Challenges and opportunities for developing sustainable business in industrial networks - A case study of Eleiko Group AB

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Examensarbete på kandidatnivå
Bachelor Thesis
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2024
Författare
Ahlberg, Erik
Gustavsson, Edvin
Hilding, Max
Rydberg, Jakob
Wassenius, Marcus
Zetterling, Knut
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The business landscape is trending towards sustainability, and the EU has launched several regulations in order to keep this trend going. One such regulation is the Corporate Sustainability Reporting Directive (CSRD), which forces companies to become transparent about the sustainability of their business activities through reporting. This includes gathering data from the whole value chain, emphasizing the need for collaboration and information sharing. Eleiko, a global leader in premium strength equipment, is one of the companies now faced with adhering to the new regulations, while also seeking to improve their sustainability. The purpose of the study is to investigate the challenges and opportunities for established companies in industrial networks to support sustainability and meet legislative directives. This is investigated through a case study of Eleiko with focus on their product Prestera Cables. The theory advises how to analyze a business network through the network approach of IMP, including the relationship characteristics and paradoxes of networks. Furthermore, gaps to suppliers limiting a sustainable supply chain are introduced, as well as the sustainability information processing needs of firms. Finally the theory behind how to propose, create and capture value toward customers are discussed. The study is a qualitative case study with the data collection consisting of semi-structured interviews. Systematic combining was used to develop a final framework, complementing the theoretical one. The study concludes that Eleiko has the potential to create a resilient and proactive network. This is done by developing value propositions where customer demand and regulative pressure converge, as in the case of the modular Prestera Cables, backed up by suppliers capable of providing sustainability information and progressively improved sustainability. For this to succeed, Eleiko must continue to nourish their customer and supplier relationships. The additions from the abductive reasoning of the study are a knowledge gap about sustainability and sustainability regulations between customers and suppliers, and two additional factors impacting the uncertainty tolerance of a customer towards their supply network. It can be said that the study also found usefulness in the network approach of IMP in a sustainability context. Further studies are encouraged to continue on this topic and also to further investigate the study’s additions to the existing theory.
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sustainable business , sustainability regulations , industrial networks , business model , business relationships , sustainable supply chain , modularity
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