Stakeholder engagement in a sustainable sales and operations planning process

The purpose of this paper is to understand how companies can transition to a sustainable sales and operations planning process to improve economic, environmental, and social performance. Data are collected from a survey of 120 managers in China's manufacturing sector and analyzed using partial least square-based structural equation modeling. Drawing on life cycle theory and stakeholder theory, we argue that the conventional sales and operations planning (S&OP) process is internally focused and myopic, which over time leads to path dependencies and structural inertia. We find that firms can break free from this structural inertia by engaging external stakeholder groups that challenge the status quo and prompt organizational change. The paper contributes to theory by combining the key tenets of life cycle theory and stakeholder theory to explain how companies can transition to a sustainable S&OP process.