Sustainable Supply Chain Risk Management in a Climate-Changed World: Review of Extant Literature, Trend Analysis, and Guiding Framework for Future Research
Abstract
:1. Introduction
- RQ #1:
- Are the CC and SCM fields evolving and converging, necessitating a renewed SCRM definition and framework?
- RQ #2:
- How is CC impacting SCM and vice versa?
- RQ #3:
- How can a CC-resilient sustainable SC risk be defined?
- RQ #4:
- What are the prevailing research gaps and future directions in SCRM?
2. Research Background, Questions and Methodology
2.1. Research Background
2.2. Research Motivation for Climate Change and Supply Chain Risk
2.3. Objectives of the Research
2.4. Methodology: Systematic Literature Network Analysis
The Systematic Literature Review
3. Results and Trend Analysis Based on the Extant Literature
3.1. NVivo Word Cloud Text Mining
- ✓ Core Concepts: Bold, large, and red words (climatic, changing, sustaining, environmentally, products, emissions) emphasize the understanding of CC’s impact and sustainability in risk management;
- ✓ Supply Chain Focus: Bold black words (chain, supply, foods, energy, impact, businesses’, assessment, develops, model, carbons, record, waters, managers, analysis, industry) highlight key SC elements and address CC impacts;
- ✓ Comprehensive Approach: Black words (environments, greenhouse, economic, scopes, sector, strategies, risk, policy, life, systems, research, performed, increase, cycle, partnership, costs, globally, results, approach, effects) stress environmental and economic considerations, risk strategies, and global effects;
- ✓ Stakeholder Engagement: Black words (socially, potential, reduce, waste, process, mitigation, relations, resources, cases, transportation, consumption, scenarios, stakeholders, practicing, decision, technology, company, urbanizing, agricultural, reductions, benefits) emphasize stakeholder engagement, waste reduction, and sustainable practices;
- ✓ Market Dynamics and Planning: Black words (imports, corporations, markets, green, provide, economy, futures, data, control, adaptive, governments, improving, levels, plans, operators, innovative, framework, efficiently, regions) shed light on market dynamics, green strategies, government involvement, and innovative planning;
- ✓ Challenges and Implementation: Least-large words (challenges, identifying, implementing, design, contribute, value, nature, responsibility, footprints, support, firms’, internationality, demand, integration, issues, present, countries, methods) underscore challenges, effective design, sustainability value, and integration.
- ✓ Core Concepts and Environmental Focus: The repetition of words like “environmental”, “climate”, “emissions”, and “carbon” underscores an ongoing emphasis on environmental concerns and climate-related factors.
- ✓ Supply Chain and Technology: The presence of terms like “production”, “supply”, “systems”, and “technology” suggests an increased focus on supply chain management practices, particularly in the context of technology integration.
- ✓ Sustainability and Impact: Words like “sustainability”, “model”, “impact”, and “efficiency” reflect a continued interest in sustainability modeling and assessing the impact of climate change on various aspects of business.
- ✓ Urban and Economic Considerations: Terms like “urban”, “assessment”, “global”, and “economics” indicate attention to urban areas, assessing the global impact and economic implications of climate change.
- ✓ Challenges and Renewable Energy: The appearance of words like “challenges”, “renewable”, and “power” suggests an ongoing focus on challenges related to renewable energy adoption and sustainable power sources.
3.2. Publication Years
3.3. Publishing Authors
3.4. Top-Publishing Countries and Affiliations
4. Towards a New Definition of SC Risk Management and a Guiding Framework
4.1. Cluster Analysis for SCRM Keywords Using Network Visualization
- CC and Supply Chain Risks: The risks of SCs relative to CC form a critical area of research (e.g., [11,97]. Studies concentrate on discerning the potential impacts of CC on SCs and identifying risks as vulnerabilities that may emerge. Key areas of focus include pinpointing susceptible zones, understanding vulnerability drivers, and analyzing the influence of CC on vulnerability.
- Strategies for Mitigating CC Risks in the Supply Chain: This research category reviews strategies and approaches for mitigating CC risks within SCs [35,98,99]. Scholars have identified various climate-related risks affecting SCs, such as extreme weather events, sea-level rise, temperature fluctuations, and changing precipitation patterns. These risks can disrupt transportation [77,100], damage infrastructure [14], impact resource availability [101], and affect the overall resilience of SCs [102].
- Integration of CC Considerations in Supply Chain Decision-Making: A growing body of literature focuses on how CC considerations can be incorporated into supply chain decision-making (SCDM). The need to integrate these considerations is amplified by the fact that SCs are complex, global, and prone to human errors or biases [103]. Various SC decisions, such as procurement, capacity allocation, contracting, scheduling, postponement, and demand forecasting, can be modeled as decision-making problems under uncertainty, emphasizing the importance of considering CC in SCDM.
4.2. Impacts and Influences between CC and SCM
4.2.1. Impacts of CCs on SCM
- ▪ Extreme weather events: CC is leading to an increase in the frequency and intensity of extreme weather events, such as hurricanes, floods, droughts, and heatwaves [8,29,60,104]. These events can disrupt transportation networks, damage infrastructure, and disrupt the flow of goods, leading to delays, disruptions, and increased costs [77,105].
- ▪ Regulatory changes and carbon footprint: Governments worldwide are implementing stricter regulations to reduce GHG emissions [71]. This includes carbon pricing, emission standards, and sustainability reporting requirements. SCs need to adapt to these regulations, reduce their carbon footprint, and ensure compliance.
4.2.2. Impact of SCM on CC
4.3. Climate-Change Resilient Sustainable Supply Chain Risk Management (CCR-SSCRM)
CCR-SSCRM is an integrative approach used to identify, assess, and mitigate CC-borne risks and their impacts on supply chain sustainability such that the resiliency mechanisms built within the supply chain configuration, planning, and execution forestall the related economic, environmental, social, and cultural vulnerabilities.
4.4. Gaps in Extant Literature
4.4.1. Underexplored Dimensions of CC Risks in SCs
- Social and cultural dimensions—The literature has primarily focused on the economic and environmental aspects of CC risks in SCs [40,118]. Few researchers have considered and investigated the social and cultural dimensions of CC risks in SCs [32,45,98]. Therefore, more research is needed to understand the social and cultural dimensions, including the impacts on local communities, labor practices, human rights, and cultural heritage.
- Behavioral and organizational factors—Understanding the role of human behavior and organizational factors in addressing CC risks is crucial [119,120]. This includes examining how organizational culture, decision-making processes, and stakeholder engagement influence the ability to identify, assess, and respond to climate-related risks.
4.4.2. Methodological Gaps in Studying Climate-Related SC Risks
- Longitudinal studies: Most studies in the literature focus on cross-sectional analyses, providing a snapshot of the current state of SCs. Longitudinal studies that track changes in SC risk over time can offer valuable insights into the dynamic nature of CC impacts and risk management practices [39,44].
- Integration of qualitative and quantitative methods: While both qualitative and quantitative methods are utilized in studying SC risks, there is a need for more integrated approaches [68,121,122]. Greater insights could be derived from research that integrates qualitative insights from case studies and interviews with quantitative data analysis. Such an approach can help obtain a more comprehensive understanding of climate-related risks and their implications for SCs [27].
- Scenario-based analysis: Future climate scenarios and their potential impacts on SCs have received limited attention. Incorporating scenario-based analyses, including varying CC scenarios and their likelihoods, can help identify sustainable risk management strategies that are adaptable to uncertain future conditions [97,123].
4.4.3. Sector-Specific Challenges and Opportunities in SCRM and CC
- Agriculture and Food SCs: These SCs are especially vulnerable to CC, as they are directly linked with weather patterns and natural resource availability [45,124]. Increased temperature, changes in precipitation, and extreme weather events can lead to decreased agricultural productivity [109] shifts in growing seasons, increased pest activity, and ultimately threaten food security [80,107,125]. Moreover, the transportation and storage of food products can be disrupted due to climate events, leading to higher costs and waste [78]. Despite these challenges, there are opportunities for adopting climate-resilient ways [126] such as farming practices, diversifying crop varieties [127], improving irrigation efficiency, and implementing sustainable logistics solutions.
- Energy SCs: CC can affect the supply of energy resources [101], particularly those dependent on water, such as hydropower and thermal power plants. Extreme weather conditions can disrupt the transmission and distribution of energy, and infrastructure may also be vulnerable to damage from severe climate events [49,128]. However, these challenges highlight the need and opportunity for a transition towards renewable and less climate-sensitive energy sources, as well as the development of resilient infrastructure [129].
- Manufacturing SCs: These chains can be affected due to climate-induced disruptions in the availability and cost of raw materials, energy supply, and transportation. Sea-level rise can threaten coastal manufacturing facilities [13,29,109]. The opportunities lie in improving resource efficiency, adopting circular economy principles, developing climate-resilient infrastructure, and relocating critical facilities to less-vulnerable locations [130].
- Healthcare SCs: These are vital in managing health risks associated with CC [119]. Changes in temperature and precipitation can influence the spread of diseases, increasing the demand for certain healthcare services and products. Disruptions due to extreme events can impede the delivery of healthcare services. Here, opportunities include improving the responsiveness and resilience of healthcare SCs [131], implementing robust contingency plans [132], and leveraging technology for effective healthcare delivery [133].
4.5. Future Research Venues
- Developing comprehensive risk assessment and management models: Understanding the complexity and interdependencies of CC risks within SCs requires developing a comprehensive measure of SC risk and management models [68,121,122]. These models should incorporate multiple risk factors, ranging from physical risks (such as extreme weather events or sea-level rise) to transitional risks (such as regulatory or market changes related to CC). These models should be able to simulate different climate scenarios, assess their impacts on different aspects of SCs, and identify the most effective strategies for mitigating these risks. This process must also consider the pivotal role of humanitarian logistics in climate-induced crises. Given the potential for CC to intensify the frequency and severity of natural disasters, there is a growing imperative for effective humanitarian logistics. Accordingly, research should focus on applying SSCM principles to humanitarian logistics. This would ensure a swift and effective response to disasters, efficient resource allocation, and resilience in recovery processes.
- Exploring the role of intelligent technology and innovation in CCR-SSCM: Technologies like big data analytics and blockchain, and smart process improvement can be crucial in building climate-resilient SCs [27,82,93,134]. These technologies can provide real-time monitoring, predictive analytics, traceability, and transparency, enhancing the ability of SCs to anticipate, respond to, and recover from climate-related disruptions. For example, big data analytics can process large volumes of structured and unstructured data to uncover patterns and insights, facilitating informed decision-making [135,136]. By incorporating environmental data, like temperature patterns, rainfall, and wind speed [137], and operational data (delivery times, production volumes, and energy consumption), predictive models can be developed to assess CC risks and devise adaptive strategies. However, successfully integrating these technologies faces operational challenges related to data privacy, cybersecurity, technological compatibility, and workforce skills. Further research is needed to understand how to effectively harness these technologies in different SC contexts and overcome potential barriers.
- Examining the influence of policy and regulation on CCR-SSCRM: As observed in Section 3.1, the term “environmental policy” has been prevalent throughout the period under consideration. Climate-related policies and regulations, such as carbon pricing, emissions standards, and sustainability reporting requirements, can significantly influence SCRM [130,138,139,140]. Therefore, future research could explore how these policies impact SC strategies, operations, and competitive dynamics and how SCs can optimally gauge these regulatory environments.
- Investigating the role of SC relationships in devising CCR-SSCRM: Research on CC and SCM calls for interdisciplinarity and global collaboration. More attention is being drawn to the participation of various countries and institutions in CC research, as evident from the top affiliations and the countries with the highest number of published research papers (recall Figure 10 and Figure 11). However, a growing need exists to foster more organic collaboration and partnerships. Such collaboration and partnerships are essential for establishing sustainable and resilient practices in managing SC risks amidst CC [31,32,141]. Within the SC context, collaboration entails sharing information, resources, and best practices among stakeholders. This collective effort enhances their ability to manage CC risks effectively. It is important to note that collaboration extends beyond individual SCs to include partnerships with external organizations for climate refugee resolution, such as research institutions, NGOs, and government agencies. Through these partnerships, joint efforts can be focused on innovation and technology development to promote climate resilience. Moreover, partnerships are crucial for advocating supportive policies that incentivize and enable climate-resilient practices throughout the SC. In future research, it is imperative to prioritize understanding the dynamics of collaboration, identifying effective strategies for managing partnerships, and exploring their impact on building sustainable CC SCs.
- Future research directions aligned with the SDGs: The UN Sustainable Development Goals (SDGs) provide a framework for addressing global challenges, including CC. Future research could explore how sustainable SC strategies in a climate-changed world can contribute to achieving these SDGs. For instance, the research could investigate how SC decarbonization can support SDG #13 (Climate Action) or how sustainable sourcing practices can contribute to SDG #12 (Responsible Consumption and Production). By examining these connections, future research can contribute to a better understanding of how climate-resilient SCs can support the achievement of the SDGs, ultimately fostering sustainable development and addressing CC challenges from an interdisciplinary and inclusive perspective [142,143].
5. Concluding Remarks
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
References
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Disasters | Direct Impacts |
---|---|
Heatwaves | CC can lead to increasingly frequent and severe heatwaves, resulting in heat-related illnesses (heat exhaustion) and increased mortality rates; a 1 °C increase in temperature resulted in an average heat-related illness morbidity increase of 18% and mortality increase of 35% [49,50,51]. |
Droughts | Rising temperatures can exacerbate drought conditions by increasing evaporation rates and reducing water availability [52]. Prolonged and severe droughts can have significant impacts on agriculture, water supplies, and the ecosystem [53]. |
Floods | Warmer temperatures can increase the amount of moisture in the atmosphere, leading to rainfall events which are more intense, and to an increased risk of flooding. Also, melting glaciers and ice caps contribute to rising sea levels, exacerbating coastal flooding [46,54,55]. |
Hurricanes Typhoons Cyclones | While the relationship between CC and the frequency of hurricanes and typhoons is still an active area of research [56], there is evidence to suggest that warmer ocean temperatures can lead to an increase in the number of intense storms [22,46,57]. |
Wildfires | CC can contribute to increasingly frequent and severe wildfires by creating drier conditions, extending the fire season, and increasing the availability of fuel through an increase in drought-stressed vegetation [58,59]. |
Storm Surges | Rising sea levels, primarily driven by CC, can intensify storm surges associated with tropical storms and hurricanes, causing coastal inundation and significant damage to coastal communities [8,16,17,57,60,61]. |
Inclusion Criteria | Description |
---|---|
Keywords | “climate change and supply chain risk management”, “climate change and supply chain operations”, “climate change and sustainable SCs”, “climate change and supply chain risk”, “climate change and supply chain resiliency”, “climate change and supply chain disruptions”, “climate change and business”, “disasters and supply chain risk”, “climate change and supply chain solutions”, “climate change and supply chain analytics”, “climate change and supply chain and sustainable development goals”, “climate change and supply chain losses”, “climate change and supply chain vulnerability” |
Source Title | Journal of Cleaner Production; Sustainability; Business Strategy and the Environment; Science of the Total Environment; Resources, Conservation and Recycling; European Journal of Operational Research; Transportation Research Part D: Transport and Environment; Annals of Operations Research; International Journal of Climate Change Strategies and Management; International Journal of Production Economics |
Language | English |
Document Types | Peer-reviewed articles |
Time Interval | 2003–2022 |
Keywords | No. | Keywords | No. |
---|---|---|---|
climate change and supply chain risk management | 28 | climate change and business | 479 |
climate change and supply chain operations | 39 | disasters and supply chain risk | 48 |
climate change and sustainable SCs | 131 | climate change and supply chain solutions | 41 |
climate change and supply chain risk | 44 | climate change and supply chain analytics | 1 |
climate change and supply chain resiliency | 1 | climate change and supply chain losses | 30 |
climate change and supply chain disruptions | 10 | climate change and supply chain vulnerability | 4 |
climate change and business | 479 | disasters and supply chain risk | 48 |
climate change and supply chain solutions | 41 | climate change and supply chain losses | 30 |
climate change and supply chain analytics | 1 | climate change and supply chain vulnerability | 4 |
climate change and supply chain and sustainable development goals | 19 |
Journal Title | # Articles |
---|---|
Sustainability | 221 |
Journal of Cleaner Production | 220 |
Business Strategy and The Environment | 70 |
Science of The Total Environment | 63 |
Resources, Conservation and Recycling | 35 |
European Journal of Operational Research | 22 |
Annals of Operations Research | 22 |
Transportation Research Part D: Transport and Environment | 18 |
International Journal of Production Economics | 16 |
Int. Journal of Climate Change Strategies and Management | 12 |
Total | 699 |
Author; Affiliation (No. of Documents) | Most-Contributed Topics during 2018–2022 from SCOPUS Database |
---|---|
Daddi, Tiberio; Sant’Anna Scuola Universitaria Superiore Pisa, Pisa, Italy (5) | Sustainability; Environmental Management Systems; Eco-Management and Audit Scheme; Industrial Symbiosis; Sustainable Development; Circular Economy; Alliance Portfolios; Firm; Open Innovation |
Lee, Su-yol; Graduate School of Business, Gwangju, South Korea (5) | Sustainability; Environmental Management Systems; Eco-Management and Audit Scheme; Corporate Social Responsibility; Sustainability Reporting; Global Reporting Initiative; Director; Corporate Governance; Board Independence |
Baumgartner, Rupert J.; Universitat Graz, Graz, Austria (4) | Business Model Innovation; Innovation; Digital Transformation; Industrial Symbiosis; Sustainable Development; Circular Economy; Supply Chain; Environmentally Preferable Purchasing; Green Practices |
Hauschild, Michael Zwicky; Technical University of Denmark, Lyngby, Denmark (4) | Sustainable Development; Elementary Flow; Product Environmental Footprint; Manufacturing; Machine Tools; Sustainable Manufacturing; Material Flow Analysis; Strategic Materials; Metals |
Sarkis, Joseph; Worcester Polytechnic Institute, Worcester, United States (4) | Supply Chain; Environmentally Preferable Purchasing; Green Practices; Bitcoin; Ethereum; Internet of Things; Disruption; Supply Chain Disruptions; Dual Sourcing |
Sala, Serenella; European Commission Joint Research Centre, Brussels, Belgium (4) | Sustainable Development; Elementary Flow; Environmental Product Footprint; Structural Decomposition Analysis; Carbon Emissions; Material Flow Analysis; Food Loss; Waste Prevention; Community Participation |
Azapagic, Adisa; The University of Manchester, Manchester, United Kingdom (3) | Solid Waste Management; Life Cycle Assessment; Municipal Solid Waste; Life Cycle Assessment; Photovoltaic System; Solar Collectors; Beef Production; Functional Unit; Life Cycle Assessment |
Bi, Jun; Nanjing University of Information Science & Technology, Nanjing, China (3) | Structural Decomposition Analysis; Carbon Emissions; Material Flow Analysis; Water Footprint; Water–Energy Nexus; Nexus; Optical Thickness; Aerosol; MISR (Radiometry) |
Bocken, Nancy M.P.; Maastricht University School of Business and Economics, Maastricht, Netherlands (3) | Business Model Innovation; Innovation; Digital Transformation;Industrial Symbiosis; Sustainable Development; Circular Economy; Product-Service Systems; Service Economy; Value Co-Creation |
Damert, Matthias; Technische Universität Dresden, Dresden, Germany (3) | Sustainability; Environmental Management Systems; Eco-Management and Audit Scheme; Supply Chain; Environmentally Preferable Purchasing; Green Practices; Cause-Related Marketing; Corporate Social Responsibility; Corporate Philanthropy |
Frey, Marco K.; Sant’Anna Scuola Universitaria Superiore Pisa, Pisa, Italy (3) | Sustainability; Environmental Management Systems; Eco-Management and Audit Scheme; Industrial Symbiosis; Sustainable Development; Circular Economy; Cause-Related Marketing; Corporate Social Responsibility; Corporate Philanthropy |
García-Sánchez, Isabel María; Universidad de Salamanca, Salamanca, Spain (3) | Corporate Social Responsibility; Sustainability Reporting; Global Reporting Initiative; Cause-Related Marketing; Corporate Social Responsibility; Corporate Philanthropy; Director; Corporate Governance; Board Independence |
Huisingh, Donald; The University of Tennessee, Knoxville, Knoxville, United States (3) | Corporate Social Responsibility; Sustainability Reporting; Global Reporting Initiative; Supply Chain; Environmentally Preferable Purchasing; Green Practices; Manufacturing; Machine Tools; Sustainable Manufacturing |
Griffiths, Andrew; The University of Queensland Business School, Brisbane, Australia (3) | Cause-Related Marketing; Corporate Social Responsibility; Corporate Philanthropy; Alliance Portfolios; Firm; Open Innovation; Farm Animal Welfare; Carbon Management; Governance |
Keyword | Frequency | Keyword | Frequency |
---|---|---|---|
Sustainability | 12 | Sustainable Development | 10 |
Environmental Management Systems | 8 | Eco-Management and Audit Scheme | 8 |
Industrial Symbiosis | 8 | Circular Economy | 8 |
Corporate Social Responsibility | 8 | Sustainability Reporting | 6 |
Global Reporting Initiative | 6 | Business Model Innovation | 6 |
Innovation | 6 | Supply Chain | 6 |
Environmentally Preferable Purchasing | 6 | Green Practices | 6 |
Digital Transformation | 4 | Structural Decomposition Analysis | 4 |
Carbon Emissions | 4 | Material Flow Analysis | 4 |
Sustainable Manufacturing | 4 | Product Environmental Footprint | 4 |
Manufacturing | 4 | Machine Tools | 4 |
Life Cycle Assessment | 4 | Cause-Related Marketing | 4 |
Corporate Philanthropy | 4 | Alliance Portfolios | 4 |
Firm | 2 | Open Innovation | 2 |
Director | 2 | Corporate Governance | 2 |
Supply Chain Disruptions | 2 | Strategic Materials | 2 |
Food Loss | 2 | Waste Prevention | 2 |
Community Participation | 2 | Disruption | 2 |
Climate-Related Disturbances | Examples | Supply Chain Impacts |
---|---|---|
Extreme Weather Events | Hurricanes, storms, floods, droughts, heatwaves | Disruption of transportation, damaged infrastructure, supply delays, increased logistics costs |
Sea-Level Rise | Coastal inundation, erosion, saltwater intrusion | Damage to port facilities, coastal transportation disruptions, supply chain rerouting |
Temperature Changes | Increased average temperatures, heatwaves | Impacts on perishable goods, increased energy costs for temperature control |
Precipitation Changes | Changes in rainfall patterns, increased or decreased precipitation | Water scarcity, impacts on agriculture and raw material availability |
Changes in Natural Disasters | Increased frequency and intensity of wildfires | Disruption of transportation routes, damage to facilities, supply chain interruptions |
Glacier Retreat | Reduced freshwater availability, altered ecosystems | Impacts on water-intensive industries, changes in water-dependent SCs |
Ocean Acidification | Harm to marine ecosystems, coral reef bleaching | Disruption of seafood SCs, impacts on aquaculture |
Biodiversity Loss | Species extinction, disruption of ecosystems | Disruption of agricultural SCs, impacts on biodiversity-dependent industries |
Changes in Agricultural Patterns | Altered growing seasons, crop yield fluctuations | Impacts on agricultural SCs, food production challenges |
Disease Outbreaks | Expanded range of disease vectors, increased transmission | Disruption of labor availability, impacts on healthcare SCs |
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© 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
Share and Cite
Yun, N.Y.; Ülkü, M.A. Sustainable Supply Chain Risk Management in a Climate-Changed World: Review of Extant Literature, Trend Analysis, and Guiding Framework for Future Research. Sustainability 2023, 15, 13199. https://doi.org/10.3390/su151713199
Yun NY, Ülkü MA. Sustainable Supply Chain Risk Management in a Climate-Changed World: Review of Extant Literature, Trend Analysis, and Guiding Framework for Future Research. Sustainability. 2023; 15(17):13199. https://doi.org/10.3390/su151713199
Chicago/Turabian StyleYun, Nam Yi, and M. Ali Ülkü. 2023. "Sustainable Supply Chain Risk Management in a Climate-Changed World: Review of Extant Literature, Trend Analysis, and Guiding Framework for Future Research" Sustainability 15, no. 17: 13199. https://doi.org/10.3390/su151713199
APA StyleYun, N. Y., & Ülkü, M. A. (2023). Sustainable Supply Chain Risk Management in a Climate-Changed World: Review of Extant Literature, Trend Analysis, and Guiding Framework for Future Research. Sustainability, 15(17), 13199. https://doi.org/10.3390/su151713199