Buyer-Driven Knowledge Transfer Activities to Enhance Organizational Sustainability of Suppliers

Amandeep Dhir,Usama Awan,Sajeela Rabbani,Amira Khattak

doi:10.3390/su12072993

Abstract

Despite the significant contribution of buyer-driven knowledge transfer activities (BDKTAs) to innovation and operational performance, studies that analyze social sustainability in manufacturing (suppliers) firms are still scarce. This paper examines the mediation relationship of knowledge acquisition and investment in environmental management between BDKTAs and social performance improvements (SPIs). The paper contributes to the understanding of buyer knowledge transfer activities, with a focus on the knowledge acquisition capabilities and investments in environmental management, and the effect on SPIs. The hypotheses were examined with partial least squares structural equation modeling (PLS-SEM) with data collected from 239 firms. Buyer knowledge transfer activities are likely to increase the willingness of suppliers to make specific environmental investments into operations in waste reduction procedures, the recycling of materials, and pollution prevention training of employees. We proposed that buyer knowledge transfer activities are necessary to survive and grow and thus there is a need to acquire knowledge resources to achieve organizational sustainability. Buyer knowledge transfer activities are necessary to make investment decisions in environmental management programs. Firms that focus on buyer knowledge transfer activities and internal investments into environmental management can attain sustainability objectives.

Highlights

Globalization and the intensification of sustainability competition have led export manufacturing firms to seek knowledge resources
We assessed the construct reliability using composite reliability (CR) and Cronbach’s alpha (CA).The results showed that the values of CR and CA were > 0.70 [53]
This study investigated whether knowledge acquisition capabilities and sustainable investment mediate the relationship between buyer-driven knowledge transfer activities (BDKTAs) and social performance improvements (SPIs)

Summary

Introduction

Globalization and the intensification of sustainability competition have led export manufacturing firms to seek knowledge resources. Firms from developing countries often rely on their cross-border buyers to acquire resources to achieve their sustainability objectives. To meet these challenges, the firms need to expand their knowledge resources to improve their understanding of the factors that contribute to knowledge transfer and the influences on performance. There has been an upsurge in interest of firms in managing external knowledge sources, and the collaboration between suppliers and buyers is increasingly important [3]. This becomes increasingly salient as the firms’ success in social sustainability issues depends increasingly on their knowledge acquisition and external collaborations

Results

Discussion

Conclusion