The role of supply chain orientation in achieving supply chain sustainability

Abstract

Supply chain orientation (SCO) has the potential to contribute to supply chain sustainability performance. The literature, however, has not determined whether SCO has a direct effect on supply chain sustainability performance, nor has it differentiated between the effects of different categories of SCO on supply chain sustainability performance. A SEM analysis of data collected from supply chain managers determined that the SCO construct of supply chain collaboration and communication could directly affect both supply chain environmental and social sustainability performance. The SCO construct of internal supply chain coordination, however, affected only supply chain environmental sustainability performance and this effect was mediated by the organisation's internal supply chain sustainability practices. A second path between supply chain collaboration and communication and supply chain environmental sustainability performance, which was mediated by internal supply chain sustainability practices was also identified. These findings indicate that different SCO constructs have different effect pathways in relation to supply chain sustainability performance. The identification of the effects of different categories of SCO and the SCO – performance relationship has important implications for SCO research design.