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This paper aims to compare the effects of social procurement policies on companies in the Victorian and Scottish construction industries. Scotland and Victoria have led the way in the recent revival of social procurement.

Semi-structured interviews were undertaken with 27 organisations and 28 participants who have experience of implementing social procurement policies into the construction industries of both jurisdictions.

Findings contribute important new comparative insights from multiple stakeholder perspectives, into the effects of social procurement policies on firms operating in the construction industries of the two jurisdictions. Findings indicate an increasing awareness of social procurement in the construction industries of both Scotland and Victoria. However, differences in policy design determine the nature and extent of this awareness, the level of empowerment felt by actors and the social impact these new policies have in practice. It is concluded that to maximise the social impact of social procurement policies into major industries like construction, policymakers need to carefully consider supply-side limitations, the political context into which social procurement is being implemented and the way they prescribe what types of social value they want to create and for whom.

Successful social procurement policy implementation into the construction industry can have significant positive social implications for the communities in which the industry builds due to the large numbers of people it employs and its large multiplier effect into the wider economy.

By investigating the effects of social procurement policies on a cross-section of organisations from across the construction industry supply chain, this international study, contributes new comparative insights to the emerging bodies of research on the impact of public procurement on companies in major industries like construction.

The authors mobilise stewardship theory, which delves into trust and collaboration dynamics, advocating for long-term gains through actions beneficial to the broader community. Used as a fundamental framework to conceptualise the model, stewardship theory enhances the understanding of the effect of purchasing social responsibility (PSR) practices to foster innovativeness and performance through the supply chain (SC). This study aims to examine the relationship between PSR, SC innovativeness (SC-INNO) and SC operational performance (SCOP). In addition, the moderating effect of sustainability labels on these relationships will be studied.

Based on survey data from 177 organisations analysed through partial least square structural equation modelling, the results suggest that PSR has a positive and significant effect on SC-INNO and SCOP. In addition, SC-INNO plays a partial mediation role since the direct effect between PSR and SCOP is validated. Furthermore, the moderating effects of holding a sustainability label and industry type about PSR and SCOP are supported.

The results indicate a significant positive influence of PSR on both SC-INNO and operational performance. SC-INNO is found to partially mediate the PSR–SCOP relationship. Moreover, sustainability labels and industry type significantly moderate the effects of PSR on SCOP.

The findings extend stewardship theory into the sustainable purchasing and supply management field by providing empirical support for PSR as a reflection of stewardship behaviours by fostering innovation and performance throughout the SC.