Sustainable Supply Chain Practices: An Empirical Investigation from the Manufacturing Industry

Abstract

Recently, firms have adopted sustainable supply chain practices (SSCPs) to reduce the social and environmental impacts in their supply chain network. The primary objective is to reduce adversarial negative impacts on the environment, particularly those stemming from consumption of energy and water. Embracing sustainable business practices is increasingly essential for organizations and in addressing pressing global challenges. Based on 439 valid responses obtained through cross-sectional research from Turkish manufacturing firms, and combining practice-based view and organizational information processing theory, this study examines the effect of SSCP on economic performance (EP). The mediating roles of social performance (SP) and environmental performance (ENP) were examined. The moderating role of Industry 4.0 was further explored with regard to the aforementioned links. The results revealed that SSCP has a positive effect on EP. SSCP has positive effects on SP and ENP. SP and ENP have positive effects on EP. The relationship between SSCP and EP is partially mediated by both SP and ENP. Further, it was discovered that in firms with a high level of Industry 4.0 technologies usage, the impact of SSCP on ENP was stronger, and in firms with high level of Industry 4.0, the impact of SSCP on EP was also stronger. The findings offer valuable insights for research, as well as for managers, supply chain practitioners, and policymakers, in developing an integrated strategic and effective approach that promotes sustainable operations by using improved understanding of Industry 4.0, which also yields better economic outcomes.