Smart Mixes for sustainable value chain management: An evaluation of the
conflict minerals, palm oil and green bonds sectors
Abstract
Fragmented governance of international value chains, operating in
multiple jurisdictions, is insufficient to prevent social and
environmental mismanagement. Smart Mixes, which are combinations of
compulsory and voluntary measures, have been proposed as a possible
means of securing environmental and social standards, but the concept
has not been operationalised in the academic literature. We aim to
identify the factors that have contributed to, or hindered, the success
of existing Smart Mixes in three international value chains (conflict
minerals, palm oil, and bonds) using data from interviews with thirty
two experts, supplemented by a literature review. The results suggest
that Smart Mixes are effective when they cover a specific issue under
conditions in which enforcement mechanisms create a level playing field:
thereby aligning public and private sector interests. The keys to
success in a Smart Mix include positive interactions, harmonisation, and
complementary and supportive measures, which combine to motivate
engagement by the private sector. We conclude that Smart Mixes can
contribute to sustainability in value chains but their effectiveness is
dependent on the strength of the relationships between the measures that
compose them.