Abstract
Western buying companies impose Supplier Codes of Conduct (SCC) on their suppliers in developing countries; however, many suppliers cannot fully comply with SCC and some of them even cheat in SCC. In this research, we link contract characteristics – price pressure, production complexity, contract duration – to the likelihood of supplier’s commitment to SCC through a mediating process: how the buying companies govern their suppliers. Our structural equation model analysis shows that the hierarchy/relational norms governance is a perfect mediator of contract characteristics’ effects on the likelihood of supplier’s commitment; the market governance, an insignificant one. The managerial implications are provided for successfully implementing SCC in global supply chains.
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Abbreviations
- SCC:
-
supplier codes of conduct
- CNTAC:
-
China National Textile and Apparel Council
- H/R:
-
hierarchy/relational norms
- NGO:
-
non-governmental organizations
- CSR:
-
corporate social responsibility
- TCE:
-
transaction cost economics
- RET:
-
relational exchange theory
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Jiang, B. Implementing Supplier Codes of Conduct in Global Supply Chains: Process Explanations from Theoretic and Empirical Perspectives. J Bus Ethics 85, 77–92 (2009). https://doi.org/10.1007/s10551-008-9750-z
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DOI: https://doi.org/10.1007/s10551-008-9750-z