Impact of corporate motives for sustainable sourcing: key moderating role of regulatory pressure.

Abstract

Organizational decisions and their motivations are crucial for successfully implementing sustainable sourcing practices (SSP). Still, there is scant research on how SSPs are impacted by corporate motives (CM). To fill this research gap, we formed a three-tiered stakeholder theory (ST) based paradigm that accounts for the moderating impact of regulatory pressure (RP) while examining the relationship between different types of corporate motives (instrumental, relational, and moral) and SSP. Partial least squares structural equation modeling (PLS-SEM) was used to examine data collected from 248 respondents in the Pakistani manufacturing industry. The outputs of SEM disclosed that all CMs affect SSP. RP also confoundedly moderated these targeted relationships. Importance performance map analysis (IPMA) showed that regulatory pressure (0.319) and relational motives (67.38) are more important and perform better than all other exogenous variables. This study sheds light on corporate strategies and decision-making in multi ways. All dimensions of CM greatly enhance SSP directly and through RP, as RP firmly moderates these associations, indicating the relevance of ST. Finally, this empirical investigation ends with a framework of testable assertions and many future research endeavors on environmental sustainability.