IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i19p14395-d1251386.html
   My bibliography  Save this article

Sustainable Supply Chain Practices: An Empirical Investigation from the Manufacturing Industry

Author

Listed:
  • Shaker Salem Abuzawida

    (Business Administration Department, Institute of Graduate Research and Studies, University of Mediterranean Karpasia, TRNC, 33010, Mersin 10, Turkey)

  • Ahmad Bassam Alzubi

    (Business Administration Department, Institute of Graduate Research and Studies, University of Mediterranean Karpasia, TRNC, 33010, Mersin 10, Turkey)

  • Kolawole Iyiola

    (Business Administration Department, Institute of Graduate Research and Studies, University of Mediterranean Karpasia, TRNC, 33010, Mersin 10, Turkey)

Abstract

Recently, firms have adopted sustainable supply chain practices (SSCPs) to reduce the social and environmental impacts in their supply chain network. The primary objective is to reduce adversarial negative impacts on the environment, particularly those stemming from consumption of energy and water. Embracing sustainable business practices is increasingly essential for organizations and in addressing pressing global challenges. Based on 439 valid responses obtained through cross-sectional research from Turkish manufacturing firms, and combining practice-based view and organizational information processing theory, this study examines the effect of SSCP on economic performance (EP). The mediating roles of social performance (SP) and environmental performance (ENP) were examined. The moderating role of Industry 4.0 was further explored with regard to the aforementioned links. The results revealed that SSCP has a positive effect on EP. SSCP has positive effects on SP and ENP. SP and ENP have positive effects on EP. The relationship between SSCP and EP is partially mediated by both SP and ENP. Further, it was discovered that in firms with a high level of Industry 4.0 technologies usage, the impact of SSCP on ENP was stronger, and in firms with high level of Industry 4.0, the impact of SSCP on EP was also stronger. The findings offer valuable insights for research, as well as for managers, supply chain practitioners, and policymakers, in developing an integrated strategic and effective approach that promotes sustainable operations by using improved understanding of Industry 4.0, which also yields better economic outcomes.

Suggested Citation

  • Shaker Salem Abuzawida & Ahmad Bassam Alzubi & Kolawole Iyiola, 2023. "Sustainable Supply Chain Practices: An Empirical Investigation from the Manufacturing Industry," Sustainability, MDPI, vol. 15(19), pages 1-24, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:19:p:14395-:d:1251386
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/19/14395/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/19/14395/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. YU, Jie & Subramanian, Nachiappan & Ning, Kun & Edwards, David, 2015. "Product delivery service provider selection and customer satisfaction in the era of internet of things: A Chinese e-retailers’ perspective," International Journal of Production Economics, Elsevier, vol. 159(C), pages 104-116.
    2. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    3. Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Papadopoulos, Thanos & Luo, Zongwei & Wamba, Samuel Fosso & Roubaud, David, 2019. "Can big data and predictive analytics improve social and environmental sustainability?," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 534-545.
    4. Michael L. Barnett & Robert M. Salomon, 2012. "Does it pay to be really good? addressing the shape of the relationship between social and financial performance," Strategic Management Journal, Wiley Blackwell, vol. 33(11), pages 1304-1320, November.
    5. Al-Tuwaijri, Sulaiman A. & Christensen, Theodore E. & Hughes, K. II, 2004. "The relations among environmental disclosure, environmental performance, and economic performance: a simultaneous equations approach," Accounting, Organizations and Society, Elsevier, vol. 29(5-6), pages 447-471.
    6. Lai, Kee-hung & Wong, Christina W.Y. & Lam, Jasmine Siu Lee, 2015. "Sharing environmental management information with supply chain partners and the performance contingencies on environmental munificence," International Journal of Production Economics, Elsevier, vol. 164(C), pages 445-453.
    7. Sarkis, Joseph & Cordeiro, James J., 2001. "An empirical evaluation of environmental efficiencies and firm performance: Pollution prevention versus end-of-pipe practice," European Journal of Operational Research, Elsevier, vol. 135(1), pages 102-113, November.
    8. Benzidia, Smail & Makaoui, Naouel & Bentahar, Omar, 2021. "The impact of big data analytics and artificial intelligence on green supply chain process integration and hospital environmental performance," Technological Forecasting and Social Change, Elsevier, vol. 165(C).
    9. Clarissa Bohlmann & Leonie Krumbholz & Hannes Zacher, 2018. "The triple bottom line and organizational attractiveness ratings: The role of pro‐environmental attitude," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 912-919, September.
    10. Joshi, Aditi D. & Gupta, Surendra M., 2019. "Evaluation of design alternatives of End-Of-Life products using internet of things," International Journal of Production Economics, Elsevier, vol. 208(C), pages 281-293.
    11. Smaïl Benzidia & Naouel Makaoui & Omar Bentahar, 2021. "The impact of big data analytics and artificial intelligence on green supply chain process integration and hospital environmental performance," Post-Print hal-03028127, HAL.
    12. Yongtao Song & Taiwen Feng & Wenbo Jiang, 2017. "The Influence of Green External Integration on Firm Performance: Does Firm Size Matter?," Sustainability, MDPI, vol. 9(8), pages 1-18, August.
    13. Kolawole Iyiola & Husam Rjoub, 2020. "Using Conflict Management in Improving Owners and Contractors Relationship Quality in the Construction Industry: The Mediation Role of Trust," SAGE Open, , vol. 10(1), pages 21582440198, January.
    14. Christopher L. Shook & David J. Ketchen & G. Tomas M. Hult & K. Michele Kacmar, 2004. "An assessment of the use of structural equation modeling in strategic management research," Strategic Management Journal, Wiley Blackwell, vol. 25(4), pages 397-404, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tariq Aboalhool & Ahmad Alzubi & Kolawole Iyiola, 2024. "Humane Entrepreneurship in the Circular Economy: The Role of Green Market Orientation and Green Technology Turbulence for Sustainable Corporate Performance," Sustainability, MDPI, vol. 16(6), pages 1-23, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    2. Bendig, David & Schulz, Colin & Theis, Lukas & Raff, Stefan, 2023. "Digital orientation and environmental performance in times of technological change," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    3. Ahmadova, Gozal & Delgado-Márquez, Blanca L. & Pedauga, Luis E. & Leyva-de la Hiz, Dante I., 2022. "Too good to be true: The inverted U-shaped relationship between home-country digitalization and environmental performance," Ecological Economics, Elsevier, vol. 196(C).
    4. Christoph Trumpp & Thomas Guenther, 2017. "Too Little or too much? Exploring U‐shaped Relationships between Corporate Environmental Performance and Corporate Financial Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 26(1), pages 49-68, January.
    5. Amit Kumar Gupta & Narain Gupta, 2021. "Environment Practices Mediating the Environmental Compliance and firm Performance: An Institutional Theory Perspective from Emerging Economies," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(3), pages 157-178, September.
    6. Bag, Surajit & Rahman, Muhammad Sabbir & Srivastava, Gautam & Shore, Adam & Ram, Pratibha, 2023. "Examining the role of virtue ethics and big data in enhancing viable, sustainable, and digital supply chain performance," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    7. Amal Aouadi & Sylvain Marsat, 2018. "Do ESG Controversies Matter for Firm Value? Evidence from International Data," Journal of Business Ethics, Springer, vol. 151(4), pages 1027-1047, September.
    8. Dyna Seng & Chaiporn Vithessonthi, 2017. "Environmental Efforts and Firm Performance," PIER Discussion Papers 64, Puey Ungphakorn Institute for Economic Research.
    9. Oesterreich, Thuy Duong & Anton, Eduard & Teuteberg, Frank & Dwivedi, Yogesh K, 2022. "The role of the social and technical factors in creating business value from big data analytics: A meta-analysis," Journal of Business Research, Elsevier, vol. 153(C), pages 128-149.
    10. Tzouvanas, Panagiotis & Kizys, Renatas & Chatziantoniou, Ioannis & Sagitova, Roza, 2020. "Environmental disclosure and idiosyncratic risk in the European manufacturing sector," Energy Economics, Elsevier, vol. 87(C).
    11. Changchun Zhu & Jianguo Du & Fakhar Shahzad & Muhammad Umair Wattoo, 2022. "Environment Sustainability Is a Corporate Social Responsibility: Measuring the Nexus between Sustainable Supply Chain Management, Big Data Analytics Capabilities, and Organizational Performance," Sustainability, MDPI, vol. 14(6), pages 1-20, March.
    12. Linda Kusumaning Wedari & Amir Moradi‐Motlagh & Christine Jubb, 2023. "The moderating effect of innovation on the relationship between environmental and financial performance: Evidence from high emitters in Australia," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 654-672, January.
    13. Chand Bhatt, Priyanka & Kumar, Vimal & Lu, Tzu-Chuen & Daim, Tugrul, 2021. "Technology convergence assessment: Case of blockchain within the IR 4.0 platform," Technology in Society, Elsevier, vol. 67(C).
    14. G Capece & F Di Pillo & M Gastaldi & N Levialdi & M Miliacca, 2017. "Examining the effect of managing GHG emissions on business performance," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1041-1060, December.
    15. Chiarello, Filippo & Fantoni, Gualtiero & Hogarth, Terence & Giordano, Vito & Baltina, Liga & Spada, Irene, 2021. "Towards ESCO 4.0 – Is the European classification of skills in line with Industry 4.0? A text mining approach," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    16. Tzouvanas, Panagiotis & Kizys, Renatas & Chatziantoniou, Ioannis & Sagitova, Roza, 2020. "Environmental and financial performance in the European manufacturing sector: An analysis of extreme tail dependency," The British Accounting Review, Elsevier, vol. 52(6).
    17. Rocio Rodriguez & Göran Svensson & David Eriksson, 2021. "Priorities Determining Future Directions of Sustainable Development in Business Models of the Healthcare Industry—Findings and Framework," Sustainability, MDPI, vol. 13(11), pages 1-11, June.
    18. Ghisetti, Claudia & Rennings, Klaus, 2013. "Environmental innovations and profitability: How does it pay to be green? An empirical analysis on the German innovation survey," ZEW Discussion Papers 13-073, ZEW - Leibniz Centre for European Economic Research.
    19. Francesco Gangi & Jérôme Méric & Rémi Jardat & Lucia Michela Daniele, 2019. "Business for society," Post-Print hal-02382307, HAL.
    20. Jianqi Qiao & Suicheng Li & Su Xiong & Na Li, 2023. "How Does the Digital Capability Advantage Affect Green Supply Chain Innovation? An Inter-Organizational Learning Perspective," Sustainability, MDPI, vol. 15(15), pages 1-22, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:19:p:14395-:d:1251386. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.