The Effect of Suppliers’ Green and Traditional Selection Criteria in Supply Chain Management on Purchasing Firms’ Performance

Ahmad Nasser Abuzaid (), Manal Mohammad Alateeq, Saif-aldeen Marwan Madadha, Fayiz Emad Addin Al Sharari and Mohammad Khalaf Alsbou
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Ahmad Nasser Abuzaid: Business Administration Department, School of Business, Mutah University, Alkarak 61710, Jordan
Manal Mohammad Alateeq: Business Administration Department, School of Business, Mutah University, Alkarak 61710, Jordan
Saif-aldeen Marwan Madadha: Business Administration Department, School of Business, Mutah University, Alkarak 61710, Jordan
Fayiz Emad Addin Al Sharari: Department of Administrative and Financial Sciences, Maan College, Al-Balqa Applied University, Ma’an 71110, Jordan
Mohammad Khalaf Alsbou: Marketing Department, School of Business, Mutah University, Alkarak 61710, Jordan

Sustainability, 2024, vol. 16, issue 15, 1-23

Abstract: In recent years, procurement managers have introduced environmental considerations into supplier selection and evaluation as a response to strict environmental regulations implemented by governments. Although previous research investigated the selection of eco-friendly suppliers, little research has been conducted on the significance of the wide range of selection criteria used by industrial customers. The aim of this study was to address this gap and examine the difference in the perceived importance of the selection criteria versus the performance achieved using the selection criteria, in addition to the difference in the business performance and the total supply performance. By investigating the selection criteria of manufacturers in the market environment, this study aimed to demonstrate how their business performance was affected by the performance of suppliers in relation to such criteria. To accomplish this task, this study conducted an empirical analysis based on the questionnaire responses of 72 purchasing managers working in the electrical/electronic and heavy chemical industries. Based on previous research, the following six supplier selection factors were identified: eco-friendliness, quality, relationship, flexibility, delivery, and price/finance. By using statistical analyses, including sample t -tests and multiple regression analysis, this study identified a correlation between supplier and manufacturer performance. The findings show that some factors, such as eco-friendliness, flexibility, price, and delivery, were statistically relevant to the performance of manufacturers, which added value to the decision-making strategy employed in supplier selection.

Keywords: suppliers’ selection criteria; green suppliers; purchasing firms; performance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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