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The impact of transaction costs and institutional pressure on supplier environmental practices

Wendy L. Tate (Department of Marketing and Supply Chain Management, University of Tennessee, Knoxville, Tennessee, USA)
Lisa M. Ellram (Farmer School of Business, Department of Marketing, Miami University, Oxford, Ohio, USA)
Kevin J. Dooley (WP Carey School of Business, Arizona State University, Tempe, Arizona, USA)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 27 May 2014

1703

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

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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