Do supply management and global sourcing matter for firm sustainability performance?

Abstract

Purpose – The aim of this paper is to explore the impact that sustainable supply chain management (SSCM) has on company’s sustainability performance (both environmental and social), the direct and the indirect impacts that traditional supply management (SM) has on such performance and the effect that global sourcing exerts on the relationships involving SM, SSCM and firm sustainability performance. Design/methodology/approach – Empirical data were obtained from the fifth edition of the International Manufacturing Strategy Survey. The sample consists of 336 assembly manufacturing companies from 21 countries. Data were collected in 2009. The authors apply a moderated mediation analysis to analyse the role of SM and SSCM, and also perform a multi-group analysis to verify the moderation effect played by global sourcing. Findings – First, SSCM improves sustainability performance (both environmental and social) of the company that implements it. Then, SM plays a complex role, as it fosters the adoption of SSCM and makes SSCM more effective. Interestingly, these results are valid for both Locals (i.e. companies sourcing mainly within their continent) and Globals (i.e. companies that have relevant international supply relationships). However, for Locals only, SM also produces a direct effect on sustainability performance of the company. Originality/value – Findings provide empirical evidence that supports previous theoretical works. Furthermore, this paper expands the literature by shedding light on the multifaceted role of SM and on the moderating role of global sourcing. Results are useful to practitioners and researchers interested in developing their understanding of how sustainability at the company level is related to supply chain management.