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Improving suppliers' environmental performance: the role of environmental engagement and relationship asymmetries

Author

Listed:
  • Fei Song
  • Sachin Modi
  • Frank Montabon
  • Yuhang Xu
  • Jennifer Blackhurst

Abstract

Improving suppliers' environmental performance often poses a great challenge. Drawing on existing literature, signalling theory, and institutional theory, this study examines the effect of broad environmental engagement in supply chains on suppliers' environmental performance. Specifically, suppliers' own engagement effort and that of buyers are both incorporated. Further, it also evaluates the moderating role of buyer-supplier relationship asymmetries in the engagement-performance association. Panel data analyses of dyadic data indicate that a supplier's engagement effort with its supply base and customer base has a positive impact on its environmental performance. Results further indicate that a buyer's engagement with its supply base also has a positive impact on its suppliers' environmental performance. Interestingly, these effects are moderated by size and reputation asymmetries in buyer-supplier relationships. Together, the findings of this study provide nuanced guidelines for improving suppliers' environmental performance.

Suggested Citation

  • Fei Song & Sachin Modi & Frank Montabon & Yuhang Xu & Jennifer Blackhurst, 2024. "Improving suppliers' environmental performance: the role of environmental engagement and relationship asymmetries," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 17(3/4), pages 239-276.
    • Handle: RePEc:ids:ijisma:v:17:y:2024:i:3/4:p:239-276
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