Understanding the Relationship between Stakeholder Pressure and Sustainability Performance in Manufacturing Firms in Pakistan

Abstract

Sustainable supply chain practices has been acknowledged among the supply chain scholars due to its importance as a key to promote sustainability. The aim of this paper is to examine the relationship between stakeholder pressure and adoption of sustainable supply chain practices and impact on sustainability performance. The study draws on stakeholder theory and the resource-based view of the firm, data was collected through survey methodology from 272 manufacturing firms in Pakistan and hypothesis tested using structural equation modelling (SEM). The sustainability performance is combination of environmental and social performance. The conclusion signifies the important role that SSCP can play in achieving the social and environmental performance of the manufacturing firms. Thus supply chain managers will perceive benefits to significant involve buyers in collaborative social and environmental practices. This study suggest the policy implications and recommendations to the practitioners as how to improve the social performance in manufacturing firms in context with the emerging economies.