Digital buyer exposure and supplier commitment in the global south: A field experiment on the role of racial dynamics

Abstract

Through a controlled field experiment in Uganda, this study investigates the impact of digital buyer exposure on smallholder farmers' commitment to selling coffee flowers in the context of socially responsible global supply chains. It addresses how digital buyer exposure influences supplier commitment and whether racial dynamics moderate this relationship. Working from the assumption that the suppliers' commitment is critical to improving their livelihood, the paper contributes to how racial concerns can be mitigated in global socially responsible supply chains; this is an ignored field in SCM. By comparing farmers exposed to a buyer video with those in a control group, the experiment uses randomization and addresses confounding factors, such as the Hawthorne effect and parallel trends, to ensure the robustness of its findings. Findings reveal that digital buyer exposure significantly increases farmers' willingness to commit, while racial dynamics play a smaller but notable role in shaping initial perceptions. However, these dynamics do not significantly diminish the positive impact of digital exposure. This suggests that digital tools effectively foster early-stage supplier commitment and relational alignment between buyers and suppliers in regions where direct interactions are limited and where distrust between buyers and suppliers constrains suppliers' opportunities to leverage the potential advantages of becoming integrated into socially responsible supply chains. The study thereby contributes to the existing literature by demonstrating the potential of digital technology to strengthen supplier commitment and mitigate the negative effects of racial dynamics. •Field experiment on digital buyer exposure in Uganda.•Video exposure increases smallholder supplier commitment.•Tests racial asymmetry as a moderation boundary condition.•Finds no significant attenuation from racial differences.•Integrates signaling and relational theory in digital sourcing.