Sustainability Practices Impacts on Supplier Sustainability Risks and Sustainability Performance: An Empirical Study of Brazilian Companies

Abstract

This study explores the influence of sustainability practices on supplier sustainability risks and sustainability performance in Brazilian companies, offering key insights into how behavioral and technical practices impact these crucial areas. Data were collected from 152 Brazilian companies across various sectors. The theoretical framework was tested using partial least squares structural equation modeling. The research findings highlight that implementing behavioral sustainability practices has a positive effect on reducing supplier sustainability–related risks and improving overall sustainability performance in supply chains. These practices, focused on fostering sustainable behaviors within organizations and among suppliers, play a critical role in mitigating sustainability risks and enhancing long‐term performance. Unexpectedly, the study did not confirm the predicted relationship between technical sustainability practices and improvements in supplier sustainability–related risks and performance. This surprising result challenges traditional assumptions about the effectiveness of technical practices in improving supply chain sustainability performance. By uncovering the distinct impact of behavioral versus technical sustainability practices, the study provides valuable insights for both researchers and practitioners. It emphasizes the importance of promoting behavioral change to achieve meaningful sustainability outcomes. The findings have practical implications for companies aiming to enhance their sustainability strategies and manage sustainability risks more effectively within their supply chains, making this research a significant contribution to sustainable management and supply chain theory.