Paradox and power in interorganizational relationships: A study of social sustainability tensions in a global value chain

In this Academic Insight, researchers Stephanie Schrage, Marco Berti and House of Sustainable Society affiliate Julia Grimm examine how power dynamics influence whether sustainability tensions in global value chains lead to defensive behavior or collaborative solutions.

This Academic Insight is based on the research article “Paradox and Power in Interorganizational Relationships: A study of social sustainability tensions in a global value chain” published in Organization Studies in 2025.

Global value chains are under increasing pressure to meet sustainability demands while maintaining low prices and fast delivery. These competing demands are not simple trade-offs. They form paradoxes, persistent and interdependent tensions between financial and sustainability goals.

This study explores how such sustainability paradoxes are shaped by power relations between buyers and suppliers. Drawing on a five-year ethnographic study of an apparel value chain between Germany and China, the researchers distinguish between two forms of power: power-over (control and coercion) and power-with (collective capacity built on recognizing interdependence).

Findings: How paradox and power interact

When relationships are dominated by power-over, sustainability paradoxes tend to produce fragmented and defensive responses, such as audit manipulation or employees having to work overtime, which ultimately undermine both trust and sustainability. However, when external shifts rebalance dependencies, space can open for power-with to emerge. Through strategic allying (peer relationships between buyers and suppliers), more transparent internal structures and expanded collaboration across organizations, actors can collectively recognize and address the paradox.

Implications for practice: Designing for power-with

For practice, the study highlights that sustainability challenges cannot be solved by adding more rules or audits. Organizations need to redesign internal incentives, procurement routines and supplier relationships so that responsibility for sustainability and financial objectives is shared. In doing so, paradoxes can become the drivers of collaboration and innovation rather than conflict.

Authors:

Stephanie Schrage (Institute of Business, Kiel University)
Marco Berti (Nova School of Business & Economics, Universidade Nova de Lisboa)
Julia Grimm (House of Sustainable Society and Stockholm University)