Driving Green Supply Chain Management Performance through Supplier Selection and Value Internalisation: A Self-Determination Theory Perspective

This paper applies self-determination theory (SDT) to green supply chain management (GSCM) and explores how green supplier selection (GSS) drives GSCM performance and how realisation of improved GSCM performance is contingent upon SDT mechanisms of autonomy, competence and relatedness.
This study draws on 18 semi-structured interviews and secondary data from a Germany-based first-tier aircraft interior manufacturer and its six key suppliers. The focal company was selected because it is recognised as having achieved high GSCM standards in the aerospace industry.
The study draws out the importance of green supplier selection, distinguishing between new and legacy suppliers, and offers significant insights into how suppliers’ motivation and downstream GSCM criteria can be internalised in second-tier suppliers to drive GSCM performance.
Green supplier selection should be considered not only for new suppliers but also at an ongoing basis for legacy suppliers. Focal companies must realise the importance of motivating supply chain (SC) partners to realise GSCM practices and need to first build-up autonomy before focusing on competence and relatedness sub-dimensions.
We make a significant contribution to the GSCM literature by conducting a study of first-tier – second-tier relationships, thus moving beyond the buyer-supplier relationships investigated in extant studies. Our results theoretically and empirically draw out key factors in green supplier selection and supplier motivation in engaging with GSCM practices, thus driving GSCM performance.