Abstract
Scholarly discussion on the amalgamation of sustainability and supply chain management has been growing in the last decade. However, an integrated social and economic sustainability performance measurement in supply chains is an emerging avenue in the Sustainable Supply Chain Management discourse. Hence, the purpose of this study is to understand how socially sustainable practices affect economic sustainability performances in supply chains. A survey questionnaire and a conceptual framework were developed to explore this relationship. Survey data collected based on responses from 119 managers in the Sri Lankan apparel-manufacturing sector was analyzed using Partial Least Square Structural Equation Modelling. We observed that the practices conducted by apparel manufacturers ensuring the social sustainability of the human factor inside the company (Internally influencing Social Sustainability Practices-ISSP) and in society (Externally Influencing Social Sustainability Practices-ESSP) create a positive impact on the economic performance. However, the effect produced by ISSP was higher compared to the ESSP. This study is based on a single developing country and, thus, should be extended to other countries considering the different institution environments when studying this interrelation between the social and economic sustainability dimensions.
Highlights
The discussions on sustainability in supply chains are embedded in the Triple Bottom Line (TBL) concept of Elkington [1] and how the best sustainability performance transpires at the integration point of the three dimensions [2]
Due to the complexity of the apparel supply chain, this study mainly focused on social sustainability practices and the economic performance of the apparel manufacturers while understanding the standard sustainability practices in the Sri Lankan apparel manufacturing
We present 11 different facets of social sustainability dimension as benefits to the society, education benefits, equity improvement, gender-related equity improvement, ethical improvement, health and safety improvement, labor condition improvement, regulatory responsibility, wage condition improvement, elimination of child and bonded labor, and working condition improvement with diverse practices
Summary
The discussions on sustainability in supply chains are embedded in the Triple Bottom Line (TBL) concept of Elkington [1] and how the best sustainability performance transpires at the integration point of the three dimensions [2]. Goworek [7] studied socially and environmentally sustainable practices of organizations and how they impact on the sales turnover and profitability, while Zailani et al [8] discovered that socially and environmentally sound practices across the supply chain bring strategic economic benefits. Many scholars, such as Yawar and Seuring [9], Panigrahi et al [10], and Sodhi and Tang [11], emphasized the importance of understanding the relationship between the social and economic sustainability dimensions
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