Empirical Research on EPR Practices Performance and Governance Mechanism from the Perspective of Green Supply Chain

Xin Lu and Fangchao Xu
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Xin Lu: Business School, Nankai University, Tianjin 300071, China
Fangchao Xu: Business School, Nankai University, Tianjin 300071, China

Sustainability, 2018, vol. 10, issue 12, 1-17

Abstract: The performance of Extended Producer Responsibility (EPR) plays a very important role in guiding enterprises’ choice of EPR practices. Meanwhile, suppliers’ behavior and green operations may influence manufacturers’ social image and operations. Thus, governance mechanisms for suppliers may impact the performance of EPR practices. Therefore, from the perspective of supply chain governance, this paper first studies the relationship of manufacturers’ EPR practices and operation performance and then introduces three types of supplier governance mechanisms (contract governance, relationship governance and equity governance) to explore the influences on manufacturers’ performance. Survey data collected from enterprises in the electronics industry in China show the relationship between manufacturers’ EPR practices and performance, as well as the effect of the three proposed governance mechanisms on the performance of EPR practices. The conclusions obtained in this study suggest that manufacturers’ EPR practices can significantly improve their environmental and market performances. At the same time, manufacturers can adjust their operation performance according to the choice of supplier governance mechanism, which is chosen based on the operation objectives of the enterprises. To be specific, if the enterprises want to obtain better environmental performance and improve their social image, they should choose a contract governance mechanism that explicitly stipulates the responsibility and obligation of the supplier. In addition, the three proposed governance mechanisms can improve the market performance of enterprises in EPR practices.

Keywords: green governance; green supply chain; extended producer responsibility; supplier; governance mechanism (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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