Decomposing Social Sustainability: Signaling Theory Insights into Supplier Selection Decisions

Rodney Thomas, Jessica L. Darby, David Dobrzykowski and Remko van Hoek

Journal of Supply Chain Management, 2021, vol. 57, issue 4, 117-136

Abstract: Social sustainability has emerged as a key determinant in supplier selection. However, firms may approach social sustainability in varying ways such as investments in employee welfare or philanthropy. Little is known about how supply chain managers consider these individual dimensions when making sourcing decisions. Therefore, this research decomposes social sustainability into dimensions of employee welfare and philanthropy to determine their effects on supplier selection. Vignette‐based experiments in a transportation context test a priori hypotheses derived from signaling theory, and post hoc qualitative insights reveal deeper understanding. Results show buyers have significant preferences to select, trust, and collaborate with suppliers who have desirable levels of employee welfare, philanthropy, and pricing. However, these findings are tempered by differential effect sizes and suggest that the practical significance of hypothesized relationships vary. These findings help refine our understanding of social sustainability conceptualizations and evolving supplier selection criteria, as well as offer timely insights for suppliers, buyers, and policymakers amidst surging demand for social sustainability.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1111/jscm.12247

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jscmgt:v:57:y:2021:i:4:p:117-136

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1523-2409

Access Statistics for this article

Journal of Supply Chain Management is currently edited by Lisa Ellram, Craig Carter and Chad Autry

More articles in Journal of Supply Chain Management from Institute for Supply Management
Bibliographic data for series maintained by Wiley Content Delivery ().