Sustainable Business and Global Supply Chains in ASEAN: Escaping the Middle- Income Trap

Abstract

This study explores the influence of sustainable business strategies and facilitative policy frameworks on ASEAN companies' upgrading and integration into global supply chains (GSCs). The study employs a qualitative document analysis approach to critically examine 12 national and regional policy reports, 6 international institutional reports, and 12 firm-level sustainability and annual reports. Thematic coding and cross-case comparative analysis were conducted using ATLAS.ti software to determine main drivers of sustainable GSC involvement at firm and policy levels. There are suggested and argued conceptual frameworks: the Sustainable Value Chain Upgrading Framework and the Policy-Driven Sustainable Trade Framework. Evidence indicates that firms embracing environmental, social, and governance (ESG) values, circular economy approaches, and innovation investment possess higher market positioning and supply chain resilience. Meanwhile, green growth policies at the national level and international efforts promoting sustainable trade assist in guaranteeing main compliance reduction and corporate sustainability uptake incentives. Cross-country analysis reveals growing convergence towards ASEAN global ESG standards among ASEAN firms, with differences in social impact strategies localized. The article contributes to the existing literature by integrating firm- and policy-level perspectives and offers practical recommendations to policymakers and business managers interested in pursuing economic upgrading through sustainability in the region. The findings call for dynamic firm-policy interactions to attain resilient, inclusive, and sustainable engagement in global value chains.