Sustainable Supply Chain Management and Organizational Performance: The Intermediary Role of Competitive Advantage

Abstract

Sustainability issues have been on the rise due to negative impacts of organizational practices on the environment. The logistics sector has been known as a major contributor in polluting and consuming enormous amount of resources. This study therefore aims to provide insight into how sustainable supply chain management (SSCM) influences performance of organizations operating in the logistics sector. This study went further to focus on the intermediary function of competitive advantage in the SSCM and organizational performance relationship. Questionnaires were distributed to solicit information from 190 logistics managers. Data were analysed using partial least square method of structural equation modelling. Analysis of the data indicates that SSCM significantly and positively influence competitive advantage and organizational performance. In addition, competitive advantage also proved to significantly influence organizational performance. Competitive advantage indirectly has a significant impact on the SSCM and organizational performance relationship. The findings of the study provide key information to managers and academics in understanding the essence of integrating sustainability in supply chain management (SCM) and how the integration influences organizational performance in the current business and industrial setting.