The green contagion effect: an investigation into the propagation of environmental practices across multiple supply chains tiers

Abstract

The phenomenon of green contagion refers to the diffusion of sustainability practices across multi-tier supply chains. In this research, we propose a model of green contagion, theorising that both collaborative and coercive mechanisms play a role in the propagation of environmental sustainability across supply chains. Hypotheses are tested using a structural equation model with a multinational dataset of 616 manufacturing organisations reporting on their green practices, both internally within the firm and externally with suppliers and customers. From a theoretical perspective, the results lend support to the green contagion effect, with five out of the seven hypotheses being supported. The rejected hypotheses refer to a firm’s internal adoption of green practices influencing green collaborative practices with suppliers, and a customer’s use of coercive mechanisms towards a firm influencing the adoption of green collaborative practices between the firm and its suppliers. The findings have theoretical and practical implications for production research, as they highlight the challenges that organisations face when trying to influence green practices beyond tier 1 suppliers, and show that collaborative practices may prove more effective than coercive practices.

KEYWORDS:

• Green contagion
• multi-tier supply chains
• institutional theory
• sustainability
• Environmental practices

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Carlos Mena

Carlos Mena is Assistant Professor and the Nike Professor of Supply Chain Management at Portland State University. The focus of his research is the impact of supply chain management practices on economic, social and environmental performance. He has more than 30 refereed publications to his name, and has published two books: Leading Procurement Strategy (2018; 2014) and Delivering Performance in Food Supply Chains (2010). He received his Doctorate and from the University of Warwick (UK).

Tobias Schoenherr

Tobias Schoenherr is Professor of Purchasing and Supply Chain Management in the Eli Broad College of Business at Michigan State University. He is an internationally renowned and award-winning scholar and teacher focusing on the area of sourcing, with a particular interest in buyer-supplier relationships and electronic procurement. He obtained his PhD from Indiana University in Operations Management and Decision Sciences, and has published more than 55 papers in peer-reviewed academic journals.