Effects of Internet of Things, supply chain collaboration and ethical sensitivity on sustainable performance: moderating effect of supply chain dynamism

Abstract

PurposeThe survival and growth of the ready-made garments (RMGs) sectors in Bangladesh depend on sustainable supply chain performance (SSCP). The purpose of this study is to analyse the effects of Internet of Things (IoT), supply chain collaboration and ethical sensitivity on SSCP. Also, supply chain dynamism was tested as a moderator.Design/methodology/approachThe framework of this study has been developed to enrich the understanding of technology usage in the supply chain. In developing the framework, previous studies in the supply chain context were considered. The model was tested by using data collected from 290 executives that were employed by different RMG companies in Bangladesh. This study used a 29-item structured questionnaire measured on a 6-point Likert scale to collect the data. Covariance-based structural equation modelling (SEM) was utilised to test the data.FindingsThe results showed that there were statistically significant and positive relationships between IoT and supply chain collaboration, social performance, economic performance and environmental performance. Ethical sensitivity also influenced social and economic performance. Supply chain collaboration was found to be related to social, economic and environmental performance. However, no link was found between ethical sensitivity and environmental performance. The result also showed that supply chain dynamism acted as a moderator.Research limitations/implicationsBy considering theories and interpreting the results, this study provides some theoretical and practical implications which will enhance the SSCP. The results can also facilitate strategic planning by companies.Originality/valueThis research has identified and analysed the effect of IoT on SSCP in the RMGs industry in Bangladesh where this industry serves as the main economic contributor.