Journal
JOURNAL OF BUSINESS ETHICS
Volume 85, Issue 1, Pages 77-92Publisher
SPRINGER
DOI: 10.1007/s10551-008-9750-z
Keywords
supplier codes of conduct; interorganizational governance; transaction cost economics; structural equation model; mediating process
Ask authors/readers for more resources
Western buying companies impose Supplier Codes of Conduct (SCC) on their suppliers in developing countries; however, many suppliers cannot fully comply with SCC and some of them even cheat in SCC. In this research, we link contract characteristics - price pressure, production complexity, contract duration - to the likelihood of supplier's commitment to SCC through a mediating process: how the buying companies govern their suppliers. Our structural equation model analysis shows that the hierarchy/relational norms governance is a perfect mediator of contract characteristics' effects on the likelihood of supplier's commitment; the market governance, an insignificant one. The managerial implications are provided for successfully implementing SCC in global supply chains.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available