Sustainable supply chain management practices and firm performance: the mediating effect of firm capabilities

D Asante-Darko, V Osei - Management of Environmental Quality: An …, 2024 - emerald.com
Management of Environmental Quality: An International Journal, 2024emerald.com
Purpose Academics and businesses alike have begun to recognise sustainability as a vital
component of supply chain competitive advantage in recent years. Inconclusive results have
been found in empirical studies of sustainable supply chain management (SSCM) that have
ignored contextual variables concerning the dynamic role of firm capability in favour of
testing alternative assumptions about the effect of various elements of the triple bottom line
(TBL) on firm performance outcomes. The present study examines whether and how firm …
Purpose
Academics and businesses alike have begun to recognise sustainability as a vital component of supply chain competitive advantage in recent years. Inconclusive results have been found in empirical studies of sustainable supply chain management (SSCM) that have ignored contextual variables concerning the dynamic role of firm capability in favour of testing alternative assumptions about the effect of various elements of the triple bottom line (TBL) on firm performance outcomes. The present study examines whether and how firm capabilities mediate the connection between SSCM, from a TBL standpoint, and firm financial performance outcomes.
Design/methodology/approach
Using the stakeholder theory, the study employed 325 survey responses from firms operating in different industries in Ghana (a less-researched context but one that plays a key role regarding SSCM practices) and the partial least squares structural equation model (PLS-SEM) technique to simultaneously assess the relationships amongst the variables.
Findings
It was discovered that the connections between all the TBL facets of SSCM practices and firm performance are positive and significant, and these relationships are mediated by firm capabilities.
Originality/value
By examining the underlying variables and relationships that contribute to the establishment of the rather complex relationship between SSCM practices from a TBL perspective and the performance of a firm, the research contributes to current knowledge on SSCM practices, firm capabilities and firm performance.
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