Abstract:
The tensions between environmental sustainability and resilience have been flagged as an important avenue for future research. We use signaling theory and buyer-supplier relationships (freight forwarders and carriers) in the U.S. import market and study the stand-alone and contingent value of signals and experience on dyadic resilience. Related to the first-hand experience, we find that dyads with higher carbon footprints are less likely to be resilient, and so are those where the service delivery was not timely. Strong sustainability signals by suppliers influence the dyadic resilience positively and further enhance the effects of the first-hand experience. Our findings indicate that suppliers' strong signals related to sustainability are a supplement to their dyadic performance and buyers value a non-symbolic commitment to a cause. The findings further emphasize the importance of a long-term, green thinking, be it signal- or experience-based and the fragility of businesses that disregard environmental responsibilities.