After the storm: understanding sustainable incident resurgence in supply chains

Purpose This study aims to develop a basis for understanding the antecedents, or trigger mechanisms, for buying firms encountering resurgent supplier sustainability incidents after prior exposure to stakeholder criticism. Design/methodology/approach The authors use a sample of 52,781 media items for firms listed in the S&P 500 index from 2007 to 2021. Data was drawn from RepRisk and Compustat and analyzed via hierarchical linear regression and PROCESS modeling. Findings The resulting analyses demonstrate that the media plays a vital role in how novel versus resurgent supplier sustainability incidents are reported contingent upon severity and novelty. Moreover, the institutional distance (ID) between the buying firm and supplier impacts how much traction the incidents gain in terms of media attention. Research limitations/implications This is among the very first studies, to the best of the authors’ knowledge, that investigate the mechanisms through which buying firms decide how to navigate resurgent supplier sustainability incidents. The authors relied on media reports as a source of data, which can show little or no partiality when identifying repeat offenders in terms of environmental, social and governance issues. Practical implications The findings can inform buying firms and their stakeholders on how supplier sustainability incidents are affected by various factors, and such can be directed toward mitigating resurgent incidents by understanding the antecedents. Social implications This study has implications for public awareness with respect to patterns of supplier sustainability incident resurgence and media reach. The findings can inform regulatory frameworks by drawing attention to contexts, particularly when ID is higher. Lastly, scholars should remain mindful that publicizing firm-level findings can reinforce reputational harm, particularly in cases where incidents are contested or resolved. Originality/value This research contributes to the literature on sustainability supply chain management, particularly on when/where/why sustainability risks resurface in supply chains by outlining the interplay between the severity of supplier sustainability incidents and their reach among stakeholders. The research also emphasizes ID as an umbrella effect, which moderates buying firms’ decisions toward their supplier’s sustainability-related grievances.