Supplier Management and Sustainable Innovation in Supply Networks: An Empirical Study

Abstract

Supply chain management researchers acknowledge the importance of innovation in creating value for the business. However, the impact of sustainable innovation in manufacturer–supplier networks lacks focus by previous researchers. The current research attempts to bridge the gaps in existing literature by empirically testing a conceptual model on the basis of survey responses gathered in Gauteng province of South Africa. The findings show that organization culture (OC) influences leadership skills, supplier development (SD) and supplier relationship management (SRM). Second, market forces (MFs) influence SD initiatives. Third, SD is found to influence supplier performance (SP) and SRM. Fourth, SRM is found to influence SP. Finally, SP has a positive effect on sustainable innovation in supplier networks. The study is unique in terms of scope of work and further creates food for thought to the research community.