environmental aspects suggest to cover waste management, quality of energy and
water, for example. This, in turn, requires further analysis and control of suppliers and
other stages of the supply chain to ensure they are aligned with the retailer's code of
conduct (Chopra & Meindl, 2016). The non-accessible supply chains must respond to
12new demands by implementing a further traceable supply chain dependent on solid
collaborations. Additionally, this shift is described as “...purchasing management to
sustainable supply chain management” (Teuscher, Grüninger & Ferdinand, 2006, p.2).
2.5.3 Transparency within Supply Chains
Harbert (2020) argues that there exist two elements of supply chain transparency:
visibility that identifies and collects data and information from all actors in the supply
chain, and disclosure, where communication is the key to inform of the information
gathered from the actors in the supply chain. To communicate the information, both
internal and external, at the level of detailed information that is required or desired. In
line with this, Gardner, Benzie, Börner, Dawkins, Fick, Garrett, Godar, Grimard, Lake,
Larsen, Mardas, McDermott, Meyfroidt, Osbeck, Persson, Sembres, Suavet, Strassburg,
Trevisan, Wes,t and Wolvekamp (2019) describe the term transparency as connected to
communication around sustainability in supply chains.
The increased interest in transparency in supply chains is based on the pressure from the
governmental level, customers, and other stakeholders to disclose information about the
supply chain and the actions within between the actors (Bateman & Bonanni, 2019).
Transparency gives credibility and validity in the supply chain for internal and external
actors to examine the company (New, 2010). Additionally, by creating transparency
within the supply chain, the corporation implements long-term and ambitious thinking
that creates market benefits. By implementing transparency, the organization encourages
the customers to act on their tendencies and purchase after their priorities, it can
encourage customers to consume socially responsible products (Harbert, 2020).
Transparency shows credibility according to the organization's business profile, visibility
decreases the risk of negative reputation and ensures stakeholders that the enterprise is
trustworthy (Bateman & Bonanni, 2019). In line with this, Gardner et al. (2019) underline
the importance of the quality and reliability of the information communicated through
transparency in supply chains to internal and external actors. Supply chain transparency
is only adequate if the receiver has the interest and capability to take in the information.
13Furthermore, Gardner et al. (2019) present a holistic framework of the concept of
transparency composed of; traceability information that reports the actors involved in the
supply chain, their role, and mission. Secondly, transaction information reports the
economic part of the supply chain. By implementing transaction information, it creates
an open environment concerning financial responsibility. The impact information shares
the social and environmental impacts that the stages have in the supply chain. Policy and
commitment information refers to the policies involved in the actions taken in the supply
chain. Another aspect of transparency is activity information, where actions are taken and
communicated by actors in the supply chain as sales, purchasing, and processing. This
can further lead to change in behavior and influence by different actions and actors.
Lastly, effectiveness information reports the progress made by actors that influence the
rest of the supply chain. Harbert (2020) states that increased visibility in supply chains
can lead to added value to customers. Moreover, trust is the key to long-term
trustworthiness between stakeholders and the companies.
2.5.4 Sustainability and Transparency within Supply Chains
As sustainability refers to the adoption of a sustainable code of conduct ensuring all three
pillars (people, planet, and profit) defined by Elkington (1997), transparency is the
demonstrated information of such details (Harrison et al., 2014). The importance of
transparency in achieving sustainability in supply chains is to choose those suppliers not
only ensuring the lowest price, rather looking for suppliers integrating holistic thinking
and simultaneously enable transparent development for both internal and external
stakeholders (Frentrup & Theuvsen, 2006).
According to Harrison et al. (2014), the challenge is to manage the ownership at each step
in the supply chain and develop the overseeing along with the supply chain. For example,
increased visibility at every step in the supply chain can enable merging shipments and
develop coordination. Furthermore, suppliers and customers are required to access each
other's production scheme and stock to reach the state of further synchronized progress.
Moreover, the integration of sustainability and transparency in supply chains will
“...access to information that is accurate, trusted, timely and useful for operational
14reasons and to ensure the reliability of sustainability claims” (Garcia-Torres, Albareda,
Rey-Garcia & Seuring, 2019, p. 87).
The development of sustainability and transparency in the supply chain requires new
development of complex procedures to give suppliers, and other actors access to
information (Carter and Rogers, 2008; Guercini and Runfola, 2009; Huq, Chowdhury &
Klassen, 2016). Facing the challenges of transparency and the three pillars of
sustainability will enable an increase in efficiency in supply chains (Barratt and Oke,
2007; Cao, Vonderembse, Zhang & Ragu-Nathan 2010; Fernie, Sparks & McKinnon,
2010). Furthermore, Svensson and Wagner (2012) argue for the importance of leadership
when implementing sustainability in a corporation’s supply chain management process.
Leadership has an important role in making sure to reach sustainability through the core
visions. The researcher gives an example where “openness” can be one of the core
visions, which refers to transparency to fulfill sustainability. In this case, “openness” was
connected to a dairy farm where customers could visit the farm, which means that
stakeholders can directly observe the product and process in the supply chain.
2.6 The Swedish Dairy Supply Chain
The Swedish dairy industry includes many actors and consists of a complex supply chain.
Svensson & Wagner (2012) gives an example of a general dairy supply chain. Starting
with sowing grain for the animal to digest, and the animal waste is taken care of and used
for fertilizing the cultivable land. Later on, automatic milking carousels are accustomed
to proceeding the milk, and following the dairy manufactures different products and pack
them into proper packaging. Following, products are distributed to retailers and, from
there, sold to customers that consume the product. Similarly, Harrison et al. (2014)
describe the dairy products supply chain from a global perspective as “cow to the
customer,” aligned with the previous description. Moreover, the food industry is
particularly demanded to be transparent not solely with its supply chain but also with the
labels of ingredients to diminish risks of allergic reactions and sickness among customers
(Hofstede, 2003; Frentrup & Theuvsen, 2006).
152.7 Theoretical Aspects
2.7.1 Legitimacy Theory
Suchman (1995) describes legitimacy theory as “Legitimacy is a generalized perception
or assumption that the actions of an entity are desirable, proper, or appropriate within
some socially constructed system of norms, values, beliefs, and definitions”(p. 574). In
line with this concept, Hummel and Schlick (2016) give an example that if an
organization's stakeholders realize that the company's performance is not sustainable, the
legitimacy is threatened and can come to affect the company's long-term performance in
a negative way. Furthermore, according to Tang and Luo (2016), legitimacy theory is the
process where investigation of the organization's liability and exposure is implemented.
The authors aim to interpret the factors of the legitimacy theory in the process of
examining this study. Tang and Luo (2016) argue that a clear example of legitimation
strategy is stakeholder engagement, where the management of the corporation has open
communication with the stakeholders to keep an honest relation. Furthermore, a lack of
openness and disclosure would decrease trust against the corporations and the social
responsibility. This can be seen as a result for corporations when faced with different
commitments to visibility against stakeholders and other actors affected by the
organization's actions. Depending on the actor’s prioritization and perception of
transparency in supply chains, the lack of trust against the company may arise from
looking into the visibility of the organization.
2.7.2 Stakeholder Theory
Stakeholder theory originates from the framework by Freeman (1994), aiming to face
ethics and values within a managerial approach in organizations. As striving for a balance
where humans and the environment can flourish, the total financial activities require to
assure value at every step in the process to diminish harm to people and the planet. This
requires satisfaction among stakeholders, who in turn are able to harm any factor of the
three pillars of sustainability (profit, planet, people) if an agreement of policies is not met
between stakeholders. The definition of a stakeholder is, according to Freeman (1994),
“those groups and individuals who can affect or be affected” (p. 411). Furthermore,
16stakeholder shares an important influence on companies and can be divided into
“primary” and “secondary” stakeholders. These represent, e.g., customers, employees,
public agencies, or suppliers versus secondary stakeholders, e.g., media, organizations
that have influence but do not obtain any fundamental support (Garvare & Johansson,
2010).
As both stakeholder theory and sustainability issue inquiring what the purpose and
opportunities of the market are. Stakeholder theory aims to create value at every step in
the supply chain and for all stakeholders in the process, similar to the sustainable approach
of creating long-term value (Hörisch, Freeman & Schaltegger, 2014). In this study, the
theory will analyze stakeholders in the dairy supply chain, looking at the shared value and
visibility between the stakeholders.
173 Methodology and Method
This section begins by present the methodology of this study, including the
research paradigm, research approach, and research design. Secondly, a
comprehensive description of the qualitative method of the paper is displayed,
including data-collection, interview structure, data analysis, credibility, data
quality and validity, reliability, and a confession on ethical considerations.
3.1 Methodology
3.1.1 Research Paradigm
Collis and Hussey (2014) define the research paradigm as a philosophical guide on how
research should be managed. Where philosophy of research is “a set or system of beliefs
stemming from the study of the fundamental nature of knowledge, reality, and existence”
(Waite & Hawker, 2009, p. 685). Continuing, people’s conception of existence and
knowledge has changed over time, the paradigm can as of today be maintained in different
settings. Historically, Kuhn (1962) meant only one research paradigm could be used for
the creation of science solely referring to one source. Collis and Hussey (2014) name this
paradigm as natural sciences, and the change of people's conception of existence
developed into an additional research paradigm, social sciences.
The model of interpretivism is responding to positivism in critical perception, as the social
phenomenon is a response to examining it. Positivism views social reality as objective
and not affected by the researcher. Therefore, this study instead used the interpretivism
paradigm, which underlined that social reality is not objective and could be framed by
people’s conceptions. Additionally, interpretivism is consistent with qualitative data
collection and analysis, which is another reason to adopt this paradigm (Collin & Hussey,
2014). An interpretative paradigm enabled observation of the research questions as this
research is compounded by various angles of approach, i.e. transparency and
sustainability. Further, according to Collis and Hussey (2014), this puts the reality of this
18research as dependent on the observer, who in turn, will have a subjective view of the
phenomenon.
3.1.2 Research Approach
According to Collis and Hussey (2014), a normal allocation of research divides studies
into two different methods, deductive and inductive research. Deductive research is
defined as a study where a theoretical structure is chosen and then further analyzed by
observations. In addition, Woiceshyn and Daellenbach (2018) explain that the deductive
method involves starting with a general theory and then narrowing it down to the specific
by extracting the hypotheses from the theory. Further, the main difference between
deductive and inductive research is that deductive research begins with an existing theory,
while inductive research begins with observations to create a new theory. Bitektine (2008)
argues that deductive research is appropriate for qualitative methods as the collected data
from social cases may contribute to essential insights to theories and complement theories
formed to quantitative methods.
Furthermore, according to Lipscomb (2012), the third research approach is called
abductive reasoning, where the approach moves from incomplete observations to best
predictions. Abductive reasoning aims to explain observations by interpreting the most
developed and creative explanation. The research approach of this study leans to a
deductive approach, as the process moves from generalization to empirical data and
research findings. Deductive approach focuses on explaining relationships between
concepts relevant for this study as it aims to fill in the gap of lacking evidence on
transparency strategies and their influence on sustainability in the Swedish dairy supply
chain.
3.1.3 Research Design
The research design is connected to the research paradigm, and depending on how to
constitute the method and methodology, the research design will enable answers to the
research question (Collis & Hussey, 2014). For this study, a multiple case study is
conducted, as a supply chain consists of several actors. By adopting a multiple case study
approach means that the study can be conducted from the perspectives of all the relevant
19actors in the dairy supply chain (Otley & Berry, 1994). This research design enables
observation and analyses of the topic of the research in its natural setting. Yin (2009)
acknowledges that multiple case studies allow an in-depth understanding of the topic
under investigation from various sources. According to Collis and Hussey (2014), a case
study “is used to explore a single phenomenon (the case) in a natural setting using a
variety of methods to obtain in-depth knowledge” (p.68). The case in this research is
supply chains in the Swedish dairy industry, where detailed information is gained through
a total amount of seven interviews with various actors in the supply chain, enabling
understanding of the context.
Due to the lack of existing research in the field of this study, the choice of conducting a
multiple case study strengthens the reasoning to find the answers to the research questions
and to enhance the identification of patterns (Collis & Hussey, 2014). A multiple case
study could generate a better understanding of the chosen phenomenon, and therefore this
type of research design was favored instead of a single case study in this paper.
Additionally, a broader data collection will result in further trustworthy research and
enable the extent of a greater scope (Yin, 2009).
3.2 Method
In research, the method is the process of how to proceed with the study. The two main
methods for conducting research are quantitative and qualitative methods, where
quantitative research consists of collecting numerical data and then analyzing the data by
using statistical methods. In comparison, qualitative research is based on non-numerical
data from a specific context which is then interpreted by the researcher (Collis & Hussey,
2014). This paper follows a qualitative method due to the pursuit of an in-depth
understanding of the topic from interviews with respondents working in the chosen
industry. By applying qualitative research, the authors could dive deeper into the problem
and gain different perspectives on the topic from the primary data collection in the form
of interviews. Which is one of the reasons why this study is not following a quantitative
method, as it is not aiming to investigate any existing correlation between concepts, rather
to gain a further understanding of transparency strategies and their influence on
sustainability in the Swedish dairy industry.
203.2.1 Data Collection
For this study, qualitative data collection is chosen by its allowance for interviews with
respondents able to give an in-depth understanding of the pursuit of transparency in
Swedish dairy supply chains. Firstly, the chosen respondents were identified by an
overview of the largest dairy producers in Sweden and the different actors in the dairy
supply chain. Secondly, the respondents were selected by determining political initiatives,
i.e., sustainable development, following sustainable requirements, and location in
Sweden. Hence, selecting respondents for this study faced some difficulties when
multiple dairy producers and suppliers declined the interview inquiry. Given the lack of
response, additional dairy producers and farmers were contacted.
Figure 2. Data collection
Looking at Figure 2, a number of 25 different actors in the dairy supply chain were
contacted, 7 declined, 12 did not respond at all even though the authors sent out a
reminder, and finally, 7 accepted an interview. It is evident that the authors aimed to
conduct more interviews as a total number of 25 companies e.g. dairies and distributors,
were contacted.
21By finalizing the interviews, the authors felt saturated with the data collected as no
additional perspectives appeared. Boddy (2016) indicated that recognition of data
saturation determines whether a sample size is adequate or not. The data saturation is
unable to occur before the conduction of at least two interviews, which strengthens the
total sample size of this research. In line with this, Henry, Dymnicki, Mohatt, Allen, and
Kelly (2015) states that small samples can provide in-depth knowledge about the topic
and result in large amounts of complex data.
Figure 3. Information from the interviews
The professional position of the respondents varied between actors along the supply
chain. The authors interviewed at least one actor of each general step of a supply chain.
From a supplier perspective, the authors interviewed two farmers from different dairy
companies, and in line with these, two managers at dairy manufacturing companies were
interviewed. One of the managers is working at a dairy company and acting as both
manufacturer and distributor, so the interviewee was representative for two perspectives
based on two interviews. Further, a retailer and two dairy customers were interviewed.
This is considered representative of the Swedish dairy supply chain as all of the general
actors of the supply chain's perspectives were covered.
Due to the restrictions of the current Covid-19 pandemic, it prevented the authors from
meeting all participants physically, except from Farmer B, who invited for a visit to the
farm. The remaining interviews were conducted through the online application Zoom,
and one respondent attended the interview through phone call. This faced limitations in
the allowance to explore the organizational culture and work environment. Hence, Zoom
22allowed the researchers and interviewees to see each other, which in contrast to a phone
call giving the favor of observing body language, which stated by Hurn (2014) stands for
a majority of the way humans communicate. Thereby allowing the authors to observe the
interviewee's face expression, posture, and overall body language.
To extend the knowledge about the chosen field, it seemed relevant to seek secondary
data to combine current research with the collection from primary data. Collis and Hussey
(2014) define secondary data as “..research data collected from an existing source..” (p.
59). This research derived secondary data from peer-reviewed journals and articles as
well as information about the chosen organizations from their websites.
3.2.1.1 Interview Questions
The aim of the interview was to get an insight into the topic and investigate transparency
strategies and their influence on sustainability in the Swedish dairy industry. The
interviews consisted of both closed and open questions to gain as much in-depth
information as possible, for this reason, the interview was semi-structured. Furthermore,
it made it possible to ask follow-up questions that occurred during the interview session.
The semi-structure suited this paper well as it follows an interpretive paradigm as the aim
is to understand and get an insight into the respondent's view on the subject. Questions
about the respondents, in general, were asked in the beginning to get an understanding of
their position at their companies and their main responsibilities. Further, questions about
the individual understanding of transparency´s importance for increased sustainability
were asked in order to add particular attention to every individuals’ experiences and
thoughts.
The questions presented in the interview guide (see appendix 9.1) were used in all
interviews. However, a few follow-up questions may differ from interview to interview
depending on each type of respondent to gain the most possible relevant information from
each interviewee. This way was chosen to ensure an effective approach for collecting data
and staying in line with the time set for the interview session to respect each respondent.
All interviews were conducted in Swedish, which was the mother language of all
respondents contributing to this study as well as the researchers. This was done to create
23a comfortable situation for the respondents and not limit the answers because of language
barriers.
3.2.2 Data Analysis
The choice of preceding a general data analysis is highly dependent on the interpretive
paradigm assumed in this study. To begin the analysis, the interviews were transcribed
right after conduction. In combination with listening to the recordings of the interviews
and looking at the transcribed text, further observation of the data was enabled, and
various patterns could be identified. This was enabled by the second step, by coding the
data collection and finding common themes in the conducted interviews, to simplify the
comparison of the respondent’s perspective. Also, according to Miles and Huberman
(1994), an interpretive study should include the action of data reduction. As the interviews
were conducted in 20-60 minutes, together with loads of secondary data in the form of
peer-reviewed journals, the data reduction will be a third priority in the data analysis. This
enhances a simplified way of restructuring the research data and enables the authors to
summarize the data. The chosen data reduction process is continuous data reduction,
aiming to discard bias and irrelevant data (Collis & Hussey, 2014) and further enable
drawing conclusions (Miles and Huberman, 1994).
The empirical findings were looked into both from an internal and external perspective.
The internal perspectives refer to an analysis of the individual perspective among actors
in the same position in the supply chain e.g., farmers. The internal analysis enables a
comparison of the perceptions and answers to the interview questions among all
interviewed actors along a supply chain. Whereas the external analysis oversees the
comparison among the different dairy actors, allowing an understanding of different
perceptions of supply chains in the Swedish dairy industry. This claims usage of
interpretative progress as it is concerned about the respondent’s understanding rather than
the researchers. An external analysis is necessary to answer the research questions as it
allows comparison with the collected data (Collis and Hussey, 2014).
243.2.3 Credibility
As mentioned by Shenton (2004), credibility is notably important in qualitative research
to enhance the trustworthiness of the study. To facilitate the analysis of whether the data
is trustworthy or not, triangulation could be adapted. Triangulation allows multiple
methods and data from various sources to be investigated and increases the ability to
prevent bias data in sources (Jick, 1979). For this study, the use of data triangulation is
considered since the information in the research is based on different sources and included
in the same examination. To ensure credibility through triangulation, different actors
within Swedish dairy supply chains were interviewed and together with secondary data,
the collected data was analysed together of the chosen theories. Further, by asking the
following questions to the interviewees: “What is transparency for you?”, “What is
sustainability for you?” accumulated a diverse understanding of the concepts.
By interviewing actors along the supply chain, broader perspectives and further accurate
data are gathered. Hence, the authors claim the importance of interviewing respondents
with a well-developed knowledge in the field, which gave comprehensive answers to the
questions to fulfill the aim of this study.
3.2.4 Data Quality
To ensure credibility in research, Collis and Hussey (2014) present reliability and validity
as concepts to use in order to evaluate the quality of the study. Furthermore, the concepts
indicate how trustworthy the study succeeds to be.
3.2.4.1 Validity
Yin (2009) explains, to ensure validity, multiple sources of evidence should be used in
research. By constructing validity, the authors identified useful measures in line with the
concept studied, e.g., interview respondents. Validity concerns that what is being studied
is in line with what is claimed to be investigated. There are two types of validity, internal
and external, where internal validity deals with how the procedure of the study is
implemented and how accurately it is performed. While external validity deals with the
outcome of the research and the conclusion of whether it can be applied to different
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