TY - JOUR

T1 - Complementarity effect of governance mechanisms on environmental collaboration: Does it exist?

AU - Paulraj, A.

AU - Jayaraman, V.

AU - Blome, C.

PY - 2014/12/15

Y1 - 2014/12/15

N2 - This study evaluates the effect of pre-existing relational governance mechanisms on environmental collaboration. Specifically, our study distinguishes between structural and process dimensions of relational governance mechanisms so as to facilitate a more nuanced investigation into the inherent complementarities and performance implications. Using data collected from 145 US firms and a combination of methodologies – three-stage least squares and structural equation modelling, a number of direct, complementary and mediation effects are hypothesised and tested. The three-stage least squares methodology was adopted to overcome endogeneity and simultaneity issues inherent in the hypotheses covering complementarity. Contrary to conventional wisdom, structural and process governance mechanisms were not found to act as complements for environmental collaboration. Instead, the effect of structural mechanisms was found to be completely mediated by the process mechanisms. Thus, process mechanisms of relational governance were found to be much more important in promoting advanced practices such as environmental collaboration. Our results also document the significant mediating role of environmental collaboration. Implications for future research and practice are offered.

AB - This study evaluates the effect of pre-existing relational governance mechanisms on environmental collaboration. Specifically, our study distinguishes between structural and process dimensions of relational governance mechanisms so as to facilitate a more nuanced investigation into the inherent complementarities and performance implications. Using data collected from 145 US firms and a combination of methodologies – three-stage least squares and structural equation modelling, a number of direct, complementary and mediation effects are hypothesised and tested. The three-stage least squares methodology was adopted to overcome endogeneity and simultaneity issues inherent in the hypotheses covering complementarity. Contrary to conventional wisdom, structural and process governance mechanisms were not found to act as complements for environmental collaboration. Instead, the effect of structural mechanisms was found to be completely mediated by the process mechanisms. Thus, process mechanisms of relational governance were found to be much more important in promoting advanced practices such as environmental collaboration. Our results also document the significant mediating role of environmental collaboration. Implications for future research and practice are offered.

KW - structural governance mechanisms

KW - process governance mechanisms

KW - environmental collaboration

KW - environmental performance

KW - social performance

KW - three-stage least squares

U2 - 10.1080/00207543.2014.920546

DO - 10.1080/00207543.2014.920546

M3 - Journal article

VL - 52

SP - 6989

EP - 7006

JO - International Journal of Production Research

JF - International Journal of Production Research

SN - 0020-7543

IS - 23

ER -