The Impact of Supplier Environmental Misconduct on Buyer Firm Performance: The Moderating Effects of Relationship Multiplexity and Financial Dependence

• In Event: SUPPLY CHAIN MANAGEMENT: Relationship Structures and Strategic Outcomes in SCM

Abstract

This study examines how suppliers’ environmental misconduct adversely affects the performance of buyer firms. Drawing on contagion theory and using a panel dataset of U.S. public firms, this research provides theoretical insights and empirical evidence that both supplier behavior and the nature of interorganizational relationships significantly influence the severity of performance outcomes.  The study addresses a gap in the literature by highlighting that existing research on dyadic relationships has largely overlooked interorganizational relationship and financial ties as critical mechanisms that can amplify the negative spillover effects of supplier environmental misconduct.  Managerial and public policy implications will be discussed.

Authors

• David Cantor, Iowa State University

• Meltem Denizel-Karakaya, Iowa State University

• Isaac Elking, University of Houston - Downtown

• zhenia - Tahmasebinia, Iowa state university