17081: Supplier Networks, Knowledge Absorption and Environmental Practice Adoption (session 25998)

Achieving environmental sustainability in global supply chains is a central area of focus in international business research. While extant research increasingly acknowledges the learning challenges suppliers face in adopting environmental practices, limited attention has been given to how suppliers can overcome these difficulties. This study addresses this gap by viewing environmental practice adoption as a process innovation, emphasizing the critical role of suppliers’ access to knowledge resources for learning. Drawing on extensive data from Apple’s global supply chain, we find that suppliers occupying central positions within the supplier network are more likely to adopt environmental practices. Additionally, we identify two boundary conditions that influence the translation of this knowledge—supplier knowledge absorption and institutional distance from the buyer—that strengthens and weakens this main effect, respectively. This research enhances the understanding of environmental practice adoption in global supply chains, underscoring the importance of learning and the strategic positioning of suppliers.

view paper (if available)