Investigating circular procurement management and sustainability performance: The interactive moderating effects of digital traceability and collaboration

Abstract

Whether and how manufacturing firms can enhance their overall sustainability performance through the implementation of circular procurement management is still unclear and under-researched. Drawing on the socio-technical systems theory, this study develops a theoretical model and explores the potential impacts of circular procurement management on manufacturing firms’ sustainability performance (i.e., economic, environmental, and social performance) while examining the moderating role of digital traceability and collaboration. Based on survey data from 250 Chinese circular economy manufacturing firms, this study uses hierarchical regression to analyze the impact mechanism and boundary of circular procurement management on sustainability performance. The empirical results show that (1) Circular procurement management in manufacturing firms can significantly improve economic, environmental, and social performance; (2) Digital traceability positively moderates the effect of circular procurement management on both environmental and social performance; (3) Collaboration positively moderates the effect of circular procurement management on both economic and environmental performance; and (4) The impact of circular procurement management on environmental performance is positively and interactively moderated by digital traceability and collaboration.