Balancing coercive and non-coercive powers to enhance green supplier integration: do relationship commitment and closeness matter?

Purpose: Although the importance of green supplier integration (GSI) has been recognized, the knowledge of how it can be enhanced is still limited. Using insights from transaction cost and resource dependence theories, this paper aims to explore how to balance coercive and non-coercive powers to enhance GSI and the mediating role of relationship commitment and the moderating role of relationship closeness.

Design/methodology/approach: To validate the hypotheses, this study conducted hierarchical regression analysis and bootstrapping using the survey data collected from 206 Chinese manufacturers.

Findings: The results indicate that coercive power undermines normative commitment, while non-coercive power promotes normative and instrumental commitments. Both normative and instrumental commitments enhance GSI. Normative commitment mediates the impacts of coercive and non-coercive powers on GSI, while instrumental commitment only mediates the impact of non-coercive power on GSI. Moreover, supplier trust and dependence negatively moderate the positive link between instrumental commitment and GSI.

Practical implications: Executives should carefully balance coercive and non-coercive powers to encourage firms to maintain good relationships with suppliers and develop common environmental values under different mediating effects of normative and instrumental commitments. However, they should also be aware that high level of trust and dependence can affect the impacts of powers.

Originality/value: This study contributes to GSI literature by opening the “black box” between power and GSI and verifying its boundary conditions.