MODERATING ROLE OF SUSTAINABLE LEADERSHIP IN BUYER-SUPPLIER RELATIONSHIPS: A SUPPLY CHAIN PERFORMANCE: AN EMPIRICAL STUDY

Background: The field of the supply chain have narrowly focused upon the development of effecting buyer-supplier relationship to support social sustainability. Previously studies have analyzed the relationship between responsible leadership and environmental performance. This paper aims to test the impact of supplier relationship management on social performance under the moderating influence of sustainable leadership.

Methods: The purpose of this study is to examine the moderation role of sustainable leadership between buyer-supplier relationships and social performance improvements. Empirical data is collected from 224 respondents from different manufacturers. Partial least squares structural equation modeling (PLS-SEM) has been used for hypotheses testing.

Results: The findings indicate that those four aspects of sustainable leadership- go beyond self-interest, talk enthusiastically, focuses on coaching and teaching, and see novel ideas on sustainability issues individually enhance the firm social performance.

Conclusions: This study provides a starting point for understanding the sustainable leader's role and its impact on social performance outcomes. The study has some potential implications for the implementation of sustainability-related practices that need to be acknowledged. First, the findings enrich understanding of how sustainable leader (SL) affects the inter-firm relationship. Second, the research also gives a practical explanation that inter-firm relationships are contingent rather than pervasive. Thus, managers are advised to continuously explore best approaches that improve managers’ behavioral skills and adopt best practices to enhance sustainability performance.