Feng Liu , Zixuan Chen , Mingjie Fang , Shufeng Xiao , Yangyan Shi
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Legitimacy and transparency in dyadic supply chains: Does competition intensity matter?
Working only with suppliers that meet certain social and environmental standards has become a new norm in the selection of business partners for many firms, which encourages suppliers to become more transparent to gain a competitive advantage. This study investigates whether buyer legitimacy is associated with supply chain transparency from an environmental, social, and governance (ESG) perspective. Using a dataset of 605 dyadic relationships from Chinese listed firms for the period 2011–2019, we empirically examine our conceptual framework using hierarchical linear regression models. We demonstrate that buyer legitimacy is positively associated with supplier ESG transparency in dyadic supply chains. We further find that the supplier's competition intensity negatively moderates the positive relationship between buyer legitimacy and supplier ESG transparency. Overall, our findings contribute to a better understanding of organizational legitimacy and the buyer–supplier relationship and offer practical guidelines for enhancing supply chain transparency.
期刊介绍:
The International Journal of Production Economics focuses on the interface between engineering and management. It covers all aspects of manufacturing and process industries, as well as production in general. The journal is interdisciplinary, considering activities throughout the product life cycle and material flow cycle. It aims to disseminate knowledge for improving industrial practice and strengthening the theoretical base for decision making. The journal serves as a forum for exchanging ideas and presenting new developments in theory and application, combining academic standards with practical value for industrial applications.