The Effect of Supply Chain Sustainability Practices on Romanian SME Performance

Abstract

The paper uniquely assesses the relationship between the main elements of the sustainability of the supply chain and the performance of Romanian enterprises. To identify dimensions of supply chain sustainability, a sample survey was conducted on a structured questionnaire basis among a sample of 385 Romanian enterprises represented by supply chain managers and practitioners. The hypothesis testing and the validation of the proposed construct model were achieved by using the modeling of the equation with the smallest partial squares (SEM-PLS) and multigroup analysis (PLS-MGA). The results suggest a positive and significant relationship between supply chain sustainability practices and business performance. This study provides original evidence to Romanian managers that business performance can be maximized by focusing on increasing the economic, social, and environmental sustainability of the supply chain. The results of this quantitative marketing research add to the existing literature and have far-reaching theoretical and practical implications for enterprises in the Romanian economy.