Environmentally and economically sustainable business via commercial and contract management as a leadership strategy instrument

While the imperative to advance sustainability and fight the grand challenges of our time is widely acknowledged, effective response has been lagging. In parallel with companies thriving to meet their environmental sustainability targets, their leadership has to achieve economical business goals. As companies globally lose a sum equivalent to 9.2 % of their annual revenues due to poor contract management (International Association for Contract and Commercial Management, 2012; World Commerce and Contracting, 2020), a systemic framework and coherent corporate governance are required. As the company is as sustainable as its supply chain, the impact of greening supply chains can be immense. While battling value leakage, contract value erosion and cost of poor quality, and improving contractual quality, cost efficiency and risk management throughout the contract lifecycle, could commercial and contract management be used in an expanded and enhanced manner, outside of and in addition to its core functions, to help organizations achieve also their sustainability goals? This question illustrates the overarching theme of this thesis. First, Article I explores how businesses could promote (transport) sustainability and incentivize the green economy via contract management. Second, Article II explores how companies could move toward environmentally sustainable supply chains and how contract management can help them along in their transformation. Third, Article III examines how contract management could advance environmentally sustainable development. Here, the term 'sustainable business' is twofold: first, the term refers to environmental sustainability, and second, to producing economically sustainable, profitable business growth. Commercial and contract management is examined as the systemic and efficient business framework and coherent private governance to achieve both environmentally and economically sustainable business. The approach is multidisciplinary. Article I utilizes the goal-oriented teleological method under the socio-economic and socio-legal umbrella. Article II uses empirical qualitative semi-structured in-depth interviews and a multiple case study. Article III draws from literature from sustainability practices. The findings indicate that while there is room for expanded utilization for commercial and contract management to accelerate sustainability in businesses, it already shows potential as a future success factor. The articles present several managerial implications for business practice. The gains are achievable, if companies started using contract management as proposed in this dissertation.