The role of trainings in improving supplier sustainability performance

Abstract

This article analyses the impact of training measures on supplier sustainability performance. It raises the question of the role that training measures and knowledge sharing activities by focal firms play in improving sustainability performance in a global supplier network. The analysis is based on a difference-in-difference approach with multiple time periods following Callaway & Sant’Anna (2021), using a longitudinal data set of over 5000 first-tier suppliers from the automotive industry. We find that sustainability trainings improve supplier sustainability performance in general. Specifically, these results seem to be driven by longer training sessions that require active supplier engagement, outlining a clear learning objective and relating to local sustainability challenges.