Sustainable supply chain management practices and performance
| DOI | https://doi.org/10.1108/IMDS-12-2016-0540 |
| Pages | 2-21 |
| Date | 05 February 2018 |
| Published date | 05 February 2018 |
| Author | Jing Wang,Jun Dai |
| Subject Matter | Information & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems |
Sustainable supply chain
management practices and
performance
Jing Wang
School of Business, Beijing Technology and Business University, Beijing, China, and
Jun Dai
College of Applied Science, Beijing University of Technology, Beijing, China
Abstract
Purpose –The purpose of this paper is to contribute significantly to the empirical investigations related to
the impact of sustainable supply chain management (SSCM) practices on performance in Chinese firms.
The paper also aims to theorize and empirically assess a comprehensive SSCM practices and performance
model. The model incorporates two aspects of SSCM practices: internal and external management, and
analyses the impact on corporate sustainability performance from all dimensions.
Design/methodology/approach –This paper develops a conceptual model to investigate the impact of
SSCM practices on the firm performance. Based on the data of 172 Chinese firms, this paper analyzes the
impact of SSCM practices on firm economic performance, environmental performance, and social performance
for each dimension by using PLS structural equation methods.
Findings –The results show that firm’s internal SSCM practices have a positive impact on firm’s
environmental performance and social performance. Moreover, environmental performance and social
performance are positively related to economic performance.
Originality/value –A comprehensive SSCM practices performance model is proposed and empirically
assessed for Chinese firms. The results of this investigation support the hypotheses that SSCM practices are
environmentally and socially necessary and are favorable for business. A series of approach and implications
of SSCM practices is recommended.
Keywords China, Emerging economies, Firm performance, Sustainable supply chain management,
Sustainable operations
Paper type Research paper
1. Introduction
The most widely known definition of sustainable development is “development necessary to
meet the needs of contemporary people, they cannot destroy the ability of future generations
to meet their own needs”by the World Environment and Development Organization.
Sustainability is becoming a key topic in companies’strategic agendas. Corporates often
operate under the triple bottom line theory given by Elkington (1998), who proposed the
concept to balance economic, environmental, and social issues from a micro perspective.
In recent years, firms have had a growing concern with the social parties for sustainable
development and have paid more attention to social responsibility and environmental
practices, while timely releasing corporate social responsibility (CSR) reports and
environmental reports (Wan Nurul Karimah et al., 2016). Firms implemented sustainable
supply chain management (SSCM) through environmental programs (such as design recycle
product, environmental certification) and social practices (such as programs aimed to
improve employees’working conditions or support the community activities).
Industrial Management & Data
Systems
Vol. 118 No. 1, 2018
pp. 2-21
© Emerald PublishingLimited
0263-5577
DOI 10.1108/IMDS-12-2016-0540
Received 17 December 2016
Revised 22 February 2017
2 May 2017
Accepted 6 May 2017
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0263-5577.htm
This research was supported by the National Social Science Fund (16CGL033), Fundamental Research
Funds of Beijing University of Technology, Open Project Program of The Capital Circulation Industry
Research Center (JD-KFKT-2016-06) and Support Project of High-level Teachers in Beijing Municipal
Universities in the Period of 13th Five-year Plan (CIT&TCD201704033).
2
IMDS
118,1
With the concept of sustainable development and improved awareness of environmental
protection and social responsibility, SSCM has rooted in individuals and organizations.
Managers need to consider the public environmental and social responsibility attitudes and
values. SSCM can be seen as part of the corporate innovation processes in dynamic business
development which is imperative forthe survival and development of corporate (Gosling et al.,
2017). Typically, the supply chain firms take responsibility for the negative effects of all
members among the supply chain (Rao and Holt, 2005; Kovacs, 2008). Core enterprises need to
be more responsible for environmental performance and social performance for the entire
supply chain. Therefore, firms implement the SSCM process not only for the sustainable
management of their own, but also for the management of all the supply chain members.
Supply chain core enterprises should improve environmental and social performance by
internal as well as externalSSCM management to avoid and minimize the negative impact of
the supply chain members in environmental and social responsibility.
This study examines the deployment of SSCM for internal and external practices for
Chinese firms, analyzes their impact on economic, environmental and social performance,
and the impact of environmental and social performance on economic performance.
This study makes a significant contribution to the on-going research that relates the
sustainable practices on performance outcomes in a new framework. Furthermore, data
are collected from China, a developing country with an increasing global business
presence, but of which very little SSCM research has been carried out. A series of
approach and implications of SSCM practices is recommended for Chinese firms and other
emerging economy.
2. Literature review
2.1 Adoption of SSCM
The term sustainability integrates social, environmental, and economic responsibilities.
Kleindorfer et al. used the term to illustrate environmental management, closed-loop
supply chains, and thought that it integrated profit, people, and the planet into corporate
culture, strategy, and operations from a broad perspective under triple bottom line. SSCM
is defined as the set of skills and leverages that allow a company to structure its business
processes to achieve sustainable performance (Eduardo Ortas and Moneva, 2014).
SSCM refers to a firm’s plans and activities that integrate environmental and social issues
into supply chain management in order to improve the company’s environmental and social
performance and that of its suppliers and customers without compromising its economic
performance (Pagell and Gobeli, 2009). This definition implies that firms adopt programs
to improve the environmental and social impacts on their internal processes (e.g. the
production processes within their plants) and initiatives to improve the impact on their
suppliers’and customers’processes (Elcio and Wong, 2014).
Despite the history of sustainability, its application to the supply chain has only
emerged since the end of the 1980s. Most SSCM research addressed issues such as the
environment protection or social responsibility separately without considering the potential
interrelationships amongst these and other aspects of social responsibility (Carter and
Jennings, 2002).
The sustainability movement began with a focus on environmental issues. And there
were many research literature concerning the green supply chain management (GSCM).
Gilbert defined GSCM as the integration of environmental thinking into supply chain
management (SCM). Srivastava defined GSCM as adding “green”component to SCM.
Zhu and Sarkis defined that GSCM covers all phases of a product’s life cycle, that is, from
design, production, and distribution to the use of products by the end users and its disposal
at the end. Wantao argued that SSCM integrates GSCM and CSR into SCM to maximize the
performance from all dimensions.
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Sustainable
supply chain
management
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