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Sustainable Supply Chains: Governance Mechanisms to Greening Suppliers

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Abstract

One of the key challenges for firms is to manage sustainability along the supply chain. To extend sustainability to suppliers, organizations have developed different governance mechanisms. The aim of this paper is to analyze the effectiveness of two different mechanisms (i.e., supplier assessment and collaboration with suppliers) to improve one dimension of sustainability: environmental performance. Structural Equation Modeling and cluster analysis were used to analyze the relationships between supplier assessment, collaboration with suppliers, and environmental performance. The results suggest that (1) both mechanisms, supplier assessment and collaboration with suppliers, have a positive and synergistic effect on environmental performance, and (2) assessment acts as an enabler of collaboration. Finally, the paper also contributes to the literature by providing a framework of sustainability governance mechanisms.

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Acknowledgments

The authors gratefully acknowledge the significant contributions of the reviewers and the financial support from research grant ECO2010-16840 from the Spanish Ministry of Science and Innovation. The authors also thank Prof. Rudolf Large for allowing them to use the data collected in Germany.

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Authors and Affiliations

  1. Department of Operations Management and Innovation, ESADE Business School, Universitat Ramon Llull, Avda. Torre Blanca 59, 08172, Sant Cugat del Vallès, Spain

    Cristina Gimenez

  2. Department of Quantitative Methods, ESADE Business School, Universitat Ramon Llull, Avda. Torre Blanca 59, 08172, Sant Cugat del Vallès, Spain

    Vicenta Sierra

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  1. Cristina Gimenez
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Correspondence to Cristina Gimenez.

Appendix

Appendix

 

Construct

No.

Item

Phrase

Sources

Supplier assessment

AS1

Evaluation

We assess our suppliers’ performance through formal evaluation, using established guidelines and procedures

Krause et al. (2000)

AS2

Feedback

We provide suppliers with feedback about results of their evaluation

AS3

Audits

We perform environmental audits for suppliers’ internal management systems

Collaboration with suppliers

COL1

Visit

We visit our suppliers’ premises to help them improve their performance

Bowen et al. (2001), Krause et al. (2000)

COL2

Training

We provide training/education to these suppliers’ personnel

COL3

Joint efforts

We make joint efforts with these suppliers to reduce waste

Environmental performance

EP1

Waste reduction

We have achieved a reduction of pollution and waste

Daily et al. (2007), Rao and Holt (2005)

EP2

Compliance

We have improved compliance with environmental laws

EP3

Recycling

We have increased the level of recycling

EP4

Environmental protection

We have preserved the environment

EP5

Reputation

We have improved the environmental reputation of our company

EP6

Overall environmental performance

We have improved the overall environmental performance of our company

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Gimenez, C., Sierra, V. Sustainable Supply Chains: Governance Mechanisms to Greening Suppliers. J Bus Ethics 116, 189–203 (2013). https://doi.org/10.1007/s10551-012-1458-4

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