Efficacy of environmental and supplier relationship investments—moderating effects of external environment

Abstract

Supply chains competing today seemingly have to be able to cut costs in the face of global competition while simultaneously keeping up with rapid technological change. External stakeholders have much higher expectations in terms of environmental and social performance than they did in the past. This research is an initial step in directing operational investments in this new, complicated marketplace. Specifically we examine the efficacy of investing in buyer supplier relationships and environmental management while controlling for the competitive environment. A significant contribution of this research is that operational performance is not treated as a uni-dimensional construct. The end result is a more complete understanding of the specific performance benefits of each type of investment.

Keywords:

• Supply chain management
• Environmental management
• Sustainability