Supply chain stakeholder pressure for the adoption of sustainable supply chain practices: examining the roles of entrepreneurial and sustainability orientations

Abstract

Purpose This study examines the relationship between supply chain stakeholder pressure from customers and suppliers for the adoption of social and environmental sustainable supply chain management (SSCM) practices given the simultaneous conditional effects of both entrepreneurial orientation (EO) and sustainability orientation (SO). Design/methodology/approach The authors conducted a survey of US firms focused on their relationship with their top supplier or buyer by spend. This study used conditional process analysis to measure the relationship between stakeholder pressure and adoption of SSCM practices as well as the double moderation effects of EO and SO on this relationship. Findings The results show that both EO and SO simultaneously function as moderators of the effect of supply chain stakeholder pressure on the adoption of social and environmental SSCM practices. However, EO will only get firms so far in the adoption of SSCM practices. Once a strong SO takes effect, higher practice adoption ensues but the effect of stakeholder pressure weakens. Practical implications For those firms that have lower levels of SO, EO and supply chain stakeholder pressure are still essential drivers for the adoption of SSCM practice. The results of this study suggest that focal firms should work closely with suppliers to increase their levels of SO while also maintaining pressure for the adoption of SSCM practices. Originality/value This study shows the concurrent effect of two organizational level drivers on the adoption of SSCM practices, indicating that efforts in developing a strong SO are more likely to prepare firms for the adoption of SSCM practices.