Sustainable supply chain collaboration: incentives in emerging economies

Abstract

PurposeThe purpose of this paper is to investigate the relationship between sustainable supply chain collaboration (SSCC) and sustainability performance, and examine whether two types of incentives moderate this relationship. This empirical investigation of the Thai food manufacturing industry provides insight in the context of an emerging economy.Design/methodology/approachSurvey data were collected from 215 food manufacturing firms in Thailand, and the hypotheses were tested by exploratory factor analysis, hierarchical regression analysis, and cluster analysis.FindingsThe results indicate that SSCC leads to better economic and social performance, but not necessarily better environmental performance; incentives provided by firms in the supply chain enhance the effects of SSCC on social performance.Practical implicationsThe findings provide useful suggestions for supply chain managers and policy makers about effective collaboration and the use of incentives to improve the sustainability of individual firms in the supply chain. They also reveal the challenges faced by manufacturing firms in improving environmental performance in an emerging economy.Originality/valueThis study contributes to the literature on the implementation of sustainable supply chain management by explaining the role of incentives.