The fifth major challenge raised in the
research studies is related to the difficulties of
small and medium sized enterprises (SMEs), as they may be uncertain about the
benefits of upgrading to new sustainability standards and codes of conduct.
They may also lack the knowledge, skills, time, financial and human resources
in responding to the social and environmental requirements of global buyers and
supply chains. It was exemplified that currently, several large Logistics
Service Providers (LSPs), intermediaries/ forwarders, carriers, and shippers have Corporate Social Responsibility (CSR) policies,
but many small and medium-sized ones do not. SMEs are also likely to lack the
bargaining power required to co-develop suppliers who fail to comply with
standards. This challenge is felt more by SMEs that operate at the bottom of
the pyramid and in developing countries.
To increase the adaptive
capacity of SMEs, their “agency” and “decentralized decision-making” capacities
while interactions with other stakeholders and actors of supply chains should
increase. In designing the previously highlighted sustainability-oriented
schemata, SMEs and new startups should receive sufficient support and
incentives to deal with the difficulties of adaptation to new schemata and
comply with standards, licenses, and labels.
