The Moderating Role of Institutions: How Contractual and Relational Governance Interact to Influence Social Sustainability Implementation in Garment Global Value Chains
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2024-07-01
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en
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This study examines the interaction between contractual and relational governance mechanisms in implementing social sustainability practices within garment GVCs in developing countries. By analyzing data from 371 garment suppliers across 11 countries, it highlights how both governance mechanisms significantly contribute to social sustainability: contractual governance ensures compliance and accountability, while relational governance fosters collaboration and ethical conduct. The research underscores that these mechanisms are complementary, especially in contexts with low regulatory quality where formal institutions are insufficient. The findings offer practical insights for MNEs to adapt governance strategies according to local institutional contexts, ultimately promoting more socially sustainable and ethical supply chains.
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Faculteit der Managementwetenschappen