Shared goals and vision in supply chain: a mediation model of prevention-oriented practices and compliance-oriented practices

Abstract

Purpose

Manufacturers face increasing demands to address inefficiencies and improve environmental performance across their supply chains. However, there remains a significant gap in empirical research examining how collaboration in the supply chain affects various environmental practices and their consequent impacts on performance. This study aims to address the gap by examining how shared goals and vision drives compliance-oriented and prevention-oriented practices, subsequently affecting environmental performance and operational costs—critical for fostering antifragility and resilience in today’s environment.

Design/methodology/approach

An empirical study has been performed based on a sample of survey data from 279 manufacturers from fifteen countries and regions. Applying structural equation modeling analysis to the sample dataset, this study examines the mediating role of two distinct types of environmental practices between shared goals and visions and manufacturers’ environmental performance and operational cost.

Findings

This study delineates distinct pathways through which shared goals and vision affect various types of environmental practices, and consequently lead to different performance outcomes: (1) environmental impact of manufacturing activities depends on the collective efforts of the manufacturers and their supply chain partners; (2) shared goals and vision among supply chain partners facilitates both environmental performance and operational cost through prevention-oriented practice; (3) shared goals and vision in supply chain benefits operational cost performance primarily through prevention-oriented practice, but less likely through compliance-oriented practice.

Practical implications

This study reveals two distinct pathways through which the shared goals and vision impact various performance outcomes, providing valuable guidance to businesses aiming to balance operational cost and environmental performance — crucial for resilience in today's turbulent environment.

Originality/value

This study not only corroborates existing theories of the Natural Resource-Based View and collaborative networks but also provides a detailed depiction of how collaboration across the supply chain promotes a diverse range of environmental practices and yields varied performance outcomes. It offers vital insights for supply chain participants to effectively navigate environmental challenges, enabling them to cultivate resilience and proactively address environmental issues.

Citation

Luo, C., Zhang, D., Linderman, K. and Ni, J. (2024), "Shared goals and vision in supply chain: a mediation model of prevention-oriented practices and compliance-oriented practices", European Journal of Innovation Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/EJIM-11-2023-0995