Linking Sustainable Supplier Selection to Firm’s Sustainable Performance: The Moderated Mediating Role of Supplier Development and Leadership for Functional Integration

This study aims to investigate the moderated mediation model in which leadership support for functional integration complements sustainable supplier selection to enhance a firm’s sustainability performance by promoting sustainable supplier development practices. We tested the proposed hypothesis using 289 data collected from multiple sources of manufacturing firms. Our results reveal that sustainable supplier selection indirectly enhances a firm’s sustainability performance via sustainable supplier development practices. In addition, our results highlight that leadership support for functional integration strengthens this indirect relationship. This study contributes to the sustainability management literature by providing insights into how firms promote sustainability performance by combining leadership with sustainable supplier management.