forgone opportunities or social costs resulting from pollution,
regulatory compliance, and legal liabilities.
Strong environmental commitment is associated with increased costs.
A firm with strong environmental commitment may bear greater
economic disadvantages as a result of this commitment than other
firms with lower environmental commitment. High
investments and additional costs represent strong barriers to
environment-oriented management. Economic factors
and related costs appear to be critical barriers to the implementation
of green purchasing. Environmental
regulatory compliance costs can prevail over potential green
purchasing adoption. Min and Galle observe that the high
cost of environmental programs is the biggest obstacle to green
purchasing and may dissuade purchasing managers from green
purchasing. Buying firm perceptions of the high cost of environmental
programs also significantly influences firm involvement in green
purchasing .
H7. Buying firms' adoption of green purchasing reduces with
increasing environmental investment.