4.7 Article

Buyer-supplier relationships on environmental issues: a contingency perspective

Journal

JOURNAL OF CLEANER PRODUCTION
Volume 112, Issue -, Pages 1849-1860

Publisher

ELSEVIER SCI LTD
DOI: 10.1016/j.jclepro.2014.09.026

Keywords

Buyer-supplier relationships; Environmental; Contingency

Funding

  1. Research Grants Council of the Hong Kong Special Administration Region [PolyU 5017-PPR-12]
  2. Hong Kong Polytechnic University [G-YZ48]
  3. Spanish Ministry of Science and Innovation [ECO2010-16840]
  4. Research and Universities Secretary, Economic Department, Generality of Catalonia [ECO/155/2012, 2014FI_B1 00203]

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Our study analyzes the effectiveness of governance mechanisms (transactional or relational) in managing buyer supplier relationships with respect to environmental issues. Based on data from 170 firms located in Hong Kong, this study empirically identifies the mechanism that enhances suppliers' commitment towards environmental protection, and hence allows buying firms to improve their environmental performance. In addition, we have adopted a contingency perspective to investigate the conditions (namely product complexity, relationship stability and relationship adaptability) under which these governance mechanisms are more effective in nurturing supplier commitment. Our results suggest that while both mechanisms lead to suppliers' commitment with environmental issues, their effectiveness can be leveraged if they are applied under specific conditions. In particular, transactional mechanisms are more effective in situations of high product complexity and high relationship stability and adaptability. Relational mechanisms show higher effectiveness if they are used in the context of low product complexity and low relationship adaptability. Furthermore, implications for managers are also derived from this study. (C) 2014 Elsevier Ltd. All rights reserved.

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