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Environmental Supply‐Chain Management in the Computer Industry:A Transaction Cost Economics Perspective

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  • Christine Meisner Rosen
  • Janet Bercovitz
  • Sara Beckman

Abstract

Our article uses the theory of transaction cost economics as a conceptual basis for examining the contracting mechanisms by which firms in the computer industry structure programs to encourage their suppliers to improve their environmental management systems and/or the environmental quality of their products. We explore the economic transactions hazards associated with asking suppliers to invest in the specialized technologies required to improve environmental performance of products and management practices and the relational contracting mechanisms computer industry firms are using to protect themselves against these hazards. We also describe the importance the managers we interviewed attributed to various transactions hazards and their perceptions of how well their firms were coping with them. We conclude by discussing questions for future research. By using TCE to frame our analysis of how computer manufacturers are structuring their relationships with their suppliers in the environmental area, we hope to show how social science theory can be used to enrich and increase the practicality of the work done by engineers and others in the mainstream areas of the industrial ecology field.

Suggested Citation

  • Christine Meisner Rosen & Janet Bercovitz & Sara Beckman, 2000. "Environmental Supply‐Chain Management in the Computer Industry:A Transaction Cost Economics Perspective," Journal of Industrial Ecology, Yale University, vol. 4(4), pages 83-103, October.
    • Handle: RePEc:bla:inecol:v:4:y:2000:i:4:p:83-103
    DOI: 10.1162/10881980052541963
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    Cited by:

    1. Dagmara Nawrocka, 2008. "Environmental supply chain management, ISO 14001 and RoHS. How are small companies in the electronics sector managing?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(6), pages 349-360, November.
    2. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, vol. 130(1), pages 1-15, March.
    3. Erik G. Hansen & Ferdinand Revellio, 2020. "Circular value creation architectures: Make, ally, buy, or laissez‐faire," Journal of Industrial Ecology, Yale University, vol. 24(6), pages 1250-1273, December.
    4. Asterios Stroumpoulis & Evangelia Kopanaki, 2022. "Theoretical Perspectives on Sustainable Supply Chain Management and Digital Transformation: A Literature Review and a Conceptual Framework," Sustainability, MDPI, vol. 14(8), pages 1-30, April.

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