Purpose
The purpose of this paper is to explore factors influencing the effectiveness of buyer initiated behavioral-based governance methods (BBGMs). The ability of BBGMs to improve supplier performance is assessed considering power imbalances and the resource intensiveness of the BBGM. Agency Theory is used as an interpretive lens.
Design/methodology/approach
An explorative multiple case study approach is used to collect qualitative and quantitative data from buying companies involved in 13 BBGMs.
Findings
Drawing on Agency Theory several factors are identified which can explain BBGM effectiveness considering power differences and the resource intensiveness of the BBGM. The data show that even high resource intensive BBGMs can be implemented effectively if there are benefits for a powerful supplier. Cultural influences and uncertainty of the business environment also play a role.
Originality/value
This study develops a series of propositions indicating that Agency Theory can provide valuable guidance on how to better understand the effectiveness of BBGMs. Underlying mechanisms are identified that explain how power imbalance does not necessarily make improvement initiatives unsuccessful.
Sharing and exchanging waste materials between industrial actors, a practice known as industrial symbiosis (IS), has been identified as a key strategy for closing material loops. This article adopts a critical view on geographical proximity and external coordinators-two key enablers of IS. By "uncovering" a case where both enablers are absent, this study seeks to explore firm-level challenges of IS. We adopt an exploratory case-study approach at a cement manufacturer who engages in cross-border IS without the support of external coordinators. Our research presents insights into two key areas of IS: (1) setting up the initial IS exchange and (2) improving the performance of existing IS exchanges. Moreover, our research provides initial insights into the underlying nature of the related firm-level challenges and explores how internal coordination between manufacturing and purchasing may or may not act as a substitute for geographical proximity and external coordinators. In doing so, our insights into firm-level challenges of long-distance IS exchanges contribute to closing global material loops by increasing the number of potential circular pathways.
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