Professional Documents
Culture Documents
Green supply chain management: The role of trust and top management in B2B and
B2C markets
Stefan Hoejmose , Stephen Brammer 1, Andrew Millington 2
Centre for Business Organisations and Society, School of Management, University of Bath, Claverton Down, Bath, BA2 7AY, UK
a r t i c l e
i n f o
Article history:
Received 14 May 2011
Received in revised form 18 December 2011
Accepted 16 February 2012
Available online 22 May 2012
Keywords:
Environmental management
Trust
Supply chain
Industrial relationships
a b s t r a c t
Green supply chain management (GSCM) has often been associated with highly visible companies (Bowen,
2000) and rms within consumer-focused industries (Buysse & Verbeke, 2003; Hall, 2000; Roht-Arriaza,
1996). As such, GSCM has partly been led by development of consumer awareness of environmental issues (Beamon, 1999; Zhu et al., 2005). This suggest that rms operating in business-to-consumer (B2C) markets have
strong incentives to implement GSCM, due to both institutional and stakeholder pressure. However, this leaves
the role of GSCM in business-to-business (B2B) sectors relatively unexplored and to-date little is known about:
1) the relative engagement with GSCM among rms in business-to-consumer and business-to-business sectors;
2) the conditions that are necessary for successful implementation of green practices in B2B supply chains. This
study addresses these issues within the context of 340 buyersupplier relationships in the United Kingdom,
using an innovative research methodology that captures rms' engagement with GSCM practices and minimizes
social desirability and common source biases. Our results show that GSCM is relatively limited among rms in
B2B markets compared to rms in B2C markets. At the same time, we show that developing trust with supply
chain partners, while also having top management support, is a crucial driver of engagement with GSCM
among rms in B2B sector but less important among rms in B2C sector. These ndings provide considerable insights to managers and marketers of B2B supply chains that seek to respond to a growing interest of environmental performance of supply chain.
2012 Elsevier Inc. All rights reserved.
1. Introduction
The nature of supply chain relationships varies signicantly across
business-to-business (B2B) and business-to-consumer (B2C) sectors.
For example, personal relationships and trust have been suggested to
play an important role in B2B settings (Andersen & Kumar, 2006;
Arnott, 2007), and the different characteristics of B2B and B2C supply
relationships can have signicant implications for the implementation
of green supply chain management (GSCM) (Cruz, 2008; Vachon &
Klassen, 2007). Firms in B2B markets often have few incentives to engage in GSCM and hence their practices are relatively reactive compared
to rms in the B2C sector (Gonzlez Benito & Gonzlez Benito, 2006).
There is, however, increasing pressure for marketing and supply chain
practitioners in B2B settings to improve their environmental practices.
Not only to respond to external pressure, but also because it is generally
accepted that GSCM can improve rm performance and its competitive
position (Sharma, Iyer, Mehrotra, & Krishnan, 2010).
610
anticipated that rms in B2C sectors are more involved with GSCM because of greater consumer pressure, media scrutiny and their more immediate visibility to stakeholders (Bowen, 2000; Hall, 2000).
In this study we use a novel data collection approach to capture buyer
engagement with GSCM activities within the context of 340 buyer
supplier relationships. Our rst aim is to understand and compare the extent of GSCM across rms in B2B and B2C sectors. In addition, we seek to
examine the conditions under which rms in the B2B sector implement
environmental processes into their individual buyersupplier relationships. We focus in particular on two drivers: The buyer's perceived trust
in its supplier, which has been shown to be a signicant predictor of supply chain outcomes in B2B settings (del Bosque Rodriguez, Agudo, & San
Martin Gutierrez, 2006; King & Burgess, 2008); and top management support which has consistently been found to be a major driver of GSCM
(Drumwright, 1994; Lee, 2008; Walker et al., 2008; Zhu & Sarkis, 2006).
Given the nature of this study, we make three contributions: First,
we provide one of the most comprehensive analyses of green supply
chain management in the U.K. and we explicitly relate and compare
GSCM across rms in B2B and B2C sectors. As such, this study extends
our understanding of the degree to which GSCM is context dependent.
Second, our study furthers existing research in the eld of GSCM,
which suggests that trust is an important factor for its successful implementation (e.g. Boyd et al., 2007; Cheng, Yeh, & Tu, 2008). We therefore
contribute to an emerging literature, which suggests that the implementation of GSCM is sensitive to the characteristics of buyersupplier relationships. Third, we distinguish between industrial, i.e. B2B, and nal
consumer-oriented, i.e. B2C, supply chains, and compare the extent to
which trust, combined with top management support, plays a role in
shaping GSCM in both settings.
In the following section we briey review the literature on GSCM and
its relationship with both trust and top management support. We then
develop a set of testable hypotheses, which encompass trust, top management support and a set of moderating effects. Subsequently, we outline
our methodology before presenting a set of results which incorporate descriptive statistics on the relative engagement with GSCM among rms in
B2B and B2C sectors, and a set of hierarchical ordinary least square regressions, which explains the role of trust and top management in shaping
GSCM. Finally, we discuss the managerial and research implications of
our study.
2. Green supply chain management and trust
Green supply chain management is an increasingly important
issue for business (Sarkis, Zhu, & Lai, 2011; Vachon & Klassen, 2008).
Such practices are expected by employees (Carter & Jennings, 2004;
Salam, 2009) and governments (Lee, 2008; Walker et al., 2008), and
rms are realizing the benets of GSCM, including cost reduction
(Carter & Dresner, 2001; Zhu & Sarkis, 2006), improved product and
process quality (Lamming & Hampson, 1996), risk reduction (Welford
& Frost, 2006) and improved nancial performance (Rao & Holt,
2005). GSCM therefore has the potential to make a signicant contribution to the rm's competitive position and improve both nancial and
non-nancial performance (Carter, Kale, & Grimm, 2000; Lamming &
Hampson, 1996; Walker et al., 2008). Nonetheless, GSCM is also driven
by a number of external factors, including legislation (Green, Morton, &
New, 1996; Hall, 2000) and customer expectations and demands (Lee,
2008; Min & Galle, 2001). The current empirical work has therefore
contributed towards our understanding of the driving factors behind
GSCM, but few studies have considered the nature of the relationships
between buyers and supplier that may facilitate GSCM. Some research
has suggested that the power advantage of the buyer can aid the implementation of GSCM (Carter & Carter, 1998; Hall, 2000), and that power
has the potential to create a multiplier effect (Preuss, 2001). Other research has found that GSCM is contingent on supplier coordination
(Carter & Carter, 1998), supplier capabilities (Zhu & Sarkis, 2006), and
it has also been noted that trust between buyers and suppliers is a
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612
Top management creates a vision for the rm and nurtures organizational values, which direct the company and give the company an
identity (Hart, 1992). Indeed, Epstein and Roy (1998) argue that it
is only through top management support and commitment that environmental management will be successful. The role of top management support can, therefore, not be underestimated, as they are at the
forefront of the company, driving the organizational culture and institutional systems that encourage desired behavior (Daily & Huang, 2001).
In addition, it has been argued that top management are the decision
makers with respect to the green investments that shape GSCM
(Bowen, Cousins, Lamming, & Farukt, 2001). As such, research in the
GSCM eld has concluded that top management support is necessary
for GSCM (Min & Galle, 2001), and that top management must support
and conceive strategies that acknowledge GSCM (Walton, Handeld, &
Melnyk, 1998), while also facilitating the necessary resources and sanctioning investment into green practices (Hervani et al., 2005). We
thus hypothesize:
Hypothesis 3. The level of engagement with GSCM is positively inuenced by top management support.
3.4. Trust and top management support
Given the importance of top management support, we argue that it
is a prerequisite for GSCM performance. However, we further argue that
top management support is not sufcient, and that implementing
GSCM at the relationship level requires trust. Therefore, our analysis
suggests that trust moderates the role of top management support on
GSCM. It is therefore the combination of top management support and
trust that is likely to create the best conditions under which GSCM
will prosper. Indeed, both trust and top management support have
been found to be among the key factors in successful supply chain relationships (Akintoye, McIntosh, & Fitzgerald, 2000). Mentzer, Min, and
Zacharia (2000) argue that strategic buyersupplier relationships will
fail without the synergy of trust and top management vision. Similarly,
Chandra and Kumar (2000) note how strategic alliances and partnerships must be based on extreme trust and loyalty. However, they also
note that in order to build a competitive advantage for the supply
chain top management support is needed. The combination of top management support and trust therefore appears to generate the most conducive conditions for mutual commitment and collaboration (Fawcett,
Ogden, Magnan, & Cooper, 2006), and hence we hypothesize:
Hypothesis 4a. The effect of top management support on GSCM is
positively moderated by credibility.
Hypothesis 4b. The effect of top management support on GSCM is
positively moderated by benevolence.
3.5. Trust, top management support and contextual setting: B2B vs. B2C
Both trust (e.g. Ballou et al., 2000; Bunduchi, 2008; Sheth &
Sharma, 1997) and top management support (e.g. Harvey et al.,
2003; King & Burgess, 2008) have been argued to be important factors in B2B settings. As noted earlier, rms in B2B markets are often
less engaged in green practices. Jamali and Mirshak (2007) and
Bowen (2002) note how responsible business practices are inuenced by managerial discretion and recent evidence suggests that
the environmental practices of B2B rms often exist on a voluntary
and discretionary basis (Haddock-Fraser & Fraser, 2008; HaddockFraser & Tourelle, 2010). It can be argued, therefore, that top management support, and managerial discretion, plays a particularly important role in decisions to prioritize and invest in GSCM in B2B markets.
Trust is also an important factor in B2B markets (Arnott, 2007),
where it has been suggested that it plays a vital role in integrated
B2B supply chains (Flint, 2004). In these cases, trust acts as an
4. Method
4.1. Sample and data collection
The sample frame consisted of the FTSE All-Share; the thousand
largest (by turnover) unlisted rms; and the thousand largest foreign
holding rms with operations in the United Kingdom. In each case the
organization was invited to participate in the study through a letter
addressed to the Director of Procurement, supported by an e-mailed
reminder. The nal sample consisted of 340 buyersupplier relationships, drawn from 178 UK-based rms from a broad cross section of
industries. The broad industry composition of our sample roughly
mirrors that of the UK economy, with industrial, consumer goods,
and nancial (including professional services) making up the majority of our sample. 3 A chow breakpoint test (p = 0.36), on the dependent variable, (Armstrong & Overton, 1977) conrmed that there
was no evidence of non-response bias in the sample.
Once the participating companies had been identied, data was
collected through a two-part survey in order to minimize the problems associated with common methods bias. The rst part sought to
capture general organizational characteristics, including size and top
management support for environmentally responsible supply chain
practices. This part was administered through an online questionnaire and was usually completed by a senior procurement ofcer,
such as the Director of Procurement, who had relevant knowledge
of the strategies and polices of the rm and the purchasing department. The second part consisted of a set of closed and open-ended
questions dealing with specic buyersupplier relationships in the
focal rm. 4 This part was administered through a telephone interview
and was usually completed by a purchasing manager 5 who was asked
to identify and discuss two different buyersupplier relationships (i.e.
supply chain relationships). 6 This resulted in an effective sample of
340 supply chain relationships, which forms the basis of the empirical
analysis. In each case the supply chain managers were asked to comment on specic aspects of the buyersupplier relationship, including
questions pertaining to the nature of the product being procured and
power-dependency issues within the relationship. More importantly,
the supply chain managers were also asked to comment, in-depth, on
the environmentally responsible supply chain practices in respect of
the particular supplier.
3
Compared to the data presented by Paul Wetherill in the UK Business: Activity,
Size and Location report of 2010 compiled for the Ofce of National Statistics.
4
The focus of the study was on on-going relationships, involving an external vendor,
which was not a part of the focal rm's core operations, and which did not have a common owner.
5
In some cases, usually within small and medium-sized businesses, the same person
completed the rm- and supply-level part of the survey. We tested for statistical significance between the dependent and independent variables (at both the rm- and
supply-level), to assess whether there were any signicant differences between the
cases where we had one and two respondents. No evidence was found of any statistical
difference for either the dependent or independent variables between the two groups.
6
Within the 178 participating rms, 2 relationships were identied in 160 cases, 1
relationship in 17 cases and 3 relationships in 1 case.
613
614
the corrective action program. Both researchers scored a buyer 5 because the buyer had a formal escalation process in place, supported by
evidence from actual events, where the buyer would discuss areas of
improvements with the supplier and hire experts to help address specic problems, while also visiting sub-contractors.
To ensure that the environmental scoring was valid two researchers
independently scored each supplier relationship in the entire sample.
The correlation and concordance (inter-rater reliability) between the
two researchers were very high with coefcients of 0.852 and 0.847, respectively. The average score, across the ve categories, of the two researchers was used as the dependent variable.
Utilizing this approach reduced the likelihood of social desirability
bias, as the researcher decided the appropriate value or scoring rather
than the respondent (Podsakoff et al., 2003). In addition the respondents
were not told about the procedure used to evaluate their social responses and were, therefore, unaware that answers would be quantied
at a later stage. Finally, the two-stage interview process, which was
implemented in most cases, effectively separated the dependent and independent variables largely removing the difculties associated with
common method bias (Podsakoff et al., 2003).7
4.3. Independent variables
Trust was captured by considering both credibility and benevolence,
which were measured using four item scales adapted from Ganesan
(1994). For credibility typical items were This supplier's representative
has been frank in dealing with us and Promises made by this supplier's
representative are reliable. For benevolence, typical items included
This supplier's representative cares for us and This supplier's representative is like a friend. These questions were anchored in seven point scales
where 1 = strongly disagree and 7 = strongly agree. Both credibility
and benevolence loaded on a single factor with Cronbach alpha values
of 0.855 and 0.803, respectively.
Top management support was measured through a three item
scale adapted from Cousins et al. (2006), typical questions included
Top management is supportive of our efforts to improve environmental
supply chain management. The three questions loaded on a single factor with a Cronbach alpha of 0.850. Complete details regarding these
constructs are given in Appendix A, including factor analysis and reliability scores.
In terms of the B2B and B2C split, we dened whether a given rm
was active in a business to business or a business to consumer sector
on the basis of the rm's primary activity as provided by Bureau Van
Dijk's FAME database. We used the 4 digit SIC code that characterized
a rm's primary activity along with data on industry level advertising
intensity to allocate rms to the B2B or B2C sectors. When a rm was
not listed by Bureau Van Dijk's FAME database, we consulted their annual report to examine their target market and main source of income.
4.4. Control variables
Following earlier studies we control for rm size by taking the natural logarithm of the number of employees. Firm size may inuence
the level of nancial resources (Brammer & Millington, 2006), and it
has been used as a proxy for rm visibility in previous research
(Bowen, 2002), both dimensions may be expected to inuence rm
propensity in GSCM activities. In addition, as this research focuses
on buyersupplier relationships in a global context, we use a binary
variable to control for foreign transactions. We also control for relationship length by taking the natural logarithm of the number of
years of trading between the buyer and supplier, because this may inuence the level of trust in the relationship (Doney & Cannon, 1997),
7
Common methods bias was tested for using the methodology developed by
Podsakoff et al. (2003) and Doty and Glick, (1998). The results show no evidence of
common methods bias.
8
We control for broad industry groups, including publishing, wholesale, nance, engineering, utilities, construction, transport, retail, leisure, consumer goods, chemicals
and others.
9
Supply chain process sophistication was captured at the rm, rather than the relationship, level and the questions were addressed to a senior procurement manager in
the company.
sample size allows for such a split, without having any signicant implications for degrees of freedom and the subsequent critical values.
5. Results
Analyzing the descriptive data for rm GSCM engagement, we nd
strong support for Hypothesis 1, with signicant evidence that the
level of engagement with GSCM is greater in B2C markets than in
B2B markets. The mean GSCM score of rms in B2B and B2C sectors
is 2.23 and 2.52, respectively, and this is signicantly different at
the 95% level. Further, evidence of the comparatively low performance of GSCM in B2B supply chains is supported by Fig. 2. Fig. 2 illustrates the percentage of rms in the B2B and B2C sectors that lie
in each of the four quartiles of the GSCM score. As can be observed,
there is a greater proportion of B2B rms in the rst and second quartile, indicating that a high proportion of rms in B2B sectors have relatively weak overall engagement with GSCM. 58% of all rms in B2B
sectors score below the median for our sample, compared to just
less than 50% of the B2C sample. From Fig. 2, it is also clear that
rms in B2C sectors have signicantly higher levels of engagement
with green supply chain management, and with respect to the
upper quartile of the green score B2C comprise 32%, compared to
19% of B2B rms.
Having conrmed our expectations about the nature of the green
supply chain, which strongly suggested that rms in B2B markets are
generally less engaged with these practices compared to rms B2C markets, we turn our attention to Table 2, which explore the drivers of engagement with GSCM, paying particular attention to the roles of top
management support and trust.
The descriptive statistics and correlations for the variables used in
these models are provided in Table 1. Taking these into consideration,
along with the variance ination factors produced by our base models
1 and 5 in Table 2, we nd no evidence to suggest that mulicollinearity is a concern for our analysis.
The results from the hierarchical regressions are presented in
Table 2. Models 1 to 5 are concerned with rms in the B2B sector
and models 610 with rms in the B2C sectors. In the subsequent
analysis, comparison is drawn between the B2B and B2C models.
The table includes the base models 1 and 6, for B2B and B2C, respectively, with our control variables. Credibility, benevolence and top
management support are then added in models 2 and 7. In models
3 and 8, we then consider the interaction effect of top management
support and credibility. Similarly, we consider the interaction effect
of top management support and benevolence in models 4 and 9, before we add the interaction effect of top management support, credibility and benevolence in the nal models (5 and 10).
The explanatory power is satisfactory for cross-sectional models of
this type and the individual signicant levels provide substantial support for our preceding arguments. More specically, these ndings indicate that trust and top management support are important drivers
615
of GSCM, but that the nature of their inuence is highly context dependent, and considerably more important in B2B supply chains.
Our base models (1 and 6) explain approximately 17% and 14% of
the variation in the green supply chain management of rms in B2B
and B2C markets, respectively. When top management support, credibility and benevolence are included in models 2 and 7, we do not nd
support for Hypotheses 2a and 2b, which suggested that GSCM will be
positively related to trust, but we nd strong support for Hypothesis
3, which suggested a positive relationship between top management
and GSCM, but only in the B2B sector (p = 0.003).
In models 3 and 8, we nd support for Hypothesis 4a, which suggests that credibility positively moderates the role of top management support on GSCM, but only in the context of B2B supply
chains (model 3). In model 3, we observe a signicant increase in
the adjusted R-squared from 0.215 to 0.253, and we also observe
that this is due to the moderating effect of top management support
on credibility, which is strongly associated with improved GSCM engagement in the B2B market (p = 0.005). This suggests that when
rms have both top management support at the rm level and trust
(credibility) in the supplier they have greater GSCM engagement,
compared to rms that only have top management support. Given
the results of model 2, it further suggests that credibility is not sufcient for GSCM, but that it needs to be complemented with top management support in B2B markets. However, in model 8, which
explores the B2C market, we observe no relationship between top
management support or credibility and GSCM in the B2C market,
and neither is the change in the R-squared signicantly different to
model 7.
In models 4 and 9, benevolence is substituted for credibility as the
moderating inuence on top management, and the interaction effect
indicates support for Hypothesis 4b, as benevolence also moderates
the role of top management support on GSCM, but only in the context
of B2B supply chains (model 4) and not in B2C supply chains (model
9). We observe that the moderating effect of benevolence and top
management support is a strong predictor of GSCM (p = 0.012).
Given the negative coefcient of the standalone benevolence variable
in model 4, it suggests that benevolence is contingent upon top management support for GSCM in B2B markets, but not vice versa, as in
the case with top management support and credibility. Top management support and credibility thus appear to be stronger complements
to the improvement of GSCM. As with model 8, model 9 indicates that
neither trust nor top management support, has a signicant role in
the B2C market.
In the nal set of models, models 5 and 10, an interaction term between top management support, credibility and benevolence is added,
in order to capture a broader measurement of trust. As expected, we
nd similar results, which suggest that trust, in a broad sense, does signicantly moderate the role of top management support in inuencing
GSCM, although only in the B2B sector.
In terms of our control variables, the results provide substantial
support for earlier work, and our base model shows that rm size is
a strong predictor of GSCM in both B2B (p = 0.004) and B2C
(p = 0.038) supply chains. Similarly, the relative power imbalance between buyer and supplier is also important in both markets, and indicates that buyer is positively associated with GSCM processes. Finally,
we observe that supplier sophistication also plays an important role
GSCM in both B2B (p = 0.007) and B2C (p = 0.052) supply chains.
This effect, however, disappears in models 2 and 6, with the introduction of top management support.
6. Discussion
Fig. 2. % of rms in the B2B and B2C sector in each of the four quartiles of the GSCM score.
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Table 1
Descriptives and correlations.
Mean
Std. deviation
10
11
2.38
8.95
1.81
0.00
0.00
0.00
0.00
0.48
0.52
0.00
0.00
0.00
0.81
2.06
0.96
1.00
1.00
1.28
1.00
0.50
0.50
1.00
1.00
1.00
0.16
0.03
0.07
0.11
0.13
0.24
0.18
0.18
0.32
0.12
0.13
0.00
0.02
0.19
0.15
0.08
0.04
0.04
0.12
0.01
0.03
0.08
0.19
0.03
0.07
0.01
0.01
0.06
0.04
0.03
0.36
0.32
0.09
0.07
0.07
0.04
0.15
0.21
0.26
0.26
0.11
0.11
0.10
0.04
0.09
0.03
0.07
0.07
0.08
0.17
0.18
0.18
0.18
0.41
0.09
0.11
1.00
0.25
0.07
0.08
0.25
0.07
0.08
0.10
0.08
0.64
Our results also suggest that green supply chain processes are
driven by a set of distinctively different characteristics in B2B markets
compared to B2C markets. In B2B markets, we observe that top management support plays a particularly strong role in the implementation of green supply chain processes. This is not, however, evident
for rms in the B2C sector. As such, our results support the work of
Pujari, Peattie, and Wright (2004), who argued that top management
is important for environmentally responsive industrial products, as
they not only allocate resources, but also drive the culture of the
rm. Our results suggest that this argument can be extended to the
implementation of GSCM processes. In B2C markets, GSCM is driven
by strategic imperatives, motivated by customer demand and the
risk of negative media attention. In B2B markets, rm GSCM activities
are not constrained by strategic imperatives, and hence managerial
preferences (top management support), are more important. The
Table 2
Regression results.
Dependent variable
Model 1
Model 2
Model 3
Model 4
Model 5
Model 6
Model 7
Model 8
Model 9
Model 10
Constant
1.690
2.025
2.05
1.701
Firm size
(0.310)
0.062
(0.468)
0.067
(0.486)
0.068
1.687
(0.486)
0.068
1.707
(0.307)
0.061
1.978
(0.306)
0.067
1.798
(0.309)
0.093
1.926
(0.315)
0.073
(0.479)
0.067
1.643
(0.487)
0.065
(0.032)
0.071
(0.118)
0.020
(0.052)
0.057
(0.060)
0.090
(0.066)
0.085
(0.032)
0.098
(0.119)
0.024
(0.053)
0.069
(0.060)
0.081
(0.067)
0.065
(0.048)
0.067
(0.062)
0.284
(0.195)
(0.032)
0.132
(0.127)
0.020
(0.072)
0.004
(0.067)
0.149
(0.033)
0.128
(0.131)
0.025
(0.074)
0.013
(0.073)
0.157
(0.032)
0.150
(0.130)
0.014
(0.073)
0.014
(0.070)
0.143
(0.032)
0.099
(0.129)
0.023
(0.074)
0.004
(0.073)
0.156
(0.033)
0.126
(0.130)
0.018
(0.074)
0.022
(0.073)
0.162
(0.070)
0.135
(0.053)
0.144
(0.074)
(0.072)
0.131
(0.055)
0.098
(0.086)
0.125
(0.079)
0.049
(0.077)
0.053
(0.087)
(0.071)
0.128
(0.055)
0.087
(0.085)
0.056
(0.369)
0.044
(0.377)
(0.071)
0.122
(0.054)
0.097
(0.085)
0.493
(0.340)
(0.072)
0.130
(0.054)
0.090
(0.086)
0.341
Foreign supplier
Relationship length
Product complexity
Product importance
Power imbalance
Supply chain sophistication
(0.032)
0.084
(0.124)
0.005
(0.054)
0.094
(0.062)
0.080
(0.070)
0.102
(0.047)
0.162
(0.059)
(0.032)
0.092
(0.122)
0.029
(0.054)
0.061
(0.062)
0.089
(0.068)
0.053
(0.049)
0.078
(0.063)
0.186
(0.061)
0.017
(0.080)
0.090
(0.073)
Credibility
Benevolence
Top management Credibility
(0.048)
0.087
(0.061)
0.523
(0.252)
0.541
(0.225)
1.040
(0.362)
0.393
(0.201)
0.747
(0.294)
0.25
0.17
0.32
0.22
0.35
0.25
0.34
0.25
(0.032)
0.085
(0.118)
0.009
(0.053)
0.066
(0.060)
0.096
(0.066)
0.073
(0.048)
0.064
(0.062)
0.150
(0.122)
0.202
(0.105)
0.246
(0.128)
0.409
(0.400)
(0.183)
0.246
(0.169)
0.194
(0.209)
0.086
(0.518)
0.719
(0.229)
0.36
0.27
0.569
(0.514)
0.22
0.14
0.24
0.14
0.24
0.14
0.25
0.15
0.435
(0.333)
0.25
0.15
role of top management in B2B industries was also emphasized by interview responses from supply chain managers. They often mentioned
that top management was driving environmental processes, and
that GSCM was a part of the rm's DNA or ethos.
The results also suggest that buyer perceptions of supplier credibility
and benevolence are not, as stand-alone constructs, important for rms
in B2B or B2C markets. However, when rms in B2B markets have top
management support, both credibility and benevolence in suppliers become additional important resources that can enhance the implementation of green processes. Such relationships are, however, not apparent
in the B2C sector. Credibility and benevolence is likely to create stability,
commitment (Deitz, Tokman, Richey, & Morgan, 2010) and improve collaborative efforts (Bunduchi, 2008), which furthers a rm's ability to implement sound green processes with their suppliers, as long as the rm
in the B2B market has top management support. It may also be argued
that credibility and benevolence create a type of insurance for top management that convinces them that investment in green activities is viable because the relationship is one that is focused on mutual gains and
longevity. Some of the respondents interviewed for this research explicitly noted how trust inuenced GSCM. For example, one participant said:
We trust this supplier. They know us well and they understand the serious nature of what we are talking about., while another mentioned
that they build up a relationship with [suppliers] of trust and friendship
so that they [suppliers] bring [environmental] issues to us.
6.1. Managerial implications
Our ndings, which suggest that rms in B2B supply chains are less
likely to implement GSCM processes, than rms in B2C supply chains,
may have signicant consequences for practitioners. Although environmental proactivity has historically been associated with close proximity
to consumers, because the length of the supply chain buffers the pressure and the environmental efforts of the company on public opinion
(Gonzlez Benito & Gonzlez Benito, 2006; p. 93), GSCM is becoming an
increasingly important issue for rms in the B2B sector. For example,
Gonzlez Benito and Gonzlez Benito (2006) note how the automobile
industry has started to exert signicant pressure on the entire supply
chain to ensure sound environmental standards. There is also evidence
that of increasing pressure for suppliers and sub-operators to develop
environmental management systems, such as ISO 14001 (Darnall,
2006; Darnall et al., 2008). Similarly, Esty and Winston (2009; p. xiv)
note that no company will escape the growing B2B pressure to reduce
environmental impact.
The roles of B2B marketers are therefore twofold: First, they have
to be aware of the consequences of the green movement as it has an
impact across the entire marketing mix (Miles, Munilla, & Russell,
1997), and they have an important role anticipating and preparing
the company for future trends, of which one is business customer expectations of environmental excellence (Sharma et al., 2010). If B2B
supply chain practitioners are not ready to respond to this inevitable
change in the marketplace then they risk losing business customers,
who, in turn, are increasingly expected to implement and ensure
sound GSCM performance by their suppliers (Perry & Towers,
2009). Second, B2B practitioners must make the business case for
GSCM and leverage their environmental credentials with their
other marketing activities, in order to make such activities strategic
and a success for the business (Lantos, 2001). Failure to either anticipate business consumers' demand or to integrate GSCM with the
rms marketing strategy can have signicant implications for both
the rms' environmental and economic success (Rao & Holt, 2005).
Similarly, there exist considerable opportunities for rms in the B2B
sector. By having a proactive environmental strategy they can achieve
considerable rst-mover advantages, including cost reductions and
winning contracts (Kleindorfer et al., 2005; Miles & Covin, 2000).
Our results show that rms in B2B markets are lagging behind
their counterparts in the B2C markets, in terms of GSCM practices.
617
As such, it leaves considerable scope for industrial supply chain practitioners to advocate and excel GSCM processes, which may be used
to win business from down-stream buyers. Nonetheless, this process
requires commitment and support from top management, and will be
enhanced if supply chain managers have established trustful relationships with their suppliers.
6.2. Limitations and further research opportunities
This study is concerned with buyer perceptions of the process of
implementing green supply chain management within particular
supply chain relationships. We have therefore chosen to use a methodology which focuses on buyer perception rather than a dyadic approach and our results are not concerned with green performance
of the supplier. Although we expect a strong link between process
and performance, further should consider the relationships between
implementing (process) GSCM and subsequent GSCM performance
in the supplier.
The data for this research was captured prior to the global nancial crisis, and it is likely that this event has also had an inuence on
rm engagement with GSCM. Although this may inuence the level
of engagement with GSCM, we would expect the observed relationship between top management support, trust and GSCM to remain
signicant. However, further research may consider the impact of
the nancial crisis on the level of engagement with GSCM in B2B
and B2C markets.
The analysis is based on ve dimensions of GSCM, which all loaded
on a single factor, with a Cronbach alpha of 0.911. This suggests that
we have a fairly robust measure of GSCM processes (Bloom & Van
Reenen, 2007), but we acknowledge that green supply chain management may extend beyond these ve dimensions as it is a complex
and often multifaceted task to ensure sound green processes within
the supply chain. Similarly, although social desirability bias cannot be
completely ruled out, the methodology deployed ensures that such
issues are minimized.
Finally, our study suggests that trust, in connection with top management support, is a signicant factor in GSCM, but we do not consider the mechanism through which trust inuences such elements
as transaction costs, social capital and propensity to collaborate,
which in turn may be important for GSCM (Cheng et al., 2008; Tate
et al., 2011; Vachon & Klassen, 2008). Further research is therefore
needed to examine the exact role of trust in the development of
GSCM.
6.3. Conclusion
Green initiatives have often been the subject of B2C supply
chains, but increasingly this is becoming an important issue for B2B
supply chains, since business consumers are increasingly demanding
sound green performance from their suppliers. Within this study
we have explored the relative engagement with GSCM among both
B2B and B2C supply chains, and found that such activities are relatively neglected in the B2B market. We argue that the generally lower engagement with GSCM in B2B supply chains reects lack of visibility
and distance from end household consumers. Nonetheless, we argue
that there are conditions under which GSCM will thrive in B2B settings, notably with top management support and when this is
coupled with trust in the supplier. Our ndings support these arguments, and we verify the importance of trust and top management
support in driving GSCM in B2B supply chains. In contrast, trust appears to be insignicant in B2C supply chains. Finally we outline the
managerial implications of our ndings, and suggest that B2B marketers can, and need to, take advantage of the limited engagement
with GSCM in the B2B sector as there are signicant opportunities
for rst-mover advantages, gained from both reducing costs and winning contracts.
618
Appendix A
Likert scale 17: strongly disagree vs. strongly agree
Top management support adapted from Cousins et al. (2006)
Top management is supportive of our efforts to improve environmentally supply
chain management
In this company, environmentally responsible supply chain is considered a vital
part of our corporate strategy
Purchasing views on environmentally responsible buying are considered
important in most top managers' eyes
Cronbach alpha: 0.850
Supplier credibility adapted from Ganesan (1994)
This supplier's representative has been frank in dealing with us
Promises made by this supplier's representative are reliable
If problems such as shipment delays arise, the supplier's representative is honest
about the problems
This supplier's representative has problems answering our questions
Cronbach alpha: 0.855
Supplier benevolence adapted from Ganesan (1994)
This supplier's representative cares for us
In times of shortages, this supplier's representative has done more for us than
we could possibly expect
This supplier's representative is like a friend
We feel that this representative has been on our side
Cronbach alpha: 0.803
Product complexity adapted from Cannon and Perreault (1999)
Compared to other purchases your rm makes, the product/service is: simple
vs. complex
Compared to other purchases your rm makes, the product/service is:
complicated vs. uncomplicated
Compared to other purchases your rm makes, the product/service is: technical
vs. non-technical
Cronbach alpha: 0.910
Product importance adapted from Stump and Heide (1996)
This item represents a major proportion of the end product's value
This item represents an unimportant element of the end product
This item's specication and quality have a large impact on the performance of
the end product
Cronbach alpha: 0.854
Supplier dependence adapted from Ganesan (1994)
We are important to this supplier
We account for a large proportion of this suppliers' total sales
If we stopped buying from this supplier they would nd it difcult to ll the gap
in their order book
Cronbach alpha: 0.879
Buyer dependence adapted from Ganesan (1994)
This supplier is crucial to our future performance
It would be difcult for us to replace this supplier
We are dependent on this supplier
We do not have a good alternative to this supplier
Cronbach alpha: 0.857
Supply chain sophistication adapted from Lee and Humphreys (2007)
We use established guidelines and procedures when evaluating supplier performance
We perform site visits to supplier premises to help improve their performance
We invite supplier personnel to our premises to increase awareness of how their
product is used
Cronbach alpha: 0.747
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Stefan Hoejmose is a Lecturer in CSR and Strategy at the University of Bath. His research investigates how rms manage social and environmental issues in their supply
chains. In particular, his research is concerned with the issues of business strategy,
power-dependency and trust and their respective role in facilitating responsible supply chain practices.
Stephen Brammer is Professor of Strategy in the Marketing and Strategic Management
Group at Warwick Business School. His research lies principally in the areas of business
ethics and corporate social responsibility. Specically, his research explores rm
stakeholder relationships, the strategic management of these, and the impacts of these
upon company performance and reputation. His research has been widely published in
leading journals such as the Strategic Management Journal, Journal of Management
Studies, Organisation Studies, Financial Management, and the Journal of Business
Research.
Andrew Millington is Professor of Business and Society at the University of Bath. His
research investigates how companies manage issues of ethics and corporate responsibility, with a particular focus on multinational companies and doing business in China.
His work has been published in many leading scholarly and practitioner journals including the Journal of International Business Studies, the Journal of Management Studies and Human Relations.