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Article
Publication date: 18 May 2021

Sara Hajmohammad, Anton Shevchenko and Stephan Vachon

Firms are increasingly accountable for their suppliers' social and environmental practices. Nonmarket stakeholders nowadays do not hesitate to confront buying firms for their…

Abstract

Purpose

Firms are increasingly accountable for their suppliers' social and environmental practices. Nonmarket stakeholders nowadays do not hesitate to confront buying firms for their suppliers' misconducts by mobilizing demonstrations, social media campaigns and boycotts. This paper aims to develop a typology of response strategies by targeted firms when they face such contentions and to empirically investigate why these strategies vary among those firms.

Design/methodology/approach

Drawing on social movement and stakeholder salience theories, the authors develop a set of hypotheses linking their typology of four response strategies to three key contextual factors – nonmarket stakeholder salience, nonmarket stakeholder ideology and the target firm reputation – and examine them using a vignette-based experiment methodology.

Findings

The results suggest that nonmarket stakeholder salience significantly impacts the nature of response (reject or concede), whereas the nonmarket stakeholder ideology is significantly related to the intensity of response (trivial or vigorous). Interestingly, the firms' reputation was found to have no significant effect on their response strategy when they faced stakeholder contentions.

Originality/value

This paper adds both theoretical and methodological value to the existing literature. Theoretically, the study develops and tests a comprehensive typology of response strategies to nonmarket stakeholder contentions. Methodologically, this study is original in leveraging a vignette-based experiment that allows establishing causal factors of response strategies following a supplier sustainability misconduct.

Details

International Journal of Operations & Production Management, vol. 41 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

Content available
Book part
Publication date: 23 May 2022

Agostino Vollero

Abstract

Details

Greenwashing
Type: Book
ISBN: 978-1-80117-966-9

Article
Publication date: 12 March 2024

Bai Liu, Tao Ju, Jiarui Lu and Hing Kai Chan

This research investigates whether focal firms employ strategic supply chain information disclosure, focusing on the concealment of supplier and customer identities, as part of…

Abstract

Purpose

This research investigates whether focal firms employ strategic supply chain information disclosure, focusing on the concealment of supplier and customer identities, as part of their supply chain environmental risk management strategies (supplier sustainability risk and customer loss risk, respectively).

Design/methodology/approach

Using a panel dataset of Chinese listed firms from 2009 to 2019 and utilizing the suppliers’ environmental punishment of peer firms (peer events) as an exogenous shock and employing ordinary least squares (OLS) estimation, this study conducts a regression analysis to test how focal firms disclose the identities of their suppliers and customers.

Findings

Our results indicate that focal firms prefer to hide the identities of their suppliers and customers following the environmental punishment of peer firms’ suppliers. In addition, supplier concentration weakens the effect of withholding supplier identities, whereas customer concentration strengthens the effect of hiding customer identities. Mechanism analysis shows that firms hide supplier identities to avoid their reputation being affected and hide customer identities to prevent the deterioration of customers’ reputations and thus impact their market share.

Originality/value

Our study reveals that reputation spillover is another crucial factor in supply chain transparency. It is also pioneering in applying the anonymity theory to explain focal firms’ information disclosure strategy in supply chains.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Book part
Publication date: 14 May 2018

Kathleen Rehbein, Frank den Hond and Frank G. A. Bakker

Corporate social responsibility (CSR) and corporate political activity (CPA) are two important components of firms’ nonmarket strategies, oriented toward shaping the firm’s…

Abstract

Corporate social responsibility (CSR) and corporate political activity (CPA) are two important components of firms’ nonmarket strategies, oriented toward shaping the firm’s political and social conditions. Although this is acknowledged in the literature, there are contradictory arguments and evidence, concerning, first, whether and under which conditions firms align their CPA and CSR activities, and second, what the impacts might be if they do align these activities. In light of this, this chapter draws from earlier reviews of nonmarket strategies, to explore the factors at multiple levels, macro and micro, that may drive a firm’s alignment of CPA and CSR. In doing so, we draw from management research to identify the macro- and micro-level factors that shape CPA and CSR alignment as CSR and CPA alignment research mostly focuses on outcomes rather than identifying the drivers of alignment. We develop a general model that integrates the macro- and micro-level discussions to make suggestions about where future research needs to go to increase understanding of when corporations will combine their CPA and CSR efforts and the merits of these efforts.

Article
Publication date: 22 August 2023

Sang-Bum Park

Previous scholars have assumed that multinational enterprises (MNEs) can reduce the liability of foreignness and increase profitability by investing in corporate social…

Abstract

Purpose

Previous scholars have assumed that multinational enterprises (MNEs) can reduce the liability of foreignness and increase profitability by investing in corporate social responsibility (CSR). However, empirical validation of this assumption has rarely been attempted. This study aims to provide empirical evidence that the adoption of multi-stakeholder initiatives, which are globally recognized as signals of CSR, helps MNEs increase profits from internationalization.

Design/methodology/approach

Fixed effect models, which address model misspecification problems, and instrumental variable estimation, which controls for the endogeneity in firms’ choice of internationalization, offer empirical evidence supporting the moderating effects of global multi-stakeholder initiatives on the relationship between internationalization and firm performance.

Findings

This study examines the moderating role of multi-stakeholder initiatives in the relationship between internationalization and firm performance, drawing on signaling and stakeholder theories. The results suggest that the signaling effect of multi-stakeholder initiatives can help MNEs overcome the liability of foreignness and, therefore, profit from overseas markets.

Originality/value

Although the internationalization–firm performance relationship has been a subject of debate in the field of international business, the role of firms’ stakeholder engagement in this relationship has been largely overlooked in previous studies. In this study, the authors explore the impact of multi-stakeholder initiatives on the internationalization–firm performance relationship. Our primary contention is that multi-stakeholder initiatives have moderating effects on this relationship by reducing the liability of foreignness experienced by MNEs in host countries. Furthermore, the findings suggest that active engagement in multi-stakeholder initiatives significantly contributes to the financial success of MNEs as they internationalize.

Article
Publication date: 4 December 2023

Fu Jia, Ying Xu, Lujie Chen and Kiran Fernandes

Despite the increasing interest in the role of supply chain concentration (SCC) in improving performance, its influence on firms' sustainability performance remains unexplored, as…

Abstract

Purpose

Despite the increasing interest in the role of supply chain concentration (SCC) in improving performance, its influence on firms' sustainability performance remains unexplored, as do the underlying mechanisms of this relationship. Drawing on resource dependence theory, the authors investigate the relationship between SCC and manufacturing firms' sustainability performance and the moderating roles of operational slack and information transparency.

Design/methodology/approach

The authors use secondary data from 3,581 manufacturing firms listed on the Shanghai and Shenzhen A-share stock markets from 2006 to 2020 to conduct an empirical analysis using panel data regression models.

Findings

Manufacturing firms' SCC is negatively related to sustainability performance until it reaches a certain point, where SCC positively affects sustainability performance, presenting a U-shaped relationship. In addition, operational slack represented by a quick ratio moderates the relationship between SCC and sustainability performance by flattening the curve. Operational slack represented by receivable turnover ratio moderates the relationship between SCC and sustainability performance by steepening the curve and shifting the turning point left. Information transparency strengthens the effect of SCC on the sustainability performance by steepening the curve.

Originality/value

This investigation provides a comprehensive view of the SCC– sustainability performance relationship.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 10 August 2023

Zhi Cao, Dong-Young Kim, Yinping Mu and Vinod Singhal

The growing focus on socially responsible supply chain management (SRSCM) has made it crucial to extend corporate social responsibility (CSR) to upstream suppliers. Drawing on…

Abstract

Purpose

The growing focus on socially responsible supply chain management (SRSCM) has made it crucial to extend corporate social responsibility (CSR) to upstream suppliers. Drawing on resource dependence theory, this study aims to examine how supplier dependence upon socially responsible buyers impacts suppliers' CSR performance and how this relationship is moderated by network prominence and demand uncertainty.

Design/methodology/approach

The proposed hypotheses are tested using regression analysis with Heckman's two-stage model and a dyadic supply chain dataset constructed based on publicly traded Chinese firms between 2008 and 2016. This time window is selected due to a one-year lag of the dependent variable and the change in evaluation methods of the database providing CSR performance in 2018.

Findings

The empirical results indicate that supplier dependence upon socially responsible buyers is positively associated with suppliers' CSR performance. However, this positive relationship is attenuated when suppliers occupy a prominent position in the network or when they face high demand uncertainty.

Originality/value

This study extends knowledge about the role of relationship dependence in implementing SRSCM by highlighting its positive impact on suppliers' CSR. Thus, this study contributes to the buyer–supplier relationship literature and the power and relationship dependence literature. This study further advances the understanding of the factors that influence suppliers' behavior by exploring the moderating roles of network prominence and demand uncertainty. The results have several practical implications for managers and policymakers.

Details

International Journal of Operations & Production Management, vol. 44 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 17 May 2022

Philipp C. Sauer, Minelle E. Silva and Martin C. Schleper

While various supply chain (SC) sustainability investigations exist, their connection to supply chain resilience (SCRes) remains largely unexplored. To fill this gap, the authors…

1878

Abstract

Purpose

While various supply chain (SC) sustainability investigations exist, their connection to supply chain resilience (SCRes) remains largely unexplored. To fill this gap, the authors answer the question: “How do firms' sustainability actions affect their SCs' resilience and sustainability trajectories in turbulent environments?" by exploring the context of the COVID-19 pandemic.

Design/methodology/approach

The authors conducted 10 case studies in five industries located in six European countries. A total of 19 semi-structured interviews and relevant secondary data were collected and analyzed in reference to SC sustainability learning and the literature on SCRes approaches (i.e. engineering, ecological and social-ecological).

Findings

31 SC actions referring to different sustainability dimensions were identified to map SCRes learning through a temporal, spatial and functional scale analysis. While five cases are related to an engineering approach focused on “bouncing back” to pre-pandemic goals, three cases were focused on “bouncing forward” as part of an ecological approach. Moreover, the authors identified the existence of two social-ecological resilience cases which developed long-term actions, updating functional set-ups transcending the SC level. The results furthermore illustrate an influence of the SCRes approaches on SC sustainability learning, generating three different paths: flat, flat ascending and ascending SC sustainability trajectories.

Research limitations/implications

The study develops an overview of the adoption of SCRes approaches due to temporal, spatial and functional scales, and their effect on SC sustainability trajectories through exploitation and exploration capabilities. Future research should elaborate on potential moderators in the proposed relationships.

Practical implications

A better understanding of the link between SC sustainability actions and SCRes will help practitioners to make better informed decisions in turbulent environments.

Originality/value

Unlike previous research, this paper provides empirical evidence on engineering, ecological and social-ecological SCRes approaches, as well as SC sustainability trajectories.

Details

International Journal of Operations & Production Management, vol. 42 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

Content available
Book part
Publication date: 14 May 2018

Abstract

Details

Corporate Social Responsibility
Type: Book
ISBN: 978-1-78754-260-0

Article
Publication date: 17 June 2010

Sarianna M. Lundan

In this paper we examine three distinct types of ownership advantages, and argue that these are associated with three different kinds of limits to the growth of the firm. For…

6273

Abstract

In this paper we examine three distinct types of ownership advantages, and argue that these are associated with three different kinds of limits to the growth of the firm. For some firms, the inability to regenerate its asset‐based advantages is critical, while for others, the inability to effectively coordinate its assets (inside or outside the firm), or the inability to negotiate the nonmarket environment are more salient. We think that the identification of different analytical categories of ownership advantages enables the construction of better proxies in empirical research, and helps to explain the limited geographical reach of MNEs observed in the literature.

Details

Multinational Business Review, vol. 18 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

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