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Building reputation through sustainable supplier selection: the case of an emerging economy

Author

Listed:
  • Mohammad Asif Salam
  • Murad Ali

Abstract

Purpose - The purpose of this research is to examine the drivers of sustainable supplier selection (SSS) and investigate the extent to which it is associated with a buyer's financial performance within an emerging economy context. Design/methodology/approach - The data were collected from 235 supply chain and procurement professionals in Thailand. The structural relationship was tested using partial least squares based structural equation modeling (PLS-SEM) and PROCESS tool. Findings - Based on the empirical findings, firms that pursue sustainability initiatives during supplier selection process enjoy better financial performance than their competitors. The analysis suggests six hypothetical paths explain SSS. Suppliers' human rights and safety focus are the most powerful determinants of SSS. Significantly, positive support was found for the SSS and buyers' financial performance relationship. Finally, there is a significant moderating effect of resource investment on sustainability efforts. Research limitations/implications - Data for the study were collected from a single industry, so the findings are indicative but not representative of all supply chains. Due to this limitation, the findings cannot be generalized across other countries and industries. This study is a starting point in understanding the role of SSS in creating a sustainable supply chain. Future research may develop a comprehensive understanding of the nature and magnitude of the impact of SSS on sustainable supply chains. Originality/value - This paper contributes toward an understanding of the determinants of SSS and its consequences for sustainable supply chains. 目的 - 本研究旨在探究選擇可持續供應商的驅動因素,及探討在新興經濟的環境下選擇可持續供應商與買方的財務表現之間有多大的關係。 研究設計/方法/理念 - 數據取自235名在泰國的供應鏈及採購專業人士。研究人員使用基於偏最小二乘為基礎的結構方程模型 (PLS-SEM) 及流程 (PROCESS) 工具 測試了結構的關係。 研究結果 - 基於實證結果,在選擇供應商的程序中、奉行持續性措施的公司的財務表現會較其對手更好。分析顯示有六個假設性的途徑可闡釋可持續供應商的選擇。供應商的人權及以安全為焦點是選擇可持續供應商的最有力的決定因素。明顯地、選擇可持續供應商及買方財務表現之間的關係已找到支持的證據。最後,資源的投資對可持續性方面的努力產生重大的調節效果。 研究的局限/含意 - 由於用來研究的數據取自單一行業,故研究結果是指示性的、而非代表所有供應鏈。因為這個局限,所以研究結果不能概括其它國家或行業。唯本研究就了解選擇可持續供應商在創造一個可持續的供應鏈上所扮演的角色方面踏出了第一步。未來的研究或會就選擇可持續供應商對可持續供應鏈予以何種影響及多大的影響提供更全面的解說。

Suggested Citation

  • Mohammad Asif Salam & Murad Ali, 2020. "Building reputation through sustainable supplier selection: the case of an emerging economy," European Journal of Management and Business Economics, Emerald Group Publishing Limited, vol. 29(3), pages 315-332, April.
  • Handle: RePEc:eme:ejmbep:ejmbe-12-2019-0217
    DOI: 10.1108/EJMBE-12-2019-0217
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    Citations

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    Cited by:

    1. Koc, Kerim & Ekmekcioğlu, Ömer & Işık, Zeynep, 2023. "Developing a probabilistic decision-making model for reinforced sustainable supplier selection," International Journal of Production Economics, Elsevier, vol. 259(C).
    2. Kausar Fiaz Khawaja & Muddassar Sarfraz & Mahmoona Khalil, 2023. "Doing good for organization but feeling bad: when and how narcissistic employees get prone to shame and guilt," Future Business Journal, Springer, vol. 9(1), pages 1-16, December.

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