Explanatory factors for variation in supplier sustainability performance in the automotive sector – A quantitative analysis

Abstract

This article analyses differences in sustainability performances across supplier groups in the automotive industry using a multiple regression approach. The supplier sustainability performance is proxied by the self-assessment questionnaire (SAQ), a document-based assessment tool widely used in the automotive industry. The supplier groups are divided according to their headcount, business category and the region suppliers are located in. The analysis shows that the sustainability performance increases significantly with a supplier’s headcount. Furthermore, it shows that manufacturing suppliers perform significantly better compared to service providers. While there exist regional performance differences, the development stage of a country is found to be only a small significant factor influencing suppliers’ sustainability performances. Our results suggest OEM requirements in their assessments to be a major driver for supplier sustainability performance and that further analysis of regional factors is necessary.

Keywords

• Supplier sustainability performance
• Sustainable supply chain management
• Self-assessment tool
• Sustainability requirements
• Automotive