Supplier relationship management for circular economy

Abstract

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

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