How environmental collaboration with suppliers and customers influences firm performance

Evidence from Dutch food and beverage processors

K. Grekova*, R.J. Calantone, H.J. Bremmers, J.H. Trienekens, S.W.F. Omta

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

43 Citations (Scopus)

Abstract

Searching for sustainable growth opportunities, manufacturing firms are increasingly embedding sustainability concerns into their relationships with supply chain partners. In the present paper, we explore the potential of environmental collaboration with suppliers and customers to induce environmentally sustainable improvements to internal processes to address external sustainability pressures and to contribute to business performance. Grounded in resource based view spin-offs, this study claims that environmental collaboration can enhance the performance of the focal firm not only directly, but also indirectly - by stimulating the focal firm to implement more environmentally sustainable processes that in turn contribute to firm's performance. Providing manufacturing managers with a better understanding of the direct and indirect relationships between environmental collaboration and firm performance can gain them more control over the outcomes of environmental collaboration. Proposed relationships were tested in a sample of 139 Dutch food and beverage processors using structural equation modelling. The results indicate that environmental collaboration with suppliers can improve the performance of Dutch food and beverage processors directly as it induces cost savings. Nevertheless, such collaboration is not likely to assist firms seeking to improve environmental sustainability of their internal processes as one of the outcomes of environmental collaboration. On the contrary, environmental collaboration with customers induces performance indirectly, by stimulating food and beverage processors to implement sustainable process improvements that subsequently bring about cost savings and market gains.

Original languageEnglish
Pages (from-to)1861-1871
JournalJournal of Cleaner Production
Volume112
Issue number3
DOIs
Publication statusPublished - 2016

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Beverages
Sustainable development
food
sustainability
Supply chains
Costs
savings
Managers
manufacturing
cost
firm
beverage
Food and beverage
Suppliers
Firm performance
Industry
market
resource
modeling

Keywords

  • Environmental collaboration
  • Extended resource-based view
  • Firm performance
  • Food industry
  • Sustainable process improvements
  • Sustainable supply chain

Cite this

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abstract = "Searching for sustainable growth opportunities, manufacturing firms are increasingly embedding sustainability concerns into their relationships with supply chain partners. In the present paper, we explore the potential of environmental collaboration with suppliers and customers to induce environmentally sustainable improvements to internal processes to address external sustainability pressures and to contribute to business performance. Grounded in resource based view spin-offs, this study claims that environmental collaboration can enhance the performance of the focal firm not only directly, but also indirectly - by stimulating the focal firm to implement more environmentally sustainable processes that in turn contribute to firm's performance. Providing manufacturing managers with a better understanding of the direct and indirect relationships between environmental collaboration and firm performance can gain them more control over the outcomes of environmental collaboration. Proposed relationships were tested in a sample of 139 Dutch food and beverage processors using structural equation modelling. The results indicate that environmental collaboration with suppliers can improve the performance of Dutch food and beverage processors directly as it induces cost savings. Nevertheless, such collaboration is not likely to assist firms seeking to improve environmental sustainability of their internal processes as one of the outcomes of environmental collaboration. On the contrary, environmental collaboration with customers induces performance indirectly, by stimulating food and beverage processors to implement sustainable process improvements that subsequently bring about cost savings and market gains.",
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How environmental collaboration with suppliers and customers influences firm performance : Evidence from Dutch food and beverage processors. / Grekova, K.; Calantone, R.J.; Bremmers, H.J.; Trienekens, J.H.; Omta, S.W.F.

In: Journal of Cleaner Production, Vol. 112, No. 3, 2016, p. 1861-1871.

Research output: Contribution to journalArticleAcademicpeer-review

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AU - Omta, S.W.F.

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