Mediation effects of sustainable supply chain strategies on supply chain functions and firm performance

Abstract

This research examines the direction of relationship among the functions of supply chain and sustainable supply chain strategies on firm performance. Moreover, this research validates how the sustainable supply chain strategy mediates between supply chain function and firm performance. The various aspects related to study variables which have been addressed in the previous literature were probed and subsequently a measurement framework was initially developed and proved. Subsequently, three hypotheses were formulated and a concept model was developed. A nationwide survey among the supply chain professionals within manufacturing firms was undertaken. The concept model was tested to measure direct effect and indirect effect by using structural equation model. The inference that can be drawn from the results of the survey is that the sustainable supply chain strategy and the firm performance are impacted positively and sustainable supply chain strategy mediates between supply chain function and firm performance. This research adds value to the literature by providing valid and reliable metrics to measure firm performance in the context of sustainable supply chain activities.