Mediated power and sustainable supplier management (SSM): Linking power use, justice, and supplier performance
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 2 October 2019
Issue publication date: 2 October 2019
Abstract
Purpose
As focal buyers implement sustainable supplier management (SSM) to advance their supply chain sustainability, the purpose of this paper is to provide a more nuanced understanding of how buyers’ use of power may incite varying perceptions of justice from suppliers that affect sustainable supplier performance (SSP).
Design/methodology/approach
This paper draws on multidisciplinary literature and collects empirical data from 181 supplying firms in China to examine the complex links among power use, justice, SSM, and sustainable performance using partial least squares structural equation modeling.
Findings
Both coercive and reward buyer power can facilitate SSM implementation and justice perception moderates the impact of SSM on SSP. Furthermore, coercive power adversely influences justice evaluation, thereby attenuating the effect of SSM on performance.
Research limitations/implications
This study complements and extends sustainable supply chain management research by evaluating SSM: on environmental, social and economic performance; from the perspectives of suppliers; and in an emerging market where many suppliers of Western firms are located. It also adds to behavioral SCM research by examining how buyers’ exercise of power might influence suppliers’ justice perception.
Practical implications
To implement SSM, focal buyers cannot simply issue codes of conduct to suppliers and ignore suppliers’ disposition to commit to standards. While coercive power might be convenient and tempting for buying firms, managers ought to be judicious in the use of coercion.
Originality/value
This is the first large-scale empirical investigation on the links among power use, justice, SSM and sustainable performance from the perspectives of suppliers in an emerging economy.
Keywords
Citation
Chen, Y. and Chen, I.J. (2019), "Mediated power and sustainable supplier management (SSM): Linking power use, justice, and supplier performance", International Journal of Physical Distribution & Logistics Management, Vol. 49 No. 8, pp. 861-878. https://doi.org/10.1108/IJPDLM-12-2018-0393
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited