Social Sustainability Orientation and Supply Chain Performance in Mexico, Colombia and Chile: A Social-Resource-Based View (SRBV)

Abstract

The global crisis caused by the COVID-19 pandemic has taught us the importance of reflecting on the essential resources and capabilities that enable companies to react to disruptions. In this regard, studies have shown that social sustainability is a crucial resource for the operational performance of supply chains in emerging contexts. Although the literature has responded to the call for research on the social dimension of sustainability in emerging economies, most research has focused on emerging Asia, leaving a void in Latin America. Two socially focused frameworks are used to address the ontological challenge of defining sustainable human well-being around the firm. Amartya Sen’s capabilities approach and the theoretical extension of the Social-Resource-Based View (SRBV) are appropriate to address social sustainability under two essential aspects: (1) the firm as a generator of social performance and (2) social sustainability as a generator of firm performance. This paper aims to analyze the predictive capacity of Social Sustainability Orientation on social performance and supply chain operational performance in the context of emerging Latin America, with representative cases from Mexico, Colombia, and Chile. The methodology was empirical–statistical and based on a structured questionnaire applied to 217 purchasing managers of large multisector companies (Mx n = 64, Co n = 100, and Cl n = 53). Hypotheses were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show the intrasample and extrasample predictive ability of Social Sustainability Orientation on social and Supply Chain Performance. It is concluded that socially sustainable culture and investment orientation is a valuable resource that provides the capability for Latin supply chain welfare and operational performance. A call is made to procurement and public policy managers to disseminate and care for the social aspects of sustainability as a resource that enhances business competitiveness and social justice in the Latin American region.