Sachin Modi accepted for publication in Production and Operations Management
Mike Ilitch School of Business Professor of Global Supply Chain Management Sachin Modi had a recent article accepted for publication in Production and Operations Management (POM).
POM is widely considered to be one of the most elite scholarly publications in operations and supply chain management. Its mission is to “serve as the flagship research journal in operations management in manufacturing and services.”
The article, “How Cooperation Influences Environmental Performance: Role of Financial Slack, Leverage, and Leanness,” discusses how focal firms can improve their environmental performance through coopetition (collaboration between business competitors in the hope of mutually beneficial results).
The article was co-authored by David Cantor (Iowa State University).
Focal firms are struggling to improve their environmental performance for several reasons, including a scarcity of internal and external environmental resources. This study suggests that coopetition provides a boost to a focal firm’s environmental performance. In particular, this research theorizes that a coopetitor firm’s environmental performance has a spillover effect on a focal firm’s environmental performance. This study also investigates the moderating role of a focal firm’s financial slack, financial leverage, and inventory leanness on this relationship. The empirical analysis indicates that coopetitor firms’ environmental performance significantly influences a focal firm’s environmental performance. This relationship is weaker for firms with higher financial slack, and stronger for firms that have lower financial leverage and higher leanness. Collectively, these findings provide important managerial and research implications regarding the consequences of coopetition on a focal firm’s environmental performance.