Sustainable Supply Chain and Business Performance: The Impact of Strategy, Network Design, Information Systems, and Organizational Structure

Abstract

Technological advancement and the highly competitive nature of business have forced organizations to use multiple strategies to streamline their business operations. Current research investigates the relationship between sustainable supply chain management (SSCM) and business performance, focusing on operational and financial performance. It provides insights into the operational structure, resource utilization, and the identification of strategic tools needed to strengthen organizational performance. The researchers conducted unstructured interviews with 41 industrialists and analyzed them via open-source coding and deducing reasoning. A questionnaire was developed by analyzing critical scientific literature and unstructured interviews. Empirical responses were taken from 202 industrial corporations. The structural analyses indicate that the effective execution of SSCM significantly improves firms’ operational and financial performance. The findings also provide detailed information about different components of SSCM, namely supply chain strategy (SCS), supply chain network design (SCND), organizational structure, and information system, and explain how it relates to the previous literature review by using a multivariate statistical analysis, followed by structural equation modeling (SEM). The findings of current research highlight the significant role of SSC in accelerating firms’ operational and financial performance and suggest that SSCM should be taken as a secondary strategy and must be integrated with the overall business strategy.