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Businesses today operate in a world that does not stand still. Although people are considered creatures of habit, and businesses find it far easier to repeat the same processes than to try something different, firms today must adapt to their changing environments for simple survival. They must be agile and willing to exploit opportunities, which might even include creating change themselves through strategic or technological innovation. In a world with increasing awareness of depleting natural resources and a growing importance and recognition of good health and overall human well-being, the expectation from stakeholders for firms to act responsibly is also rising. To cope with these changing demands and to improve the impact on the natural environment and society, many firms are actively implementing sustainable supply chain management (SSCM) strategies. In doing so, the need for developing and exploiting dynamic capabilities (DCs) becomes evident. This dissertation includes an analysis of existing literature and multi-case studies in the Brazilian and German food industries to identify drivers for sustainability initiative implementation and the particular role of knowledge and supplier management in improving sustainability performance.

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