Environmental management practices and performance of international suppliers located in China : how does relationship learning matter?

Environmentalism and sustainability requirements have become increasingly important issues of concern in Asian economies. Increasing government regulations and consumer and activist movements have repeatedly called for greener supply chain activities. However, the extant studies examined only the direct effect of environmental management practices on a firm’s competitiveness and performance and hence ignored the intervening learning processes. Framed within the resource-based view of the firm, the current inquiry investigates environmental management practices as a kind of resource inputs accounting for an international supplier firm’s relational learning to address its international buyers’ environmental concerns, which in turn fosters competitive outcomes. The resultant findings clearly show that learning from foreign partners and collaborating with them can upgrade the capabilities of Chinese firms for sustainable development.