Impact of supply chain analytics and customer pressure for ethical conduct on socially responsible practices and performance: An exploratory study

In the highly competitive global business environment, firms are being challenged by stakeholder groups—such as customers, NGOs, and regulators— to embrace sustainability and ensure that their supply chains are operating in a socially responsible manner. With the advancements in big data analytics, firms are increasingly investing in developing analytics capabilities to deliver operational improvements. However, the spillover effects of such technological solutions towards addressing stakeholder concerns and delivering on social performance are unclear. Drawing on stakeholder theory and RBV, this study investigates the role of supply chain analytics capability (SCAC) and customer pressure for ethical conduct (CPEC) towards the adoption of socially responsible practices by suppliers. The proposed relationships linking these constructs are empirically tested using data from a sample of 254 U.S. manufacturing firms. Findings indicate that supply chain analytics capability synergistically interacts with the pressure from customers for ethical conduct to improve the social and financial performance of suppliers. Findings also provide important implications for supply chain executives.