Exploring the Decoupling of Sustainability Practices by Outsourced Partners in Multinational Enterprises' Supply Chains

The primary objective of this research is to explore why outsourced partners decouple from the standard sustainability principles of MNEs with neo-institutional theory as the theoretical lens. This study identifies the strategies that MNEs implement to ensure sustainability and the impact of outsourcing on sustainability.
This study adopts a qualitative methodology based on an interpretivist paradigm and the case study approach is used. For the data collection process, in-depth interviews have been used followed by a semi-structured interview guide. A sample size of six individuals from MNEs in diverse industries has been used, and the data collection has been terminated when data saturation is reached. The data analysis of this research is done according to the thematic analysis.
The findings of the research reveal that outsourcing leads to decoupling. The main reason is organisations have no direct control over outsourced partners. Also, outsourced partners prioritize cost reduction and avoid complexity in maintaining sustainability. The implications of this research enhance the intersection between outsourcing and sustainability. The findings offer practical implications for MNEs, helping them to mitigate risks and achieve comprehensive profit-planet-people sustainability across their global operations.