Journal
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Volume 52, Issue 1, Pages 32-49Publisher
TAYLOR & FRANCIS LTD
DOI: 10.1080/00207543.2013.825748
Keywords
green procurement; green supplier development; financial performance; market performance; supplier performance; structural equation modelling
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This study adopts the opposing theoretical views of legitimacy - institutional and strategic - in evaluating firm performance and top management commitment as antecedents to green procurement and green supplier development. Additionally, the impact of green procurement and green supplier development on supplier performance is analysed. Using a sample of western European companies, we develop a structural equation model to test our hypotheses. We find that the buying firm's market performance positively relates to the adoption of green procurement. While financial performance has no effect on green procurement, top management commitment is found to be an important driver of both green procurement and green supplier development. Moreover, the relationship between green procurement and supplier performance is fully mediated by green supplier development. The paper addresses a research gap concerning firm-level antecedents for green procurement and green supplier development showing that both practices may impact supplier performance. Furthermore, it is shown that legitimacy concerns drive basic green procurement, whereas top management is decisive for advanced practices, such as green supplier development.
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