Resolving operational paradox of sustainable supply chain: A decision framework approach

Abstract

This study helps to reconcile the trade-offs between sustainable supply chain management (SSCM) and operational performance. Inspired by the paradox theory, the study advocates avoiding the contradictory elements and accepting the complementary elements between SSCM and Operational Performance. Accordingly, the study identifies various SSCM and operational performance elements followed by their evaluation to understand their complementary and contradictory nature. The study is conducted in two stages. First, the study constructs a list of SSCM features through exploratory factor analysis. Second, a unique decision framework of MACBETH (Measuring Attractiveness by Categorical-Based Evaluation Technique) and TODIM (Tomada de Decisión Inerativa Multicritero) methods is used to evaluate the SSCM features based on their impact on operational performance criteria. The proposed framework is validated in the context of the Indian Automobile Industry. The study results provide an empirically validated and prioritized list of SSCM features. In the list, the top-ranked features complement the operational performance criteria. In contrast, the lower-ranked features compromise the operational criteria, at least in the short term. Thus, this study reduces the skepticism around the adoption of SSCM by focusing on the top-ranked features of the list and avoiding the lower-ranked features during the early phases of SSCM adoption. Additionally, the study provides guidance to supply chain managers on achieving sustainability in a supply chain without compromising on its traditional goals. The results are of practical importance as supply chain managers may now choose to implement specific SSCM features that exhibit minimum negative impact on operational performance. Consequently, the study encourages an assertive adoption of SSCM even in developing countries.