Does It Matter to the C-Suite? The Role of Top Management in a Purchasing Manager's Responsible Sourcing Intentions

Abstract

Firms face increased scrutiny from both governments and consumers about socially responsible practices. Firms may address social issues in their supply chains by selecting socially responsible suppliers—a decision heavily influenced by the preferences of purchasing managers. Although prior research provides empirical evidence that this decision is affected by different stakeholders, these results are usually at the firm level and do not reveal how a purchasing manager forms their preference toward socially responsible suppliers. This study, using social projection theory and a behavioral experiment with supply chain managers, studies the influence of purchasing managers' perception of top management beliefs (PTMB) on socially responsible sourcing intentions (SRSS). Purchasing managers' internal values (ISI) strongly shape their PTMB, both directly and indirectly influencing purchasing managers' SRSS, while external stakeholder pressures from suppliers and customers (EPSP) impact SRSS indirectly through PTMB. Regulatory pressure (RP), however, shows no effect on PTMB. A post hoc analysis reveals that purchasing managers with high ISI favored sustainable suppliers, even when organizational priorities indicated by top management action (TMA) are not about socially responsible sourcing. Our findings provide a nomological network explaining a manager's responsible sourcing decisions and provide guidance for firms to enhance their responsible sourcing.