Take a ride on the green side: from sustainable customer orientation to good supply chains

Abstract

This study examines (i) how eco-friendly product development helps translate sustainable customer orientation into social supply chain performance in SMEs and (ii) how the cooperation with non-traditional stakeholders (environmental nongovernmental organizations (ENGOs) and local public administrations) moderates this relationship. Drawing on the natural and stakeholder resource-based views, and the relational view theory, this study tests the proposed moderated mediation model using data from 146 thousand small and medium-sized enterprises (SMEs). Results indicate that sustainable customer orientation is negatively associated with SME social supply chain performance. However, the relationship becomes positive when we take into account the mediating role of eco-friendly product development. Furthermore, the positive association between sustainable customer orientation and social supply chain performance through eco-friendly product development is stronger for firms that collaborate strongly with ENGOs and local public administrations. Several theoretical and managerial implications are discussed.