The moderating role of supplier involvement in achieving sustainability

In this study, we aim to explore the role of the involvement of suppliers while firms execute sustainable initiatives. We have based the entire study on a survey covering 101 Swedish manufacturers. The structural equation models of partial least squares are adopted to analyse their responses, examining the relationship among the constructs, stakeholders' influence, sustainable practices, sustainable performance, and supplier involvement. We find that, in the firms, the effects of stakeholder influence on the sustainable practices is both significant and positive; the sustainable practices of sampled firms are to a great extent facilitating the sustainable performance. In addition, intensely participating in the initiatives related to environmental protection (e.g., cleaner production) by the suppliers, helps reinforce the relationship of sustainable practice and sustainable performance in the firms, however the moderating effects of supplier's involvement in economic and social activities is not significant. This has significant implications to firms' decision regarding where to invest in sustainability.