Creating social value through operational supply chain transparency

Abstract

Whether inclusive business (IB) supply chain transparency (SCT) can add value to a firm as an essential strategic resource is controversial. This study investigates how IB SCT affects willingness to pay a premium (WPP). Conditional process analysis was used to analyze survey data collected from 633 Chinese subjects in a scenario‐based role‐playing experiment. Analysis of the responses demonstrates that IB SCT indirectly enhances WPP through indirect reciprocity. In addition, the stronger the costly prosocial attributes of customers, the greater the indirect effect of IB SCT on WPP. The results indicate that IB SCT can add value to firms through consumer rewards, especially for costly prosocial consumers. These research constructs provide valuable insights for operators adopting IB to help them communicate and coordinate IB resources with consumers for IB sustainability.