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Buyer's Sustainability Orientation and Supplier Development: The Effect of Stakeholder Commitment

Author(s) Mr. Issah Ofori, Mr. Hanson Obiri Yeboah, Ms. Rosemary Makafui Agboyi, Mr. Charles Asare
Country Ghana
Abstract Purpose: The study contributes to the growing body of literature on sustainable supply chain management by exploring the relationship between buyer sustainability orientation and supplier development, with a focus on the moderating role of stakeholder commitment. It addresses gaps in the existing literature, particularly in understanding how stakeholder engagement influences sustainability initiatives within supply chains.
Methodology: The study employs an explanatory research design. The study focuses on professionals in procurement, supply chain management, sustainability management, and supplier development across industries with active buyer-supplier relationships. Data was collected using an online survey administered through platforms such as Google Forms to obtain a sample size of 280. The data analysis was conducted using SPSS (Statistical Package for the Social Sciences) and AMOS (Analysis of Moment Structures). These tools are well-suited for analyzing quantitative data and testing complex relationships among variables.
Findings: The study revealed a positive relationship between Buyer’s Sustainability Orientation (BSO) and Supplier Development (SPD), emphasizing the importance of sustainability practices in procurement decisions and supplier performance improvement. Stakeholder commitment has a positive and significant influence on supplier development. Additionally, stakeholder commitment (SHC) was found to significantly moderate this relationship, enhancing the impact of BSO on SPD.
Unique Contribution to Theory, Practice, and Policy: The study introduces a nuanced perspective, showing that high stakeholder commitment can shift supplier development from a compliance-based model to a proactive collaboration model, ultimately leading to long-term sustainability performance. Buyers can leverage stakeholder commitment to align suppliers with industry-wide sustainability goals, fostering joint investments in green technology, ethical sourcing, and sustainable logistics. The study highlights the need for governments and industry associations to introduce tax benefits, subsidies, or certification schemes to encourage stakeholder commitment in buyer-supplier sustainability initiatives. The findings support the development of PPPs that integrate buyer sustainability orientation with supplier development through shared investments, training programs, and sustainability reporting standards. The study recommends that organizations should prioritize building long-term, collaborative relationships with stakeholders to ensure the alignment of sustainability objectives across the supply chain. Procurement managers should integrate sustainability considerations into supplier selection and development processes, ensuring that suppliers are equipped to meet environmental and social sustainability standards.
Keywords Buyer's Sustainability Orientation, Supplier Development, Stakeholder Commitment
Field Business Administration
Published In Volume 16, Issue 1, January-March 2025
Published On 2025-02-11
Cite This Buyer's Sustainability Orientation and Supplier Development: The Effect of Stakeholder Commitment - Mr. Issah Ofori, Mr. Hanson Obiri Yeboah, Ms. Rosemary Makafui Agboyi, Mr. Charles Asare - IJSAT Volume 16, Issue 1, January-March 2025. DOI 10.71097/IJSAT.v16.i1.1801
DOI https://doi.org/10.71097/IJSAT.v16.i1.1801
Short DOI https://doi.org/g85dmr
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