Hidden Patterns of Corporate Reputation in Sustainable Supply Chains: A Switching Perspective

The assessment of sustainability within supply chains has become essential for performance measurement and risk mitigation. While prior research emphasizes transparency in social and environmental impacts, a more comprehensive approach is needed to balance economic, social, and environmental objectives. This study examines corporate reputation within supply chains as an outcome of sustainability performance, assessed through Triple Bottom Line (TBL) indicators. Using a hidden Markov switching decision tree model, we identify latent states that serve as proxies for corporate reputation, modeled through state-dependent tree structures. Our findings reveal two distinct reputation states: one prioritizing environmental and financial factors, and another emphasizing technological innovation and sustainability.