We conduct an empirical investigation of the impact of focal firm and supplier financial dependence on focal firm financial performance using the lens of resource dependence theory. We further investigate the moderating impact of dependence asymmetry on the relationship between lean inventory strategy and focal firm financial performance. We use an innovative supply chain structure data set provided by Bloomberg, which allows implementation of unique measures for focal firm and supplier financial dependence within a supply chain. The results of an analysis of 3,638 buyer–supplier relationships provide support for the hypothesized direct effects of focal firm financial dependence and supplier financial dependence on firm financial performance. Our results also support our hypothesis regarding the moderating effect of dependence asymmetry on the relationship between lean inventory strategies on financial performance. These findings both improve our understanding of the impact of dependence on focal firm performance and shed light on the heretofore unstudied impact of dependence asymmetry's effect on the efficacy of lean inventory strategies.

As the importance of maintaining a proactive environmental agenda gains significance, an understanding of the impact of the characteristics of the top management team (TMT) on environmental strategy is of critical importance. Given the impact of environmental initiatives on the supply chain, experience in this area can benefit decision‐making in TMTs for a proactive environmental or green strategy. Drawing on upper echelon theory (UET), the theory of generativity, and prior work leveraging the knowledge‐based view (KBV), we analyze the impact of supply chain management (SCM) experience in TMTs for a proactive environmental strategy. To further contextualize the characteristics of the TMT in the SCM context, we include age and female representation in our analysis as important factors in setting the green agenda of a firm. The theory is tested with an original panel dataset of 2,703 firm‐year records. Measure of a proactive environmental strategy is drawn from Kinder, Lydenberg, and Domini (KLD) database, while TMT characteristics are derived from executive profiles recorded in Bloomberg. Our findings support the positive impact of executives with SCM experience in TMTs, aging TMTs, and TMTs with higher female representation on a proactive environmental agenda. Furthermore, the results reveal that the desire for a proactive environmental agenda in aging and in TMTs with increasing female representation can benefit from the additional presence of SCM experience. In sum, this study highlights the significance of female representation and age, and makes a strong case for the importance of SCM experience in TMTs for a proactive environmental strategy.

PurposeThis study investigates the relationship between buyer-supplier top management team (TMT) demographic misalignment (defined as differences in TMT composition based on background, age and gender) and environmental performance (EVP).Design/methodology/approachThe empirical setting is publicly held US manufacturing firms that are present in both the Kinder, Lydenberg and Domini’s (KLD's) annual EVP ratings and Bloomberg's supply chain database. The study employs panel data regression methods on an unbalanced panel dataset of 7,493 dyad-year observations comprising 427 unique firms.FindingsThe research shows that misalignment in functional background and gender composition between TMTs have a negative outcome on both the buyer's and the suppliers' EVP. However, increasing presence of females across TMTs has a positive influence on EVP. Further, the research shows that misalignment based on age between the TMTs does not impact EVP in any significant way. On the contrary, increasing age across TMTs is a significant predictor of EVP.Originality/valueThis study builds on existing works in TMT heterogeneity and adds context to the heightening belief in the positive linkage between heterogeneity and performance through extension to a boundary spanning interfirm context.

This study investigates the drivers of product quality failures as manifested through recalls. More specifically, this research develops theory regarding supply chain and operations management (SCOM) representation in organizational top management teams (TMT) and this representation's association with the frequency of recalls, the type of recalls, and the severity of recalls. The moderating effect of both recent and historical organizational recall knowledge is also explored. This study uses unique data sets, collected from multiple sources, containing executives' backgrounds, firm characteristics, and product recalls. The study finds that firms with SCOM representation on their TMTs have fewer recalls overall and fewer severe recalls. We also find that firms with SCOM representation on the TMT are less likely to suffer from subsequent recalls after a history of recalling. Lastly, we discover interesting nuances with respect to the form of SCOM representation present on the TMT (CEO and functional executive).