Leveraging Supplier Integration for Sustainable Supply Chain Practices: A Governance Mechanism Perspective

ABSTRACT Extant research has given insufficient attention to the influence of supplier integration on sustainable supply chain practices (SSCPs), while also neglecting the contingent role of governance mechanisms. Using boundary theory and resource–capability–performance (outcome) theoretical framework, this study applies hierarchical linear regression and bootstrapping to analyze survey data collected from 235 Chinese manufacturing enterprises, testing a theoretical model and series of hypotheses. The findings reveal that supplier product integration directly promotes SSCP, while supplier process integration indirectly contributes to SSCP through supplier product integration. Moreover, contractual and relational governance mechanisms strengthen the impact of supplier product integration on SSCP but reduce the effect of supplier process integration. The study highlights the relevance of boundary theory in advancing SSCP and emphasizes the need for firms to integrate suppliers under varying governance mechanisms to enhance sustainability outcomes.