Abstract
<title>Abstract</title> <p>In response to environmental degradation and social exploitation along global value chains, authorities have introduced supply chain regulations for large companies, and the concept of supply chain transparency (SCT), which involves disclosing information about supply chains, has become increasingly important. However, small and medium-sized enterprises (SMEs) are often not directly subject to such regulations, and the use of SCT among them has received little research attention. This study analyses how SCT can support SMEs that want to move away from growth-oriented value extraction and use SCT as a strategy to gain a competitive advantage. Based on a qualitative content analysis and a case study of the watchmaker Christopher Ward, the study presents a role-based framework that conceptualises SCT as fulfilling four interrelated roles: ‘understanding’ and ‘prioritising’ for internal orientation and resource allocation; ‘explaining’ and ‘signalling’ for external communication and market positioning. The findings suggest that the strategic value of SCT derives from the combination of these four roles. Three research propositions are presented for future validation: Firstly, the trust-building effect of SCT in SMEs is more dependent on voluntary and authentic disclosure than on completeness. Secondly, SCT can, to some extent, offset structural power imbalances between SMEs and larger firms. Thirdly, in markets with quality uncertainty, SCT can partially substitute for marketing-intensive signals by providing credible information about values and quality. The study therefore contributes to the ongoing academic debate on the practical application of SCT among SMEs.</p>