Effect of supplier environmental damage on environmental concern and green purchase dynamic capabilities

Abstract

Objective: Given the importance of sustainability in the supply chain, this study aims to analyze the effect of supplier environmental damage on managers' perception of the need to develop Green Purchasing Dynamic Capabilities (GPDC) and whether this effect is mediated by environmental concern. Method: A full-factorial vignette-based experiment was employed, involving 267 US professionals with management experience. Hypotheses were tested through multiple regression analysis. Results: The responsibility for supplier selection did not have a direct effect on the need to develop GPDC. Controllability of environmental damage did not moderate the effect of responsibility on GPDC development. However, environmental concern mediated the effect of responsibility on the need for GPDC development. Conclusions: This study provides novel insights into the role of management in decision-making related to GPDC and highlights the significant mediating role of environmental concern. These findings elucidate how external and internal company aspects regarding supplier environmental damages interact within the framework of Green Purchasing Dynamic Capabilities.