The Impact of Sustainability on Supplier Selection: A behavioural study

Yuanzhu Zhan, Leanne Chung, Ming Lim, Fei Ye, Ajay Kumar, Kim Hua Tan

    Research output: Contribution to journalArticlepeer-review

    Abstract

    Supplier selection is a critical decision with sustainability impacts in global supply chain. This study explores how different dimensions of a supplier's sustainability can affect managers' evaluation and consequent selection of a supplier. An experimental research method is applied to examine a series of hypotheses that integrate the sustainable supply chain management literature and the behavioural decision-making literature. Data from a total of 857 valid sets of responses in three scenario-based experiments were used to explore the impacts of long-term and short-term relationships with the supplier, and the length of work experience of the supply chain manager as factors in managers' selection decisions. The findings show that managers favour sustainability dimensions in their evaluation and intention to select a supplier. Moreover, managers react more negatively to a low level of sustainability than they react positively to a high level of sustainability. The economic dimension of sustainability has the strongest impact of the three dimensions on managers' supplier evaluation and selection intent. Furthermore, where the manager and supplier have been in a long-term relationship, there is an interaction effect between managers support for each of the dimensions and the effect of sustainability on supplier evaluation and selection. However, this moderating effect is less significant in a short-term relationship and becomes insignificant after accounting for the impact of length of work experience of the decision-makers. The experimental research approach and results provide managerial implications for effective allocation of resources, as well as policy suggestions for the broader operations and supply chain systems.
    Original languageEnglish
    Article number108118
    JournalInternational Journal of Production Economics
    Volume236
    Early online date2 Apr 2021
    DOIs
    Publication statusE-pub ahead of print - 2 Apr 2021

    Bibliographical note

    NOTICE: this is the author’s version of a work that was accepted for publication in International Journal of Production Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Journal of Production Economics, 236, (2021) DOI: 10.1016/j.ijpe.2021.108118

    © 2021, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

    Keywords

    • Sustainability
    • Supplier selection
    • Behaviour decision-making
    • Supply chain management
    • Experiment

    ASJC Scopus subject areas

    • Economics and Econometrics
    • Business, Management and Accounting(all)
    • Industrial and Manufacturing Engineering
    • Management Science and Operations Research

    Fingerprint Dive into the research topics of 'The Impact of Sustainability on Supplier Selection: A behavioural study'. Together they form a unique fingerprint.

    Cite this