Suppliers’ non-compliance with sustainability standards: a new perspective based on discrete-choice experiments

Abstract

What are the factors that contribute to non-compliance with a supply chain partner’s sustainability efforts? Based on institutional theory and social cognitive theory, a discrete-choice experiment was conducted with 128 U.S., 105 Brazilian and 109 Indian managers to test alternative causes of suppliers’ non-compliance. Results of regression modeling provide preliminary evidence to support the idea that managers’ cultural and institutional background influence the way they perceive compliance with the buyer firm’s sustainability practices and that certain positions in the supply chain influence their likelihood to not comply with them.