Supply chain sustainability in SMEs: an application of the Hayes and Wheelwright model and identifying stages of development using cluster analysis

Abstract

Sustainability is a subject of increasing interest in supply chain management, but little is known about its practice in small-and medium-sized enterprises (SMEs). This paper uses survey data from SMEs to assess the current state of supply chain sustainability development in SMEs. This paper conceptualises a model of supply chain sustainability development based on Hayes and Wheelwright's four-stage operations development model. The posited model is empirically tested by applying cluster analysis to SME survey data. Four clusters (reactive sustainability, awareness sustainability, emergent strategic sustainability, and advanced strategic sustainability) were identified and tested to assess the current level of supply chain sustainability development and practices in SMEs. The model can serve as a progressive planning tool for sustainability development and strategies that impact performance in SMEs. The modified four-stage model also provides a type of scale with which managers of SMEs can measure their relative development of supply chain sustainability.