Adoption Barriers in Supply Chain Due Diligence: Insights from Practitioners in Exporting Economies

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Abstract
The rapid adoption of global mandatory Supply Chain Due Diligence (SCDD) regulations has resulted in cascading obligations for suppliers in exporting countries. However, supplier adoption of SCDD practices is still low, given these regulations. This study investigates the barriers preventing firms in exporting countries from adopting SCDD practices. The study is based on thematic analysis of 24 semi-structured interviews with supply chain practitioners from a variety of industries and countries. The SCDD barriers identified are: Financial Constraints, Low Awareness and Training, Resistance to Change, Weak Enforcement, Corruption, Power Asymmetry, and Tier 2/3 invisibility. The study is the first empirically based supplier SCDD barrier framework and extends the institutional theory by showing that coercive pressures are mediated through enforcement quality and power relations. Practical implications are offered for buyers, policymakers, industry associations, and suppliers seeking to address these barriers and enable meaningful SCDD adoption in exporting countries.

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