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Information Governance Checklist and Privacy Impact
Assessments
Authorship:
<Your name> – Information Governance Manager
Committee Approved:
Quality and Clinical Governance Committee
Approved date:
Review Date:
Target Audience:
All Staff
Policy Reference No:
Today’s date-sequence number i.e. 2019-07-08-00
Version Number:
0.1
Business Critical data
Yes
Business Critical System
Yes
10
Contents
Introduction 4
Responsibilities 4
Information Governance Checklist 4
Privacy Impact Assessment 5
ANNEX A - INFORMATION GOVERNANCE CHECKLIST 6
ANNEX B - Privacy Impact Assessment Proforma 7
Section A: New/Change of System/Project General Details
8
Section B Privacy Impact Assessment Key Questions 10
Evaluation 15
Appendix – Glossary of Terms 18
STANDARD AMENDMENTS
Amendments to the Standard will be issued from time to time. A
new amendment history will be issued with each change.
New Version
Number
Issued by
Nature of Amendment
Approved by &
Date
Date on Intranet
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<your name>
First draft for comments
NR
Introduction
The CCG needs to ensure that it remains compliant with
legislation and NHS requirements such as the Information
Governance Toolkit with its use of Personal Confidential
Information. The Information Governance Checklist and Privacy
Impact Assessments (PIA) have been developed to provide an
assessment when new services are started or new information
processing systems are introduced.
Responsibilities
Policy review and maintenance
Information Governance, Security & Compliance Manager
Approval
CSU Executive Management Team
Adoption
All manager, staff and contractors
Responsibility for ensuring that Information Governance
Checklists and Privacy Impact Assessments are completed,
where required, resides with all Service Managers and
Directorate Heads.
Line Managers are responsible for ensuring that their permanent
and temporary staff and contractors are aware of the
Information Governance Checklist and Privacy Impact
Assessment process.
On a day-to-day basis staff of all levels that are introducing a
new system be it electronic or paper based, should use this
document to ensure that processing remains compliant with
current legislation.
Information Governance Checklist
The Information Governance Checklist provides short initial
assessment which should be completed at an early stage of any
project or service redesign to identify stakeholders, make an
initial assessment of privacy risk and decide if a Privacy Impact
Assessment is necessary as not all project or changes to services
would require one.
A copy of the IGC form can be found at Appendix A
Privacy Impact Assessment
A PIA is a process which helps assess privacy risks to
individuals in the collection, use and disclosure of information.
PIAs help identify privacy risks, foresee problems and bring
forward solutions. A PIA is necessary to identify and manage
risks; to avoid unnecessary costs; to avoid inadequate solutions
to privacy risks; to avoid loss of trust and reputation; to inform
the organisation’s communication strategy and to meet or
exceed legal requirements. There is no statutory requirement for
any organisation to complete a PIA, however, central
government departments have been instructed to complete PIAs
by the Cabinet Office. The overall PIA process is operated
under the supervision of the Information Commissioners Office
(ICO) who is responsible for the production of guidance
materials.
Is a PIA required for every project?
Not every project will require a PIA. The ICO envisages PIAs
being used only where a project is of such a wide scope, or will
use personal information of such a nature, that there would be
genuine risks to the privacy of the individual. PIAs will usually
be recommended where a change of the law will be required,
new and intrusive technology is being used, or where private or
sensitive information which was originally collected for a
limited purpose is going to be reused in a new and unexpected
way. The IGC will help determine if a PIA is required and if so
which of the two options will be suitable.
Why should I do a PIA?
To identify privacy risks to individuals;
To identify privacy and Data Protection compliance liabilities;
To protect the organisations reputation;
To instil public trust and confidence in your project/product; To
avoid expensive, inadequate “bolt- on” solutions; and
To inform your communications strategy.
Following completion of the IGC it may be decided that a PIA
is going to be required. There are two types of PIA, a small
scale and a full scale. Where it is thought that a PIA is needed
the small scale form, located at Appendix B, will be used and
submitted to the Information Governance Team who can assess
the small scale form completed and advise on whether a full
scale PIA needs to be completed.
When should I start a PIA?
PIAs are most effective when they are started at an early stage
of a project, when:
· the project is being designed;
· you know what you want to do;
· you know how you want to do it; and
· you know who else is involved. But it must be completed
before:
· decisions are set in stone;
· you have procured systems;
· you have signed contracts/ MOUs/agreements; and
· while you can still change your mind!
ANNEX A - Information Governance Checklist
Name of Project or Service Change
Lead Project Manager
Does project involve processing of Personal Confidential Data
(PCD)?
If yes how many records will be involved?
What is the purpose of the processing?
Which organisations and customers are involved?
Give an indication of the timescale for the project?
This IGC must be completed by all projects and significant
changes to service at the start or early stage of a project.
Please complete all questions with as much detail as possible
and return the completed from to:<your name>
Information Governance, Security & Compliance Manager
<your email>
ANNEX B - Privacy Impact Assessment Proforma
This document must be completed for any new / or change in
service which plans to utilise personal confidential information.
It must be completed as soon as the new service / or change is
identified by the Project Manager / System Manager or
Information Asset Owner.
This process is a mandated requirement on the Information
Governance Toolkit to ensure that privacy concerns have been
considered and actioned to ensure the security and
confidentiality of the personal identifiable information.
There are 2 types of Privacy Impact Assessments – a small scale
and full scale. This proforma is based on the Small Scale PIA.
Following completion of this proforma, it may be necessary to
conduct a Full Scale PIA. Full details are available in the
Information Commissioner’s handbook:-
http://www.ico.org.uk/pia_handbook_html_v2/html/0-
advice.html
Privacy Law compliance checks and Data Protection Act
compliance checks are part of the PIA process – the questions to
assess this are included in the proforma.
Please complete all questions with as much detail as possible
and return the completed from to:<your name>
Information Governance, Security & Compliance Manager
<your email address>
Further guidance on specific items can be found on the
Information Commissioner’s website.
<your email address>
Use scenario to complete the belowSection A: New/Change of
System/Project General Details
Name:
Objective:
Background:
Why is the new system / change in system required? Is there an
approved business case?
Benefits:
Constraints:
Relationships:
(for example, with other Trust’s, organisations)
Quality expectations:
Cross reference to other projects:
Project Manager:
Name:
Title:
Department:
Telephone:
Email
Information Asset Owner:
(All systems/assets must have an Information Asset Owner
(IAO). IAO’s are normally the Heads of Departments and report
to the SIRO)
Name:
Title:
Department:
Telephone:
Email
Information Asset Administrator:
(All systems / assets must have an Information Asset
Administrator (IAA) who reports the IAO as stated above.
IAA’s are normally System Managers / Project Leads)
Name:
Title:
Department:
Telephone:
Email
Deputy Information Asset Administrator:
(It is necessary that there is a deputy in place for when the IAA
is absent from the workplace for whatever reason)
Name:
Title:
Department:
Telephone:
Email
Customers and stakeholders:
Section B Privacy Impact Assessment Key Questions
Question
Response
Ref to keyreq. e.g. IGTK, Small scale PIA etc
1. Will the
system/project/process (will now be referred to thereafter as
‘asset’) contain Personal Confidential Data or Sensitive Data?
If answered ‘No’ you do not need to complete any further
information as PIA is not required.
No Patient Staff Other (specify)
2. Please state purpose for the collection of the data:
for example, patient treatment, health administration, research,
audit, staff administration
3. Does the asset involve new privacy–enhancing technologies?
Encryption; 2 factor authentication, pseudonymisation
Yes No
If yes, please give details:
SS PIA (1)
4. Please tick the data items that are held in the system
Personal
Sensitive
Name Address
Post Code Date of Birth
GP Consultant
Next of Kin Hospital (District) No.
Sex NHS Number
National Insurance Number
Treatment Dates Sex
Diagnosis Religion
Occupation Ethnic Origin
Medical History Staff data (Pay, Union etc) Other (please
state here):
5. Will the asset collect new personal data items which have not
been collected before?
Yes No
If yes, please give details:
SS PIA (5)
6. What checks have been made regarding the adequacy,
relevance and necessity for the collection of personal and/or
sensitive data for this asset?
SS PIA (2 & 10)
7. Does the asset involve new or changed data collection
policies that may be unclear or intrusive?
Yes No
SS PIA (9)
8. Is the third party contract/supplier of the system registered
with the Information Commissioner? What is their notification
number?
Yes No
Data Protection Act Notification Number:
9. Has the third party supplier completed an Information
Governance Toolkit Return?
Yes No
If yes, please give percentage score:
10. Does the third party/supplier contracts contain all the
necessary Information Governance clauses including
information about Data Protection and Freedom of Information?
Yes No
IG TK 110
11. Does the asset comply with privacy laws such as the Privacy
and Electronic Communications Regulations 2003
(see appendix for definition)
Yes No
Privacy Law Check
12. Who provides the information for the asset?
Patient Staff
Others – Please specify e.g. Interfaces from PAS
13. Are you relying on individuals (patients/staff) to provide
consent for the processing of personal identifiable or sensitive
data?
Yes No
14. If yes, how will that consent be obtained? Please state:
15. How will consent and non consent be recorded?
16. If consent is not the basis for processing which legal
justification is being used?
Court Order Public Interest Other (detail below)
17. Have the individuals been informed of and have given their
consent to all the processing and disclosures?
Yes (explicit) No
Yes (implicit in leaflets, on website)
IGTK
18. How will the information be kept up to date and checked for
accuracy and completeness?
19. Who will have access to the information within the system?
20. Do you intend to send direct marketing messages by
electronic means? This includes both live and pre-recorded
telephone calls, fax, email, text message and picture (including
video)?
Yes No
Privacy Check
21. If applicable, are there procedures in place for an
individual’s request to prevent processing for purposes of direct
marketing in place?
Yes No
Privacy Check
22. Is automated decision making used?
If yes, how do you notify the individual?
Yes No
Privacy Check
23. Is there a useable audit trail in place for the asset. For
example, to identify who has accessed a record?
Yes No
IGTK
24. Have you assessed that the processing of
Yes No
personal/sensitive data will not cause any unwarranted damage
or distress to the individuals concerned? What assessment has
been carried out?
25. What procedures are in place for the rectifying/blocking of
data by individual request or court order?
26. Does the asset involve new or changed data access or
disclosure arrangements that may be unclear?
Yes No
SS PIA (12)
27. Does the asset involve changing the medium for disclosure
for publicly available information in such a way that data
become more readily accessible than before? (For example,
from paper to electronic via the web?)
Yes No
SS PIA (14)
28. What are the retention periods (what is the minimum
timescale) for this data? (please refer to the Records
Management: NHS Code of Practice)
SS PIA (13)
29. How will the data be destroyed when it is no longer
required?
IGTK
30. Will the information be shared with any other
establishments/ organisations/Trust’s?
Yes No
IGTK, PIA 4
31. Does the asset involve multiple organisations whether
public or private sector?
Include any external organisations. Also include how the data
will be sent/accessed and secured.
Yes No
32. Does the asset involve new linkage of personal data with
data in other collections, or is
Yes No
SS PIA (8)
there significant changes in data linkages?
33. Where will the information be kept/stored/accessed?
On paper
On a database saved on a network folder/drive Website
On a dedicated system saved to the network Other – please state
below:
34. Will any information be sent off site
If ‘Yes’ where is this informed being sent
Yes No
IGTK 208 &
308
35. Please state by which method the information will be
transported
Fax Email
Via NHS Mail
Website Via courier
By hand Via post – internal
Via telephone Via post - external Other – please state below:
IGTK 208 &
308
36. Are you transferring any personal and / or sensitive data to a
country outside the European Economic Area (EEA)?
If yes, where?
Yes No
IGTK 209
37. What is the data to be transferred to the non EEA country?
IGTK 209
38. Are measures in place to mitigate risks and ensure an
adequate level of security when the data is transferred to this
country?
Yes No
Not applicable
IGTK 209
39. Have you checked that the non EEA country has an adequate
level of protection for data
Yes No
Not applicable
IGTK 209
security?
40. Is there a Security Management Policy and Access Policy in
place? Please state policy titles.
Yes No
SS PIA (11)
41. Has an information risk assessment been carried out and
reported to the Information Asset Owner (IAO)?
Where any risks highlighted – please provide details and how
these will be mitigated?
Was process approved by SIRO?
Yes No
Risk Ass
42. Is there a contingency plan / backup policy, or business
continuity plan in place to manage the effect of an unforeseen
event? Please provide a copy.
Yes No
Risk Ass
43. Are there procedures in place to recover data (both
electronic
/paper) which may be damaged through:
Human error Computer virus
Network failure Theft
Fire Flood
Other disaster
Please provide policy titles.
Yes No
Risk Ass
Evaluation
44. Is the PIA approved?
If not, please state the reasons why and the action plan put in
Yes No
place to ensure the PIA can be approved
Form completed by:
Name:
Title:
Signature:
Date:
Information Governance Group Approval
Name:
Title:
Signature:
Date:
Appendix – Glossary of Terms
Item
Definition
Personal Data
This means data which relates to a living individual which can
be identified:
A) from those data, or
B) from those data and any other information which is in the
possession of, or is likely to come into the possession of, the
data controller.
It also includes any expression of opinion about the individual
and any indication of the intentions of the data controller or any
other person in respect of the individual
Sensitive Data
This means personal data consisting of information as to the:
A) racial or ethnic group of the individual
B) the political opinions of the individual
C) the religious beliefs or other beliefs of a similar nature of the
individual
D) whether the individual is a member of a trade union
E) physical or mental health of the individual
F) sexual life of the individual
G) the commission or alleged commission by the individual of
any offence
H) any proceedings for any offence committed or alleged to
have been committed by the individual, the disposal of such
proceedings or the sentence of any court in such proceedings
Direct Marketing
This is “junk mail” which is directed to particular individuals.
The mail which are addressed to “the occupier” is not directed
to an individual and is therefore not direct marketing.
Direct marketing also includes all other means by which an
individual may be contacted directly such as emails and text
messages which you have asked to be sent to you.
Direct marketing does not just refer to selling products or
services to individuals, it also includes promoting particular
views or campaigns such as those of a political party or charity.
Automated Decision Making
Automated decisions only arise if 2 requirements are met. First,
the decision has to be taken using personal information solely
by automatic means. For example, if an individual applies for a
personal loan online, the website uses algorithms and auto
credit searching to provide an immediate yes / no decision. The
second requirement is that the decision has to have a significant
effect on the individual concerned.
European Economic Area (EEA)
The European Economic Area comprises of the EU member
states plus Iceland, Liechtenstein and Norway
Information Assets
Information assets are records, information of any kind, data of
any kind and any format which we use to support our roles and
responsibilities. Examples of Information Assets are databases,
systems, manual and electronic records, archived data, libraries,
operations and support procedures, manual and training
materials, contracts and agreements, business continuity plans,
software and hardware.
SIRO (Senior Information Risk Owner)
This person is an executive who takes ownership of the
organisation’s information risk policy and acts as advocate for
information risk on the Board
IAO (Information Asset Owner)
These are senior individuals involved in running the relevant
service/department. Their role is to understand and address risks
to the information assets they ‘own’ and to provide
assurance to the SIRO on the security and use of those assets.
They are responsible for providing regular reports regarding
information risks and incidents pertaining to the assets under
their control/area.
IAA (Information Asset Administrator)
There are individuals who ensure that policies and procedures
are followed, recognise actual or potential security incidents,
consult their IAO on incident management and ensure that
information asset registers are accurate and up to date. These
roles tend to be system managers
Implied consent
Implied consent is given when an individual takes some other
action in the knowledge that in doing so he or she has
incidentally agreed to a particular use or disclosure of
information, for example, a patient who visits the hospital may
be taken to imply consent to a consultant consulting his or her
medical records in order to assist diagnosis. Patients must be
informed about this and the purposes of disclosure and also
have the right to object to the disclosure.
Explicit consent
Express or explicit consent is given by a patient agreeing
actively, usually orally (which must be documented in the
patients casenotes) or in writing, to a particular use of
disclosure of information.
Anonymity
Information may be used more freely if the subject of the
information is not identifiable in any way – this is anonymised
data. However, even where such obvious identifiers are missing,
rare diseases, drug treatments or statistical analyses which may
have very small numbers within a small population may allow
individuals to be identified. A combination of items increases
the chances of patient identification. When anonymised data
will serve the purpose, health professionals must anonymise
data and whilst it is not necessary to seek consent, general
information about when anonymised data will be used should be
made available to patients.
Pseudonymity
This is also sometimes known as reversible anonymisation.
Patient identifiers such as name, address, date of birth are
substituted with a pseudonym, code or other unique reference so
that the data will only be identifiable to those who have the
code or reference.
Information Risk
An identified risk to any information asset that the Trust holds.
Please see the Information Risk Policy for further information.
Privacy Invasive Technologies
Examples of such technologies include, but are not limited to,
smart cards, radio frequency identification (RFID) tags,
biometrics, locator technologies (including mobile phone
location, applications of global positioning systems (GPS) and
intelligent transportation systems), visual surveillance, digital
image and video recording, profiling, data mining and logging
of electronic traffic. Technologies that are inherently intrusive,
new and sound threatening are a concern and hence represent a
risk
Authentication Requirements
An identifier enables organisations to collate data about an
individual. There are increasingly onerous registration
processes and document production requirements imposed to
ensure the correct person can have, for example, the correct
access to a system or have a smartcard. These are warning signs
of potential privacy risks.
Retention Periods
Records are required to be kept for a certain period either
because of statutory requirement or because they may be needed
for administrative purposes during this time. If an organisation
decides that it needs to keep records longer than the
recommended minimum period, it can very the period
accordingly and record the decision and the reasons behind. The
retention period should be calculated from the beginning of the
year after the last date on the record. Any decision to keep
records longer than 30 years must obtain approval from The
National Archives.
Records Management: NHS Code of Practice
Is a guide to the required standards of practice in the
management of records for those who work within or under
contract to NHS organisations in England. It is based on current
legal requirements and professional best practice. The code of
practice contains an annex with a health records retention
schedule and a Business and Corporate (non-health) records
retention schedule.
Data Protection Act 1998
This Act defines the ways in which information about living
people may be legally used and handled. The main intent is to
protect individuals against misuse or abuse of information about
them. The 8 principles of the Act state The fundamental
principles of DPA 1998 specify that personal data must:
be processed fairly and lawfully.
be obtained only for lawful purposes and not processed in any
manner incompatible with those purposes.
be adequate, relevant and not excessive. be accurate and
current.
not be retained for longer than necessary.
be processed in accordance with the rights and freedoms of data
subjects.
be protected against unauthorized or unlawful processing and
against accidental loss, destruction or damage.
not be transferred to a country or territory outside the European
Economic Area unless that country or territory protects the
rights and freedoms of the data subjects.
Privacy and Electronic Communications Regulations 2003
These regulations apply to sending unsolicited marketing
messages electronically such as telephone, fax, email and text.
Unsolicited marketing material should only be sent if the
requester has opted in to receive this information.
Contents lists available at ScienceDirect
Industrial Marketing Management
journal homepage: www.elsevier.com/locate/indmarman
Target and position article
The darker side of sustainability: Tensions from sustainable
business
practices in business networks
Nina Turaa,⁎, Joona Keränena, Samuli Patalab
a School of Business and Management, Lappeenranta University
of Technology, P.O. Box 20, Lappeenranta FI-53851, Finland
b Department of Management Studies, Aalto University School
of Business, P.O. Box 11110, Aalto FI-500076, Finland
A R T I C L E I N F O
Keywords:
Sustainability
Sustainable business practices
Tensions
Negative consequences
Business networks
Environmental
A B S T R A C T
While the current literature generally assumes that
implementing sustainable business practices (SBPs) will lead
to improved wellbeing and positive outcomes, relatively little
research has explored the potential tensions and
conflicts that SBPs may cause in multi-actor networks. To
address this issue, we conduct a qualitative multiple
case study in a regional business network, including interviews
with 43 managers in 17 firms in different in-
dustries. The findings of this study identify four types of
tensions (economic, structural, psychological, and
behavioral) that tend to emerge when firms implement SBPs in
networks, and illustrate how different stake-
holders (implementers, suppliers, customers, other network
partners) perceive them. Overall, this study con-
tributes to the current literature by highlighting the
underexplored “dark side” of sustainability, and illuminating
how organizational decisions aiming at improving collective
wellbeing can also lead to tensions and conflicts.
For managers, this study offers insights into how to anticipate,
manage and mitigate potential tensions that
might arise in business networks when one stakeholder decides
to implement a SBP.
1. Introduction
Sustainability is considered a new strategic imperative and a
long-
term goal for firms, nations, and society as a whole (Finke,
Gilchrist, &
Mouzas, 2016; Porter & Reinhardt, 2007). Customers, investors
and
other stakeholders demand continuous improvements in
environmental
and social responsibility (Fearne, Garcia Martinez, & Dent,
2012), and
companies are increasingly encouraged to implement
sustainable
business practices (SBPs) to reduce the environmental load and
to stay
competitive (Johnsen, Miemczyk, & Howard, 2017; Kotler,
2011).
However, while the mainstream literature generally assumes
that SBPs
lead to win-win situations, we need more understanding on the
po-
tential tensions and conflicts that emerge when implementing
SBPs
(Hahn, Figge, Pinkse, & Preuss, 2010; Öberg, Huge-Brodin, &
Björklund, 2012).
SBPs are generally defined as activities, initiatives or policies
that
aim at solving environmental and social problems while
maintaining a
profit (López, Garcia, & Rodriquez, 2007; Ortiz-De-Mandojana
&
Bansal, 2016; Tate, Ellram, & Gölgeci, 2013). Driven by the
need to
commercialize both economically viable and societally
acceptable so-
lutions, a majority of the research in this area has focused on
examining
the potential benefits that economic, environmental and social
actors
may accrue from sustainability (e.g. Doganova & Karnøe, 2015;
Fearne
et al., 2012; Patala et al., 2016; Sharma, Iyer, Mehrotra, &
Krishnan,
2010). However, given that SBPs have usually impacts that are
realized
in the long term and influence actors in broader business
networks
(Lacoste, 2016; Öberg et al., 2012; Peltola, Aarikka-Stenroos,
Viana, &
Mäkinen, 2016; Ritvala & Salmi, 2010), they may also lead to
un-
expected or even detrimental consequences that may cause
tensions
between the network actors (Hahn, Pinkse, Preuss, & Figge,
2015).
Tensions are usually understood as negative consequences, such
as
strain and conflict, that result from contradictory goals and
interests
between collaborating actors, and can hamstring, aggravate or
even
break up business relationships and network partnerships (e.g.,
Fang,
Chang, & Peng, 2011; Gnyawali, Madhavan, He, & Bengtsson,
2016).
For example, investing in cleaner technologies can improve
operational
performance and reduce environmental load, but they are often
costly
and involve high risks, including uncertainties about customer
needs,
legislation and commercialization potential (Hall, 2002).
Adopting
ethical purchasing practices can improve a firm's image and
social
status (Porter & Kramer, 2006), but also force other supply
chain
partners to change their operations or even end relationships if
they
cannot comply, thereby increasing mental and financial stress
within a
firm's network (Jackson & Young, 2016).
Although implementing SBPs can have clearly both far-reaching
and
widely experienced negative consequences, “conflicts and trade-
offs
https://doi.org/10.1016/j.indmarman.2018.09.002
Received 17 July 2016; Received in revised form 26 July 2018;
Accepted 3 September 2018
⁎ Corresponding author.
E-mail address: [email protected] (N. Tura).
Industrial Marketing Management 77 (2019) 221–231
Available online 04 October 2018
0019-8501/ © 2018 Elsevier Inc. All rights reserved.
T
http://www.sciencedirect.com/science/journal/00198501
https://www.elsevier.com/locate/indmarman
https://doi.org/10.1016/j.indmarman.2018.09.002
https://doi.org/10.1016/j.indmarman.2018.09.002
mailto:[email protected]
https://doi.org/10.1016/j.indmarman.2018.09.002
http://crossmark.crossref.org/dialog/?doi=10.1016/j.indmarman.
2018.09.002&domain=pdf
between economic, environmental and social aspects have
received
very little attention in the management literature so far” (Hahn
et al.,
2010, p. 218). Likewise, while recent industrial marketing
literature has
addressed emerging tensions in business networks (e.g., Chou &
Zolkiewski, 2018; Chowdhury, Gruber, & Zolkiewski, 2016;
Tóth,
Peters, Pressey, & Johnston, 2018), these studies have focused
on ten-
sions between economic and social goals, while tensions related
to
environmental goals remain less understood. Given that the risk
for
tensions in environmentally-oriented business networks seems
to be
particularly high (c.f., Patala, Hämäläinen, Jalkala, & Pesonen,
2014;
Scandelius & Cohen, 2016), this study addresses the following
research
question: What kind of tensions may emerge when
implementing SBPs in
business networks, and how are they experienced by different
network ac-
tors?
To study this issue in a real-life context, we employed the
multiple
case study approach, and interviewed 43 managers in 17 firms
that are
developing new SBPs and operate in various industries in
business-to-
business (B2B) markets. B2B markets provide a highly relevant
context
for this study, because SBPs influence a broad network of actors
(Wittneben, Okereke, Banerjee, & Levy, 2012), and interaction
in B2B
markets involves “processes within organizations, in
relationships be-
tween actors, and within a network of actors” (Jaakkola &
Hakanen,
2013, p. 49). Accordingly, this study contributes to the
sustainability
and industrial marketing literature by illustrating how the im-
plementation of SBPs can lead to tensions, and how different
actors
(suppliers, implementers, customers, other stakeholders) in
business
networks experience them. From a broader perspective, this
study also
addresses the calls to explore the side-effects, or the “darker
side” of
sustainability (Johnsen & Lacoste, 2016; Öberg et al., 2012)
The rest of the paper is organized as follows. First, we discuss
why
companies implement SBPs, and why this may cause tensions in
busi-
ness networks. After highlighting potential research gaps in the
current
literature, we describe our qualitative field study and present
our
findings. Finally, we discuss the potential implications and
limitations
of the study, and suggest future research areas.
2. Literature review
2.1. Why do companies implement sustainable business
practices?
Sustainability has become a central part of business strategy in
many firms and industry sectors (Porter & Reinhardt, 2007). By
adopting SBPs, firms aim at creating economic business
benefits, re-
ducing environmental impacts, addressing social issues, and
displaying
corporate responsibility to customers and other stakeholders
(Fearne
et al., 2012). As individual firms are expending increasing
amounts of
money and effort on a variety of environmental investments and
sus-
tainable R&D activities, the general attitude towards
sustainability is-
sues has started to change slowly, seeing them as potential
business
opportunities instead of extra regulatory costs (Kotler, 2011;
Lubin &
Esty, 2010; Porter & Kramer, 2011; Tate et al., 2013).
The main motivation for implementing SBPs stems usually from
environmental laws and regulations, but to an increasing extent
also
from business objectives, such as profitability and improved
product
quality (Ranta, Aarikka-Stenroos, Mäkinen, 2018; Beise &
Rennings,
2005). Consequently, firms are investing increasingly in SBPs
to achieve
optimal “win-win” situations, where economic, environmental,
and
social benefits − often referred to as the “triple bottom line” −
can be
realized for relevant stakeholders and networks (e.g. Ambec &
Lanoie,
2008; Ameer & Othman, 2012; Kurapatskie & Darnall, 2013). In
short,
this usually means increased profit and differentiation power for
the
supplier, and reduced environmental load and increased social
well-
being for the whole network, including suppliers, customers,
other
stakeholders, and the society as a whole (e.g. Keränen, 2017;
Patala
et al., 2014; Porter & Kramer, 2006; ).
While the benefits of investing in sustainability are clearly
recognized in the literature, the potential costs or negative con-
sequences that may result from implementing SBPs have
received much
less attention (Hahn et al., 2010; Konar & Cohen, 2001). The
current
literature tends to acknowledge direct economic costs and
perceived
risk as the primary drawbacks of implementing SBPs, but most
of these
studies focus predominantly on supplier perceptions, while
under-em-
phasizing other stakeholders (e.g. Hall, 2002; Hansen, Grosse-
Dunker,
& Reichwald, 2009; Nidumolu, Prahalad, & Rangaswami,
2009). Con-
sequently, recent sustainability research has suggested that
looking at
the emerging tensions between network partners could offer a
more
holistic picture of the consequences perceived by multiple
actors (Hahn
et al., 2015)
2.2. Sustainable value co-creation in business networks:
potential for
tensions
In the industrial marketing literature, a great deal of research
has
argued that value emerges through collaborative activities and
inter-
action, and is co-created when actors exchange and integrate
resources
that contribute to solving mutual problems (Aarikka-Stenroos &
Jaakkola, 2012; Vargo & Lusch, 2016). Value co-creation is
considered
to take place in broader networks or service systems, and may
hence
involve a diverse set of actors that have a direct or indirect
influence on,
and may experience the consequences of value co-creation
(Gummesson
& Mele, 2010; Pinho, Beirão, Patrício, & Fisk, 2014; Vargo &
Lusch,
2011). However, value co-creation does not always lead to
positive
outcomes. It can be also disruptive, and interaction between
actors can
lead to deteriorating and negative outcomes (Echeverri &
Skålén, 2011;
Prior & Marcos-Cuevas, 2016; Verleye et al., 2017).
While emerging research has begun to unpack the potential
negative
consequences of complex exchanges with economic or social
goals (e.g.
Plé & Chumpitaz Cáceres, 2010; Prior & Marcos-Cuevas, 2016;
Verleye
et al., 2017), several studies indicate that the potential for
negative
consequences is exacerbated when value co-creation involves
environ-
mental and sustainable goals as well (e.g. Doganova & Karnøe,
2015;
Reypens, Lievens, & Blazevic, 2016). The key reasons for this
include a
more diverse and multi-layered set of actors and decision
makers
(Baraldi, Gregori, & Perna, 2011; Seshadri, 2013), broader
network(s)
of stakeholders and supply chain partners (Meqdadi, Johnsen, &
Johnsen, 2017; Öberg et al., 2012), longer decision-making
cycles
(Ritvala & Salmi, 2010), competing value-creating and
problem-solving
logics (Patala et al., 2014), and divergent or conflicting goals
and in-
terests (Doganova & Karnøe, 2015). Thus, sustainable value co-
creation
in business networks seems particularly susceptible for potential
ne-
gative consequences. However, while existing research has
addressed
why and how sustainable value co-creation can be obstructed or
re-
strained (Finke et al., 2016; Ritvala & Salmi, 2010), less
research has
addressed how the potential negative consequences of
sustainable value
co-creation may manifest across business networks, or how they
are
experienced by different stakeholders (Öberg et al., 2012;
Patala et al.,
2014).
Recent industrial marketing research has advocated the use of
the
tension perspective to explore the hurdles and impediments
between
multiple actors in business networks (e.g., Chou & Zolkiewski,
2018;
Chowdhury et al., 2016; Tóth et al., 2018). In brief, tensions
focus on
contradictory forces, objectives, or motivations with conflicting
goals
and interests that tend to drive relationship or network partners
apart
(Das & Teng, 2000; Tidström 2014). While some tensions can
have
positive impacts (especially if properly managed), they are
usually
considered in terms of negative consequences, or more broadly
as the
dark side of relationships, as they can cause strain, conflict, and
emo-
tional upheaval (Fang et al., 2011).
While the previous marketing literature identifies multiple types
of
tension in relationships and networks, they are usually
categorized
broadly under structural, psychological, and behavioral tensions
(Fang
et al., 2011; Tidström, 2014; Pressey & Vanharanta, 2016).
Structural
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222
tensions refer to the different ways inter-organizational
relationships are
organized and governed within a network, and can include, for
ex-
ample, tensions between structural flexibility and rigidity.
Psychological
tensions refer to cognitive aspects, such as attitudes and
perceptions of
different actors in the network. Typical psychological tensions
in net-
works may relate to issues such as (mis)trust and temporal
orientations.
Finally, behavioral tensions refer to actors' activities, routines
and com-
municative practices, and may relate for example, to active or
passive,
or cooperative or competitive behavior (Fang et al., 2011; Tóth
et al.,
2018). In addition, both the marketing and sustainability
literatures
refer often to economic tensions, which usually relate to
differences be-
tween an actor's value capture and appropriation logics (Hahn et
al.,
2010; Chou & Zolkiewski, 2018). Overall, since tensions can
emerge
between multiple actors, including individuals, groups, and
organiza-
tions, they offer a good analytical lens to analyze the activities,
out-
comes and consequences in multi-actor networks (Burton et al.,
2016).
In sum, the existing literature acknowledges that sustainability
is-
sues are often broad and complex, and require an understanding
of the
impacts and consequences experienced and perceived in larger
net-
works (Wittneben et al., 2012). Because clear identification of
re-
lationships and interactions between different problems,
activities and
consequences related to sustainability is often very difficult,
they might
be best understood as tensions between different network actors,
who
are likely to experience them differently (Hahn et al., 2010,
2015;
Kumazawa, Saito, Kozaki, Matsui, & Mizoguchi, 2009).
3. Methodology
To explore the potential tensions that may result from
implementing
SBPs, we adopted a qualitative research approach, and
employed an
embedded multiple case design (Scholz & Tietje, 2002; Yin,
2014).
Because the current research on the tensions of implementing
SBPs is at
a relatively early stage (Hahn et al., 2010, 2015; Öberg et al.,
2012), a
qualitative research approach is suitable to generate a deep and
de-
tailed understanding of this complex and far-reaching
phenomenon in a
real-life setting (Corbin & Strauss, 2015). Moreover, an
exploratory
research approach supports theory building from empirical
insights in
an under-researched area (Eisenhardt & Graebner, 2007). By
using an
embedded multiple case design, we were able to explore how
the im-
plementation of SBPs influences different actors in a business
network.
This gave rise to a more holistic understanding of the potential
tensions
in a broad and more generalizable context (Halinen & Törnroos,
2005;
Yin, 2014).
3.1. Case selection
We used a theoretical sampling logic to identify firms that had
been
developing and implementing SBPs in B2B markets, and would
hence
provide access to empirically rich and insightful data
(Eisenhardt &
Graebner, 2007). With this aim, we approached a specific
regional
cluster in Finland, which includes 17 firms. The cluster has a
strong
history of collaboration and ongoing sustainability initiatives,
fa-
cilitated by regional development organizations and a collective
agenda
to improve regional sustainability. Conceptually, the regional
network
is akin to an “industrial symbiosis network”, which includes
separate
industries with a collective aim to achieve eco-efficiency
through the
exchange of resources, by-products and expertise in a socially
em-
bedded and regionally constrained system (Patala et al., 2014).
The regional network in question is built around resource- and
material-intensive industries, including process and metal,
wood, en-
ergy, and waste technologies. These are all mature industries,
and
under high economic, environmental and social pressures to
adopt
more efficient resource and raw material bases (i.e., solar
energy, waste
recycling), ecologically friendlier offerings (i.e., bio-oil, digital
ser-
vices), and socially responsible purchasing practices (i.e., local,
ethical,
and sustainable procurement). In addition, the network includes
several
regional development organizations, which are focused on
providing
consulting, financing and other support for firms in this area.
Conceptually, the empirical setting represents a “nested
network”, as
the regional industry cluster operates as a larger macro-level
network,
which contains several smaller embedded ‘nets’ or business
networks
(c.f., Ritvala & Salmi, 2010). This approach allows us to take
into ac-
count the embedded nature of individual and dyadic
relationships as
part of a network context (Möller & Svahn, 2006), and explore
how the
Fig. 1. Illustration of the network and embedded units.
N. Tura et al. Industrial Marketing Management 77 (2019) 221–
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actions and practices of individual actors were experienced and
per-
ceived by other actors in broader networks. Fig. 1 illustrates the
re-
gional network, the industry specific sub-networks, and the
embedded
case companies.
The case companies represent various types of network actors
and
value chain positions, as they operate as suppliers and
customers in
their own sub-networks or network partners and stakeholders in
the
larger regional network. More specifically, the roles of the case
com-
panies in the regional network can be divided to three primary
types:
implementers (I), which have implemented new SBPs; service
providers
(S), which have developed new services to facilitate other firms'
SBPs;
and regional partners (P), which facilitate the adoption of SBPs
in the
region. In turn, the value chain positions can be considered in
terms of
firms who implement specific SBPs (implementers), their raw
material,
product, technology and energy suppliers in the “up-stream”
position,
their primary customers in the “down-stream” position, and
other net-
work partners providing different types of supporting services.
While the
firms represent specific types of network actors, they could
adopt dif-
ferent and sometimes co-existing value chain positions,
depending on
their ongoing relationships with other actors. Table 1 provides
an
overview of the case companies, their implemented SBPs or
activities
employed to support other firms' SBPs, and occupied network
positions
in relation to other actors in the network.
3.2. Data collection
The data collection for this study took place in 2014 and 2015,
and
involved 24 single and six group interviews with a total of 43
managers.
The single interviews lasted between 35 and 109 min, and the
group
interviews between 97 and 179 min. All the interviews were
sound-
recorded and transcribed. This resulted in 984 pages of double-
spaced
interview transcripts. All the interviews were semi-structured,
and fo-
cused on the value of sustainability, firm-specific sustainability
prac-
tices, and the outcomes of these practices for firms, their
customers, and
stakeholders. Using a thematic guide and open-ended questions,
the
interviewees had the opportunity to express their ideas freely
and focus
on the naturally occurring issues that emerged during the
interviews
(Creswell, 2013). In addition, the group interviews allowed us
to probe
multiple views on specific issues, challenge diverging ideas,
and vali-
date emerging findings interactively (Bryman, 2012). All the
inter-
viewees were experienced senior managers, who were
responsible for
and/or had knowledge of the sustainability practices their firms
had
implemented. An overview of the interview data is presented in
Table 2.
We supplemented the primary interview data with a large set of
rich
secondary data. This included analyses of company websites,
annual
reports, specific sustainability and corporate social
responsibility re-
ports, as well as field notes (50 pages) of 16 steering group
meetings
and workshops with representatives from the regional network
actors
Table 1
Overview of the case companies.
Firm Industry Implemented SBPs (I 1-11), and
activities that support other firms' SBPs in the network (S12-
P17)
Examples of occupied network positions (in addition to being
an implementer for the SBPs mentioned in column #3)
I/S1 Energy & heat industry Development of bio-oil and electric
cars, environmental consulting,
commitment to CO2 free production
Supplier for renewable energy and bio-oil
Network partner providing environmental consulting
services
I2 Energy industry Developing new business areas from cleaner
waters, investments in
modernizing monitoring and water treatment products,
responsible
production
Supplier of energy and clean water products
Customer for environmental consulting services and
production equipment
I3 Energy industry Bio-heating plant and a transmission line
project Supplier for energy based on bio-heating
Customer for renewable fuels, recycled raw material,
production equipment and environmental consulting services
I4 Energy industry CO2-free production, new treatment plant
for clean water, remote
reading
Supplier for renewable energy
Customer for production equipment
I/S5 Environmental & waste
management industry
Investments in a waste incinerator and business development
projects
related to the re-use of waste, ash, and other surplus material
Supplier for recycled raw material
Customer for procurement equipment
Network partner: providing waste management services
S6 Waste management services New service offering related to
waste information management Customer for energy, production
equipment and materials
Network partner providing support services for waste
management
I7 Wood industry Bio-oil & eco-designed products Supplier for
bio-oil and eco-designed products
Customer for raw material (recycled), production equipment
and energy
I8 Wood industry Use of renewable and bio-materials Supplier
for bio products
Customer for renewable fuels and energy
I9 Wood industry Bio product factory, responsible use of
forests, sustainable products Supplier for bio products
Customer for renewable fuels, environmental consulting
services and energy
I10 Process industry Recycled fuels, commitments to
minimizing CO2 emissions Customer for environmental
consulting services, recycled
fuels and energy
I11 Process industry Material efficiency, use of limestone-based
solutions Supplier for limestone-based products for cleaning
waters
Customer for environmental consulting services and energy
I12 Steel industry Use of recycled scrap metal Customer for
environmental consulting services
P13 Financing, consulting Focus on environmental and social
responsibility through digitalization Network partner providing
financing and consulting
services
S14 Consulting and design services Sustainable development of
processes and assets, water management,
construction, and environmental consulting
Supplier for sustainable construction
Network partner providing environmental consulting
services
S15 Accounting services Offering and developing digital
services (replacing paper and extra
waste)
Network partner providing digital services to support
management of business
P16 Regional development and
consulting
Emphasis and promotion of clean water in regional development
Network partner providing support services to promote
regional development
P17 Regional development and
consulting
Emphasis and promotion of bioenergy, waste-to-energy, and
wind
power projects in regional development
Network partner providing support services and financing
to promote regional development
Customer for waste management services, environmental
consulting services and energy
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(total duration 45 h), and notes (86 pages) of 33 meetings with a
broader research group (total duration 89 h) where emerging
findings
and key issues were discussed. Overall, this documentary
material
provided a rich information resource and insights into the SBPs
im-
plemented by different firms, as well as the consequences
experienced
by different stakeholders (Hill, 1993).
3.3. Data analysis
Given the large amount of empirical data, our analysis
proceeded in
three key stages. In the first stage, we employed within-case
analysis
and open coding, and identified specific SBPs and subsequent
impacts
that they generated in the network (Miles, Huberman, &
Saldana,
2014). This allowed us to understand what kind of SBPs
specific firms
had implemented (see Table 1 for an overview), and how their
impacts
were perceived by other actors in the network. At this stage, the
pre-
liminary insights indicated a substantial number of conflicting
percep-
tions between different firms, which led us to focus on the
emerging
tensions between the network actors. Hence our unit of analysis
was a
specific tension perceived between (or within) different
business net-
work actors in their relationship.
In the second stage, we employed cross-case analysis and axial
coding, and categorized the emerging tensions based on their
properties
and characteristics (Corbin & Strauss, 2015). To aid our
analysis and
categorization, we compared the emerging findings to existing
litera-
ture, and informed by previous studies on network-based
tensions (e.g.,
Tóth et al., 2018), we extracted specific tensions to thematic
categories.
At this stage, we also unpacked the categories to explore how
different
tensions were experienced and perceived by different actors
(im-
plementers, suppliers, customers, network partners). In the third
stage,
we integrated all the categories into an overall preliminary
framework
(see Table 3), and sought feedback and confirmation for the
emerging
findings from the informants and other researchers.
Due to the large amount of empirical data, Nvivo software and
Excel
spreadsheets were used to manage and facilitate the data
analysis and
aid subsequent theory construction (Bazeley & Jackson, 2013).
To in-
crease the trustworthiness and validity of the study, we
employed
multiple sources of primary and secondary data (data
triangulation),
involved several researchers in the analysis and interpretation
of the
findings (researcher triangulation), and presented the emerging
results
to managerial and academic audiences (Yin, 2014).
4. Findings
In this section, we report the findings of the study. First, our
analysis
identified 20 different types of tension that seemed to emerge
when
firms decide to implement SBPs in business networks. In line
with prior
literature (Fang et al., 2011; Tóth et al., 2018), it seems that the
identified tensions tend to manifest in four broader categories:
eco-
nomic, structural, psychological, and behavioral tensions.
Second, the
identified tensions seem to occur between (external) and within
(in-
ternal) multiple actors, as well as within multiple level
(individuals,
groups, organizations). Consequently, our analysis suggests that
actors
in different network positions tend to perceive these tensions
differ-
ently. We consider these in terms of four primary positions: im-
plementers, suppliers, customers, and other network partners.
Our
findings are summarized in Table 3, and we discuss them in
detail
below.
4.1. Economic tensions
Economic tensions refer to conflicts between cost allocations,
and
these appeared most frequently in our data. Economic tensions
involved
expectations or demands from one actor for other actors to
invest or
expend costs into technologies, processes or new practices that
would
be aligned with specific SBPs. However, the other actors
perceived
these expectations sometimes as asymmetric or unfair, and
believed
that they restricted their own operations.
For firms that implemented SBPs in the regional network,
economic
tensions manifested usually as higher investment, operating, and
oppor-
tunity costs. These were often perceived internally, between
different
departments or functions at the implementer's organization. For
ex-
ample, several firms had increased their research and
development
budgets (I1;I10), or invested into new environmentally friendly
or
modernized technologies (II3;I4;I7;I8;I9;I11), at the expense of
post-
poning, freezing, or sometimes completely abandoning efforts
to de-
velop or expand their current sales, service, or production
organiza-
tions.
“Compared to a situation where we don't have to think about
sustain-
ability, of course it brings costs. Investments have been huge
(e.g. filter
Table 2
Overview of the interview data.
Firm Titles of informants Interview type Length (min) Number
of
informants
I/S1 Project Manager (5×), Sales Manager (2×), Project
Engineer, Senior Adviser,
Product Development Manager, Head of IT systems, EHSQ
Manager, Head of
International O&M Management, Process Manager, Technical
Manager, Head of
Division
5× groups (groups were based on
organizational functions/teams)
179, 97, 130,
145, 109
16
I2 Financial Director, Head of Unit, Environmental Director,
Unit Team Leader,
Environmental Manager, Project Manager
5× individual 60, 72, 65, 52,
88
5
I3 CEO 1× individual 101 1
I4 CEO, Energy Group 1× individual 35 1
I/S5 Account Manager, R&D Manager, Business Manager,
Technical Manager 4× individual 52, 69, 94, 76 4
S6 Quality and Environmental Engineer 1× individual 35 1
I7 Director, Stakeholder Relations 1× individual 72 1
I8 Factory Manager, Environmental Manager, Communications
Manager 3× individual 35, 33, 37 3
I9 Environmental Manager 1× individual 94 1
I10 Vice President 1× individual 109 1
I11 Factory Manager 1× individual 68 1
I12 Product Development & Technical CRM Manager,
Environmental Manager, Process
Development Manager
1× group 103 3
S13 Head of Office 1× individual 35 1
P14 Communications Manager 1× individual 45 1
S15 Head of Office 1× individual 34 1
P16 Development Manager 1× individual 84 1
P17 CEO 1× individual 73 1
Total 24 individual and 6 group interviews 2281 43
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plant of the smelter), energy is used and waste is created. We
have
continuous maintenance targets and expenses… If we didn't care
about
sustainability, we wouldn't need environmental executives
sitting here,
doing paperwork and paying license fees, these are all indirect
costs.”
(I9)
For suppliers, in our sample, economic tensions manifested
primarily as
high costs of operational changes due to the need to
accommodate in-
creased compliance requirements from the implementing firms.
In the
data, such requirements ranged from improving production and
op-
erational processes to reduce emissions and carbon footprints
(I1;I2;I7;S14) to educating, training and hiring new people
(I2;I7) to
gain different environmental and social certificates. While the
requested changes aimed to improve the implementers own as
well as
their value chains' societal impact, several suppliers pointed out
that for
them the changes involved often expensive process
modifications,
which were seldom fully recoupable. Many suppliers noted they
had
faced costly sustainability requirements from their business
partners,
and felt it was usually easier to comply by accepting short-term
costs
than risk losing valuable partners and long-term business
potential.
“Our partners had to develop also new skills and operations
through
investments.” (I7)
For customers, economic tensions manifested primarily as
higher prices
and decreased functionality. Customers felt that when their
suppliers had
implemented SBPs, this had resulted in higher prices but not
necessarily
Table 3
Potential tensions from SBPs as experienced by different
network actors.
Experienced by and between
Tension Actor 1 Actor 2 Description
Economic tensions
1. Higher investment, & operating,
and opportunity costs
Implementer's top
management or R&D Unit
Implementer's production
and sales
Senior management or R&D invests into sustainable
technologies and/or
modernization of production equipment, which are expensive
and have long
payback times. This results in higher cost pressures and
postponing or
abandoning other development projects in implementer's other
units (usually
production, sales, or service)
2. Cost of operational changes Supplier Implementer
Implementer demands that suppliers adapt their processes to
new codes of
conduct or sustainability requirements
3. Higher prices Customer Implementer Implementers charge
higher prices from customers due to cost increase in
their own operations
4. Reduced functionality and
performance
Customer Implementer Sustainable technologies do not deliver
the customer the same functionality
or performance as traditional technologies
Structural tensions
5. Increased monitoring and
controlling needs
Implementer Suppliers and other
network partners
Implementer needs to monitor and control that several actors in
its value
chain and network follow its codes of conduct
6. Dependence on key suppliers Implementer Supplier
Implementers fear that a dependency on a raw material that is
available only
from specific suppliers (e.g. by-products from forest industry to
use in a bio
heating plant) can give away too much negotiation and pricing
power, and
make them vulnerable to strong-arming and other opportunistic
tactics.
7. Reduced power positions Supplier Implementer Suppliers that
have difficulties in responding to the implementer's
sustainability requirements or expectations have lower
bargaining power, or
can be phased out completely.
8. Difficulties to design balanced
network policies
Other network partner Entire network Other network partners
need to design regional policies that would benefit
stakeholders equally, but the conflicting interests between
multiple network
actors may result in policies that are unequal or favor some
actors
disproportionately with the expense of others
Psychological tensions
9. Financial risk Implementer Customers Implementer has made
significant short-term investments into SBPS, while
the potential benefits are uncertain and realized only in the long
term
10. Technological risk Implementer Customers New SBPs lack
references and proof of performance, and the implementer
fears that they will not be as functional or effective as
traditional alternatives
11. Political risk Implementer Government/ Regulatory
bodies
Implementer fears that constantly changing political decisions,
regulation, or
legislation will affect a new SBP negatively
12. Reduced motivation to adhere to
codes of conduct
Supplier Implementer Suppliers feel that they are forced to
measure, monitor and report
sustainability indicators that are not relevant for their own
business
13. Fear of disclosing sensitive
business information
Customer Implementer Customers are reluctant to share
sustainability information and data if it is
business-critical or otherwise sensitive
14. Greenwashing concerns Customer Implementer Customer
fears that the supplier's sustainability claims are corporate
posturing or deceptive marketing, but do not deliver actual
environmental or
social improvements
15. Defensiveness against new
regional sustainability policies
Other network partners Entire network Network actors are slow
or reluctant to comprehend the potential benefits and
opportunities of new sustainability polities
Behavioral tensions
16. Higher disclosure requirements Implementer Authorities,
society,
media,
Implementer needs to report on different sustainability criteria
to
stakeholders, environmental and political authorities, and the
media
17. Internal resistance Implementer's top
management
Implementer's field
personnel
Employees are reluctant to learn new skills, accept new
responsibilities or
process changes, and adopt new work practices
18. Increased need to collect and
share data
Supplier Implementer Implementers expect the suppliers to
collect and share sustainability-related
data about their operations and processes
19. Higher maintenance needs Customer Implementer Customer
needs to maintain or replace environmentally-friendly
components
more often than traditional alternatives
20. Divergent communication and
promotion needs
Other network partners Entire network Other network partners
need to communicate and promote goals and agendas
that facilitate several actors´ interests and objectives, which are
often
conflicting and contradictory
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any improvement in actual product performance. In contrast,
some
customers noted actually that sometimes the sustainable
components in
purchased products or systems required more maintenance or
had
shorter life cycles, reducing the overall functionality and
performance
of the equipment.
“Customers would like to use domestic fuels instead of foreign
fuels be-
cause of their lower environmental impacts. But if the price for
foreign
fuel is lower, they will unfortunately select that.” (I2)
4.1.1. Structural tensions
Structural tensions refer to the need for and balance of
coordination
and governance of vertical and/or horizontal relationships with
stake-
holders. For firms that implemented specific SBPs, structural
tensions
manifested usually as increased monitoring and controlling
requirements to
their value chain and network. This involved the need to
manage both
wider stakeholder networks and longer (up- and downstream)
value
chains, where several stakeholders had different, yet collective
impact
on the realization of the benefits from specific SBPs. However,
since
individual stakeholders had usually different perceptions and
measures
for sustainability (i.e. NOx and CO2 emissions vs. carbon and
water
footprints), a higher number of stakeholders made monitoring
and
controlling overall sustainability impacts often very difficult.
“We should pay more attention to our value chain. There are
weak points
for sure… Although our suppliers are the most reliable in the
field, we
don't check these issues until at the last point…. Value chains
are long
and we don't have resources for that…. We can't say for sure
whether
they are using for example child labor. It's an unknown field for
us and
may carry threats.”(I9)
In addition, some firms felt that implementing SBPs led to
increased
dependency on key suppliers who had a dominant or sole
provider status
for critical materials, such as raw materials for bio-heating (I3),
or
limestone (I8). In these cases, implementers feared that sole
suppliers
might leverage their unique position to increase prices, regulate
supply,
or otherwise influence contract conditions. On the other hand,
some of
the supplier firms in our sample perceived the structural
tensions as
reduced power positions, if they did not have enough resources
or know-
how to respond to the sustainability requirements posed by the
im-
plementer, or if they declined to accommodate the
implementer's
compliance requirements. For example, the suppliers in the
forest and
energy industry had faced the risk and pressure of decreasing
pur-
chasing volumes and lowering prices if they could not adapt
their
processes and practices to match the implementers'
sustainability ex-
pectations or demands better.
For customer firms, the data indicated no significant structural
tensions. For other network partners, the structural tensions
manifested
usually as difficulties to design balanced network policies. For
example, the
regional agencies explained that since SBPs influenced several
stake-
holders across networks, they were under a pressure to design
regional
policies and practices that would try to take each stakeholder's
interests
and goals into account. However, due to different, and often
conflicting
interests within the network, it was not clear whether the
agencies'
lobbying efforts resulted in balanced and equally fair policies
for all the
network actors, or uneven agendas that diisproportionally
favored
some, with the expense of others.
“Customers are obligated to sort their wastes in more detail. We
do a lot
of competitive bidding, but it is hard to include all the
conditions and
measurements of sustainability and environment into these
tenders. There
are so many things to be taken into account, and it is not clear
how the
evaluation and scoring of these indicators would be fair for both
new and
old players in the waste business.” (S6)
4.1.2. Psychological tensions
Psychological tensions refer to changes in emotions, attitudes,
motives and feelings, caused primarily by the added uncertainty
asso-
ciated with SBPs (Slawinski et al. 2015). For sample firms that
im-
plemented specific SBPs, psychological tensions manifested
primarily as
increased financial, technological, and political risks. For
example, it was
often difficult to calculate the return on investment for
sustainable
technologies, and many firms had risked a decrease in short-
term
profitability for potential but uncertain long-term business
benefits.
Similarly, many implementers worried about whether the new
SBP
would become “accepted” or “new standard” in the market, or
just an
inferior alternative to traditional technologies. Finally, the im-
plementers were also highly concerned about political
decisions, such
as support or taxation policies for biofuel, coal, or other sources
of
renewable energy (I1;I3;I10), and the enactment of emissions
and
chemicals regulations (I8–10;I12), which have a major influence
on the
business potential of sustainable products and services.
“We cannot yet put a value on the sustainability investments in
peat
production.…When we decided to make investments, we did not
calcu-
late our expectations for business sales. We see it more as a
long-term
investment in future business possibilities.” (I7)
“There's political risk. As the fuel business is based on politics
in the EU,
there is a risk of changing regulations. Authorities may ruin
everything.”
(I10)
“The drivers of sustainability come from politics, and involve
risks as to
whether they will be in line with our current decisions in the
future… it
may result in some administrative decisions that have negative
effects for
us. It's a little terrifying.” (I3)
For some of the supplier firms, psychological tensions
manifested as
reduced motivation to adhere to the implementer's codes of
conduct, espe-
cially if these had no direct benefits to the supplier, or if the
value chain
involved other partners who did not follow similar practices.
Several
suppliers noted that it was relatively common for their value
chain
partners to lobby for regulations and/or request sustainability
policies
that favored individual actors unequally. This often reduced the
sup-
pliers' willingness to comply, at least when it required
significant
changes or cost allocations.
“Our industry doesn't market much in “being green”. There are
certain
actors that are intentionally quiet about this.” (I9)
“There are multiple interest levels among actors contributing to
sustain-
ability regulations. The interest in these issues may arise purely
from
gaining competitive advantage over other actors.” (I12)
For customer firms, psychological tensions manifested primarily
as a
fear of disclosing sensitive information about their processes
and opera-
tions. Customers pointed out that suppliers were increasingly
re-
questing access to their process and usage data to analyze the
potential
sustainability impacts of their offerings, and this involved
business-
critical information, which customers were often reluctant to
share.
Furthermore, some customers noted also that without careful
diligence
and supplier evaluation, they had sometimes concerns about
green-
washing, or in other words, whether the supplier's SBPs actually
had the
promised impacts, or were just corporate posturing and empty
en-
vironmental claims.
“In management we may see responsibility in a different way….
For
example, we have had to close factories. For some, these actions
may
seem unresponsive, but from company perspective this is
economic sus-
tainability…[but] society may criticize and have different
opinion. That
may increase local negative effects and labor disruptions, and
increase
risks related to delivery reliability from the eyes of the
customer.” (I7)
For other network partners, psychological tensions manifested
pri-
marily as defensiveness against new regional sustainability
policies. For
example, the regional agencies noted that the business actors in
the
area were usually very resistant or slow to adopt and assimilate
new
N. Tura et al. Industrial Marketing Management 77 (2019) 221–
231
227
sustainability initiatives, unless they had a direct impact on
their
business.
“Of course there are customers that do not want to give up
paper… These
types of customers cover still 55-60%. It is hard work to get
them to
understand our system and online services.” (S15)
“SMEs are not very interested in sustainability goals at the
broader,
global level. Very often they will just have a defensive reaction,
like “we
get these new things every day, how is this relevant to us?”
(P16)
4.1.3. Behavioral tensions
Behavioral tensions refer to changes in operational or commu-
nicative behaviors within a business network (Tóth et al., 2018).
From
the sustainability perspective, new activities and practices for
analyzing
sustainability impacts and reporting to stakeholders can cause
con-
siderable behavioral changes and require extra resources
(Greenwood
et al. 2015). For firms that implemented specific SBPs,
behavioral
tensions manifested primarily as increased disclosure
requirements, as
they had to report on different sustainability criteria not only to
en-
vironmental and political authorities, but to potential customers
and
network partners as well. Many of them also noted that
increased
workload, bureaucracy, training, and social pressure related to
im-
plementing SBPs often led to internal resistance within their
organiza-
tions. For example, the implementers described situations and
beha-
viors where internal resistance ranged from skepticism, lack of
commitment and negative attitudes to misunderstanding or dis-
regarding responsibilities intentionally, and barriers between
field or-
ganizations and top management.
“Much of the time is spent answering the many questions of
people,
claims coming from water protection associations, media
contacts and
reviews… We have promised to measure every bog separately,
but the
information on the impacts on the environment is not
particularly ac-
curate… So the actions we are performing now may be a bit
pointless, but
we have to do so to gain social acceptance.” (I2)
“The workload of the personnel and their mental wellbeing are
negative
issues related to sustainability. Investing in sustainability has
brought
extra work, required many working hours, development and
planning
activities...The commitments that we made raised considerable
resistance
inside the company.” (I7)
For supplier firms in our study, the behavioral tensions
manifested
primarily as an increased need to collect and share
sustainability-related
data and information about their operations and processes with
the
implementer. While the suppliers generally understood the need
for
additional communication efforts, many felt that they were
being
forced to measure, monitor, and report sustainability indicators
that
have little effect on their business practices.
“Increasing public awareness raises certain tough questions for
us to
answer, although they may not have anything to do with us.”
(I9)
“In addition to other work, sustainability means more
monitoring efforts
and extra work… Customers are expecting certain things, but in
reality,
the time spent on designing and planning may be longer,
bringing negative
consequences in terms of work.” (S14)
For customer firms, the behavioral tensions manifested as
higher
maintenance needs, as the sustainable technologies and/or
components
they purchased had to be maintained, replaced or upgraded more
often
than traditional alternatives. For example, in the case of bio-
energy
power plants, when the customers burned recycled waste
material, this
eroded their production equipment (I1). In addition, when
customers
replaced cement with more renewable (wood-based) materials in
the
construction process, they experienced increased maintenance
re-
quirements and lower life-cycles of buildings (I4).
“There is a big debate about the facts of using wood vs. cement
–based
materials in construction related to [sustainability] impacts and
life-cycle
maintenance.” (I4)
For other network partners, behavioral consequences manifested
primarily as divergent communication and promotion needs,
because of the
diverse goals and interests of different network actors. For
example, the
forest industry wanted to promote wood as a renewable material
source
for construction, while the process industry wanted to highlight
the
long lifecycle of concrete- and steel –based materials instead.
Furthermore, while the private organizations in the area wanted
to
reduce CO2 emissions only to levels that would have a minimal
impact
on production to optimize or protect sales and profits, the
public or-
ganizations wanted to maximize the reduction in overall CO2
emis-
sions. Several network partners had to navigate this riptide, and
choose
how to stretch and allocate resources to promote a host of
conflicting
sustainability goals simultaneously.
“We have divergent interests inside Finland. All actors want to
support
their own interest areas, and this may have negative effects on
others.”
(I12)
5. Discussion and conclusions
In this study, we have explored the potential tension that may
result
from implementing SBPs in business networks. Network
partnerships
and joint action are important drivers of sustainability goals
(Patala
et al., 2014; Ritvala & Salmi, 2011), and it is critical to
understand how
to minimize the costs and barriers of collaboration. This is an
important
issue, as industrial firms are investing increasingly in various
SBPs, but
their potential “dark side” effects remain under-researched
(Hahn et al.,
2010). Our findings illustrate why and how the implementation
of SBPs
may lead to emerging tensions, and how different actors in a
network
setting in business markets experience them. Next, we consider
the
implications of our findings by comparing the tensions
experienced at
different network positions and suggest some potential
strategies for
decreasing the tensions.
As demonstrated by the findings, if one network partner adopts
new
sustainability practices, this may generate tensions in its
business net-
work. We found that tensions inside the implementer's
organization
were typically related to budgetary tensions among different
business
units and functions, as well as the potential internal resistance
to
change by employees, which were predominantly economic or
beha-
vioral by nature. These tensions seemed to be especially
dependent on
the type of SBP undertaken, as more technology-intensive SBPs
are
likely to involve higher costs and risks. These tensions could be
de-
creased by higher involvement of different functions and
internal per-
sonnel, as SBPs, which are integrated with the core business
functions,
have typically higher potential benefits (Halme & Laurila,
2009).
The tensions between implementers and their suppliers, in turn,
are
often related to the supplier's capability to meet new
sustainability
criteria introduced by SBPs, and a potential fear of being
relegated to a
lower tier supplier if the sustainability criteria are not met.
Structural
tensions were particularly evident between the supplier and im-
plementer. These tensions seemed to be influenced by the
cultural and
power distance (Meqdadi et al., 2017) between the implementer
and
the supplier, and may be especially prevalent in global supply
chains,
leading to considerably different perceptions of sustainability.
An im-
plementer could decrease this tension by investing in training
and
education activities with the suppliers, to help meet their
sustainability
goals. For example, previous research has shown that more
collabora-
tive and inclusive strategies of involving suppliers in SBPs are
more
sustainable in the long run compared to dictatorial initiatives
driven by
the implementer (Drake & Schlachter, 2008; Hoejmose,
Brammer, &
Millington, 2012).
The tensions between implementers and customers were largely
related to concerns about increasing prices, decreasing
performance or
potential concerns with greenwashing. These tensions seemed to
be
N. Tura et al. Industrial Marketing Management 77 (2019) 221–
231
228
higher for SBPs involving substantial change in product design,
and
they were usually psychological and economic by nature. These
types of
tensions might be mitigated by conducting a deeper value
assessment
about the new value potential that the SBP will realize to the
customers
or their stakeholders (Keränen & Jalkala, 2013; Patala et al.,
2016). The
implementer could also offer additional services and training to
ac-
commodate with the changes in the offering caused by the SBP.
Finally, the tensions between implementers and other network
partners were often related to the added network complexity as
a result
of SBPs, as more diverse stakeholder needs and plurality of
values
needed to be incorporated into the network activities. We found
ten-
sions between implementers and other network partners equally
in all
of the four categories. These tensions are likely to be stronger
when the
number and heterogeneity of stakeholders increases. An
implementer
could address these by investing in open stakeholder
communication
and their higher involvement within the network. The increased
in-
volvement of new stakeholders as a result of SBPs may open
new op-
portunities for other network partners, as the “value space” of
the
network increases (Halme & Laurila, 2009; Reypens et al.,
2016).
5.1. Theoretical implications
Collectively, the findings of this study offer three main
contribu-
tions. First, previous sustainability literature has focused
primarily on
the benefits and/or positive consequences that result from im-
plementing SBPs, but with limited attention to potential costs
and ne-
gative consequences (Hahn et al., 2010; Konar & Cohen, 2001).
This
study has addressed this gap in the sustainability literature by
high-
lighting the potential conflicts and tensions, or more broadly,
the “dark
side” of sustainability (Johnsen & Lacoste, 2016) that may
result from
implementing SBPs in business networks. Our findings
illustrate how
different sustainability initiatives, despite stakeholders' best
intentions,
can also lead to perceived strain and conflict between actors,
which we
have conceptualized as tensions (Fang et al., 2011; Gnyawali et
al.,
2016). This responds to recent calls that advocate tensions as a
suitable
lens to analyze the consequences of SBPs at multiple levels
(Hahn et al.,
2015). Our findings identify four types of tensions (economic,
struc-
tural, psychological, and behavioral) that tend to manifest in a
firm's
network because of implementing SPBs, and illustrate how
different
network actors perceive them. This responds to the calls to
increase
understanding on how different stakeholders in business
networks ex-
perience and perceive the impacts of SBPs (e.g. Lacoste, 2016).
Second, the findings contribute to the contemporary industrial
marketing literature, which considers how negative value
perceptions
emerge from interaction and collaboration (e.g. Prior & Marcos-
Cuevas,
2016; Verleye et al., 2017). While recent research indicates that
nega-
tive value perceptions might be particularly prevalent in
sustainable
business networks, which are usually characterized by multiple
actors,
goals, and interests (e.g., Oruezabala & Rico, 2012; Scandelius
& Cohen,
2016), most of the previous studies in this area have been
limited to
single case studies and dyadic/triadic settings (Chowdhury et
al., 2016;
Echeverri & Skålén, 2011; Makkonen & Olkkonen, 2017). By
employing
a multiple case design, this study offers a rich empirical account
of the
potential tensions that may emerge and manifest when firms
adopt
SBPs in broader networks with several stakeholders, and
responds to
calls to explore negative value perceptions in multi-actor
contexts
(Prior & Marcos-Cuevas, 2016; Tóth et al., 2018). Furthermore,
whereas
prior studies have considered misalignment in economic or
social goals
as the main source of tensions and conflict (Corsaro, 2015;
Prior &
Marcos-Cuevas, 2016), this study illustrates how intra- and/or
inter-
firm misalignments related to environmental goals may lead to
tensions
and negative value perceptions.
Thirdly, this study contributes to the literature on sustainability
networks (e.g. Johnsen et al., 2017; Meqdadi et al., 2017).
While pre-
vious research has shown that the resources and relations of
networks
can act as enablers and offer considerable advantages for
sustainability
practices (Lacoste, 2016; Patala et al., 2014), our research
highlights
networks as a potential source of inertia. Even firms that may
see
themselves as forerunners and attempt to go beyond regulatory
com-
pliance in their sustainability practices may find themselves
con-
strained by the potential negative impacts on their network
partners.
Organizations are to a great degree a product of the networks
they are
embedded in (Padgett & Powell, 2012), and thus it is important
for
firms to consider the network constraints when planning and im-
plementing new SBPs, to limit the harm to existing
relationships. Al-
ternatively, firms might choose to develop new relations if goal
align-
ment with existing partners is not possible.
5.2. Managerial implications
From the managerial perspective, this study sheds light on the
po-
tential tensions and negative value experiences that may emerge
as a
result of adopting SBPs in business markets. This may help
managers
understand better why, despite good intentions and collective
goals,
sustainability investments may become costly, face social
resistance, or
even fail due to insufficient stakeholder support.
For supplier firms, the findings highlight the importance of ana-
lyzing sustainability investments beyond financial costs. A
more holistic
evaluation of the potential economic, structural, psychological
and
behavioral tensions provides a basis for more inclusive cost-
benefit
analyses, and a greater chance of successful sustainability
practices.
Moreover, by understanding the potential sources of negative
customer
and stakeholder experiences when adopting SBPs, managers
may be
able to anticipate, reduce, or mitigate potential tensions and
conflicts,
and reduce the friction between stakeholders.
For customer firms and network partners, the findings highlight
the
importance of careful assessment of suppliers' sustainability
practices.
While complying with the new sustainability requirements may
result
in higher prices or social discomfort in the short term, it may
offer
potential for improved brand equity, legitimacy and
differentiating
power in the long term. By understanding the sources and nature
of
potential tensions stemming from suppliers' sustainability
practices,
individual partners may increase their tolerance for short-term
de-
gradations in the process of delivering economic and social
gains, and
thus reduce the barriers that would prevent collective networks
from
realizing the benefits in the long term.
For policymakers, the findings highlight the importance of
under-
standing the impacts of regulations, legislation and
sustainability po-
licies in broader networks and value chains. While
environmental
regulations often aim at influencing individual suppliers – for
the col-
lective good – they may have negative spillovers for societal
wellbeing,
for example in the form of decreased competitiveness, lower
employ-
ment or carbon leakage due to relocations. Better understanding
of the
collectively experienced tensions would provide a basis for
regulations
and policies that would cause less friction and support the
optimization
of wellbeing for a broader set of stakeholders, such as societies
and
economies as a whole.
5.3. Limitations and avenues for future research
Given that this study is exploratory by nature, and based on a
limited number of firms, it has natural limitations, some of
which open
up also potential avenues for future research. First, the study
was lim-
ited largely to firms operating in resource- and material-
intensive in-
dustries. Future research could investigate firms in other
industries to
reveal alternative tensions in adopting SBPs, and increase the
general-
izability of the results. From the theory development
perspective, one
important avenue would be to develop a theory and propositions
that
would explain how and when specific SBPs lead to particular
types of
tensions between specific network actors.
Second, given the emphasis on conflicting perceptions between
ac-
tors in the regional network, this study conceptualized tensions
as
N. Tura et al. Industrial Marketing Management 77 (2019) 221–
231
229
negative consequences that result from contradictory goals and
inter-
ests between collaborating actors. While this approach
addressed an
underexplored area in the current literature, it might neglect
insights on
the positive consequences that adopting SBPs in networks might
pro-
duce. Hence, future research could provide a complementing
perspec-
tive by focusing on networks where different actors have more
con-
gruent goals and aligned interests, and explore how and when
SBPs
result in synergies and enhanced value outcomes between
network
actors.
Third, this study employed qualitative field data. Future
research
could employ quantitative studies, and explore how different
negative
tensions actually impact a firm's performance or the perceived
re-
lationship quality with customers or other network partners.
Moreover,
a quantitative approach could define indicators that measure the
po-
tential tensions, and investigate how potential moderators such
as the
scope, scale, and type of different SBPs influence these
tensions. In
other words, how the tensions from investments in smaller
versus
larger, or environmentally versus socially dominant SBPs differ
from
each other.
Fourth, the field interviews involved a relatively large and
uneven
spread of informants between firms. While this is a fairly
accepted
practice in interpretative research that aims to generate a
broader un-
derstanding of a selected phenomenon by increasing the number
of
cases (e.g., Eisenhardt & Graebner, 2007), it can also result in
biases
that favor the perceptions of firms with more informants. On the
other
hand, using single informants in most of the interviewed firms
offers
limited potential to explore how tensions from SBPs are
perceived at
different levels or in different functions. Consequently, future
research
could approach multiple informants in several organizations,
and ex-
plore if, how and why perceptions of SBP might vary between
different
organizational levels and functions.
Finally, although this study employed a multiple case setting
and a
two-year research collaboration with the participating
companies, it
provides a relatively static analysis of the experienced and
perceived
tensions in business networks. An interesting avenue for future
research
would be to employ a longitudinal research setting, and
investigate how
different tensions evolve and spread over networks, and in turn,
how
different actors, individually and collectively, try to avoid or
mitigate
them over time.
Acknowledgments
The authors would like to thank Asta Salmi, Sari Hämäläinen,
and
the anonymous reviewers for their thoughtful suggestions that
have
helped improve the final manuscript.
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Information Governance Checklist and Privacy Impact Ass.docx

  • 1. Information Governance Checklist and Privacy Impact Assessments Authorship: <Your name> – Information Governance Manager Committee Approved: Quality and Clinical Governance Committee Approved date: Review Date: Target Audience: All Staff Policy Reference No: Today’s date-sequence number i.e. 2019-07-08-00 Version Number: 0.1 Business Critical data Yes Business Critical System Yes 10
  • 2. Contents Introduction 4 Responsibilities 4 Information Governance Checklist 4 Privacy Impact Assessment 5 ANNEX A - INFORMATION GOVERNANCE CHECKLIST 6 ANNEX B - Privacy Impact Assessment Proforma 7 Section A: New/Change of System/Project General Details 8 Section B Privacy Impact Assessment Key Questions 10 Evaluation 15 Appendix – Glossary of Terms 18 STANDARD AMENDMENTS Amendments to the Standard will be issued from time to time. A new amendment history will be issued with each change. New Version Number Issued by Nature of Amendment Approved by & Date Date on Intranet 0.1 <your name> First draft for comments NR
  • 3. Introduction The CCG needs to ensure that it remains compliant with legislation and NHS requirements such as the Information Governance Toolkit with its use of Personal Confidential Information. The Information Governance Checklist and Privacy Impact Assessments (PIA) have been developed to provide an assessment when new services are started or new information processing systems are introduced. Responsibilities Policy review and maintenance Information Governance, Security & Compliance Manager Approval CSU Executive Management Team Adoption All manager, staff and contractors Responsibility for ensuring that Information Governance Checklists and Privacy Impact Assessments are completed, where required, resides with all Service Managers and Directorate Heads.
  • 4. Line Managers are responsible for ensuring that their permanent and temporary staff and contractors are aware of the Information Governance Checklist and Privacy Impact Assessment process. On a day-to-day basis staff of all levels that are introducing a new system be it electronic or paper based, should use this document to ensure that processing remains compliant with current legislation. Information Governance Checklist The Information Governance Checklist provides short initial assessment which should be completed at an early stage of any project or service redesign to identify stakeholders, make an initial assessment of privacy risk and decide if a Privacy Impact Assessment is necessary as not all project or changes to services would require one. A copy of the IGC form can be found at Appendix A Privacy Impact Assessment A PIA is a process which helps assess privacy risks to individuals in the collection, use and disclosure of information. PIAs help identify privacy risks, foresee problems and bring forward solutions. A PIA is necessary to identify and manage risks; to avoid unnecessary costs; to avoid inadequate solutions to privacy risks; to avoid loss of trust and reputation; to inform the organisation’s communication strategy and to meet or exceed legal requirements. There is no statutory requirement for any organisation to complete a PIA, however, central government departments have been instructed to complete PIAs by the Cabinet Office. The overall PIA process is operated under the supervision of the Information Commissioners Office (ICO) who is responsible for the production of guidance materials. Is a PIA required for every project? Not every project will require a PIA. The ICO envisages PIAs being used only where a project is of such a wide scope, or will use personal information of such a nature, that there would be
  • 5. genuine risks to the privacy of the individual. PIAs will usually be recommended where a change of the law will be required, new and intrusive technology is being used, or where private or sensitive information which was originally collected for a limited purpose is going to be reused in a new and unexpected way. The IGC will help determine if a PIA is required and if so which of the two options will be suitable. Why should I do a PIA? To identify privacy risks to individuals; To identify privacy and Data Protection compliance liabilities; To protect the organisations reputation; To instil public trust and confidence in your project/product; To avoid expensive, inadequate “bolt- on” solutions; and To inform your communications strategy. Following completion of the IGC it may be decided that a PIA is going to be required. There are two types of PIA, a small scale and a full scale. Where it is thought that a PIA is needed the small scale form, located at Appendix B, will be used and submitted to the Information Governance Team who can assess the small scale form completed and advise on whether a full scale PIA needs to be completed. When should I start a PIA? PIAs are most effective when they are started at an early stage of a project, when: · the project is being designed; · you know what you want to do; · you know how you want to do it; and · you know who else is involved. But it must be completed before: · decisions are set in stone; · you have procured systems; · you have signed contracts/ MOUs/agreements; and · while you can still change your mind! ANNEX A - Information Governance Checklist Name of Project or Service Change
  • 6. Lead Project Manager Does project involve processing of Personal Confidential Data (PCD)? If yes how many records will be involved? What is the purpose of the processing? Which organisations and customers are involved? Give an indication of the timescale for the project? This IGC must be completed by all projects and significant changes to service at the start or early stage of a project. Please complete all questions with as much detail as possible and return the completed from to:<your name> Information Governance, Security & Compliance Manager <your email> ANNEX B - Privacy Impact Assessment Proforma This document must be completed for any new / or change in service which plans to utilise personal confidential information. It must be completed as soon as the new service / or change is identified by the Project Manager / System Manager or Information Asset Owner. This process is a mandated requirement on the Information Governance Toolkit to ensure that privacy concerns have been considered and actioned to ensure the security and confidentiality of the personal identifiable information. There are 2 types of Privacy Impact Assessments – a small scale and full scale. This proforma is based on the Small Scale PIA. Following completion of this proforma, it may be necessary to conduct a Full Scale PIA. Full details are available in the Information Commissioner’s handbook:-
  • 7. http://www.ico.org.uk/pia_handbook_html_v2/html/0- advice.html Privacy Law compliance checks and Data Protection Act compliance checks are part of the PIA process – the questions to assess this are included in the proforma. Please complete all questions with as much detail as possible and return the completed from to:<your name> Information Governance, Security & Compliance Manager <your email address> Further guidance on specific items can be found on the Information Commissioner’s website. <your email address> Use scenario to complete the belowSection A: New/Change of System/Project General Details Name: Objective: Background: Why is the new system / change in system required? Is there an approved business case? Benefits: Constraints: Relationships: (for example, with other Trust’s, organisations) Quality expectations: Cross reference to other projects:
  • 8. Project Manager: Name: Title: Department: Telephone: Email Information Asset Owner: (All systems/assets must have an Information Asset Owner (IAO). IAO’s are normally the Heads of Departments and report to the SIRO) Name: Title: Department: Telephone:
  • 9. Email Information Asset Administrator: (All systems / assets must have an Information Asset Administrator (IAA) who reports the IAO as stated above. IAA’s are normally System Managers / Project Leads) Name: Title: Department: Telephone: Email Deputy Information Asset Administrator: (It is necessary that there is a deputy in place for when the IAA is absent from the workplace for whatever reason) Name: Title:
  • 10. Department: Telephone: Email Customers and stakeholders: Section B Privacy Impact Assessment Key Questions Question Response Ref to keyreq. e.g. IGTK, Small scale PIA etc 1. Will the system/project/process (will now be referred to thereafter as ‘asset’) contain Personal Confidential Data or Sensitive Data? If answered ‘No’ you do not need to complete any further information as PIA is not required. No Patient Staff Other (specify) 2. Please state purpose for the collection of the data: for example, patient treatment, health administration, research, audit, staff administration 3. Does the asset involve new privacy–enhancing technologies? Encryption; 2 factor authentication, pseudonymisation Yes No If yes, please give details:
  • 11. SS PIA (1) 4. Please tick the data items that are held in the system Personal Sensitive Name Address Post Code Date of Birth GP Consultant Next of Kin Hospital (District) No. Sex NHS Number National Insurance Number Treatment Dates Sex Diagnosis Religion Occupation Ethnic Origin Medical History Staff data (Pay, Union etc) Other (please state here): 5. Will the asset collect new personal data items which have not been collected before? Yes No If yes, please give details: SS PIA (5)
  • 12. 6. What checks have been made regarding the adequacy, relevance and necessity for the collection of personal and/or sensitive data for this asset? SS PIA (2 & 10) 7. Does the asset involve new or changed data collection policies that may be unclear or intrusive? Yes No SS PIA (9) 8. Is the third party contract/supplier of the system registered with the Information Commissioner? What is their notification number? Yes No Data Protection Act Notification Number: 9. Has the third party supplier completed an Information Governance Toolkit Return? Yes No If yes, please give percentage score: 10. Does the third party/supplier contracts contain all the necessary Information Governance clauses including information about Data Protection and Freedom of Information? Yes No IG TK 110 11. Does the asset comply with privacy laws such as the Privacy and Electronic Communications Regulations 2003 (see appendix for definition) Yes No Privacy Law Check
  • 13. 12. Who provides the information for the asset? Patient Staff Others – Please specify e.g. Interfaces from PAS 13. Are you relying on individuals (patients/staff) to provide consent for the processing of personal identifiable or sensitive data? Yes No 14. If yes, how will that consent be obtained? Please state: 15. How will consent and non consent be recorded? 16. If consent is not the basis for processing which legal justification is being used? Court Order Public Interest Other (detail below) 17. Have the individuals been informed of and have given their consent to all the processing and disclosures? Yes (explicit) No Yes (implicit in leaflets, on website) IGTK 18. How will the information be kept up to date and checked for accuracy and completeness? 19. Who will have access to the information within the system? 20. Do you intend to send direct marketing messages by electronic means? This includes both live and pre-recorded
  • 14. telephone calls, fax, email, text message and picture (including video)? Yes No Privacy Check 21. If applicable, are there procedures in place for an individual’s request to prevent processing for purposes of direct marketing in place? Yes No Privacy Check 22. Is automated decision making used? If yes, how do you notify the individual? Yes No Privacy Check 23. Is there a useable audit trail in place for the asset. For example, to identify who has accessed a record? Yes No IGTK 24. Have you assessed that the processing of Yes No personal/sensitive data will not cause any unwarranted damage or distress to the individuals concerned? What assessment has been carried out? 25. What procedures are in place for the rectifying/blocking of data by individual request or court order? 26. Does the asset involve new or changed data access or
  • 15. disclosure arrangements that may be unclear? Yes No SS PIA (12) 27. Does the asset involve changing the medium for disclosure for publicly available information in such a way that data become more readily accessible than before? (For example, from paper to electronic via the web?) Yes No SS PIA (14) 28. What are the retention periods (what is the minimum timescale) for this data? (please refer to the Records Management: NHS Code of Practice) SS PIA (13) 29. How will the data be destroyed when it is no longer required? IGTK 30. Will the information be shared with any other establishments/ organisations/Trust’s? Yes No IGTK, PIA 4 31. Does the asset involve multiple organisations whether public or private sector? Include any external organisations. Also include how the data will be sent/accessed and secured. Yes No 32. Does the asset involve new linkage of personal data with data in other collections, or is Yes No
  • 16. SS PIA (8) there significant changes in data linkages? 33. Where will the information be kept/stored/accessed? On paper On a database saved on a network folder/drive Website On a dedicated system saved to the network Other – please state below: 34. Will any information be sent off site If ‘Yes’ where is this informed being sent Yes No IGTK 208 & 308 35. Please state by which method the information will be transported Fax Email Via NHS Mail Website Via courier By hand Via post – internal Via telephone Via post - external Other – please state below: IGTK 208 & 308 36. Are you transferring any personal and / or sensitive data to a country outside the European Economic Area (EEA)? If yes, where? Yes No
  • 17. IGTK 209 37. What is the data to be transferred to the non EEA country? IGTK 209 38. Are measures in place to mitigate risks and ensure an adequate level of security when the data is transferred to this country? Yes No Not applicable IGTK 209 39. Have you checked that the non EEA country has an adequate level of protection for data Yes No Not applicable IGTK 209 security? 40. Is there a Security Management Policy and Access Policy in place? Please state policy titles. Yes No SS PIA (11) 41. Has an information risk assessment been carried out and reported to the Information Asset Owner (IAO)? Where any risks highlighted – please provide details and how these will be mitigated? Was process approved by SIRO? Yes No
  • 18. Risk Ass 42. Is there a contingency plan / backup policy, or business continuity plan in place to manage the effect of an unforeseen event? Please provide a copy. Yes No Risk Ass 43. Are there procedures in place to recover data (both electronic /paper) which may be damaged through: Human error Computer virus Network failure Theft Fire Flood Other disaster Please provide policy titles. Yes No Risk Ass Evaluation 44. Is the PIA approved? If not, please state the reasons why and the action plan put in Yes No place to ensure the PIA can be approved Form completed by: Name: Title:
  • 19. Signature: Date: Information Governance Group Approval Name: Title: Signature: Date: Appendix – Glossary of Terms Item Definition Personal Data This means data which relates to a living individual which can be identified: A) from those data, or B) from those data and any other information which is in the possession of, or is likely to come into the possession of, the data controller. It also includes any expression of opinion about the individual and any indication of the intentions of the data controller or any other person in respect of the individual Sensitive Data This means personal data consisting of information as to the: A) racial or ethnic group of the individual B) the political opinions of the individual C) the religious beliefs or other beliefs of a similar nature of the individual D) whether the individual is a member of a trade union
  • 20. E) physical or mental health of the individual F) sexual life of the individual G) the commission or alleged commission by the individual of any offence H) any proceedings for any offence committed or alleged to have been committed by the individual, the disposal of such proceedings or the sentence of any court in such proceedings Direct Marketing This is “junk mail” which is directed to particular individuals. The mail which are addressed to “the occupier” is not directed to an individual and is therefore not direct marketing. Direct marketing also includes all other means by which an individual may be contacted directly such as emails and text messages which you have asked to be sent to you. Direct marketing does not just refer to selling products or services to individuals, it also includes promoting particular views or campaigns such as those of a political party or charity. Automated Decision Making Automated decisions only arise if 2 requirements are met. First, the decision has to be taken using personal information solely by automatic means. For example, if an individual applies for a personal loan online, the website uses algorithms and auto credit searching to provide an immediate yes / no decision. The second requirement is that the decision has to have a significant effect on the individual concerned. European Economic Area (EEA) The European Economic Area comprises of the EU member states plus Iceland, Liechtenstein and Norway Information Assets Information assets are records, information of any kind, data of any kind and any format which we use to support our roles and responsibilities. Examples of Information Assets are databases, systems, manual and electronic records, archived data, libraries, operations and support procedures, manual and training materials, contracts and agreements, business continuity plans,
  • 21. software and hardware. SIRO (Senior Information Risk Owner) This person is an executive who takes ownership of the organisation’s information risk policy and acts as advocate for information risk on the Board IAO (Information Asset Owner) These are senior individuals involved in running the relevant service/department. Their role is to understand and address risks to the information assets they ‘own’ and to provide assurance to the SIRO on the security and use of those assets. They are responsible for providing regular reports regarding information risks and incidents pertaining to the assets under their control/area. IAA (Information Asset Administrator) There are individuals who ensure that policies and procedures are followed, recognise actual or potential security incidents, consult their IAO on incident management and ensure that information asset registers are accurate and up to date. These roles tend to be system managers Implied consent Implied consent is given when an individual takes some other action in the knowledge that in doing so he or she has incidentally agreed to a particular use or disclosure of information, for example, a patient who visits the hospital may be taken to imply consent to a consultant consulting his or her medical records in order to assist diagnosis. Patients must be informed about this and the purposes of disclosure and also have the right to object to the disclosure. Explicit consent Express or explicit consent is given by a patient agreeing actively, usually orally (which must be documented in the patients casenotes) or in writing, to a particular use of disclosure of information. Anonymity Information may be used more freely if the subject of the information is not identifiable in any way – this is anonymised
  • 22. data. However, even where such obvious identifiers are missing, rare diseases, drug treatments or statistical analyses which may have very small numbers within a small population may allow individuals to be identified. A combination of items increases the chances of patient identification. When anonymised data will serve the purpose, health professionals must anonymise data and whilst it is not necessary to seek consent, general information about when anonymised data will be used should be made available to patients. Pseudonymity This is also sometimes known as reversible anonymisation. Patient identifiers such as name, address, date of birth are substituted with a pseudonym, code or other unique reference so that the data will only be identifiable to those who have the code or reference. Information Risk An identified risk to any information asset that the Trust holds. Please see the Information Risk Policy for further information. Privacy Invasive Technologies Examples of such technologies include, but are not limited to, smart cards, radio frequency identification (RFID) tags, biometrics, locator technologies (including mobile phone location, applications of global positioning systems (GPS) and intelligent transportation systems), visual surveillance, digital image and video recording, profiling, data mining and logging of electronic traffic. Technologies that are inherently intrusive, new and sound threatening are a concern and hence represent a risk Authentication Requirements An identifier enables organisations to collate data about an individual. There are increasingly onerous registration processes and document production requirements imposed to ensure the correct person can have, for example, the correct access to a system or have a smartcard. These are warning signs of potential privacy risks.
  • 23. Retention Periods Records are required to be kept for a certain period either because of statutory requirement or because they may be needed for administrative purposes during this time. If an organisation decides that it needs to keep records longer than the recommended minimum period, it can very the period accordingly and record the decision and the reasons behind. The retention period should be calculated from the beginning of the year after the last date on the record. Any decision to keep records longer than 30 years must obtain approval from The National Archives. Records Management: NHS Code of Practice Is a guide to the required standards of practice in the management of records for those who work within or under contract to NHS organisations in England. It is based on current legal requirements and professional best practice. The code of practice contains an annex with a health records retention schedule and a Business and Corporate (non-health) records retention schedule. Data Protection Act 1998 This Act defines the ways in which information about living people may be legally used and handled. The main intent is to protect individuals against misuse or abuse of information about them. The 8 principles of the Act state The fundamental principles of DPA 1998 specify that personal data must: be processed fairly and lawfully. be obtained only for lawful purposes and not processed in any manner incompatible with those purposes. be adequate, relevant and not excessive. be accurate and current. not be retained for longer than necessary. be processed in accordance with the rights and freedoms of data subjects. be protected against unauthorized or unlawful processing and against accidental loss, destruction or damage.
  • 24. not be transferred to a country or territory outside the European Economic Area unless that country or territory protects the rights and freedoms of the data subjects. Privacy and Electronic Communications Regulations 2003 These regulations apply to sending unsolicited marketing messages electronically such as telephone, fax, email and text. Unsolicited marketing material should only be sent if the requester has opted in to receive this information.
  • 25.
  • 26. Contents lists available at ScienceDirect Industrial Marketing Management journal homepage: www.elsevier.com/locate/indmarman Target and position article The darker side of sustainability: Tensions from sustainable business practices in business networks Nina Turaa,⁎, Joona Keränena, Samuli Patalab a School of Business and Management, Lappeenranta University of Technology, P.O. Box 20, Lappeenranta FI-53851, Finland b Department of Management Studies, Aalto University School of Business, P.O. Box 11110, Aalto FI-500076, Finland A R T I C L E I N F O Keywords: Sustainability Sustainable business practices Tensions Negative consequences Business networks Environmental A B S T R A C T While the current literature generally assumes that
  • 27. implementing sustainable business practices (SBPs) will lead to improved wellbeing and positive outcomes, relatively little research has explored the potential tensions and conflicts that SBPs may cause in multi-actor networks. To address this issue, we conduct a qualitative multiple case study in a regional business network, including interviews with 43 managers in 17 firms in different in- dustries. The findings of this study identify four types of tensions (economic, structural, psychological, and behavioral) that tend to emerge when firms implement SBPs in networks, and illustrate how different stake- holders (implementers, suppliers, customers, other network partners) perceive them. Overall, this study con- tributes to the current literature by highlighting the underexplored “dark side” of sustainability, and illuminating how organizational decisions aiming at improving collective wellbeing can also lead to tensions and conflicts. For managers, this study offers insights into how to anticipate, manage and mitigate potential tensions that might arise in business networks when one stakeholder decides to implement a SBP. 1. Introduction Sustainability is considered a new strategic imperative and a long- term goal for firms, nations, and society as a whole (Finke, Gilchrist, & Mouzas, 2016; Porter & Reinhardt, 2007). Customers, investors and other stakeholders demand continuous improvements in environmental and social responsibility (Fearne, Garcia Martinez, & Dent, 2012), and companies are increasingly encouraged to implement sustainable
  • 28. business practices (SBPs) to reduce the environmental load and to stay competitive (Johnsen, Miemczyk, & Howard, 2017; Kotler, 2011). However, while the mainstream literature generally assumes that SBPs lead to win-win situations, we need more understanding on the po- tential tensions and conflicts that emerge when implementing SBPs (Hahn, Figge, Pinkse, & Preuss, 2010; Öberg, Huge-Brodin, & Björklund, 2012). SBPs are generally defined as activities, initiatives or policies that aim at solving environmental and social problems while maintaining a profit (López, Garcia, & Rodriquez, 2007; Ortiz-De-Mandojana & Bansal, 2016; Tate, Ellram, & Gölgeci, 2013). Driven by the need to commercialize both economically viable and societally acceptable so- lutions, a majority of the research in this area has focused on examining the potential benefits that economic, environmental and social actors may accrue from sustainability (e.g. Doganova & Karnøe, 2015; Fearne et al., 2012; Patala et al., 2016; Sharma, Iyer, Mehrotra, & Krishnan, 2010). However, given that SBPs have usually impacts that are realized in the long term and influence actors in broader business networks
  • 29. (Lacoste, 2016; Öberg et al., 2012; Peltola, Aarikka-Stenroos, Viana, & Mäkinen, 2016; Ritvala & Salmi, 2010), they may also lead to un- expected or even detrimental consequences that may cause tensions between the network actors (Hahn, Pinkse, Preuss, & Figge, 2015). Tensions are usually understood as negative consequences, such as strain and conflict, that result from contradictory goals and interests between collaborating actors, and can hamstring, aggravate or even break up business relationships and network partnerships (e.g., Fang, Chang, & Peng, 2011; Gnyawali, Madhavan, He, & Bengtsson, 2016). For example, investing in cleaner technologies can improve operational performance and reduce environmental load, but they are often costly and involve high risks, including uncertainties about customer needs, legislation and commercialization potential (Hall, 2002). Adopting ethical purchasing practices can improve a firm's image and social status (Porter & Kramer, 2006), but also force other supply chain partners to change their operations or even end relationships if they cannot comply, thereby increasing mental and financial stress within a firm's network (Jackson & Young, 2016).
  • 30. Although implementing SBPs can have clearly both far-reaching and widely experienced negative consequences, “conflicts and trade- offs https://doi.org/10.1016/j.indmarman.2018.09.002 Received 17 July 2016; Received in revised form 26 July 2018; Accepted 3 September 2018 ⁎ Corresponding author. E-mail address: [email protected] (N. Tura). Industrial Marketing Management 77 (2019) 221–231 Available online 04 October 2018 0019-8501/ © 2018 Elsevier Inc. All rights reserved. T http://www.sciencedirect.com/science/journal/00198501 https://www.elsevier.com/locate/indmarman https://doi.org/10.1016/j.indmarman.2018.09.002 https://doi.org/10.1016/j.indmarman.2018.09.002 mailto:[email protected] https://doi.org/10.1016/j.indmarman.2018.09.002 http://crossmark.crossref.org/dialog/?doi=10.1016/j.indmarman. 2018.09.002&domain=pdf between economic, environmental and social aspects have received very little attention in the management literature so far” (Hahn et al., 2010, p. 218). Likewise, while recent industrial marketing literature has
  • 31. addressed emerging tensions in business networks (e.g., Chou & Zolkiewski, 2018; Chowdhury, Gruber, & Zolkiewski, 2016; Tóth, Peters, Pressey, & Johnston, 2018), these studies have focused on ten- sions between economic and social goals, while tensions related to environmental goals remain less understood. Given that the risk for tensions in environmentally-oriented business networks seems to be particularly high (c.f., Patala, Hämäläinen, Jalkala, & Pesonen, 2014; Scandelius & Cohen, 2016), this study addresses the following research question: What kind of tensions may emerge when implementing SBPs in business networks, and how are they experienced by different network ac- tors? To study this issue in a real-life context, we employed the multiple case study approach, and interviewed 43 managers in 17 firms that are developing new SBPs and operate in various industries in business-to- business (B2B) markets. B2B markets provide a highly relevant context for this study, because SBPs influence a broad network of actors (Wittneben, Okereke, Banerjee, & Levy, 2012), and interaction in B2B markets involves “processes within organizations, in relationships be- tween actors, and within a network of actors” (Jaakkola & Hakanen,
  • 32. 2013, p. 49). Accordingly, this study contributes to the sustainability and industrial marketing literature by illustrating how the im- plementation of SBPs can lead to tensions, and how different actors (suppliers, implementers, customers, other stakeholders) in business networks experience them. From a broader perspective, this study also addresses the calls to explore the side-effects, or the “darker side” of sustainability (Johnsen & Lacoste, 2016; Öberg et al., 2012) The rest of the paper is organized as follows. First, we discuss why companies implement SBPs, and why this may cause tensions in busi- ness networks. After highlighting potential research gaps in the current literature, we describe our qualitative field study and present our findings. Finally, we discuss the potential implications and limitations of the study, and suggest future research areas. 2. Literature review 2.1. Why do companies implement sustainable business practices? Sustainability has become a central part of business strategy in many firms and industry sectors (Porter & Reinhardt, 2007). By adopting SBPs, firms aim at creating economic business benefits, re- ducing environmental impacts, addressing social issues, and displaying
  • 33. corporate responsibility to customers and other stakeholders (Fearne et al., 2012). As individual firms are expending increasing amounts of money and effort on a variety of environmental investments and sus- tainable R&D activities, the general attitude towards sustainability is- sues has started to change slowly, seeing them as potential business opportunities instead of extra regulatory costs (Kotler, 2011; Lubin & Esty, 2010; Porter & Kramer, 2011; Tate et al., 2013). The main motivation for implementing SBPs stems usually from environmental laws and regulations, but to an increasing extent also from business objectives, such as profitability and improved product quality (Ranta, Aarikka-Stenroos, Mäkinen, 2018; Beise & Rennings, 2005). Consequently, firms are investing increasingly in SBPs to achieve optimal “win-win” situations, where economic, environmental, and social benefits − often referred to as the “triple bottom line” − can be realized for relevant stakeholders and networks (e.g. Ambec & Lanoie, 2008; Ameer & Othman, 2012; Kurapatskie & Darnall, 2013). In short, this usually means increased profit and differentiation power for the supplier, and reduced environmental load and increased social well- being for the whole network, including suppliers, customers,
  • 34. other stakeholders, and the society as a whole (e.g. Keränen, 2017; Patala et al., 2014; Porter & Kramer, 2006; ). While the benefits of investing in sustainability are clearly recognized in the literature, the potential costs or negative con- sequences that may result from implementing SBPs have received much less attention (Hahn et al., 2010; Konar & Cohen, 2001). The current literature tends to acknowledge direct economic costs and perceived risk as the primary drawbacks of implementing SBPs, but most of these studies focus predominantly on supplier perceptions, while under-em- phasizing other stakeholders (e.g. Hall, 2002; Hansen, Grosse- Dunker, & Reichwald, 2009; Nidumolu, Prahalad, & Rangaswami, 2009). Con- sequently, recent sustainability research has suggested that looking at the emerging tensions between network partners could offer a more holistic picture of the consequences perceived by multiple actors (Hahn et al., 2015) 2.2. Sustainable value co-creation in business networks: potential for tensions In the industrial marketing literature, a great deal of research has
  • 35. argued that value emerges through collaborative activities and inter- action, and is co-created when actors exchange and integrate resources that contribute to solving mutual problems (Aarikka-Stenroos & Jaakkola, 2012; Vargo & Lusch, 2016). Value co-creation is considered to take place in broader networks or service systems, and may hence involve a diverse set of actors that have a direct or indirect influence on, and may experience the consequences of value co-creation (Gummesson & Mele, 2010; Pinho, Beirão, Patrício, & Fisk, 2014; Vargo & Lusch, 2011). However, value co-creation does not always lead to positive outcomes. It can be also disruptive, and interaction between actors can lead to deteriorating and negative outcomes (Echeverri & Skålén, 2011; Prior & Marcos-Cuevas, 2016; Verleye et al., 2017). While emerging research has begun to unpack the potential negative consequences of complex exchanges with economic or social goals (e.g. Plé & Chumpitaz Cáceres, 2010; Prior & Marcos-Cuevas, 2016; Verleye et al., 2017), several studies indicate that the potential for negative consequences is exacerbated when value co-creation involves environ- mental and sustainable goals as well (e.g. Doganova & Karnøe, 2015; Reypens, Lievens, & Blazevic, 2016). The key reasons for this
  • 36. include a more diverse and multi-layered set of actors and decision makers (Baraldi, Gregori, & Perna, 2011; Seshadri, 2013), broader network(s) of stakeholders and supply chain partners (Meqdadi, Johnsen, & Johnsen, 2017; Öberg et al., 2012), longer decision-making cycles (Ritvala & Salmi, 2010), competing value-creating and problem-solving logics (Patala et al., 2014), and divergent or conflicting goals and in- terests (Doganova & Karnøe, 2015). Thus, sustainable value co- creation in business networks seems particularly susceptible for potential ne- gative consequences. However, while existing research has addressed why and how sustainable value co-creation can be obstructed or re- strained (Finke et al., 2016; Ritvala & Salmi, 2010), less research has addressed how the potential negative consequences of sustainable value co-creation may manifest across business networks, or how they are experienced by different stakeholders (Öberg et al., 2012; Patala et al., 2014). Recent industrial marketing research has advocated the use of the tension perspective to explore the hurdles and impediments between multiple actors in business networks (e.g., Chou & Zolkiewski, 2018;
  • 37. Chowdhury et al., 2016; Tóth et al., 2018). In brief, tensions focus on contradictory forces, objectives, or motivations with conflicting goals and interests that tend to drive relationship or network partners apart (Das & Teng, 2000; Tidström 2014). While some tensions can have positive impacts (especially if properly managed), they are usually considered in terms of negative consequences, or more broadly as the dark side of relationships, as they can cause strain, conflict, and emo- tional upheaval (Fang et al., 2011). While the previous marketing literature identifies multiple types of tension in relationships and networks, they are usually categorized broadly under structural, psychological, and behavioral tensions (Fang et al., 2011; Tidström, 2014; Pressey & Vanharanta, 2016). Structural N. Tura et al. Industrial Marketing Management 77 (2019) 221– 231 222 tensions refer to the different ways inter-organizational relationships are organized and governed within a network, and can include, for ex-
  • 38. ample, tensions between structural flexibility and rigidity. Psychological tensions refer to cognitive aspects, such as attitudes and perceptions of different actors in the network. Typical psychological tensions in net- works may relate to issues such as (mis)trust and temporal orientations. Finally, behavioral tensions refer to actors' activities, routines and com- municative practices, and may relate for example, to active or passive, or cooperative or competitive behavior (Fang et al., 2011; Tóth et al., 2018). In addition, both the marketing and sustainability literatures refer often to economic tensions, which usually relate to differences be- tween an actor's value capture and appropriation logics (Hahn et al., 2010; Chou & Zolkiewski, 2018). Overall, since tensions can emerge between multiple actors, including individuals, groups, and organiza- tions, they offer a good analytical lens to analyze the activities, out- comes and consequences in multi-actor networks (Burton et al., 2016). In sum, the existing literature acknowledges that sustainability is- sues are often broad and complex, and require an understanding of the impacts and consequences experienced and perceived in larger net- works (Wittneben et al., 2012). Because clear identification of
  • 39. re- lationships and interactions between different problems, activities and consequences related to sustainability is often very difficult, they might be best understood as tensions between different network actors, who are likely to experience them differently (Hahn et al., 2010, 2015; Kumazawa, Saito, Kozaki, Matsui, & Mizoguchi, 2009). 3. Methodology To explore the potential tensions that may result from implementing SBPs, we adopted a qualitative research approach, and employed an embedded multiple case design (Scholz & Tietje, 2002; Yin, 2014). Because the current research on the tensions of implementing SBPs is at a relatively early stage (Hahn et al., 2010, 2015; Öberg et al., 2012), a qualitative research approach is suitable to generate a deep and de- tailed understanding of this complex and far-reaching phenomenon in a real-life setting (Corbin & Strauss, 2015). Moreover, an exploratory research approach supports theory building from empirical insights in an under-researched area (Eisenhardt & Graebner, 2007). By using an embedded multiple case design, we were able to explore how the im-
  • 40. plementation of SBPs influences different actors in a business network. This gave rise to a more holistic understanding of the potential tensions in a broad and more generalizable context (Halinen & Törnroos, 2005; Yin, 2014). 3.1. Case selection We used a theoretical sampling logic to identify firms that had been developing and implementing SBPs in B2B markets, and would hence provide access to empirically rich and insightful data (Eisenhardt & Graebner, 2007). With this aim, we approached a specific regional cluster in Finland, which includes 17 firms. The cluster has a strong history of collaboration and ongoing sustainability initiatives, fa- cilitated by regional development organizations and a collective agenda to improve regional sustainability. Conceptually, the regional network is akin to an “industrial symbiosis network”, which includes separate industries with a collective aim to achieve eco-efficiency through the exchange of resources, by-products and expertise in a socially em- bedded and regionally constrained system (Patala et al., 2014). The regional network in question is built around resource- and material-intensive industries, including process and metal,
  • 41. wood, en- ergy, and waste technologies. These are all mature industries, and under high economic, environmental and social pressures to adopt more efficient resource and raw material bases (i.e., solar energy, waste recycling), ecologically friendlier offerings (i.e., bio-oil, digital ser- vices), and socially responsible purchasing practices (i.e., local, ethical, and sustainable procurement). In addition, the network includes several regional development organizations, which are focused on providing consulting, financing and other support for firms in this area. Conceptually, the empirical setting represents a “nested network”, as the regional industry cluster operates as a larger macro-level network, which contains several smaller embedded ‘nets’ or business networks (c.f., Ritvala & Salmi, 2010). This approach allows us to take into ac- count the embedded nature of individual and dyadic relationships as part of a network context (Möller & Svahn, 2006), and explore how the Fig. 1. Illustration of the network and embedded units. N. Tura et al. Industrial Marketing Management 77 (2019) 221– 231 223
  • 42. actions and practices of individual actors were experienced and per- ceived by other actors in broader networks. Fig. 1 illustrates the re- gional network, the industry specific sub-networks, and the embedded case companies. The case companies represent various types of network actors and value chain positions, as they operate as suppliers and customers in their own sub-networks or network partners and stakeholders in the larger regional network. More specifically, the roles of the case com- panies in the regional network can be divided to three primary types: implementers (I), which have implemented new SBPs; service providers (S), which have developed new services to facilitate other firms' SBPs; and regional partners (P), which facilitate the adoption of SBPs in the region. In turn, the value chain positions can be considered in terms of firms who implement specific SBPs (implementers), their raw material, product, technology and energy suppliers in the “up-stream” position, their primary customers in the “down-stream” position, and other net- work partners providing different types of supporting services. While the
  • 43. firms represent specific types of network actors, they could adopt dif- ferent and sometimes co-existing value chain positions, depending on their ongoing relationships with other actors. Table 1 provides an overview of the case companies, their implemented SBPs or activities employed to support other firms' SBPs, and occupied network positions in relation to other actors in the network. 3.2. Data collection The data collection for this study took place in 2014 and 2015, and involved 24 single and six group interviews with a total of 43 managers. The single interviews lasted between 35 and 109 min, and the group interviews between 97 and 179 min. All the interviews were sound- recorded and transcribed. This resulted in 984 pages of double- spaced interview transcripts. All the interviews were semi-structured, and fo- cused on the value of sustainability, firm-specific sustainability prac- tices, and the outcomes of these practices for firms, their customers, and stakeholders. Using a thematic guide and open-ended questions, the interviewees had the opportunity to express their ideas freely and focus on the naturally occurring issues that emerged during the interviews
  • 44. (Creswell, 2013). In addition, the group interviews allowed us to probe multiple views on specific issues, challenge diverging ideas, and vali- date emerging findings interactively (Bryman, 2012). All the inter- viewees were experienced senior managers, who were responsible for and/or had knowledge of the sustainability practices their firms had implemented. An overview of the interview data is presented in Table 2. We supplemented the primary interview data with a large set of rich secondary data. This included analyses of company websites, annual reports, specific sustainability and corporate social responsibility re- ports, as well as field notes (50 pages) of 16 steering group meetings and workshops with representatives from the regional network actors Table 1 Overview of the case companies. Firm Industry Implemented SBPs (I 1-11), and activities that support other firms' SBPs in the network (S12- P17) Examples of occupied network positions (in addition to being an implementer for the SBPs mentioned in column #3) I/S1 Energy & heat industry Development of bio-oil and electric cars, environmental consulting,
  • 45. commitment to CO2 free production Supplier for renewable energy and bio-oil Network partner providing environmental consulting services I2 Energy industry Developing new business areas from cleaner waters, investments in modernizing monitoring and water treatment products, responsible production Supplier of energy and clean water products Customer for environmental consulting services and production equipment I3 Energy industry Bio-heating plant and a transmission line project Supplier for energy based on bio-heating Customer for renewable fuels, recycled raw material, production equipment and environmental consulting services I4 Energy industry CO2-free production, new treatment plant for clean water, remote reading Supplier for renewable energy Customer for production equipment I/S5 Environmental & waste management industry Investments in a waste incinerator and business development projects related to the re-use of waste, ash, and other surplus material Supplier for recycled raw material
  • 46. Customer for procurement equipment Network partner: providing waste management services S6 Waste management services New service offering related to waste information management Customer for energy, production equipment and materials Network partner providing support services for waste management I7 Wood industry Bio-oil & eco-designed products Supplier for bio-oil and eco-designed products Customer for raw material (recycled), production equipment and energy I8 Wood industry Use of renewable and bio-materials Supplier for bio products Customer for renewable fuels and energy I9 Wood industry Bio product factory, responsible use of forests, sustainable products Supplier for bio products Customer for renewable fuels, environmental consulting services and energy I10 Process industry Recycled fuels, commitments to minimizing CO2 emissions Customer for environmental consulting services, recycled fuels and energy I11 Process industry Material efficiency, use of limestone-based solutions Supplier for limestone-based products for cleaning waters Customer for environmental consulting services and energy I12 Steel industry Use of recycled scrap metal Customer for environmental consulting services P13 Financing, consulting Focus on environmental and social
  • 47. responsibility through digitalization Network partner providing financing and consulting services S14 Consulting and design services Sustainable development of processes and assets, water management, construction, and environmental consulting Supplier for sustainable construction Network partner providing environmental consulting services S15 Accounting services Offering and developing digital services (replacing paper and extra waste) Network partner providing digital services to support management of business P16 Regional development and consulting Emphasis and promotion of clean water in regional development Network partner providing support services to promote regional development P17 Regional development and consulting Emphasis and promotion of bioenergy, waste-to-energy, and wind power projects in regional development Network partner providing support services and financing to promote regional development Customer for waste management services, environmental
  • 48. consulting services and energy N. Tura et al. Industrial Marketing Management 77 (2019) 221– 231 224 (total duration 45 h), and notes (86 pages) of 33 meetings with a broader research group (total duration 89 h) where emerging findings and key issues were discussed. Overall, this documentary material provided a rich information resource and insights into the SBPs im- plemented by different firms, as well as the consequences experienced by different stakeholders (Hill, 1993). 3.3. Data analysis Given the large amount of empirical data, our analysis proceeded in three key stages. In the first stage, we employed within-case analysis and open coding, and identified specific SBPs and subsequent impacts that they generated in the network (Miles, Huberman, & Saldana, 2014). This allowed us to understand what kind of SBPs specific firms had implemented (see Table 1 for an overview), and how their impacts were perceived by other actors in the network. At this stage, the pre-
  • 49. liminary insights indicated a substantial number of conflicting percep- tions between different firms, which led us to focus on the emerging tensions between the network actors. Hence our unit of analysis was a specific tension perceived between (or within) different business net- work actors in their relationship. In the second stage, we employed cross-case analysis and axial coding, and categorized the emerging tensions based on their properties and characteristics (Corbin & Strauss, 2015). To aid our analysis and categorization, we compared the emerging findings to existing litera- ture, and informed by previous studies on network-based tensions (e.g., Tóth et al., 2018), we extracted specific tensions to thematic categories. At this stage, we also unpacked the categories to explore how different tensions were experienced and perceived by different actors (im- plementers, suppliers, customers, network partners). In the third stage, we integrated all the categories into an overall preliminary framework (see Table 3), and sought feedback and confirmation for the emerging findings from the informants and other researchers. Due to the large amount of empirical data, Nvivo software and Excel spreadsheets were used to manage and facilitate the data
  • 50. analysis and aid subsequent theory construction (Bazeley & Jackson, 2013). To in- crease the trustworthiness and validity of the study, we employed multiple sources of primary and secondary data (data triangulation), involved several researchers in the analysis and interpretation of the findings (researcher triangulation), and presented the emerging results to managerial and academic audiences (Yin, 2014). 4. Findings In this section, we report the findings of the study. First, our analysis identified 20 different types of tension that seemed to emerge when firms decide to implement SBPs in business networks. In line with prior literature (Fang et al., 2011; Tóth et al., 2018), it seems that the identified tensions tend to manifest in four broader categories: eco- nomic, structural, psychological, and behavioral tensions. Second, the identified tensions seem to occur between (external) and within (in- ternal) multiple actors, as well as within multiple level (individuals, groups, organizations). Consequently, our analysis suggests that actors in different network positions tend to perceive these tensions differ- ently. We consider these in terms of four primary positions: im-
  • 51. plementers, suppliers, customers, and other network partners. Our findings are summarized in Table 3, and we discuss them in detail below. 4.1. Economic tensions Economic tensions refer to conflicts between cost allocations, and these appeared most frequently in our data. Economic tensions involved expectations or demands from one actor for other actors to invest or expend costs into technologies, processes or new practices that would be aligned with specific SBPs. However, the other actors perceived these expectations sometimes as asymmetric or unfair, and believed that they restricted their own operations. For firms that implemented SBPs in the regional network, economic tensions manifested usually as higher investment, operating, and oppor- tunity costs. These were often perceived internally, between different departments or functions at the implementer's organization. For ex- ample, several firms had increased their research and development budgets (I1;I10), or invested into new environmentally friendly or modernized technologies (II3;I4;I7;I8;I9;I11), at the expense of post-
  • 52. poning, freezing, or sometimes completely abandoning efforts to de- velop or expand their current sales, service, or production organiza- tions. “Compared to a situation where we don't have to think about sustain- ability, of course it brings costs. Investments have been huge (e.g. filter Table 2 Overview of the interview data. Firm Titles of informants Interview type Length (min) Number of informants I/S1 Project Manager (5×), Sales Manager (2×), Project Engineer, Senior Adviser, Product Development Manager, Head of IT systems, EHSQ Manager, Head of International O&M Management, Process Manager, Technical Manager, Head of Division 5× groups (groups were based on organizational functions/teams) 179, 97, 130, 145, 109 16 I2 Financial Director, Head of Unit, Environmental Director, Unit Team Leader,
  • 53. Environmental Manager, Project Manager 5× individual 60, 72, 65, 52, 88 5 I3 CEO 1× individual 101 1 I4 CEO, Energy Group 1× individual 35 1 I/S5 Account Manager, R&D Manager, Business Manager, Technical Manager 4× individual 52, 69, 94, 76 4 S6 Quality and Environmental Engineer 1× individual 35 1 I7 Director, Stakeholder Relations 1× individual 72 1 I8 Factory Manager, Environmental Manager, Communications Manager 3× individual 35, 33, 37 3 I9 Environmental Manager 1× individual 94 1 I10 Vice President 1× individual 109 1 I11 Factory Manager 1× individual 68 1 I12 Product Development & Technical CRM Manager, Environmental Manager, Process Development Manager 1× group 103 3 S13 Head of Office 1× individual 35 1 P14 Communications Manager 1× individual 45 1 S15 Head of Office 1× individual 34 1 P16 Development Manager 1× individual 84 1 P17 CEO 1× individual 73 1 Total 24 individual and 6 group interviews 2281 43 N. Tura et al. Industrial Marketing Management 77 (2019) 221– 231 225
  • 54. plant of the smelter), energy is used and waste is created. We have continuous maintenance targets and expenses… If we didn't care about sustainability, we wouldn't need environmental executives sitting here, doing paperwork and paying license fees, these are all indirect costs.” (I9) For suppliers, in our sample, economic tensions manifested primarily as high costs of operational changes due to the need to accommodate in- creased compliance requirements from the implementing firms. In the data, such requirements ranged from improving production and op- erational processes to reduce emissions and carbon footprints (I1;I2;I7;S14) to educating, training and hiring new people (I2;I7) to gain different environmental and social certificates. While the requested changes aimed to improve the implementers own as well as their value chains' societal impact, several suppliers pointed out that for them the changes involved often expensive process modifications, which were seldom fully recoupable. Many suppliers noted they had faced costly sustainability requirements from their business partners, and felt it was usually easier to comply by accepting short-term
  • 55. costs than risk losing valuable partners and long-term business potential. “Our partners had to develop also new skills and operations through investments.” (I7) For customers, economic tensions manifested primarily as higher prices and decreased functionality. Customers felt that when their suppliers had implemented SBPs, this had resulted in higher prices but not necessarily Table 3 Potential tensions from SBPs as experienced by different network actors. Experienced by and between Tension Actor 1 Actor 2 Description Economic tensions 1. Higher investment, & operating, and opportunity costs Implementer's top management or R&D Unit Implementer's production and sales Senior management or R&D invests into sustainable technologies and/or modernization of production equipment, which are expensive
  • 56. and have long payback times. This results in higher cost pressures and postponing or abandoning other development projects in implementer's other units (usually production, sales, or service) 2. Cost of operational changes Supplier Implementer Implementer demands that suppliers adapt their processes to new codes of conduct or sustainability requirements 3. Higher prices Customer Implementer Implementers charge higher prices from customers due to cost increase in their own operations 4. Reduced functionality and performance Customer Implementer Sustainable technologies do not deliver the customer the same functionality or performance as traditional technologies Structural tensions 5. Increased monitoring and controlling needs Implementer Suppliers and other network partners Implementer needs to monitor and control that several actors in its value chain and network follow its codes of conduct 6. Dependence on key suppliers Implementer Supplier Implementers fear that a dependency on a raw material that is
  • 57. available only from specific suppliers (e.g. by-products from forest industry to use in a bio heating plant) can give away too much negotiation and pricing power, and make them vulnerable to strong-arming and other opportunistic tactics. 7. Reduced power positions Supplier Implementer Suppliers that have difficulties in responding to the implementer's sustainability requirements or expectations have lower bargaining power, or can be phased out completely. 8. Difficulties to design balanced network policies Other network partner Entire network Other network partners need to design regional policies that would benefit stakeholders equally, but the conflicting interests between multiple network actors may result in policies that are unequal or favor some actors disproportionately with the expense of others Psychological tensions 9. Financial risk Implementer Customers Implementer has made significant short-term investments into SBPS, while the potential benefits are uncertain and realized only in the long term 10. Technological risk Implementer Customers New SBPs lack references and proof of performance, and the implementer fears that they will not be as functional or effective as traditional alternatives
  • 58. 11. Political risk Implementer Government/ Regulatory bodies Implementer fears that constantly changing political decisions, regulation, or legislation will affect a new SBP negatively 12. Reduced motivation to adhere to codes of conduct Supplier Implementer Suppliers feel that they are forced to measure, monitor and report sustainability indicators that are not relevant for their own business 13. Fear of disclosing sensitive business information Customer Implementer Customers are reluctant to share sustainability information and data if it is business-critical or otherwise sensitive 14. Greenwashing concerns Customer Implementer Customer fears that the supplier's sustainability claims are corporate posturing or deceptive marketing, but do not deliver actual environmental or social improvements 15. Defensiveness against new regional sustainability policies Other network partners Entire network Network actors are slow or reluctant to comprehend the potential benefits and opportunities of new sustainability polities Behavioral tensions
  • 59. 16. Higher disclosure requirements Implementer Authorities, society, media, Implementer needs to report on different sustainability criteria to stakeholders, environmental and political authorities, and the media 17. Internal resistance Implementer's top management Implementer's field personnel Employees are reluctant to learn new skills, accept new responsibilities or process changes, and adopt new work practices 18. Increased need to collect and share data Supplier Implementer Implementers expect the suppliers to collect and share sustainability-related data about their operations and processes 19. Higher maintenance needs Customer Implementer Customer needs to maintain or replace environmentally-friendly components more often than traditional alternatives 20. Divergent communication and promotion needs Other network partners Entire network Other network partners need to communicate and promote goals and agendas
  • 60. that facilitate several actors´ interests and objectives, which are often conflicting and contradictory N. Tura et al. Industrial Marketing Management 77 (2019) 221– 231 226 any improvement in actual product performance. In contrast, some customers noted actually that sometimes the sustainable components in purchased products or systems required more maintenance or had shorter life cycles, reducing the overall functionality and performance of the equipment. “Customers would like to use domestic fuels instead of foreign fuels be- cause of their lower environmental impacts. But if the price for foreign fuel is lower, they will unfortunately select that.” (I2) 4.1.1. Structural tensions Structural tensions refer to the need for and balance of coordination and governance of vertical and/or horizontal relationships with stake- holders. For firms that implemented specific SBPs, structural tensions manifested usually as increased monitoring and controlling
  • 61. requirements to their value chain and network. This involved the need to manage both wider stakeholder networks and longer (up- and downstream) value chains, where several stakeholders had different, yet collective impact on the realization of the benefits from specific SBPs. However, since individual stakeholders had usually different perceptions and measures for sustainability (i.e. NOx and CO2 emissions vs. carbon and water footprints), a higher number of stakeholders made monitoring and controlling overall sustainability impacts often very difficult. “We should pay more attention to our value chain. There are weak points for sure… Although our suppliers are the most reliable in the field, we don't check these issues until at the last point…. Value chains are long and we don't have resources for that…. We can't say for sure whether they are using for example child labor. It's an unknown field for us and may carry threats.”(I9) In addition, some firms felt that implementing SBPs led to increased dependency on key suppliers who had a dominant or sole provider status for critical materials, such as raw materials for bio-heating (I3), or limestone (I8). In these cases, implementers feared that sole
  • 62. suppliers might leverage their unique position to increase prices, regulate supply, or otherwise influence contract conditions. On the other hand, some of the supplier firms in our sample perceived the structural tensions as reduced power positions, if they did not have enough resources or know- how to respond to the sustainability requirements posed by the im- plementer, or if they declined to accommodate the implementer's compliance requirements. For example, the suppliers in the forest and energy industry had faced the risk and pressure of decreasing pur- chasing volumes and lowering prices if they could not adapt their processes and practices to match the implementers' sustainability ex- pectations or demands better. For customer firms, the data indicated no significant structural tensions. For other network partners, the structural tensions manifested usually as difficulties to design balanced network policies. For example, the regional agencies explained that since SBPs influenced several stake- holders across networks, they were under a pressure to design regional policies and practices that would try to take each stakeholder's interests and goals into account. However, due to different, and often conflicting
  • 63. interests within the network, it was not clear whether the agencies' lobbying efforts resulted in balanced and equally fair policies for all the network actors, or uneven agendas that diisproportionally favored some, with the expense of others. “Customers are obligated to sort their wastes in more detail. We do a lot of competitive bidding, but it is hard to include all the conditions and measurements of sustainability and environment into these tenders. There are so many things to be taken into account, and it is not clear how the evaluation and scoring of these indicators would be fair for both new and old players in the waste business.” (S6) 4.1.2. Psychological tensions Psychological tensions refer to changes in emotions, attitudes, motives and feelings, caused primarily by the added uncertainty asso- ciated with SBPs (Slawinski et al. 2015). For sample firms that im- plemented specific SBPs, psychological tensions manifested primarily as increased financial, technological, and political risks. For example, it was often difficult to calculate the return on investment for sustainable technologies, and many firms had risked a decrease in short- term profitability for potential but uncertain long-term business
  • 64. benefits. Similarly, many implementers worried about whether the new SBP would become “accepted” or “new standard” in the market, or just an inferior alternative to traditional technologies. Finally, the im- plementers were also highly concerned about political decisions, such as support or taxation policies for biofuel, coal, or other sources of renewable energy (I1;I3;I10), and the enactment of emissions and chemicals regulations (I8–10;I12), which have a major influence on the business potential of sustainable products and services. “We cannot yet put a value on the sustainability investments in peat production.…When we decided to make investments, we did not calcu- late our expectations for business sales. We see it more as a long-term investment in future business possibilities.” (I7) “There's political risk. As the fuel business is based on politics in the EU, there is a risk of changing regulations. Authorities may ruin everything.” (I10) “The drivers of sustainability come from politics, and involve risks as to whether they will be in line with our current decisions in the future… it may result in some administrative decisions that have negative effects for
  • 65. us. It's a little terrifying.” (I3) For some of the supplier firms, psychological tensions manifested as reduced motivation to adhere to the implementer's codes of conduct, espe- cially if these had no direct benefits to the supplier, or if the value chain involved other partners who did not follow similar practices. Several suppliers noted that it was relatively common for their value chain partners to lobby for regulations and/or request sustainability policies that favored individual actors unequally. This often reduced the sup- pliers' willingness to comply, at least when it required significant changes or cost allocations. “Our industry doesn't market much in “being green”. There are certain actors that are intentionally quiet about this.” (I9) “There are multiple interest levels among actors contributing to sustain- ability regulations. The interest in these issues may arise purely from gaining competitive advantage over other actors.” (I12) For customer firms, psychological tensions manifested primarily as a fear of disclosing sensitive information about their processes and opera- tions. Customers pointed out that suppliers were increasingly re-
  • 66. questing access to their process and usage data to analyze the potential sustainability impacts of their offerings, and this involved business- critical information, which customers were often reluctant to share. Furthermore, some customers noted also that without careful diligence and supplier evaluation, they had sometimes concerns about green- washing, or in other words, whether the supplier's SBPs actually had the promised impacts, or were just corporate posturing and empty en- vironmental claims. “In management we may see responsibility in a different way…. For example, we have had to close factories. For some, these actions may seem unresponsive, but from company perspective this is economic sus- tainability…[but] society may criticize and have different opinion. That may increase local negative effects and labor disruptions, and increase risks related to delivery reliability from the eyes of the customer.” (I7) For other network partners, psychological tensions manifested pri- marily as defensiveness against new regional sustainability policies. For example, the regional agencies noted that the business actors in the area were usually very resistant or slow to adopt and assimilate
  • 67. new N. Tura et al. Industrial Marketing Management 77 (2019) 221– 231 227 sustainability initiatives, unless they had a direct impact on their business. “Of course there are customers that do not want to give up paper… These types of customers cover still 55-60%. It is hard work to get them to understand our system and online services.” (S15) “SMEs are not very interested in sustainability goals at the broader, global level. Very often they will just have a defensive reaction, like “we get these new things every day, how is this relevant to us?” (P16) 4.1.3. Behavioral tensions Behavioral tensions refer to changes in operational or commu- nicative behaviors within a business network (Tóth et al., 2018). From the sustainability perspective, new activities and practices for analyzing sustainability impacts and reporting to stakeholders can cause con- siderable behavioral changes and require extra resources
  • 68. (Greenwood et al. 2015). For firms that implemented specific SBPs, behavioral tensions manifested primarily as increased disclosure requirements, as they had to report on different sustainability criteria not only to en- vironmental and political authorities, but to potential customers and network partners as well. Many of them also noted that increased workload, bureaucracy, training, and social pressure related to im- plementing SBPs often led to internal resistance within their organiza- tions. For example, the implementers described situations and beha- viors where internal resistance ranged from skepticism, lack of commitment and negative attitudes to misunderstanding or dis- regarding responsibilities intentionally, and barriers between field or- ganizations and top management. “Much of the time is spent answering the many questions of people, claims coming from water protection associations, media contacts and reviews… We have promised to measure every bog separately, but the information on the impacts on the environment is not particularly ac- curate… So the actions we are performing now may be a bit pointless, but we have to do so to gain social acceptance.” (I2) “The workload of the personnel and their mental wellbeing are
  • 69. negative issues related to sustainability. Investing in sustainability has brought extra work, required many working hours, development and planning activities...The commitments that we made raised considerable resistance inside the company.” (I7) For supplier firms in our study, the behavioral tensions manifested primarily as an increased need to collect and share sustainability-related data and information about their operations and processes with the implementer. While the suppliers generally understood the need for additional communication efforts, many felt that they were being forced to measure, monitor, and report sustainability indicators that have little effect on their business practices. “Increasing public awareness raises certain tough questions for us to answer, although they may not have anything to do with us.” (I9) “In addition to other work, sustainability means more monitoring efforts and extra work… Customers are expecting certain things, but in reality, the time spent on designing and planning may be longer, bringing negative consequences in terms of work.” (S14)
  • 70. For customer firms, the behavioral tensions manifested as higher maintenance needs, as the sustainable technologies and/or components they purchased had to be maintained, replaced or upgraded more often than traditional alternatives. For example, in the case of bio- energy power plants, when the customers burned recycled waste material, this eroded their production equipment (I1). In addition, when customers replaced cement with more renewable (wood-based) materials in the construction process, they experienced increased maintenance re- quirements and lower life-cycles of buildings (I4). “There is a big debate about the facts of using wood vs. cement –based materials in construction related to [sustainability] impacts and life-cycle maintenance.” (I4) For other network partners, behavioral consequences manifested primarily as divergent communication and promotion needs, because of the diverse goals and interests of different network actors. For example, the forest industry wanted to promote wood as a renewable material source for construction, while the process industry wanted to highlight the long lifecycle of concrete- and steel –based materials instead. Furthermore, while the private organizations in the area wanted
  • 71. to reduce CO2 emissions only to levels that would have a minimal impact on production to optimize or protect sales and profits, the public or- ganizations wanted to maximize the reduction in overall CO2 emis- sions. Several network partners had to navigate this riptide, and choose how to stretch and allocate resources to promote a host of conflicting sustainability goals simultaneously. “We have divergent interests inside Finland. All actors want to support their own interest areas, and this may have negative effects on others.” (I12) 5. Discussion and conclusions In this study, we have explored the potential tension that may result from implementing SBPs in business networks. Network partnerships and joint action are important drivers of sustainability goals (Patala et al., 2014; Ritvala & Salmi, 2011), and it is critical to understand how to minimize the costs and barriers of collaboration. This is an important issue, as industrial firms are investing increasingly in various SBPs, but their potential “dark side” effects remain under-researched (Hahn et al., 2010). Our findings illustrate why and how the implementation
  • 72. of SBPs may lead to emerging tensions, and how different actors in a network setting in business markets experience them. Next, we consider the implications of our findings by comparing the tensions experienced at different network positions and suggest some potential strategies for decreasing the tensions. As demonstrated by the findings, if one network partner adopts new sustainability practices, this may generate tensions in its business net- work. We found that tensions inside the implementer's organization were typically related to budgetary tensions among different business units and functions, as well as the potential internal resistance to change by employees, which were predominantly economic or beha- vioral by nature. These tensions seemed to be especially dependent on the type of SBP undertaken, as more technology-intensive SBPs are likely to involve higher costs and risks. These tensions could be de- creased by higher involvement of different functions and internal per- sonnel, as SBPs, which are integrated with the core business functions, have typically higher potential benefits (Halme & Laurila, 2009).
  • 73. The tensions between implementers and their suppliers, in turn, are often related to the supplier's capability to meet new sustainability criteria introduced by SBPs, and a potential fear of being relegated to a lower tier supplier if the sustainability criteria are not met. Structural tensions were particularly evident between the supplier and im- plementer. These tensions seemed to be influenced by the cultural and power distance (Meqdadi et al., 2017) between the implementer and the supplier, and may be especially prevalent in global supply chains, leading to considerably different perceptions of sustainability. An im- plementer could decrease this tension by investing in training and education activities with the suppliers, to help meet their sustainability goals. For example, previous research has shown that more collabora- tive and inclusive strategies of involving suppliers in SBPs are more sustainable in the long run compared to dictatorial initiatives driven by the implementer (Drake & Schlachter, 2008; Hoejmose, Brammer, & Millington, 2012). The tensions between implementers and customers were largely related to concerns about increasing prices, decreasing performance or potential concerns with greenwashing. These tensions seemed to be
  • 74. N. Tura et al. Industrial Marketing Management 77 (2019) 221– 231 228 higher for SBPs involving substantial change in product design, and they were usually psychological and economic by nature. These types of tensions might be mitigated by conducting a deeper value assessment about the new value potential that the SBP will realize to the customers or their stakeholders (Keränen & Jalkala, 2013; Patala et al., 2016). The implementer could also offer additional services and training to ac- commodate with the changes in the offering caused by the SBP. Finally, the tensions between implementers and other network partners were often related to the added network complexity as a result of SBPs, as more diverse stakeholder needs and plurality of values needed to be incorporated into the network activities. We found ten- sions between implementers and other network partners equally in all of the four categories. These tensions are likely to be stronger when the number and heterogeneity of stakeholders increases. An implementer could address these by investing in open stakeholder
  • 75. communication and their higher involvement within the network. The increased in- volvement of new stakeholders as a result of SBPs may open new op- portunities for other network partners, as the “value space” of the network increases (Halme & Laurila, 2009; Reypens et al., 2016). 5.1. Theoretical implications Collectively, the findings of this study offer three main contribu- tions. First, previous sustainability literature has focused primarily on the benefits and/or positive consequences that result from im- plementing SBPs, but with limited attention to potential costs and ne- gative consequences (Hahn et al., 2010; Konar & Cohen, 2001). This study has addressed this gap in the sustainability literature by high- lighting the potential conflicts and tensions, or more broadly, the “dark side” of sustainability (Johnsen & Lacoste, 2016) that may result from implementing SBPs in business networks. Our findings illustrate how different sustainability initiatives, despite stakeholders' best intentions, can also lead to perceived strain and conflict between actors, which we have conceptualized as tensions (Fang et al., 2011; Gnyawali et al., 2016). This responds to recent calls that advocate tensions as a
  • 76. suitable lens to analyze the consequences of SBPs at multiple levels (Hahn et al., 2015). Our findings identify four types of tensions (economic, struc- tural, psychological, and behavioral) that tend to manifest in a firm's network because of implementing SPBs, and illustrate how different network actors perceive them. This responds to the calls to increase understanding on how different stakeholders in business networks ex- perience and perceive the impacts of SBPs (e.g. Lacoste, 2016). Second, the findings contribute to the contemporary industrial marketing literature, which considers how negative value perceptions emerge from interaction and collaboration (e.g. Prior & Marcos- Cuevas, 2016; Verleye et al., 2017). While recent research indicates that nega- tive value perceptions might be particularly prevalent in sustainable business networks, which are usually characterized by multiple actors, goals, and interests (e.g., Oruezabala & Rico, 2012; Scandelius & Cohen, 2016), most of the previous studies in this area have been limited to single case studies and dyadic/triadic settings (Chowdhury et al., 2016; Echeverri & Skålén, 2011; Makkonen & Olkkonen, 2017). By employing a multiple case design, this study offers a rich empirical account of the
  • 77. potential tensions that may emerge and manifest when firms adopt SBPs in broader networks with several stakeholders, and responds to calls to explore negative value perceptions in multi-actor contexts (Prior & Marcos-Cuevas, 2016; Tóth et al., 2018). Furthermore, whereas prior studies have considered misalignment in economic or social goals as the main source of tensions and conflict (Corsaro, 2015; Prior & Marcos-Cuevas, 2016), this study illustrates how intra- and/or inter- firm misalignments related to environmental goals may lead to tensions and negative value perceptions. Thirdly, this study contributes to the literature on sustainability networks (e.g. Johnsen et al., 2017; Meqdadi et al., 2017). While pre- vious research has shown that the resources and relations of networks can act as enablers and offer considerable advantages for sustainability practices (Lacoste, 2016; Patala et al., 2014), our research highlights networks as a potential source of inertia. Even firms that may see themselves as forerunners and attempt to go beyond regulatory com- pliance in their sustainability practices may find themselves con- strained by the potential negative impacts on their network partners.
  • 78. Organizations are to a great degree a product of the networks they are embedded in (Padgett & Powell, 2012), and thus it is important for firms to consider the network constraints when planning and im- plementing new SBPs, to limit the harm to existing relationships. Al- ternatively, firms might choose to develop new relations if goal align- ment with existing partners is not possible. 5.2. Managerial implications From the managerial perspective, this study sheds light on the po- tential tensions and negative value experiences that may emerge as a result of adopting SBPs in business markets. This may help managers understand better why, despite good intentions and collective goals, sustainability investments may become costly, face social resistance, or even fail due to insufficient stakeholder support. For supplier firms, the findings highlight the importance of ana- lyzing sustainability investments beyond financial costs. A more holistic evaluation of the potential economic, structural, psychological and behavioral tensions provides a basis for more inclusive cost- benefit analyses, and a greater chance of successful sustainability practices. Moreover, by understanding the potential sources of negative customer
  • 79. and stakeholder experiences when adopting SBPs, managers may be able to anticipate, reduce, or mitigate potential tensions and conflicts, and reduce the friction between stakeholders. For customer firms and network partners, the findings highlight the importance of careful assessment of suppliers' sustainability practices. While complying with the new sustainability requirements may result in higher prices or social discomfort in the short term, it may offer potential for improved brand equity, legitimacy and differentiating power in the long term. By understanding the sources and nature of potential tensions stemming from suppliers' sustainability practices, individual partners may increase their tolerance for short-term de- gradations in the process of delivering economic and social gains, and thus reduce the barriers that would prevent collective networks from realizing the benefits in the long term. For policymakers, the findings highlight the importance of under- standing the impacts of regulations, legislation and sustainability po- licies in broader networks and value chains. While environmental regulations often aim at influencing individual suppliers – for the col-
  • 80. lective good – they may have negative spillovers for societal wellbeing, for example in the form of decreased competitiveness, lower employ- ment or carbon leakage due to relocations. Better understanding of the collectively experienced tensions would provide a basis for regulations and policies that would cause less friction and support the optimization of wellbeing for a broader set of stakeholders, such as societies and economies as a whole. 5.3. Limitations and avenues for future research Given that this study is exploratory by nature, and based on a limited number of firms, it has natural limitations, some of which open up also potential avenues for future research. First, the study was lim- ited largely to firms operating in resource- and material- intensive in- dustries. Future research could investigate firms in other industries to reveal alternative tensions in adopting SBPs, and increase the general- izability of the results. From the theory development perspective, one important avenue would be to develop a theory and propositions that would explain how and when specific SBPs lead to particular types of tensions between specific network actors. Second, given the emphasis on conflicting perceptions between
  • 81. ac- tors in the regional network, this study conceptualized tensions as N. Tura et al. Industrial Marketing Management 77 (2019) 221– 231 229 negative consequences that result from contradictory goals and inter- ests between collaborating actors. While this approach addressed an underexplored area in the current literature, it might neglect insights on the positive consequences that adopting SBPs in networks might pro- duce. Hence, future research could provide a complementing perspec- tive by focusing on networks where different actors have more con- gruent goals and aligned interests, and explore how and when SBPs result in synergies and enhanced value outcomes between network actors. Third, this study employed qualitative field data. Future research could employ quantitative studies, and explore how different negative tensions actually impact a firm's performance or the perceived re- lationship quality with customers or other network partners.
  • 82. Moreover, a quantitative approach could define indicators that measure the po- tential tensions, and investigate how potential moderators such as the scope, scale, and type of different SBPs influence these tensions. In other words, how the tensions from investments in smaller versus larger, or environmentally versus socially dominant SBPs differ from each other. Fourth, the field interviews involved a relatively large and uneven spread of informants between firms. While this is a fairly accepted practice in interpretative research that aims to generate a broader un- derstanding of a selected phenomenon by increasing the number of cases (e.g., Eisenhardt & Graebner, 2007), it can also result in biases that favor the perceptions of firms with more informants. On the other hand, using single informants in most of the interviewed firms offers limited potential to explore how tensions from SBPs are perceived at different levels or in different functions. Consequently, future research could approach multiple informants in several organizations, and ex- plore if, how and why perceptions of SBP might vary between different organizational levels and functions.
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