Buyer And Supplier Perspectives On Environmental Initiatives Potential Implications For Supply Chain Relationships

Purpose - The purpose of this paper is to examine managerial perspectives in both buyer and supplier firms implementing environmental initiatives in their supply chains, and explore the impact of environmental initiatives on buyer-supplier relationships.Design/methodology/approach - A qualitative, grounded theory approach is used as the methodological approach to this research, including 15 in-depth interviews with managers from buyer and supplier firms implementing environmental initiatives in their supply chains to gain multiple perspectives of the buyer-supplier relationships.Findings - The results suggest that implementing environmental initiatives within the supply chain changes the buyer-supplier relationship fromtransactional to collaborative, shifting from a commodity-focused purchase to a more strategic purchase as environmental initiatives are implemented.Research limitations/implications - Although both buyer and supplier perspectives were considered, matched dyads were not used; researchers should continue to provide a holistic perspective of the phenomenon with dyadic data. Additionally, the use of a qualitative research approach suggests a lack of generalizability of results, and therefore researchers should further test the propositions.Practical implications - Implementing environmental initiatives within the supply chain may require different approaches to supply management and development for long-term success. Suppliers should recognize that the capability to implement environmental initiatives with their customers is a differentiator. The nuances involved in managing the implementation of environmental initiatives between firms can be better managed by collaboratively developing metrics specifically related to the environment.Originality/value - Previous research in environmental supply chain management has examined drivers and barriers of implementing environmental initiatives with suppliers, but fails to address the relationship dynamics involved when implementing environmental initiatives between organizations. This research begins to fill that gap.