T he limited capabilities and resources available within many small-and medium-sized enterprises frequently hamper an effective response to environmental pressures, which in turn hurts large buying firms (i.e., customers). Using a case study method with multiple suppliers of two large buying firms, we mapped factors that initiated and improved environmental capabilities in small-and medium-sized enterprises over time. Through several specific mechanisms, buyers' green supply chain management initiated and then enabled the improvement of suppliers' environmental capabilities. Independent of buyers, internal championing of environmental concerns also provided an impetus for small-and medium-sized enterprise suppliers to acquire resources outside the supply chain. Thus, synergistic linkages emerged in supportive buyer-supplier relationships, resource acquisition, and capability development. When these findings are combined with earlier research on larger suppliers, an integrative framework emerges that provides direction for suppliers, buyers, and public agencies seeking to improve environmental performance.

With climate change emerging as one of the most important issues affecting the business circle, companies have begun considering the carbon issue in their overall strategic positioning. However, few studies have examined the corporate carbon strategies in developing and advanced developing countries, where climate change regulation is extensive and market uncertainty is relatively high. In addition, there has been growing interest among researchers and practitioners concerning the relationship between the carbon strategy and firm performance. This paper presents a framework for identifying the corporate carbon strategy. The cluster analysis of 241 Korean companies indicates six types of corporate carbon strategy: 'wait-and-see observer', 'cautious reducer', 'product enhancer', 'all-round enhancer', 'emergent explorer' and 'all-round explorer'. This study empirically examines whether there are differences between these carbon strategy types in terms of the sector, firm size and firm performance. The results indicate a significant relationship between a firm's carbon strategy and its sector and size but a significant relationship between the carbon strategy and firm performance is not confirmed.

Despite the importance of the Carbon Disclosure Project (CDP), the question of how firms' voluntary carbon disclosure influences capital markets and shareholder value remains unanswered. Using the event study methodology with a sample of firms from the CDP Korea 2008 and 2009, this paper investigates market responses to firms' voluntary carbon information disclosure. The results suggest that the market is likely to respond negatively to firms' carbon disclosure, implying that investors tend to perceive carbon disclosure as bad news and thus are concerned about potential costs facing firms for addressing global warming. In addition, the study examines the moderating effect of frequent carbon communication on the relationship between carbon disclosure and shareholder value. The results suggest that a firm can mitigate negative market shocks from its carbon disclosure by releasing its carbon news periodically through the media in advance of its carbon disclosure. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

Purpose – This paper aims to examine the effects of green supply chain management (GSCM) on environmental and operational performances with a perspective of social capital accumulation in the supply chain. The roles of structural capital and relational social capital in GSCM were empirically explored. Design/methodology/approach – A research model was developed to investigate the effects of GSCM on a supplier’s environmental and operational performances through structural and relational social capitals. Using an exploratory factor analysis, the study identified the structural and relational dimensions of social capital and the environmental and operational performance dimensions of supplier’s performance. The hypotheses were tested on data of 207 responses collected from supplying firms in South Korea, using structural equation modeling. Findings – The paper finds that GSCM contributes to the environmental and operational performance improvements of the supply chain through social capital accumulation. Relational capital, in particular, plays a more important pivoting role in the relationships between GSCM and environmental and operational performances. Practical implications – The findings of this paper provide useful insights about how supply chain members should integrate environmental issues into supply chain management practices that would enhance social capital accumulation to foster stronger operational and environmental performances throughout the entire supply chain. Originality/value – This research is one of the few studies that explore the effects of GSCM on performance by explicitly considering social capital as an important intervening variable. By applying social capital theory, this study provides theoretical underpinning for furthering the GSCM literature.

Purpose This study aims to examine the effects of contractual fairness and power sources on the relationship between the buyer and supplier on the innovation performance of the supplier. The mediating role of social capital accumulation between fairness, power and innovation performance was empirically explored. Design/methodology/approach Hypotheses were developed to investigate the relationships between supply chain fairness, power sources, social capital and innovation performance. Using structural equation modeling, the hypotheses were tested on data of 209 responses collected from supplying firms in South Korea. Findings This study finds that supply chain contractual fairness and referent power use contribute to the innovation performance of the supplier through social capital accumulation between the buyer and supplier. Coercive power, in contrast, impedes the performance improvement of the supplier. Originality/value This study provides supply chain practitioners, academics and policy-makers with guidance on how to facilitate and enhance innovation capabilities and performance across the supply chain. By applying social capital theory, this study also provides theoretical underpinning of the literature on supply chain fairness, power and innovation.