The Role of Green and Traditional Supplier Attributes on Business Performance

Supplier evaluation and selection are fundamental tasks since they are part of the production process and even initiate the supply chain (SC). Despite their importance in the production system, supplier evaluation and selection may be challenging activities to be performed if companies look at the wide range of available evaluation techniques and methodologies, which now seek to integrate both traditional and green attributes. In addition, companies may refuse to take into account green attributes during the supplier selection process, because they do not know their impact on commercial benefits. To overcome this limitation, this study examines the Mexican manufacturing sector and measures the impact of supplier traditional attributes and green attributes on business performance, namely production process benefits and commercial benefits. As data collection instrument, we administered a survey to 253 supplier evaluators and selectors; then, using the gathered data, we constructed a structural equation model. The model includes four variables to determine the impact of traditional and green attributes on business performance: green attributes, traditional attributes, production process benefits, and commercial benefits. The results indicate that all the latent variables have positive direct effects on one another. For instance, process benefits show the largest effects on commercial benefits, but the most significant effect is caused by traditional attributes on commercial benefits through green attributes and production process benefits.