IDEAS home Printed from https://ideas.repec.org/a/bla/jscmgt/v57y2021i3p3-24.html
   My bibliography  Save this article

How Buyers' Attitudes Toward Supplier Diversity Affect Their Expenditures with Ethnic Minority Businesses

Author

Listed:
  • Ian Blount
  • Mingxiang Li

Abstract

Using data collected from 277 buyers employed at large purchasing organizations (LPOs) in the U.S. and U.K., this study investigates factors that might influence their willingness to procure goods and services from ethnic minority businesses (EMBs). The social capital literature is used to develop hypotheses concerning the cognitive, structural, and relational dimensions that may play roles in decisions to buy from minority firms. Subsequently, modern discrimination theory is employed to provide inductive insights into how buyers' attitudes toward supplier diversity mediate the effects of social capital on their procurement activities with EMBs. The results of multiple regression analysis suggest that in both the U.S. and U.K., positive social capital as perceived by the buyers has a direct, significant relationship with their expenditures with EMBs. The results also reveal that in both countries, buyers' attitudes toward supplier diversity mediate the relationship. Interestingly, although the U.S. originated the concept of supplier diversity, our research uncovers that U.K. LPO buyers have greater expenditures with their EMBs. Based on these findings, this research illustrates how strategic corporate social responsibility initiatives set forth by LPOs may be impacted by their buyers' social relationships with EMBs and their attitudes toward supplier diversity.

Suggested Citation

  • Ian Blount & Mingxiang Li, 2021. "How Buyers' Attitudes Toward Supplier Diversity Affect Their Expenditures with Ethnic Minority Businesses," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(3), pages 3-24, July.
    • Handle: RePEc:bla:jscmgt:v:57:y:2021:i:3:p:3-24
    DOI: 10.1111/jscm.12237
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jscm.12237
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jscm.12237?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daniel Krause & Davide Luzzini & Benn Lawson, 2018. "Building the Case for A Single Key Informant in Supply Chain Management Survey Research," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(1), pages 42-50, January.
    2. Timothy Bates, 1988. "Do black-owned businesses employ minority workers? new evidence," The Review of Black Political Economy, Springer;National Economic Association, vol. 16(4), pages 51-64, March.
    3. Grichnik, Dietmar & Brinckmann, Jan & Singh, Luv & Manigart, Sophie, 2014. "Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities," Journal of Business Venturing, Elsevier, vol. 29(2), pages 310-326.
    4. Jonathan L. Johnson & Kevin J. Dooley & David G. Hyatt & Andrew M. Hutson, 2018. "EMERGING DISCOURSE INCUBATOR: Cross†Sector Relations in Global Supply Chains: A Social Capital Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(2), pages 21-33, April.
    5. John N. Pearson & Stanley E. Fawcett & Alicia Cooper, 1994. "Challenges and Approaches to Purchasing from Minority-Owned Firms: A Longitudinal Examination," Entrepreneurship Theory and Practice, , vol. 18(2), pages 71-88, January.
    6. Lois M. Shelton, 2005. "Scale Barriers And Growth Opportunities: A Resource-Based Model Of New Venture Expansion," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 333-357.
    7. Max Nathan, 2015. "Same difference? Minority ethnic inventors, diversity and innovation in the UK," Journal of Economic Geography, Oxford University Press, vol. 15(1), pages 129-168.
    8. Adobor, Henry & McMullen, Ronald, 2007. "Supplier diversity and supply chain management: A strategic approach," Business Horizons, Elsevier, vol. 50(3), pages 219-229.
    9. Candida G. Brush & Sarah Y. Cooper, 2012. "Female entrepreneurship and economic development: An international perspective," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(1-2), pages 1-6, January.
    10. Lois M. Shelton, 2010. "Fighting an Uphill Battle: Expansion Barriers, Intra–Industry Social Stratification, and Minority Firm Growth," Entrepreneurship Theory and Practice, , vol. 34(2), pages 379-398, March.
    11. Slater, Stanley F. & Weigand, Robert A. & Zwirlein, Thomas J., 2008. "The business case for commitment to diversity," Business Horizons, Elsevier, vol. 51(3), pages 201-209.
    12. Glenn C. Loury, 2003. "Racial Stigma: Toward a New Paradigm for Discrimination Theory," American Economic Review, American Economic Association, vol. 93(2), pages 334-337, May.
    13. Barbara J. Orser & Allan L. Riding & Kathryn Manley, 2006. "Women Entrepreneurs and Financial Capital," Entrepreneurship Theory and Practice, , vol. 30(5), pages 643-665, September.
    14. Judith M. Whipple & Robert Wiedmer & Kenneth K. Boyer, 2015. "A Dyadic Investigation of Collaborative Competence, Social Capital, and Performance in Buyer–Supplier Relationships," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(2), pages 3-21, April.
    15. Ian Worthington & Monder Ram & Harvinder Boyal & Mayank Shah, 2008. "Researching the Drivers of Socially Responsible Purchasing: A Cross-National Study of Supplier Diversity Initiatives," Journal of Business Ethics, Springer, vol. 79(3), pages 319-331, May.
    16. Ian Y. Blount & Delmonize A. Smith & James A. Hill, 2013. "Minority Business Networks As Sources Of Social Capital For Minority Firms," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 1-13.
    17. Lindsey N. Godwin & Christopher E. Stevens & Nurete L. Brenner, 2006. "Forced to Play by the Rules? Theorizing how Mixed–Sex Founding Teams Benefit Women Entrepreneurs in Male–Dominated Contexts," Entrepreneurship Theory and Practice, , vol. 30(5), pages 623-642, September.
    18. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    19. Frank Montabon & Patricia J. Daugherty & Haozhe Chen, 2018. "Setting Standards for Single Respondent Survey Design," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(1), pages 35-41, January.
    20. Sadaat Ali Yawar & Stefan Seuring, 2017. "Management of Social Issues in Supply Chains: A Literature Review Exploring Social Issues, Actions and Performance Outcomes," Journal of Business Ethics, Springer, vol. 141(3), pages 621-643, March.
    21. Fairlie, Robert W. & Robb, Alicia, 2009. "Entrepreneurship, Self-Employment and Business Data: An Introduction to Several Large, Nationally-Representative Datasets," IZA Discussion Papers 4052, Institute of Labor Economics (IZA).
    22. Carrie R. Leana & Frits K. Pil, 2006. "Social Capital and Organizational Performance: Evidence from Urban Public Schools," Organization Science, INFORMS, vol. 17(3), pages 353-366, June.
    23. Barbara Flynn & Mark Pagell & Brian Fugate, 2018. "Editorial: Survey Research Design in Supply Chain Management: The Need for Evolution in Our Expectations," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(1), pages 1-15, January.
    24. Alistair R. Anderson & Sarah L. Jack, 2002. "The articulation of social capital in entrepreneurial networks: a glue or a lubricant?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 14(3), pages 193-210, July.
    25. Ian Worthington, 2009. "Corporate Perceptions of the Business Case for Supplier Diversity: How Socially Responsible Purchasing can ‘Pay’," Journal of Business Ethics, Springer, vol. 90(1), pages 47-60, November.
    26. P. Köllinger & M. Minniti, 2006. "Not for Lack of Trying: American Entrepreneurship in Black and White," Small Business Economics, Springer, vol. 27(1), pages 59-79, August.
    27. Daewoo Park & Hema A. Krishnan, 2005. "Gender differences in supply chain management practices," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 2(1), pages 27-37.
    28. Lois M. Shelton & Maria Minniti, 2018. "Enhancing product market access: Minority entrepreneurship, status leveraging, and preferential procurement programs," Small Business Economics, Springer, vol. 50(3), pages 481-498, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Prabhjot S. Mukandwal & David E. Cantor & Russell N. Laczniak, 2024. "Consumer reactions to environmentally irresponsible sourcing practices: An intentionality and motive perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 60(3), pages 39-58, July.
    2. Pan, Mengyang & Hill, James & Blount, Ian & Rungtusanatham, Manus, 2022. "Relationship building and minority business growth: Does participating in activities sponsored by institutional intermediaries help?," Journal of Business Research, Elsevier, vol. 142(C), pages 830-843.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kisha Lashley & Timothy G. Pollock, 2020. "Dancing with Giants: How Small Women- and Minority-Owned Firms Use Soft Power to Manage Asymmetric Relationships with Larger Partners," Organization Science, INFORMS, vol. 31(6), pages 1313-1335, November.
    2. Pan, Mengyang & Hill, James & Blount, Ian & Rungtusanatham, Manus, 2022. "Relationship building and minority business growth: Does participating in activities sponsored by institutional intermediaries help?," Journal of Business Research, Elsevier, vol. 142(C), pages 830-843.
    3. Daniel Etse & Adela McMurray & Nuttawuth Muenjohn, 2022. "The Effect of Regulation on Sustainable Procurement: Organisational Leadership and Culture as Mediators," Journal of Business Ethics, Springer, vol. 177(2), pages 305-325, May.
    4. Sumit K. Majumdar & Rabih Moussawi & Ulku Yaylacicegi, 2014. "Do Incumbents’ Mergers Influence Entrepreneurial Entry? An Evaluation," Entrepreneurship Theory and Practice, , vol. 38(3), pages 601-633, May.
    5. Abdurrezzak Sener & Mehmet Barut & Ali Dag & Mehmet Bayram Yildirim, 2021. "Impact of commitment, information sharing, and information usage on supplier performance: a Bayesian belief network approach," Annals of Operations Research, Springer, vol. 303(1), pages 125-158, August.
    6. Arash Kordestani & Setayesh Sattari & Kaveh Peighambari & Pejvak Oghazi, 2017. "Exclude Me Not: The Untold Story of Immigrant Entrepreneurs in Sweden," Sustainability, MDPI, vol. 9(9), pages 1-22, September.
    7. Roberto Chavez & Wantao Yu & Muhammad Shakeel Sadiq Jajja & Antonio Lecuna & Brian Fynes, 2020. "Can entrepreneurial orientation improve sustainable development through leveraging internal lean practices?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2211-2225, September.
    8. Nathaniel Boso & Joseph Amankwah-Amoah & Dominic Essuman & Oluwaseun E. Olabode & Patience Bruce & Magnus Hultman & James Kofi Kutsoati & Ogechi Adeola, 2023. "Configuring political relationships to navigate host-country institutional complexity: Insights from Anglophone sub-Saharan Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 1055-1089, August.
    9. Lois M. Shelton & Maria Minniti, 2018. "Enhancing product market access: Minority entrepreneurship, status leveraging, and preferential procurement programs," Small Business Economics, Springer, vol. 50(3), pages 481-498, March.
    10. Blount, Ian & Triana, Maria del Carmen & Richard, Orlando & Li, Mingxiang, 2023. "How women CEOs’ financial knowledge and firm homophily affect venture performance," Journal of Business Research, Elsevier, vol. 155(PA).
    11. Calvo, Elena, 2021. "Determinantes del Emprendimiento Femenino en Europa [Determinants of Female Entrepreneurship in Europe]," MPRA Paper 111121, University Library of Munich, Germany.
    12. Jajja, Muhammad Shakeel Sadiq & Asif, Muhammad & Montabon, Frank & Chatha, Kamran Ali, 2020. "The indirect effect of social responsibility standards on organizational performance in apparel supply chains: A developing country perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 139(C).
    13. Hadar Gafni & Dan Marom & Alicia Robb & Orly Sade, 0. "Gender Dynamics in Crowdfunding (Kickstarter): Evidence on Entrepreneurs, Backers, and Taste-Based Discrimination," Review of Finance, European Finance Association, vol. 25(2), pages 235-274.
    14. Nullmeier, Fabian & Wynstra, Finn & van der Valk, Wendy, 2019. "Mitigating shirking: Contracting performance in buyer-initiated service triads," Other publications TiSEM cebcb590-5a85-4906-b8ec-1, Tilburg University, School of Economics and Management.
    15. Beatriz Acero & Maria Jesus Saenz & Davide Luzzini, 2022. "Introducing synchromodality: One missing link between transportation and supply chain management," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(1), pages 51-64, January.
    16. Jon Bokrantz & Jan Dul, 2023. "Building and testing necessity theories in supply chain management," Journal of Supply Chain Management, Institute for Supply Management, vol. 59(1), pages 48-65, January.
    17. Lauriane Robert & Rachel Bocquet & Elodie Gardet, 2016. "Intra-Organisational Drivers of Purchasing Social Responsibility," Post-Print hal-01613396, HAL.
    18. Kai-Chong Thong & Wai-Peng Wong, 2018. "Pathways for Sustainable Supply Chain Performance—Evidence from a Developing Country, Malaysia," Sustainability, MDPI, vol. 10(8), pages 1-26, August.
    19. Crespo, Nuno Fernandes & Crespo, Cátia Fernandes & Silva, Graça Miranda & Nicola, Maura Bedin, 2023. "Innovation in times of crisis: The relevance of digitalization and early internationalization strategies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    20. Crespo, Nuno Fernandes & Crespo, Cátia Fernandes & Silva, Graça Miranda, 2024. "Every cloud has a silver lining: The role of business digitalization and early internationalization strategies to overcome cloudy times," Technological Forecasting and Social Change, Elsevier, vol. 200(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jscmgt:v:57:y:2021:i:3:p:3-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1523-2409 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.