Author(s): Kittisak Jermsittiparsert
Much less attention has been paid to the sustainability social pillar in developing countries, particularly in the literature on sustainable supply chain management. This research aims to provide empirical evidence of how supplier development practices (SDP) affect supplier’s social performance (SP). Moreover, the influence of supplier’s SP on the multinational companies (MNCs) SP was examined, where corporate reputation (CR) was assumed to be a possible justification for the association between multinational companies SP and financial performance (FP). Survey data were collected from 145 MNCs in Thailand, and for the analysis, partial least squares structural equation modelling (PLS-SEM) was used. The study findings reveal that amongst the four suggested practices, supplier collaboration (SC) and supplier development (SD) significantly affected SP of suppliers and thus on SP of the MNCs. In the relation between MNCs social and financial performance, corporate reputation (CR) plays the role of a mediator.