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Title Does buyers' financial slack promote or inhibit suppliers' circular economy performance?
ID_Doc 28373
Authors Yang, Y; Jiang, Y; Chen, XW
Title Does buyers' financial slack promote or inhibit suppliers' circular economy performance?
Year 2021
Published
Abstract Extant research examining the link between slack resources and performance offers few insights into how buyer firms' financial slack influences suppliers' circular economy (CE) performance. We collect secondary data from 290 buyer-supplier dyads of listed firms in China during 2006-2018 from CSMAR database. Using panel data analysis, we find a nonlinear (U-shaped) relationship between them. In addition, some relationship-specific contextual factors, i.e., buyer power and technology capability, have positive moderating effects, while buyersupplier geographical distance has negative moderating effects on the main U-shaped relationship. Our study contributes to the literature on the slack-performance debate confirming the CE performance effect of financial slack in the business-to-business (B2B) relationship.
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