The mediator’s role of trust: an experiment on the effects of socially sustainable reputation and compliance on supplier selection

Purpose This study explores the urgent issue of how a supplier’s social reputation and compliance programs (CPs) together affect buyer trust and the choice of socially responsible suppliers. This area remains underexplored, despite the continued rise in stakeholder and regulatory demands for social sustainability in supply chains. Design/methodology/approach We conducted a cross-country, 2 x 2 full-factorial, scenario-based experiment with 308 purchasing and supply chain managers from the UK and the US. Hypotheses were tested using a linear moderated mediation model based on signaling theory (ST). Findings The findings indicate that trust predominantly mediates the relationship between a supplier's socially responsible reputation (SRR) and supplier selection. Moreover, a CP moderates the positive effect of social reputation on buyer trust. This illustrates the complex interaction between reputation and compliance as social indicators in supplier selection choices. This emphasizes trust as a key factor that converts intangible social reputation into tangible supplier performance results. Practical implications We advise managers to focus on developing and communicating social responsibility, reputation, and CPs. This approach can foster buyer trust and enhance competitive positioning in markets that are increasingly shaped by social and regulatory expectations. Originality/value This study contributes to the existing literature by empirically elucidating the interaction between reputation and CPs as credible signals that mitigate information asymmetry and inform responsible supplier selection. Our experimental design provides robust evidence on how trust mediates supplier selection decisions, thereby refining applications of ST to socially responsible sourcing.