Leveraging supply chain orientation for global supplier responsiveness The impact of institutional distance Beth Davis-Sramek Department of Systems and Technology, College of Business, Auburn University, Auburn, Alabama, USA Ayman Omar International Business, American University, Washington, District of Columbia, USA, and Richard Germain Department of Marketing, University of Louisville, Louisville, Kentucky, USA Abstract Purpose – The purpose of this paper is to utilize middle-range theorizing to examine whether a US manufacturer can leverage supply chain orientation (SCO) to garner responsiveness from a global supplier. To capture the interplay of macro-level institutional environments, the authors examine the moderating effect of institutional distance on the SCO–supplier responsiveness relationship. Design/methodology/approach – Primary survey data collected from US manufacturers are utilized to measure SCO and supplier responsiveness. Two secondary data sets (EIU and GLOBE) capture formal and informal distance at the institutional level and are used to test the moderating effect of institutional distance. Findings – The research finds that SCO can facilitate global supplier responsiveness. A post hoc exploratory analysis reveals a three-way interaction, where the SCO–supplier responsiveness relationship is strengthened when formal and informal institutions are either very similar or very different. Research limitations/implications – The research offers a more nuanced understanding of manufacturer–supplier relationships in global supply chains by demonstrating how country-level (macro) characteristics can influence firm-level (micro) supply chain phenomena. It extends research on SCO by illustrating how institutional distance interacts with a manufacturer’s ability to leverage SCO to enable supplier responsiveness. Practical implications – Manufacturers should increase their attentiveness to institutional distance. When both formal and informal distances are different (i.e. high distance), SCO can create a powerful lever to improve global supplier responsiveness. Likewise, when formal and informal institutions are similar (i.e. low distance), SCO reinforces joint efforts and collaboration to create additive benefits, whereby suppliers are incentivized to be responsive to unexpected environmental changes. Originality/value – This research addresses the growing call for more empirical studies that examine how country-level institutions influence firm-level phenomena. It also utilizes secondary data to serve as a proxy for formal and informal institutional distance. Keywords North America, Survey, Europe, Asia, Buyer–supplier relationships, Supplier management, Global logistics Paper type Research paper 1. Introduction A firm’s supply chain can have a profound effect on its performance dimensions related to cost, quality and timeliness (Liao et al., 2010). Previous research highlights the need for firms to leverage supply chain relationships in order to be more responsive to changing conditions and increasing customer demands (Cao and Zhang, 2011; Davis-Sramek et al., 2007; Holweg, 2005). As such, a stream of research has focused on supply chain orientation (SCO), which is a multi-dimensional construct that captures a firm’s strategic awareness of the benefits created The International Journal of Logistics Management Vol. 30 No. 1, 2019 pp. 39-56 © Emerald Publishing Limited 0957-4093 DOI 10.1108/IJLM-09-2017-0225 Received 6 September 2017 Revised 23 May 2018 23 July 2018 18 October 2018 Accepted 4 November 2018 The current issue and full text archive of this journal is available on Emerald Insight at: www.emeraldinsight.com/0957-4093.htm 39 SCO for global supplier responsiveness