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Buyer-Driven Knowledge Transfer Activities to Enhance Organizational Sustainability of Suppliers

Author

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  • Usama Awan

    (Industrial Engineering and Management, Lappeenranta-Lathi University of Technology Lappeenranta, Yliopistonkatu 34, 53850 Lappeenranta, Finland
    Department of Management Sciences, COMSATS University, Park Rd, Islamabad, Vehari Campus, Islamabad 61100, Pakistan)

  • Amira Khattak

    (College of Business Administration, Prince Sultan University, Rafha Street, Riyadh 11586, Saudi Arabia)

  • Sajeela Rabbani

    (Riphah School of Leadership, Riphah International University, I-14, Islamabad Capital Territory 46000, Pakistan)

  • Amandeep Dhir

    (LUT School of Business and Management, The Lappeenranta-Lahti University of Technology LUT, Yliopistonkatu 34, 53850 Lappeenranta, Finland
    Turku School of Economics, University of Turku, 20500 Turku, Finland
    Optentia Research Focus Area, North-West University, Vanderbijlpark 1900, South Africa)

Abstract

Despite the significant contribution of buyer-driven knowledge transfer activities (BDKTAs) to innovation and operational performance, studies that analyze social sustainability in manufacturing (suppliers) firms are still scarce. This paper examines the mediation relationship of knowledge acquisition and investment in environmental management between BDKTAs and social performance improvements (SPIs). The paper contributes to the understanding of buyer knowledge transfer activities, with a focus on the knowledge acquisition capabilities and investments in environmental management, and the effect on SPIs. The hypotheses were examined with partial least squares structural equation modeling (PLS-SEM) with data collected from 239 firms. Buyer knowledge transfer activities are likely to increase the willingness of suppliers to make specific environmental investments into operations in waste reduction procedures, the recycling of materials, and pollution prevention training of employees. We proposed that buyer knowledge transfer activities are necessary to survive and grow and thus there is a need to acquire knowledge resources to achieve organizational sustainability. Buyer knowledge transfer activities are necessary to make investment decisions in environmental management programs. Firms that focus on buyer knowledge transfer activities and internal investments into environmental management can attain sustainability objectives.

Suggested Citation

  • Usama Awan & Amira Khattak & Sajeela Rabbani & Amandeep Dhir, 2020. "Buyer-Driven Knowledge Transfer Activities to Enhance Organizational Sustainability of Suppliers," Sustainability, MDPI, vol. 12(7), pages 1-14, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2993-:d:343054
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    References listed on IDEAS

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