Stringent customer environmental requirements and firm's environmental performance evidence from Bangladesh readymade garment industry

While it is usual for supplier organizations to address their customer requirements however, literature suggests that due to various reasons these requirements become complex and difficult to address. Drawing on transaction cost theory and based on six case studies this research not only introduce a novel concept of 'stringent customer environmental requirements' but also investigates how these stringent requirements impact suppliers environmental performance. Result shows that there are number of prominent factors that drive environmental requirements to become stringent. Findings also suggest that stringent requirements impact environmental performance of supplier organizations through firm's internal capability development. This research provides a framework for researchers and managers to deal with unpredictable changes in environmental requirements and to achieve their desired environmental performance.