The Impact of Social Capital on Socially Responsible Supply Chain Performance: The Moderating Role of Supply Chain Transparency

Abstract

The outbreak of COVID-19 has brought global poverty to the forefront, and existing research suggests that socially responsible supply chains play an important role in poverty alleviation. However, there is limited research on how to improve the performance of socially responsible supply chains. This study innovatively chooses a dual perspective, i.e., companies and farmers in contract farming, the dominant model of socially responsible supply chains in Chinese agriculture, as the research object. Furthermore, it examines the role of social capital on the performance of socially responsible supply chains, as well as the moderating role of supply chain transparency, in order to find out how to improve the stakeholder performance. The empirical results found that the factors affecting socially responsible supply chain performance differed between the dual perspectives. From the firm’s perspective, all three dimensions of social capital (shared values, communication and reciprocity) have a significant positive effect on socially responsible supply chain performance (income increase), while supply chain transparency only positively moderates between communication and income increase. From the farmers’ perspective, only reciprocity and shared values had a significant positive effect on income increase; interestingly, supply chain transparency negatively moderated the relationship between reciprocity and income increase. This study expands the role of social capital theory, and the dual perspective examination provides insights for performance improvement of companies and farmers in socially responsible supply chains, as well as guidance for promoting sustainable social development.