The impact of normative institutions on socially sustainable supply chain management: the role of individual cultural values

In: International journal of operations & production management, Volume 44, Issue 4, p. 790-812

Abstract

PurposeDrawing on institutional theory, this study investigates the role of individual cultural values on the adoption of socially sustainable supply chain management (socially SSCM) for Chinese suppliers facing the normative institutional pressures of guanxi (interpersonal relationships).Design/methodology/approachUsing empirical data collected in three waves from 205 Chinese manufacturers supplying international markets, the proposed theoretical model is tested through partial least squares structural equation modeling (PLS-SEM).FindingsThe results indicate that guanxi has a positive impact on socially SSCM, and this positive effect is strengthened when the individual cultural values of the supplier's representative embody high collectivism and low uncertainty avoidance.Research limitations/implicationsThis study highlights the leading role of guanxi in improving socially SSCM practices due to its normative institutional force. In addition, the findings suggest that future studies should consider individual differences in supply chain partners, which may lead to distinct reactions when facing normative institutional pressures.Practical implicationsThis study suggests international buyers should adopt guanxi management with their Chinese suppliers to encourage them to adopt socially SSCM. In addition, managers should note that the guanxi strategy is more effective when the supplier's representative collectivism is high and uncertainty avoidance is low.Originality/valueThis study contributes to socially SSCM research in emerging economies by unveiling the role of guanxi as a key driver of socially SSCM in the Chinese market and providing empirical evidence of the moderating effect of individual culture on the guanxi normative institutionalization process.