A model for assessing the impact of sustainable supplier selection on the performance of service supply chains

Abstract

This study intends to develop and validate a model for assessing the impact of supplier sustainability on the performance of a service supply chain. Supplier sustainability is assessed based on five main criteria derived from literature and validated by industry experts (i.e. Environment Management, Social Responsibility, Green Products, Technology Standards and Health and Safety Management). Each criterion is further characterised using three sub-criteria (indicators). The impact of these sustainability aspects on the performance of service supply chains is assessed based on two sets of economic and competitiveness measures. To validate the model, empirical data were collected from a large sample of supply chain experts at major service firms in the United Arab Emirates (UAE). Structural Equation Modelling was then used to analyse the data and derive conclusions. Results indicated a valid structure of the proposed model based on the selected criteria (latent variables) and confirmed their positive impact on the performance of service supply chains. This has demonstrated the model fitness to assess supplier sustainability in service supply chains. However, the criteria related to the supplier’s Environmental Management and Technology Standards were found to be of a higher impact on performance while the competitiveness aspects of performance were found to be of higher importance compared to economic aspects. The implications of study findings on service supply chains were discussed along with study limitations and directions for future research.