Critical Success Factors for Supply Chain Sustainability in the Wood Industry: An Integrated PCA-ISM Model

Abstract

Due to the increasing popularity of cost-based outsourcing and growing stakeholder concern about environmental, social, and technological issues, supply chain sustainability is vital in both developed and emerging economies. Bangladesh is an emerging economy and wood industry of Bangladesh is suffering from severe sustainability issues besides its growth. Hence, this article aims to examine the critical success factors (CSFs) for sustainability in the Bangladeshi wood industry, which is crucial to help supply chain managers engage in achieving sustainable development goals. This research investigated the CSFs and uncovered their interdependencies through the development of a methodology integrating a literature review, principal component analysis (PCA), interpretive structural modelling (ISM), and Matriced Impacts Croises Multiplication Appliquee aunClassement (MICMAC) techniques. PCA (n = 150) was used to identify and rank the CSFs for sustainability in the Bangladeshi wood industry while ISM (n = 9) and MICMAC were used to determine the driving and dependence power of the CSFs. The findings reveal that research and development, supplier relations, and using eco-friendly technology are the most significant CSFs of the Bangladeshi wood industry. Indispensable links revealing the driving and dependence power among the CSFs were also reported. To the best of our knowledge, this study is the first of its kind that examined the CSFs for supply chain sustainability in the Bangladeshi wood industry. The proposed methodology and findings will help managers in the Bangladeshi wood industry as well as other similar industries to understand the CSFs and reduce the complexity of decision-making in managing business process towards sustainability journey.