The impact of buyers’ sustainability KPIs on suppliers’ long-term development: a supplier perspective

The growing adoption of sustainability-related Key Performance Indicators (KPIs) by buying firms has transformed supplier management practices. However, the implications of these KPIs for suppliers’ long-term development remain underexplored. Drawing on critical success factor theory and the business process orientation perspective, this study examines how buyers’ economic, environmental and social sustainability KPIs influence suppliers’ long-term development strategies, encompassing product development, relationship development and business development. The study also investigates the moderating role of buyer powers. A two-stage research design was employed. First, focus groups with senior managers from Chinese manufacturing firms were conducted to refine the measurement constructs. Subsequently, a questionnaire survey was administered to Chinese manufacturers, yielding 186 valid responses for statistical analysis. The findings indicate that buyers’ sustainability-related KPIs significantly influence suppliers’ long-term development strategies, although the effects vary across different sustainability dimensions and development objectives. However, the proliferation of buyer-specific sustainability requirements may also impose resource burdens and create tensions between meeting short-term compliance expectations and pursuing long-term strategic goals. Furthermore, buyer powers significantly moderate these relationships, amplifying the influence of sustainability KPIs on suppliers’ strategic decisions. This study extends sustainable supply chain management research by linking buyer-driven sustainability KPIs with suppliers’ long-term development.