The Effect of Controversial Global Sourcing Practices on the Ethical Judgments and Intentions of U.S. Consumers

Journal of Operations Management, 2014

40 Pages Posted: 7 Feb 2015

See all articles by Robert Bregman

Robert Bregman

University of Houston - C.T. Bauer College of Business

Xiaosong (David) Peng

Lehigh University

Wynne Chin

University of Houston - C.T. Bauer College of Business

Date Written: December 1, 2014

Abstract

Global sourcing has led to lower cost and more effective supply chains for many companies. However, when the cost-driven practices of many suppliers in these chains come to light there is often considerable debate over the ethics of these practices. This research uses the well-known Hunt-Vitell framework as the theoretical foundation for a structural equation model of the deontological and teleological evaluations used by consumers when making ethical judgments of a firm’s controversial cost-driven global sourcing practices. Data from a large-scale U.S. consumer survey show the importance of deontological and teleological evaluations in forming consumers’ ethical judgments of global sourcing practices, and establish a strong relationship between ethical judgment and the intention of consumers to alter consumption of a firm’s products. Extensions to the framework and demographic analyses for age, gender, and income provide insights as to how perceptions of these practices affect consumer evaluations of a company involved in global sourcing and how consumers actualize their resultant intentions.

Keywords: Global sourcing, supply chain management, consumer intentions, ethical judgment, Hunt-Vitell, structural equation modeling

JEL Classification: M1,M11,M14,F23, L10,D2, M31

Suggested Citation

Bregman, Robert and Peng, Xiaosong (David) and Chin, Wynne, The Effect of Controversial Global Sourcing Practices on the Ethical Judgments and Intentions of U.S. Consumers (December 1, 2014). Journal of Operations Management, 2014, Available at SSRN: https://ssrn.com/abstract=2544669

Robert Bregman

University of Houston - C.T. Bauer College of Business ( email )

Houston, TX 77204-6021
United States

Xiaosong (David) Peng (Contact Author)

Lehigh University ( email )

621 Taylor Street
Bethlehem, PA 18015-3027
United States

Wynne Chin

University of Houston - C.T. Bauer College of Business ( email )

Houston, TX 77204-6021
United States

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