Making tough choices: A policy capturing approach to evaluating the tradeoffs in sustainable supplier development initiatives

Zachary S. Rogers, Craig R. Carter, Virginia Kwan

Research output: Contribution to journalArticle

3 Scopus citations

Abstract

This research explores the tradeoffs that decision makers are willing to make when implementing development initiatives to improve supplier sustainability performance. We employ a policy capturing methodology in which respondents are forced to choose between multiple potential sustainable supplier development initiatives. Data were collected from traditional and executive MBA students. The results suggest that when confronted with tradeoffs, decision makers value improvements in supplier cost savings and injury reduction equally, which was somewhat unexpected. Further, both improvements in supplier cost savings and injury reduction were valued over supplier emissions performance. Because we measure individual tradeoff preferences, multi-level regression analysis was used to better understand the impact of respondent value structure regarding sustainably developing suppliers. Our findings suggest a hierarchy of tradeoff preferences for decision makers as they pertain to sustainable supplier development. As the pressure to ensure supply chain sustainability increases, more firms will engage in sustainable supplier development. The outcomes of the choices they make when choosing between initiatives, and how managers make these choices, will be of increasing interest in both industry and academia. This research answers previous calls for further examination of decision maker tradeoff preferences in sustainable supply chain development.

Original languageEnglish (US)
Article number100574
JournalJournal of Purchasing and Supply Management
Volume25
Issue number5
DOIs
StatePublished - Dec 1 2019

Keywords

  • Policy capturing
  • Supplier management
  • Sustainable supplier development
  • Tradeoff preferences

ASJC Scopus subject areas

  • Strategy and Management
  • Marketing

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