A model for assessing the impact of sustainable supplier selection on the performance of service supply chains

Figures & data

Table 1. Elements of sustainable supplier selection framework.

Assessment criteria	Supporting literature	Measurement indicator	Relevancy to service supply chain
Sustainable supplier selection
Environment Management (ENM)	Seuring et al. (2008), Carter and Rogers (2008), Lieb and Lieb (2010), Youn et al. (2013)	Pollution control Resource consumption Environmental certification	Reduced supply chain emissions and consumption wastes Regulatory Conformance
Social Responsibility (SR)	Handfield et al. (2002), Valiente, Ayerbe, and Figueras (2012), Ching and Moreira (2014), Carter and Jennings (2004), Hutchins and Sutherland (2008)	Employment practices Local communities influence Stakeholders influence	Improved work environment Positive social impact Successful collaboration an partnerships
Green Products (GP)	Carter and Easton (2011), Rao and Holt (2005), and Malik, Abudullah, and Hussain (2016)	Recycling policy Green packaging Green transportation	Higher recycling rates Less material wastes Less transportation costs
Technology Standards (TS)	Lu, Wu, and Kuo (2007), Carter and Rogers (2008), Valiente, Ayerbe, and Figueras (2012), Akamp and Müller (2013), Govindan et al. (2015)	R&D capability Technology level Design capability	Innovative products and services High-Tech processing Green technology
Health and Safety Management (HSM)	Shrivastava (1995), Handfield et al. (2002), Carter and Rogers (2008), Weingarten et al. (2016)	Health and safety practices Health and safety certification Health and safety incidents	Improved health and safety practices Safety and health assurance and regulatory conformance Less health and safety incidents
Performance of service supply chain
Performance aspect	Supporting literature	Performance measures	Relevancy to service supply chain
Competitiveness Performance (CMP)	Rao and Holt (2005), Reuter et al. (2010)	Sales and capital investments Operating expenditures New market opportunities	Improved sales and healthier financial status Reduced operating cost Expansion and growth
Economic Performance (ECP)	Orlitzky, Schmidt, and Rynes (2003), Inoue and Lee (2011), Wu and Shen (2013), Cornett, Erhemjamts, and Tehranian (2014)	Efficiency Quality Customer Satisfaction	Effective operations Quality products and services Higher retention rates and loyalty

Figure 1. Conceptual model of sustainable supplier selection.

Table 2. Descriptive Statistics of the Respondents.

	Frequency	Percentage
Gender
Male	161	64.4
Female	94	36.6
Qualification
Bachelor degree	96	37.6
Master degree	132	51.8
Other	27	10.6
Department
Operations	59	23.1
Supply Chain	48	18.9
Procurement	117	45.9
Strategic Management	31	12.1
Nature of organisation
Bank	83	32.5
Hospitals	97	38.0
Airlines	75	29.5
Experience
0–5	47	18.4
6–10	137	53.7
Above 10	66	25.9
Job title
Top	91	35.7
Middle	164	64.3

Figure 2. Flowchart of data analysis and SEM techniques.

Table 3. Results of the Reliability Test.

Variables	No. of Items	Cronbach’s alpha
Environment management	3	0.81
Social responsibility	3	0.95
Green product	3	0.76
Technology standards	3	0.87
Risk management	3	0.79
Economic performance	3	0.82
Competitiveness	3	0.75

Table 4. Assessment of Goodness-of-Fit Statistics for CFA.

Factors and indicators	CFI	Factor loading	R^2
A. Environment management	1.00
ENM1. Management considers Pollution controls system of suppliers		0.94	0.89
ENM 2. Management considers Environmental management system of suppliers		0.90	0.81
ENM3. Management considers Environment-related certificates of suppliers		0.89	0.79
B. Social responsibility	1.00
SR1. Management considers Employment practices of suppliers		0.90	0.83
SR2. Management considers Local communities influence of suppliers		0.92	0.84
SR3. Management considers Other stakeholder influence of suppliers		0.91	0.81
C. Green product	1.00
GP1. Management considers Recycling policy of suppliers		0.85	0.72
GP2. Management considers Green packaging system of suppliers		0.87	0.75
GP3. Management considers Ability to alter process and product of supplier for reducing the impact on natural resources		0.88	0.76
D. Technology standards	1.00
TS1. Management considers Capability of R&D of suppliers		0.89	0.81
TS2. Management considers Technology level of suppliers		0.90	0.82
TS3. Management considers Capability of design of suppliers		0.91	0.78
E. Health and Safety Management	1.00
RM1. Management considers Health and safety practices of suppliers		0.70	0.49
RM2. Management considers Health and safety incidents of suppliers		0.79	0.61
RM3.Management considers Risk management certifications of suppliers		0.63	0.51
F. Economic performance	1.00
ECP1.Sustainable practices significantly improve sales and market share		0.92	0.85
ECP2. Sustainable practices significantly decrease Operating expenditures		0.94	0.87
ECP3. Sustainable practices significantly increase new market opportunities		0.80	0.65
G. Competitiveness	1.00
CMP1. Sustainable practices significantly increase Efficiency		0.88	0.78
CMP2. Sustainable practices significantly increase Quality		0.93	0.90
CMP3. Sustainable practices significantly increase Customer satisfaction		0.95	0.87

Table 5. Scale validity analysis.

Variables	Convergent validity	Discriminant validity
Environment management	0.97	0.42
Social responsibility	0.95	0.58
Green product	1.00	0.51
Technology standards	1.00	0.47
Health and safety management	0.98	0.53
Economic performance	0.95	0.57
Competitiveness	0.98	0.48

Table 6. Summary Statistics of the Model Fitness Indices.

Index	Suggested value	Observed value
Chi-square/degrees of freedom	≤3.00	2.19
GFI	≥0.90	0.92
AGFI	≥0.80	0.85
NFI	≥0.90	0.91
CFI	≥0.90	0.95
RMSEA	≤0.08	0.06

Notes: GFI = goodness-of-fit index; AGFI = adjusted goodness-of-fit index; NFI = normed fit index; CFI = comparative fit index; RMSEA = root mean square error of approximation.

Figure 3. SEM model results.

Notes: **p< 0.01, *p < 0.05.

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