Sustainable supply chain management's impact on triple bottom line performance: Does the firm size matter?

Abstract

AbstractCompanies worldwide are moving towards sustainability by focusing on its three dimensions: environmental, economic, and social sustainability. This study explores how sustainable supply chain management (SSCM) takes the changing role to affect these three dimensions. Since organizations vary in size, we post and test relationships regarding how firm size can impact the implementation of SSCM practices as a moderator. We posit an empirical research model and test this using structural equation modeling with survey data from 392 managers across various Jordanian manufacturing firms. This study assessed the link between five categories of SSCM practices and TBL performance. We found that firm size is critical and moderates the positive SSCM relationship with economic and social performances. Results shed new light on SSCM and its impacts on environmental, economic, and social performance. According to the study findings, environmental management practices and supply chain integration influenced all sustainability dimensions, whereas socially inclusive community practices influenced none. Furthermore, operations had an impact on economic sustainability. Finally, socially inclusive employee practices had a significant impact on both environmental and economic sustainability. Findings show that when implementing SSCM, larger firms perform better on multiple sustainability measures compared to smaller firms. The model's integration of firm size as a moderator provides additional insights regarding the SSCM construct and its change agent role in stimulating sustainable development.