Recently, sustainable supply chain management has emerged as an important topic, receiving increasing interest in the sustainable development and sup-ply-network area. But previous studies have paid little attention to the relation-ship between value ...
Recently, sustainable supply chain management has emerged as an important topic, receiving increasing interest in the sustainable development and sup-ply-network area. But previous studies have paid little attention to the relation-ship between value sharing among supply-network participants and their sustain-ability management activities. In particular, few existing studies examine the facilitators of sustainable supply-network management in any detail, especially as applicable to the context of partnership relations between large manufacturers and their small and medium suppliers. The study aimed to examine the effects of value sharing between large manufacturers and small and medium suppliers on suppliers’ sustainability management and subsequent innovation-perform-ance under weak versus strong CEO’s involvement and customers’ pressure. The populations used in this study were 133 major Korean supply networks. A survey was mailed to the supplier-executives who were responsible for the relationship with manufacturers, and 217 observations were collected. The findings showed that value sharing between large manufacturers and small and medium suppliers was positively related to suppliers’ sustainability management activities. The findings further demonstrated that supplier-CEO involvement moderated the relationship between value-sharing and sustain-ability management activities such that it strengthened the relationship. However, the study showed low moderating effect of customers’ pressure on the relationship between value-sharing and supplier’s sustainability manage-ment activities. The study discusses the reasons for these findings and derives implications for theory, practice, and future time research. The study, the first examination of the independent and interaction effects of value-sharing activities on sustainability management in the context of supply-networks, not only enriches inter-firm relationship research but also provides new insights into sustainability management for companies and government authorities.