An Empirical Examination of Supply Chain Sustainability in Turkish Automotive Sector: Using the PLS-SEM Approach

Sefer Burak Kacar,Hakan Kitapçi,Bülent Sezen

doi:10.5539/ibr.v11n1p44

Abstract

In today’s dynamic environment, it has become a necessity for firms to better control their supply chain operations against supply chain vulnerabilities. Little consideration has been paid to the relationship between business environment, supply chain risks, supply chain vulnerability, supply chain performance and sustainability. Hence, we aim with this study to unveil the influence of supply chain variables on supply chain performance and sustainability. The proposed model consists of 10 hypotheses to disclose the relationship between 6 main constructs; Supply Chain Uncertainty, Supply Chain Risks, Supply Chain Performance, Collaborative Planning Systems, Vulnerability, and Supply Chain Sustainability. The hypotheses are validated by empirical study with 213 domestic and foreign automotive companies operating in Turkey. The results of this study indicate that supply chain sustainability is primarily affected by supply chain performance and collaborative planning systems. The findings of this study could provide the necessary point of view for the managers working in supply chain management area to comprehend the dynamics behind sustainable supply chains.

Highlights

Chain Management is a complicated field, which is a primary factor of success or failure of many organizations
Chain elements are constituted by many variables such as supply chain uncertainty, collaborative planning systems, supply chain vulnerability, supply chain performance, and supply chain sustainability
This paper reports on the supply chain performance and sustainability study in the Turkish automotive industry, drawing on a sample of 213 manufacturing firms

Summary

Introduction

Chain Management is a complicated field, which is a primary factor of success or failure of many organizations. The term supply chain management (SCM) came to the forefront in the last two decades (Cooper et al, 1997). In order to stay competitive, companies should mitigate Supply Chain Risks and eliminate Supply Chain Vulnerabilities they are subject to. Literature has focused on the need to understand supply chain practices (SCPs), which is mandatory for staying in the competitive global market and grow consistently and profitably (Power et al, 2001). One of the widely adopted SCM practice ‘Collaborative Planning’ is proactive and cooperative activity that promote customer service for the purpose of obtaining comparative advantage for supply chain members as well as the supply chain as a whole. Numerous earlier papers have tested for factors affecting supply chain performance by considering mostly supply chain strategies (Li et al, 2006; Vanichchinchai A. and Igel B., 2011), there are limited studies considering the impacts of supply chain vulnerability on supply chain sustainability

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