From green pressure to process efficiency: revisiting supplier development through the lens of institutional response

Purpose Although green supplier development is increasingly investigated for supplier ability and performance improvement, the mechanisms by which green supplier development impacts operational performance remain poorly understood. This study investigates how two dimensions of supplier development (i.e. customer monitoring and customer support) impact operational performance. Drawing on institutional theory, this study further examines the mediating mechanisms and boundary conditions of these two green supplier development dimensions. Design/methodology/approach This study tests the theoretical model using hierarchical regression analysis on a sample of 192 Chinese manufacturing firms. Findings The results reveal a significant asymmetric moderation. Specifically, competitive intensity amplifies the positive effect of customer monitoring on internal green process management, but has no significant effect on the impact of customer support. This highlights a critical contingency for green supplier development strategies. Furthermore, we confirm that internal green process management mediates the relationship between both green supplier development dimensions and operational performance. Originality/value This study challenges the often-assumed universal benefits of collaborative support. We are among the first to empirically demonstrate the asymmetric effectiveness of “imposition” and “inducement” mechanisms under competition intensity. Our findings provide the insight that in highly competitive environments, customer monitoring may be a more reliable driver of suppliers’ internal green process management than voluntary support.