Do suppliers benefit from supply chain sustainability programs? The case of Wal-Mart

Jason X. Wang, Boyana Petkova, Lincoln C. Wood

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Many studies have shown that sustainability initiatives within individual firms increase their financial performance; however, the impact on the firms’ suppliers is not clear. We conduct an event study to investigate whether supply chain sustainability initiatives (SCSIs) of a buying firm are related to suppliers’ performance. The analysis is based on the shareholder value effects (as measured by stock market reaction reflected by abnormal returns) on Wal-Mart’s direct suppliers associated with Wal-Mart’s announcements SCSIs. Wal-Mart is renowned for its ability to organize the supplier base and optimizing supply chain settings and it has implemented many SCSIs. We find a significant positive relationship between suppliers’ performance and SCSIs enforced by the buying firm and this expands our understanding of sustainability benefits from firms to supply chain partners while providing support for collaboration on sustainability between supply chain actors.
Original languageEnglish
Title of host publication12th ANZAM Operations, Supply Chain and Services Management Symposium proceedings
EditorsTava Olsen, Abraham Zhang
PublisherUniversity of Auckland
Number of pages20
ISBN (Electronic)9780473290856
Publication statusPublished - 2014
Externally publishedYes
Event12th ANZAM Operations, Supply Chain and Services Management Symposium - Auckland, New Zealand
Duration: 3 Jul 20144 Jul 2014
Conference number: 12
https://www.business.auckland.ac.nz/en/about/our-research/bs-research-institutes-and-centres/centre-for-supply-chain-management-cscm/anzam-operations-supply-chain-services-management-symposium.html

Conference

Conference12th ANZAM Operations, Supply Chain and Services Management Symposium
CountryNew Zealand
CityAuckland
Period3/07/144/07/14
Internet address

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