Exploring institutional competing logic for sustainability implementation of retail chains

Purpose – Taking into account retailers’ critical position in the value chain, their sector’s economicsignificance and environmental externalities, in addition to the institutional agenda, this paper aims to explorethe drivers influencing retailers to shift to more sustainable business models.Design/methodology/approach – The paper utilises the institutional competing logic, including in-depthinterviews with major supermarket retail chains and one expert group discussion. The data gathered inGermany and Lithuania were complemented by desk research analysis, including corporate socialresponsibility (CSR) reports and management reports.Findings – The paper provides empirical insights into how multiple drivers through institutional competinglogic are brought about influencing the shift to more sustainable business models. The results show that retailchains in both countries implement their sustainability based on triple environmental-legal-financial drivers.However, different types of retail chains–namely premium retailers, typical retailers and discounters–implement their sustainability discourse differently.Research limitations/implications – Because of the chosen research approach, the results may lackgeneralisability. Therefore, researchers are encouraged to test the proposed propositions further.Social implications – Interestingly, retailers “shift” their responsibility to the consumers rather thanencourage themselves to make more sustainable choices. The authors observe a more passive and responsiverole of retailing chains because of the inherent trade-off between revenue growth and sustainable consumption.Originality/value – The original contribution lies in exploring how retail chains adapt institutionalcompeting logic and are influenced by multiple drivers when implementing their sustainability activities. Inaddition, the authors propose a conceptual model for retailers’ sustainability management, as well as formulatethree research propositions.