When power shapes sustainability: managing paradox in global value chains

The 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.

The researchers examine how power dynamics shape sustainability outcomes in a global apparel value chain between Germany and China. They identify two types of power: power-over, where dominant actors impose their will, and power-with, where organizations recognize their mutual dependence and build collective capacity.

Strong power-over dynamics led to fragmented responses to sustainability demands in the study, including audit manipulation and excessive overtime. However, when external conditions shifted and dependencies became more balanced, firms began developing power-with mechanisms. Through closer collaboration, clearer internal structures and stronger supplier partnerships, companies were able to address tensions between profit and sustainability more proactively.

The findings suggest that managing sustainability paradoxes requires structural change, not just stricter compliance systems. Aligning purchasing incentives with sustainability goals and strengthening collaborative relationships across the value chain are key steps toward more durable solutions.

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)