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Cultural Integration for Sustainable Supply Chain Management in Emerging Markets: Framework Development and Empirical Validation Using Public Data

Author

Listed:
  • Tsai Hsin Jiang

    (Department of Industrial Engineering and Management, National Yang Ming Chiao Tung University, Hsinchu 300, Taiwan)

  • Yung Chia Chang

    (Department of Industrial Engineering and Management, National Yang Ming Chiao Tung University, Hsinchu 300, Taiwan)

Abstract

This study develops and empirically validates a framework integrating cultural factors into sustainable supply chain management (SSCM) for emerging economies. We introduce the Cultural Affinity Index (CAI), a multi-dimensional construct quantifying cultural compatibility between supply chain partners based on language compatibility, regional trust, trade networks, and historical trade patterns. Using publicly available data from UN COMTRADE, the World Bank, and Hofstede Insights, we analyze 850 supplier–manufacturer dyads across five Southeast Asian countries (2019–2023). Through Monte Carlo simulation with empirically calibrated parameters, we demonstrate that high cultural affinity (CAI > 0.7) shows positive associations with economic performance (+18.0%), environmental compliance (+12%), and social sustainability (+32%) compared to baseline scenarios. We test both linear and interaction models, finding that language compatibility and regional trust exhibit synergistic effects ( β = 0.15, p < 0.01). Multi-objective optimization reveals Pareto-optimal solutions achieving simultaneous improvements across all triple bottom line dimensions. Sensitivity analysis confirms robustness across varying cultural weights (±20%) and institutional contexts. The framework’s effectiveness varies by institutional quality, with stronger associations in weaker institutional environments (correlation = −0.92). While focused on manufacturing, we discuss adaptations for service sectors. This research provides both theoretical contributions to the SSCM literature and practical tools for organizations managing culturally diverse supply chains in emerging markets.

Suggested Citation

  • Tsai Hsin Jiang & Yung Chia Chang, 2025. "Cultural Integration for Sustainable Supply Chain Management in Emerging Markets: Framework Development and Empirical Validation Using Public Data," Sustainability, MDPI, vol. 17(18), pages 1-26, September.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:18:p:8363-:d:1752052
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    References listed on IDEAS

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    1. Silvestre, Bruno S., 2015. "Sustainable supply chain management in emerging economies: Environmental turbulence, institutional voids and sustainability trajectories," International Journal of Production Economics, Elsevier, vol. 167(C), pages 156-169.
    2. Yeung, Jeff Hoi Yan & Selen, Willem & Zhang, Min & Huo, Baofeng, 2009. "The effects of trust and coercive power on supplier integration," International Journal of Production Economics, Elsevier, vol. 120(1), pages 66-78, July.
    3. Sjoerd Beugelsdijk & Björn Ambos & Phillip C Nell, 2018. "Conceptualizing and measuring distance in international business research: Recurring questions and best practice guidelines," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(9), pages 1113-1137, December.
    4. Sadia Iddik, 2024. "The role of cultural factors in green supply chain management practices: a conceptual framework and an empirical investigation," RAUSP Management Journal, Emerald Group Publishing Limited, vol. 59(2), pages 96-122, April.
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