A case study of supplier selection in developing economies: a perspective on institutional theory and corporate social responsibility

The purpose of this paper is to present the findings of supplier selection activities in a service sector organisation in Nigeria. It aims to examine the role of normative forces within the context of Institutional Theory.

A single case study approach was used. Action research utilising participant observation was used in data collection. Descriptive and inferential statistical analysis was carried out using SPSS.

Criteria relating to corporate social responsibility (CSR) proved to be a significant weakness for Nigerian suppliers, as most of the bidding organisations were unable to show evidence of, for example, payment of taxes and insurance for their employees. However, suppliers of services, in general, performed better than suppliers of products.

Suppliers of products and services in Nigeria need to improve their performance with respect to CSR in particular. As most of these organisations are small businesses, they had previously tended to avoid the costs related to CSR implementation. Furthermore, large customer organisations can utilise their buying power and influence to encourage their suppliers to change their corporate strategies and practices.

The selection of suppliers within the study context has previously not been examined. There has been little understanding of the capabilities of suppliers of minor products and services, particularly in relation to fulfilling CSR obligations.