Sustainable strategies applied in the context of supply chain management are receiving increasing attention from practitioners and researchers. In this regard, innovation in products, organizational structures, and business methods can be the key to achieving economic, social, and environmental outcomes. The purpose of this paper is to analyze how sustainable-oriented innovations (SOI) can influence inter-organizational relationships in sustainable supply chain management. The research is based on two case studies of Brazilian focal companies (Braskem and Mercur) and their respective suppliers and customers. We have identified different realities regarding operational aspects, supply chain structure, and the strategic orientation for sustainability. The cases outlined provide in-depth insights into the forms of SOI, i.e. product and organizational innovations. A practical implication includes the illustration of how the sustainability innovations allow the reaping of positive effects to businesses along the supply chain. Collaborative relationships with suppliers and buyers can be seen as a source of learning, development of new technology processes, and information acquisition. We position our research within the realm of sustainable SCM as a contribution to the increasingly discussed relationship dimensions and present links to the sustainable innovation literature, which is rarely amalgamated with the SCM discipline. This establishes a more concrete connection, where further research at this intersection would be required.

Introduction

Sustainable strategies applied in the context of supply chain management are receiving increasing attention from practitioners and researchers (Carter and Easton, 2011; Beske and Seuring, 2014; Pagell and Wu, 2009). Strict regulations, consumer requirements for more transparency, and even the role of CEOs’ internal values have influenced businesses to consider sustainability as a competitive priority. In this regard, innovation in products, processes, organizational structures, and marketing methods (Organisation for Economic Cooperation and Development (OECD), 2005) can be the key to achieving economic, social, and environmental outcomes (Carvalho and Barbieri, 2010). The development of social and environmental strategies, however, is often a challenge for organizations. Sustainability requires new ways of thinking, and the most usual mechanism for implementing novelties and improvements is developing new knowledge and applying it throughout innovations (Organisation for Economic Cooperation and Development (OECD), 2012). Besides the traditional economic indicators (e.g. revenues, profits, market share), when innovation meets sustainability, it is also possible to reach stakeholder requirements and earn recognition for being “a responsible company.” In this case, image and reputation are very important tools for competitiveness (Montalvo et al., 2011). Nevertheless, previous studies reveal that the link between innovation and sustainability is still not well developed because of reasons such as the numerous interpretations of the meaning of sustainability, which brings a diversity of connotations, e.g. green, eco, environmental, and social innovation. This also leads to an applied dichotomic view of sustainability (yes or no) to studies in the field instead of a dynamic and processual perspective (Adams et al., 2016). Therefore, Adams et al. (2016) introduce a sustainability-oriented innovation construct that aims to promote changes in processes and products based on clear objectives of creating social and environmental value while simultaneously generating economic returns. To develop these sustainabilityoriented innovations, relevant changes are needed in business models. Innovative development also requires new behaviors and relationships with stakeholders along supply chains in particular (Ayuso et al., 2011; Iles and Martin, 2013).