Sustainable supply chain management and financial performance: An empirical analysis of Turkish manufacturing companies

Abstract

The linkage between sustainable supply chain management (SSCM) and financial performance has attracted increasing interest from both researchers and practitioners. Although many have argued that the SSCM practices improve financial performance, empirical studies have produced mixed results, and the direction of the relationship is still unclear. This study examined the relationship between SSCM and financial performance for Turkish manufacturing companies. Financial performance was measured using ROA, ROE and price to book ratio, while SSCM performance was measured with a new multivariable performance indicator. Financial performance data were obtained from the Bloomberg Database, while SSCM data were collected from non-financial reports using content analysis. The total sample included 47 manufacturing companies listed in Borsa İstanbul, covering 584 firm-year observations for 2007-2019. Panel data regression analysis was used to test the relationship between SSCM and financial performance. Similar to the literature's general view, the findings support a positive linear relationship between SSCM and firm financial performance.