A Framework for Integrating Sustainable Practices in Strategic Sourcing Decisions

Thesis Abstract

In the contemporary global supply chain environment, organizations face increasing pressure to incorporate sustainability into strategic sourcing decisions amidst mounting environmental, social, and governance (ESG) concerns. While traditional sourcing frameworks emphasize cost efficiency and quality, there is a notable gap concerning the systematic integration of sustainable practices to ensure long-term value creation and risk mitigation. This study seeks to develop a comprehensive framework that guides organizations in embedding sustainability into their strategic sourcing processes, thereby aligning procurement practices with broader corporate social responsibility objectives. The primary aim is to identify the key dimensions and antecedents of sustainable sourcing practices and to model their integration into decision-making frameworks. The specific objectives of this research are first, to critically examine existing theories and models related to strategic sourcing and sustainability; second, to empirically assess the current state of sustainable sourcing adoption within manufacturing organizations; third, to identify barriers and drivers influencing the integration of sustainability into sourcing decisions; and fourth, to develop and validate a theoretical framework that organizations can utilize for sustainable sourcing decision-making. The study adopts a mixed-methods research design combining qualitative interviews and quantitative surveys. The qualitative phase involves semi-structured interviews with 20 senior procurement managers from various manufacturing companies to explore perceptions, challenges, and best practices in sustainable sourcing. The subsequent quantitative phase employs a structured survey administered to a stratified random sample of 300 procurement professionals across manufacturing firms within the region, with a response rate of approximately 82%. Data collection instruments include interview guides and a standardized questionnaire developed based on literature review insights, pre-tested for validity and reliability, with Cronbach’s alpha coefficients exceeding 0.8 indicating internal consistency. Quantitative data analysis is conducted using Structural Equation Modeling (SEM) through AMOS software to test hypothesized relationships among constructs such as sustainability awareness, organizational commitment, supplier collaboration, and sourcing performance. The qualitative data are analyzed thematically to identify patterns, which inform the development of the conceptual framework. The theoretical foundation rests on stakeholder theory and the Natural Resource-Based View, providing insights into organizational motivations and resource capabilities influencing sustainable sourcing practices. Expected findings highlight the critical influence of organizational culture, stakeholder engagement, and supplier relationships on the adoption of sustainable sourcing practices. The study anticipates establishing that a strong linkage exists between sustainability integration and improved procurement performance, including cost savings, risk reduction, and enhanced corporate reputation. It is also expected to uncover systemic barriers, such as limited top management support and insufficient supplier capabilities, which impede adoption, alongside drivers like regulatory pressures and stakeholder expectations. The resulting framework will delineate the key elements and pathways for integrating sustainability into strategic sourcing, accompanied by practical implementation guidelines tailored to manufacturing contexts. This research offers significant contribution to both academia and practice by bridging empirical gaps regarding sustainability integration within sourcing strategies. It extends existing models by explicitly incorporating contextual factors influencing sustainable decision-making and provides a validated framework that aligns with contemporary sustainability agendas. Policy implications include enabling procurement practitioners to better navigate sustainability challenges and opportunities, thereby advancing sustainable supply chain management. In conclusion, the study underscores the necessity for a strategic, systematic approach to sustainability in sourcing and recommends the adoption of the developed framework by procurement departments. Further research is suggested to test the framework across different industry sectors and geographic regions to enhance its generalizability and to explore the long-term impacts of sustainable sourcing practices on firm performance.