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The effect of sustainable supply chain management factors on preferred customer status benefits.

Sevim, Garip (2019) The effect of sustainable supply chain management factors on preferred customer status benefits.

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Abstract:The concept of sustainability and more specifically sustainable supply chain management has gained increasing awareness among firms and society. The purchasing function can significantly affect corporate performance along environmental dimensions. Yet, there is still the belief among some practitioners that sustainability will only be an added cost and benefits do not weight up to this cost. This study tries to explore whether there could be unknown benefits of SSCM factors. The factors that are considered are sustainable supply chain collaboration and the sustainability image of the buyer perceived by the supplier. Additionally, the moral sustainability motive of the supplier will be examined as a moderating variable. The benefits that are chosen from this study come from ‘preferred customer status’ theory. A firm that has preferred customer status at its supplier, enjoys benefits such as preferential resource allocation and benevolent pricing. The empirical quantitative data is collected from 91 suppliers of a company operating in a high-tech machines industry based in the Netherlands. This study uses partial least square structural equation modeling to examine the influence of sustainable supply chain collaboration, the sustainability image of a buyer and the moral sustainability motivation of a supplier on preferential resource allocation of physical and innovational products and benevolent pricing. The analysis and results show that sustainable supply collaboration has a positive effect on preferential resource allocation of both physical and innovation products, but not on benevolent pricing. The sustainability image of the buyer did not have a positive impact on benefits of being a preferred customer. The moral sustainability motive of a supplier had a strong significant effect on sustainable supply chain collaboration and moderated the effect between sustainable supply chain collaboration and allocation of innovation resources.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/79576
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