THE SUSTAINABILITY INTELLIGENCE PARADOX: WHY ENVIRONMENTALLY INFORMED FIRMS DO NOT ALWAYS ACT SUSTAINABLY

Abstract

Sustainability has become a mission critical goal for organizations, especially in the context of supply chains where data on the environment are important in the management of carbon emissions, resources and regulatory compliance. While more and more companies have access to environmental information and more and more ESG reporting frameworks, it's hard for many companies to translate sustainability information into concrete actions. This gap indicates that other than data availability, other factors might influence decision making towards sustainable development. This research aims at understanding how cognitive biases, organizational pressure and the problem of information overload affect sustainable decision-making of supply chain practitioners. The study has been targeted towards employees from Malaysia's Manufacturing & Logistics industry. Data will be gathered from 384 respondents, who have relevant experience in SC decision making and have access to environmental information, using purposive sampling. This research aims to determine if there is a gap between the maximum possible and actual use of environmental information for supply chain decision-making purposes due to other limitations such as psychological and organizational factors. The findings make an impact on the sustainability and supply chain management literature as they provide insights into the obstacles facing firms to translate environmental knowledge into sustainable actions. The findings could help organisations and policymakers create more robust decision-support systems and sustainability initiatives to improve performance in the long run of their supply chains.