ENVIRONMENTAL DAMAGE: WHEN ANGER CAN LEAD TO SUPPLIER DISCONTINUITY

Abstract

This study analyzed the direct and indirect effects of controllability and responsibility on supplier discontinuity following environmental damage. Data were collected through a scenario-based experiment from 267 individuals with management experience. The results indicated that controllability has an influence on supplier discontinuity, as does anger (a negative emotion), when the supplier, rather than nature, has control over the environmental damage caused. The indirect effect of controllability was partially explained by anger. The direct and indirect effects of responsibility, on the other hand, were not significant, and were partially explained in a moderating role in the relationship between controllability and the non-retention of suppliers following environmental damage. The study contributes by identifying the behavioral role of the negative emotion that is experienced during management crises, thus having an influence on the decision making of individuals that is related to the discontinuity of suppliers following environmental damage.