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Adoption of green supply chain management practices in multi-tier supply chains: examining the differences between higher and lower tier firms

Author

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  • Seongtae Kim
  • Kai Foerstl
  • Christoph G. Schmidt
  • Stephan M. Wagner

Abstract

Customer pressure has been widely discussed as the primary driver of green supply chain management (GSCM) practices. However, relatively little is known about supplier capabilities as a key mediator for GSCM practice adoption. Drawing from the resource dependence theory (RDT), we investigate how the interplay between customer pressure and supplier capabilities affects GSCM practice adoption along multi-tier supply chains. We test our hypotheses using multiple regression analysis based on a sample of 284 manufacturing firms operating at different tiers of a supply chain. Our results indicate that the supplier capabilities mediate the direct effect of customer pressure on the adoption of GSCM practices for focal firms. Specifically, we find a full mediation effect of supplier capabilities for higher-tier (i.e. OEM and system supplier) firms and a partial mediation effect for lower-tier (i.e. component and raw material) firms. Our findings provide support for the RDT perspective regarding GSCM. The focal firm’s adoption of GSCM practices as a response to customer pressure is dependent on the level of green resources and capabilities available from their suppliers. The level of such resource dependence varies between focal firms at higher- and lower-tier positions in a multi-tier supply chain.

Suggested Citation

  • Seongtae Kim & Kai Foerstl & Christoph G. Schmidt & Stephan M. Wagner, 2022. "Adoption of green supply chain management practices in multi-tier supply chains: examining the differences between higher and lower tier firms," International Journal of Production Research, Taylor & Francis Journals, vol. 60(21), pages 6451-6468, November.
    • Handle: RePEc:taf:tprsxx:v:60:y:2022:i:21:p:6451-6468
    DOI: 10.1080/00207543.2021.1992032
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