Linking relation-specific investments and sustainability performance: the mediating role of supply chain learning

Abstract

PurposeDespite the growing interest in the role of relation-specific investments (RSIs) in superior firm performance, their impact on sustainability performance remains unexplored, as do the underlying mechanisms of such effects. Drawing on the relational view and resource orchestration theory (ROT), the authors propose that supply chain learning (SCL) mediates the link between RSIs and sustainability performance.Design/methodology/approachA multi-method approach was adopted, combining a case study and survey. An exploratory case study of four Chinese manufacturing firms was first conducted to develop research hypotheses. A quantitative survey of data collected from 269 firms was then undertaken to test hypotheses.FindingsProperty-based, knowledge-based and personal-based RSIs positively impact firm sustainability performance and SCL. SCL fully mediates the relationship between knowledge-as well as personal-based RSIs and sustainability performance, and partially mediates the relationship between property-based RSIs and sustainability performance.Practical implicationsThe study unveils important practical insights and approaches for firms endeavouring to achieve sustainability performance through RSIs and SCL.Originality/valueThe study extends the RSIs literature by linking RSIs and sustainability performance and differentiating the effects of different types of RSIs on sustainability performance. The theorized underlying mechanism advances the understanding of SCL in the link between RSIs and sustainability performance.