Information Transparency, Location, and Stakeholder Pressure on the Socially Responsible Partner Selection
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Rosana da Rosa Portella Tondolo
Juliana Bonomi Santos
Vilmar Antonio Gonçalves Tondolo
Ely Paiva
Abstract
Objective: the purpose of this paper is to explore the effect of information transparency on the selection of a socially responsible partner, taking into account the role played by signal send by the location of the partner and stakeholder pressure. Theoretical approach: this study is based on the premise that information transparency is a central element in the buyer-supply relationship and can play a key role in the selection of a socially responsible partner. The location of a partner can also affect the feeling of transparency if the country where the partner is located is not recognized for its reputation. The stakeholder pressure for socially responsible practices can also affect the decision to choose a business partner. Methods: we employed a 2 x 2 full-factorial between-subjects, scenario-based role-playing experiment. In Study 1, we simulated a situation in which the buyer is asked about their likelihood of selecting a socially responsible supplier, while in Study 2 we simulated a situation in which the socially responsible supplier is asked about the likelihood of selling products to a buyer. Results: the results indicate that information transparency affects the decision to select socially responsible partners. Stakeholder pressure partially moderates this relationship, while location does not moderate this relationship in either study. Conclusion: we conclude that information transparency throughout the supply chain is a relevant factor in negotiations within a socially responsible context. Information transparency is a key aspect for both the buyer and the supplier when selecting a socially responsible partner.
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Tondolo, R. da R. P., Santos, J. B., Tondolo, V. A. G., & Paiva, E. (2022). Information Transparency, Location, and Stakeholder Pressure on the Socially Responsible Partner Selection. Journal of Contemporary Administration, 27(2), e210290. https://doi.org/10.1590/1982-7849rac2023210290.en
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Theoretical-empirical Articles
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Chae, S., Lawson, B., Kull, T. J., & Choi, T. (2019). To insource or outsource the sourcing? A behavioral investigation of the multi-tier sourcing decision. International Journal of Operations & Production Management, 39(3), 385–405. https://doi.org/10.1108/IJOPM-04-2018-0231
Charness, G., Gneezy, U., & Kuhn, M. A. (2012). Experimental methods: Between-subject and within-subject design. Journal of Economic Behavior & Organization, 81(1), 1–8. https://doi.org/10.1016/j.jebo.2011.08.009
Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. The Academy of Management Review, 20(1), 65-91. https://doi.org/10.2307/258887
Duan, Y., & Aloysius, J. A. (2019). Supply chain transparency and willingness-to-pay for refurbished products. The International Journal of Logistics Management, 30(3), 797–820. https://doi.org/10.1108/IJLM-01-2019-0025
Duan, Y., Hofer, C., & Aloysius, J. (2020). Transparency in the supply chain: Do firms benefit by disclosing supplier monitoring activities? Academy of Management Proceedings, 2020(1), 20405. https://doi.org/10.5465/AMBPP.2020.20405abstract
Duan, Y., Hofer, C., & Aloysius, J. A. (2021). Consumers care and firms should too: On the benefits of disclosing supplier monitoring activities. Journal of Operations Management, 67(3), 360–381. https://doi.org/10.1002/joom.1129
DuHadway, S., Carnovale, S., & Kannan, V. R. (2018). Organizational communication and individual behavior: Implications for supply chain risk management. Journal of Supply Chain Management, 54(4), 3–19. https://doi.org/10.1111/jscm.12182
Fernandez-Feijoo, B., Romero, S., & Ruiz, S. (2014). Effect of stakeholders’ pressure on transparency of sustainability reports within the GRI framework. Journal of Business Ethics, 122(1), 53–63. https://doi.org/10.1007/s10551-013-1748-5
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
Goebel, P., Reuter, C., Pibernik, R., Sichtmann, C., & Bals, L. (2018). Purchasing managers’ willingness to pay for attributes that constitute sustainability. Journal of Operations Management, 62(1), 44–58. https://doi.org/10.1016/j.jom.2018.08.002
Gualandris, J., Longoni, A., Luzzini, D., & Pagell, M. (2021). The association between supply chain structure and transparency: A large‐scale empirical study. Journal of Operations Management, 67(7), 803–827. https://doi.org/10.1002/joom.1150
Hayes, A. F. (2018). Introduction to mediation, moderation, and conditional process analysis: A regression based approach (2 ed.). Guilford Press.
Huang, X., Gattiker, T. F., & Schwarz, J. L. (2008). Interpersonal trust formation during the supplier selection process: the role of the communication channel. Journal of Supply Chain Management, 44(3), 53–75. https://doi.org/10.1111/j.1745-493X.2008.00066.x
Joshi, A. W., & Arnold, S. J. (1998). How relational norms affect compliance in industrial buying. Journal of Business Research, 41(2), 105–114. https://doi.org/10.1016/S0148-2963(97)00017-9
Kedia, B. L., & Mukherjee, D. (2009). Understanding offshoring: A research framework based on disintegration, location and externalization advantages. Journal of World Business, 44(3), 250–261. https://doi.org/10.1016/j.jwb.2008.08.005
Key, T. M., & Challagalla, G. (2020). Information transparency as competitive advantage: Research approaches to platform ecosystem design and competition. AMS Review, 10(1–2), 145–147. https://doi.org/10.1007/s13162-020-00172-x
Khanna, T., & Palepu, K. G. (2010). Winning in the emerging economies: A road map for strategy and execution. Harvard Business Press.
Klassen, R. D., & Vereecke, A. (2012). Social issues in supply chains: Capabilities link responsibility, risk (opportunity), and performance. International Journal of Production Economics, 140(1), 103–115. https://doi.org/10.1016/j.ijpe.2012.01.021
Lamming, R. C., Caldwell, N. D., Harrison, D. A., & Phillips, W. (2001). Transparency in supply relationships: Concept and practice. Journal of Supply Chain Management, 37(3), 4–10. https://doi.org/10.1111/j.1745-493X.2001.tb00107.x
Martínez-Noya, A., & García-Canal, E. (2018). Location, shared suppliers and the innovation performance of R&D outsourcing agreements. Industry and Innovation, 25(3), 308–332. https://doi.org/10.1080/13662716.2017.1329085
Mollenkopf, D. A., Peinkofer, S. T., & Chu, Y. J. (2022). Supply chain transparency: Consumer reactions to incongruent signals. Journal of Operations Management, 68(4), 306-327. https://doi.org/10.1002/joom.1180
Morgan, T. R., Richey Jr, R. G., & Ellinger, A. E. (2018). Supplier transparency: Scale development and validation. The International Journal of Logistics Management, 29(3), 959–984. https://doi.org/10.1108/IJLM-01-2017-0018
North, D. C. (1989). Institutions and economic growth: An historical introduction. World Development, 17(9), 1319–1332. https://doi.org/10.1016/0305-750X(89)90075-2
Palan, S., & Schitter, C. (2018). Prolific.ac—A subject pool for online experiments. Journal of Behavioral and Experimental Finance, 17, 22–27. https://doi.org/10.1016/j.jbef.2017.12.004
Perdue, B. C., & Summers, J. O. (1986). Checking the success of manipulations in marketing experiments. Journal of Marketing Research, 23(4), 317-326. https://doi.org/10.2307/3151807
Polyviou, M., Rungtusanatham, M. J., Reczek, R. W., & Knemeyer, A. M. (2018). Supplier non‐retention post disruption: What role does anger play? Journal of Operations Management, 61(1), 1–14. https://doi.org/10.1016/j.jom.2018.07.001
Ro, Y. K., Su, H.-C., & Chen, Y.-S. (2016). A Tale of Two Perspectives on an Impending Supply Disruption. Journal of Supply Chain Management, 52(1), 3–20. https://doi.org/10.1111/jscm.12100
Robertson, R., Di, H., Brown, D. K., & Dehejia, R. H. (2016). Working conditions, work outcomes, and policy in Asian developing countries [Working Paper Series No. 497, NYU Wagner Research Paper No. 2856292]. Asian Development Bank Economics. https://doi.org/10.2139/ssrn.2856292
Romani, S., Grappi, S., & Bagozzi, R. P. (2016). Corporate socially responsible initiatives and their effects on consumption of green products. Journal of Business Ethics, 135(2), 253–264. https://doi.org/10.1007/s10551-014-2485-0
Rottenburger, J. R., & Kaufmann, L. (2020). Picking on the new kid: Firm newness and deception in buyer–supplier negotiations. Journal of Purchasing and Supply Management, 26(1), 100527. https://doi.org/10.1016/j.pursup.2019.01.001
Rungtusanatham, M., Wallin, C., & Eckerd, S. (2011). The vignette in a scenario-based role-playing experiment. Journal of Supply Chain Management, 47(3), 9–16. https://doi.org/10.1111/j.1745-493X.2011.03232.x
Sarkis, J., Gonzalez-Torre, P., & Adenso-Diaz, B. (2010). Stakeholder pressure and the adoption of environmental practices: The mediating effect of training. Journal of Operations Management, 28(2), 163–176. https://doi.org/10.1016/j.jom.2009.10.001
Shafiq, A., Ahmed, M. U., & Mahmoodi, F. (2020). Impact of supply chain analytics and customer pressure for ethical conduct on socially responsible practices and performance: An exploratory study. International Journal of Production Economics, 225, 107571. https://doi.org/10.1016/j.ijpe.2019.107571
Shafiq, A., Klassen, R. D., Johnson, P. F., & Awaysheh, A. (2014). Socially responsible practices: An exploratory study on scale development using stakeholder theory. Decision Sciences, 45(4), 683–716. https://doi.org/10.1111/deci.12085
Skilton, P. F. (2014). Value creation, value capture, and supply chain structure: Understanding resource-based advantage in a project-based industry. Journal of Supply Chain Management, 50(3), 74–93. https://doi.org/10.1111/jscm.12053
Skowronski, K., & Benton, W. C. (2018). The influence of intellectual property rights on poaching in manufacturing outsourcing. Production and Operations Management, 27(3), 531–552. https://doi.org/10.1111/poms.12813
Skowronski, K., Benton, W. C., & Handley, S. (2022). The moderating influence of supplier culture on the relationship between buyer power and supplier shirking. Journal of Operations Management, 68(3), 270–301. https://doi.org/10.1002/joom.1178
Sodhi, M. S., & Tang, C. S. (2019). Research opportunities in supply chain transparency. Production and Operations Management, 28(12), 2946–2959. https://doi.org/10.1111/poms.13115
Subramaniam, P. L., Iranmanesh, M., Kumar, K. M., & Foroughi, B. (2019). The impact of multinational corporations’ socially responsible supplier development practices on their corporate reputation and financial performance. International Journal of Physical Distribution & Logistics Management, 50(1), 3–25. https://doi.org/10.1108/IJPDLM-01-2019-0002
Tang, C. S. (2018). Socially responsible supply chains in emerging markets: Some research opportunities. Journal of Operations Management, 57(1), 1–10. https://doi.org/10.1016/j.jom.2018.01.002
Tang, C. S., & Zhou, S. (2012). Research advances in environmentally and socially sustainable operations. European Journal of Operational Research, 223(3), 585–594. https://doi.org/10.1016/j.ejor.2012.07.030
Thomas, R., Darby, J. L., Dobrzykowski, D., & Hoek, R. (2021). Decomposing social sustainability: Signaling theory insights into supplier selection decisions. Journal of Supply Chain Management, 57(4), 117–136. https://doi.org/10.1111/jscm.12247
Thomas, R. W., Fugate, B. S., & Koukova, N. T. (2011). Coping with time pressure and knowledge sharing in buyer–supplier relationships. Journal of Supply Chain Management, 47(3), 22–42. https://doi.org/10.1111/j.1745-493X.2011.03229.x
Thomas, S. P., Thomas, R. W., Manrodt, K. B., & Rutner, S. M. (2013). An experimental test of negotiation strategy effects on knowledge sharing intentions in buyer-supplier relationships. Journal of Supply Chain Management, 49(2), 96–113. https://doi.org/10.1111/jscm.12004
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