Sustainable supply chain management in Indian organisations: an empirical investigation

Abstract

The present work is an attempt to investigate the adoption of sustainable supply chain management (SSCM) practices amongst manufacturing and process based organisations in India and its impact on organisational performance encompassing all three dimensions of sustainability. SSCM practices conceived in the present study include environmental management practices (EMP), socially inclusive practices for employees (SPE), socially inclusive practices for community (SPC), operations practices (OP) and supply chain integration (SCI) which were treated as exogenous variables. Organisational performance considered in this study includes five dimensions, namely environmental performance (EPR), employee-centred social performance (ESP), community-centred social performance (CSP), operations performance (OPR) and competitiveness, which were regarded as endogenous variables. The analysis was carried out with the help of structural equation modelling considering natural logarithm of manpower as a control variable. Few major findings are mentioned. EMP does not have any significant association with OPR, nor does it result in competitiveness. However, when jointly mediated through both EPR and OPR, EMP leads to competitiveness. SPC has significant negative association with competitiveness, when only direct relationship is considered. However, indirect relationship between SPC and competitiveness shows significant positive association when mediated through CSP. The resultant total effect between SPC and competitiveness turns out to be insignificant. Further, OPR fully mediates the relationship between OP and competitiveness. Managerial implications of the findings are discussed.