Abstract

With considerable international awareness of circular economy (CE), the purpose of the study is to propose a theoretical framework, informed by institutional theory and upper echelon theory, to explain how top management commitment mediates the relationship between external pressures and supplier relationship management (SRM) practices for circular economy. We test our hypotheses using cross-sectional data gathered using a survey of companies involved in sustainability practices. The results of the hierarchical regression and mediating regression analyses suggest that top management commitment positively mediates the effect of external institutional pressures on supplier relationship management. We advance existing theory by integrating institutional theory and upper echelon theory to explain SRM practices in sustainable supply networks. Furthermore, we offer guidance to managers who would like to engage in leveraging supplier relationship management in sustainable supply networks and outline future research directions.

DOI

10.1108/MD-04-2018-0396

Publication Date

2019-01-01

Publication Title

Management Decision

Volume

57

Issue

4

First Page

767

Last Page

790

ISSN

0025-1747

Embargo Period

2019-04-10

Organisational Unit

Plymouth Business School

Keywords

Sustainability, Supply Chain Management, Supplier Relationship Management, Institutional Theory, Upper Echelon Theory, Hierarchical Regression

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