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The moderating role of supplier involvement in achieving sustainability

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Abstract In this study, we aim to explore the role of the involvement of suppliers while firms execute sustainable initiatives. We have based the entire study on a survey covering… Click to show full abstract

Abstract In this study, we aim to explore the role of the involvement of suppliers while firms execute sustainable initiatives. We have based the entire study on a survey covering 101 Swedish manufacturers. The structural equation models of partial least squares are adopted to analyse their responses, examining the relationship among the constructs, stakeholders' influence, sustainable practices, sustainable performance, and supplier involvement. We find that, in the firms, the effects of stakeholder influence on the sustainable practices is both significant and positive; the sustainable practices of sampled firms are to a great extent facilitating the sustainable performance. In addition, intensely participating in the initiatives related to environmental protection (e.g., cleaner production) by the suppliers, helps reinforce the relationship of sustainable practice and sustainable performance in the firms, however the moderating effects of supplier's involvement in economic and social activities is not significant. This has significant implications to firms' decision regarding where to invest in sustainability.

Keywords: supplier involvement; role; sustainability; sustainable practices

Journal Title: Journal of Cleaner Production
Year Published: 2019

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