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

Wendy L. Tate, Lisa M. Ellram, Kevin Dooley

Research output: Contribution to journalArticle

17 Citations (Scopus)

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.

Original languageEnglish (US)
Pages (from-to)353-372
Number of pages20
JournalInternational Journal of Physical Distribution and Logistics Management
Volume44
Issue number5
DOIs
StatePublished - 2014

Fingerprint

transaction costs
supplier
Costs
Supply chains
costs
research approach
Industry
Institutional pressures
Transaction costs
Suppliers
Environmental practices
leader
supply
methodology
Values

Keywords

  • Environmental
  • Institutional theory
  • Purchasing
  • Transaction cost theory

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Transportation

Cite this

The impact of transaction costs and institutional pressure on supplier environmental practices. / Tate, Wendy L.; Ellram, Lisa M.; Dooley, Kevin.

In: International Journal of Physical Distribution and Logistics Management, Vol. 44, No. 5, 2014, p. 353-372.

Research output: Contribution to journalArticle

@article{d22005b5e5ea4820abfda71f1eb88f4f,
title = "The impact of transaction costs and institutional pressure on supplier environmental practices",
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 = "Environmental, Institutional theory, Purchasing, Transaction cost theory",
author = "Tate, {Wendy L.} and Ellram, {Lisa M.} and Kevin Dooley",
year = "2014",
doi = "10.1108/IJPDLM-12-2012-0356",
language = "English (US)",
volume = "44",
pages = "353--372",
journal = "International Journal of Physical Distribution and Logistics Management",
issn = "0960-0035",
publisher = "Emerald Group Publishing Ltd.",
number = "5",

}

TY - JOUR

T1 - The impact of transaction costs and institutional pressure on supplier environmental practices

AU - Tate, Wendy L.

AU - Ellram, Lisa M.

AU - Dooley, Kevin

PY - 2014

Y1 - 2014

N2 - 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.

AB - 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.

KW - Environmental

KW - Institutional theory

KW - Purchasing

KW - Transaction cost theory

UR - http://www.scopus.com/inward/record.url?scp=84902524196&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84902524196&partnerID=8YFLogxK

U2 - 10.1108/IJPDLM-12-2012-0356

DO - 10.1108/IJPDLM-12-2012-0356

M3 - Article

VL - 44

SP - 353

EP - 372

JO - International Journal of Physical Distribution and Logistics Management

JF - International Journal of Physical Distribution and Logistics Management

SN - 0960-0035

IS - 5

ER -