The impact of transaction costs and institutional pressure on supplier environmental practices
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 27 May 2014
Abstract
Purpose
Suppliers play a more significant role in the environmental footprint of supply chains than most final manufacturers. The purpose of this paper is to apply transaction costs and institutional theory to help understand why the more conservative, or reactive suppliers may or may not be likely to adopt environmental practices.
Design/methodology/approach
This research builds on a prior conceptual paper and uses the results of a survey to test whether transaction costs and institutional theory can provide insight into supplier's adoption of environmental practices.
Findings
This research finds that perceived transaction costs affect supplier cooperation in adopting environmental practices. Suppliers are more likely to adopt an environmental practice if information-seeking costs are low or the cost of adoption is considered necessary to maintain the relationship. Data did not support the hypotheses concerning institutional pressures.
Originality/value
There is much research in the area of proactive adoption of environmental business practices. This research looks specifically at what influences the adoption of environmental business practices by suppliers that are more reactive or hesitant to be leaders in this area.
Keywords
Citation
L. Tate, W., M. Ellram, L. and J. Dooley, K. (2014), "The impact of transaction costs and institutional pressure on supplier environmental practices", International Journal of Physical Distribution & Logistics Management, Vol. 44 No. 5, pp. 353-372. https://doi.org/10.1108/IJPDLM-12-2012-0356
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited