Strategic initiatives and institutional conformity for low carbon supply chain integration

Research has called for firms to prioritize reducing carbon emissions, however strategies to do so with external partners through institutional conformity and integration are lacking in research and practice. Drawing upon the resource-based view and institutional theory, the study in this paper proposes and tests a series of research hypotheses with Chinese firms. Structural equation modelling was used to analyze data and findings reveal carbon emissions reduction and low carbon institutional pressures are crucial forces driving external low carbon supply chain integration with external suppliers and customers. Further, low carbon supply chain integration overall positively impacts a firm’s environmental performance, external customer integration positively impacts a firm’s financial performance, and environmental performance plays a mediating role between external low carbon supply chain integration and financial performance. This study contributes by shedding new light on two patterns of external low carbon supply chain integration compared to prior studies.