Sustainable supply chain management (SSCM) in Malaysia: A survey

Abstract

As a developing country, Malaysia has moved from an agriculture-based economy to an industrialized economy in which manufacturing is considered to be the highest contributor towards environmental concerns. These concerns push firms into seriously considering the environmental impact while doing their business. The implementation of sustainable supply chain management (SSCM) is a key enabler that could push organizations to focus on alleviating environmental issues, and providing economic and social benefits. This study investigates the extent of implementation of sustainable supply chain management practices (environmental purchasing and sustainable packaging). The study also examines the outcomes of these practices on sustainable supply chain performance. A survey via mail was carried out among 400 manufacturing firms in Malaysia. Factor analysis of the survey data resulted in four categories of outcomes (environmental, economic, social and operational). The study found that environmental purchasing has a positive effect on three categories of outcomes (economic, social and operational), whereas sustainable packaging has a positive effect on environmental, economic and social outcomes. The results have empirically proven that SSCM practices have a positive effect on sustainable supply chain performance, particularly from the economic and social perspective. Thus, firms need to collaborate in advocating sustainable supply chain management (SSCM) practices as a route for firm’s commercial success rather than as a moral obligation.