Impact of Sustainable Supply Chain Management on Environmental Performance: Moderating Role of Top Management Commitment and Mediating Role of Supply Chain Ambidexterity
DOI:
https://doi.org/10.61506/01.00347Keywords:
Sustainable supply chain management, Supply chain ambidexterity, Environmental performance, Top management commitmentAbstract
The sustainability of civilization and the operation of our global economy both depend heavily on the supply chain. This paper aims to assess how sustainable supply chain management (SSCM) influences sustainable supply chain ambidexterity (SCA) to achieve environmental performance (EP) for textile sector of an under developed economy such as Pakistan, besides exploring whether top management commitment (TMC) moderates the relationship between SSCM and EP. This study collected survey data from 240 exporters in the textile sector. It employed the PLS-SEM (Partial Least-Squares Structural Equation Modeling) technique to evaluate the hypothesized relationships. This study found that SSCM positively, directly and indirectly, impacted EP. SCA partially mediated the correlation between SSCM and EP. Additionally, TMC moderated the relationship between SSCM and SCA. TMC had a direct and positive effect on SCA. The insights into how SSCM influences SCA to achieve EP for textile sector in an emerging economy like Pakistan provides an original value. Moreover, the novelty of this study is further reinforced by the coverage of the newfound mechanism, where TMC moderates the relationship between SSCM and SCA, directly and positively enhancing SCA. These contributions could interest business practitioners and academics.
References
Abdolazimi, O., Shishebori, D., Goodarzian, F., Ghasemi, P., & Appolloni, A. (2021). Designing a new mathematical model based on ABC analysis for inventory control problem: A real case study. RAIRO-Operations Research, 55(4), 2309-2335. DOI: https://doi.org/10.1051/ro/2021104
Ansari, S., Baig, M. H., Ullah, K., Khan, M. M., & Akhtar, A. (2022). Impact of Environmental Factors on Supply Chain Practices in Textile Sector: Environment and Supply Chain Practices. South Asian Management Review, 1(2), 1-13. DOI: https://doi.org/10.57044/SAMR.2022.1.2.2208
Barney, J. B., Ketchen Jr, D. J., & Wright, M. (2021). Resource-based theory and the value creation framework. Journal of Management, 47(7), 1936-1955. DOI: https://doi.org/10.1177/01492063211021655
Baumgarten, H., Butz, C., Fritsch, A., & Sommer-Dittrich, T. (2003). Supply chain management and reverse logistics-integration of reverse logistics processes into supply chain management approaches. Paper presented at the IEEE International Symposium on Electronics and the Environment, 2003. DOI: https://doi.org/10.1109/ISEE.2003.1208051
Bloemhof-Ruwaard, J. M., & Van Nunen, J. (2005). Integration of environmental management and SCM. ERIM Report Series Reference No. ERS-2005-030-LIS.
Brandenburg, M., & Rebs, T. (2015). Sustainable supply chain management: A modeling perspective. Annals of Operations Research, 229, 213-252. DOI: https://doi.org/10.1007/s10479-015-1853-1
Brandi, C., Schwab, J., Berger, A., & Morin, J.-F. (2020). Do environmental provisions in trade agreements make exports from developing countries greener? World Development, 129, 104899. DOI: https://doi.org/10.1016/j.worlddev.2020.104899
Bui, T.-D., Tsai, F. M., Tseng, M.-L., Tan, R. R., Yu, K. D. S., & Lim, M. K. (2021). Sustainable supply chain management towards disruption and organizational ambidexterity: A data driven analysis. Sustainable production and consumption, 26, 373-410. DOI: https://doi.org/10.1016/j.spc.2020.09.017
Collins, G. S., de Groot, J. A., Dutton, S., Omar, O., Shanyinde, M., Tajar, A., . . . Moons, K. G. (2014). External validation of multivariable prediction models: a systematic review of methodological conduct and reporting. BMC medical research methodology, 14, 1-11. DOI: https://doi.org/10.1186/1471-2288-14-40
Crowther, D., & Lancaster, G. (2012). Research methods: Routledge. DOI: https://doi.org/10.4324/9780080943442
Darom, N. A. M., & Hishamuddin, H. (2016). Integration of economic and environmental aspects in sustainable supply chain management: A review. Paper presented at the Proceedings of the 6th International Conference on Industrial Engineering and Operations Management, Kuala Lumpur, Malaysia.
Das, D. (2018). The impact of Sustainable Supply Chain Management practices on firm performance: Lessons from Indian organizations. Journal of cleaner production, 203, 179-196. DOI: https://doi.org/10.1016/j.jclepro.2018.08.250
Diamantopoulos, A., & Siguaw, J. A. (2006). Formative versus reflective indicators in organizational measure development: A comparison and empirical illustration. British journal of management, 17(4), 263-282. DOI: https://doi.org/10.1111/j.1467-8551.2006.00500.x
Dubey, R., Gunasekaran, A., Sushil, & Singh, T. (2015). Building theory of sustainable manufacturing using total interpretive structural modelling. International Journal of Systems Science: Operations & Logistics, 2(4), 231-247. DOI: https://doi.org/10.1080/23302674.2015.1025890
F. Hair Jr, J., Sarstedt, M., Hopkins, L., & G. Kuppelwieser, V. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European business review, 26(2), 106-121.
Falk, R. F., & Miller, N. B. (1992). A primer for soft modeling: University of Akron Press.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. DOI: https://doi.org/10.1177/002224378101800104
Güemes-Castorena, D., & Ruiz-Monroy, B. C. (2020). Ambidexterity in the supply chain: studying the apparel industry. International Journal of Agile Systems and Management, 13(2), 130-158. DOI: https://doi.org/10.1504/IJASM.2020.107904
Gupta, A. K., & Gupta, N. (2021). Environment practices mediating the environmental compliance and firm performance: An institutional theory perspective from emerging economies. Global Journal of Flexible Systems Management, 22(3), 157-178. DOI: https://doi.org/10.1007/s40171-021-00266-w
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing theory and Practice, 19(2), 139-152. DOI: https://doi.org/10.2753/MTP1069-6679190202
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), 2-24. DOI: https://doi.org/10.1108/EBR-11-2018-0203
Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European business review, 26(2), 106-121. DOI: https://doi.org/10.1108/EBR-10-2013-0128
Hasan, M. (2013). Sustainable supply chain management practices and operational performance. DOI: https://doi.org/10.4236/ajibm.2013.31006
Hayat, N., Hussain, A., & Lohano, H. D. (2020). Eco-labeling and sustainability: A case of textile industry in Pakistan. Journal of cleaner production, 252, 119807. DOI: https://doi.org/10.1016/j.jclepro.2019.119807
Hayes, A. F. (2015). An index and test of linear moderated mediation. Multivariate behavioral research, 50(1), 1-22. DOI: https://doi.org/10.1080/00273171.2014.962683
Hayes, A. F. (2018). Partial, conditional, and moderated moderated mediation: Quantification, inference, and interpretation. Communication monographs, 85(1), 4-40. DOI: https://doi.org/10.1080/03637751.2017.1352100
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43, 115-135. DOI: https://doi.org/10.1007/s11747-014-0403-8
Hu, L. t., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural equation modeling: a multidisciplinary journal, 6(1), 1-55. DOI: https://doi.org/10.1080/10705519909540118
Islam, M. M. (2022). Evaluating negative attitudes of the students and shoppers towards halal cosmetics products. Journal of Islamic Marketing, 13(3), 565-585. DOI: https://doi.org/10.1108/JIMA-03-2020-0067
Khan, S., Badar, M. A., Khan, S. A., & Zaman, S. I. (2021). Role of Green Supply Chain Practices in Improving Firm's Sustainability and Performance. Cleaner Logistics and Supply Chain, 6.
Khanam, Z., & Ghosh, R. (2022). Impact of sustainable supply chain management on cost performance: empirical evidence from manufacturing companies of Bangladesh. Journal of Economic and Administrative Sciences. DOI: https://doi.org/10.1108/JEAS-02-2022-0050
Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration (ijec), 11(4), 1-10. DOI: https://doi.org/10.4018/ijec.2015100101
Konwar, M., & Boruah, R. R. (2020). Textile Industry and Its Environmental Impacts: A Review. Indian J. Pure Appl. Biosci, 8, 134-139. DOI: https://doi.org/10.18782/2582-2845.7848
Kottala, S. Y. (2021). Social sustainable supply chain practices evidence from the Indian manufacturing sector: An empirical study. International Journal of Social Ecology and Sustainable Development (IJSESD), 12(2), 73-98. DOI: https://doi.org/10.4018/IJSESD.2021040105
Kristal, M. M., Huang, X., & Roth, A. V. (2010). The effect of an ambidextrous supply chain strategy on combinative competitive capabilities and business performance. Journal of operations management, 28(5), 415-429. DOI: https://doi.org/10.1016/j.jom.2009.12.002
Kumar, S., Chattopadhyaya, S., & Sharma, V. (2012). Sustainable supply chain management: a case study from Indian automotive industry. Advanced Materials Research, 472, 3359-3370. DOI: https://doi.org/10.4028/www.scientific.net/AMR.472-475.3359
Le, T. T. (2023). Linking big data, sustainable supply chain management and corporate performance: the moderating role of circular economy thinking. The International Journal of Logistics Management, 34(3), 744-771. DOI: https://doi.org/10.1108/IJLM-01-2022-0011
Nathan, T., Tjahjono, B., Begley, J., & Lazell, J. (2021). A conceptual framework for adopting ambidexterity in circular supply chains. Paper presented at the 11th Annual International Conference on Industrial Engineering and Operations Management. DOI: https://doi.org/10.46254/AN11.20210970
Niinimäki, K., Peters, G., Dahlbo, H., Perry, P., Rissanen, T., & Gwilt, A. (2020). The environmental price of fast fashion. Nature Reviews Earth & Environment, 1(4), 189-200. DOI: https://doi.org/10.1038/s43017-020-0039-9
Panpatil, S. S., Lahane, S., & Kant, R. (2023). Performance measurement framework of green supply chain implementation in the context of Indian manufacturing organizations. Journal of Advances in Management Research, 20(4), 623-652. DOI: https://doi.org/10.1108/JAMR-08-2022-0174
Park-Poaps, H., & Rees, K. (2010). Stakeholder forces of socially responsible supply chain management orientation. Journal of Business Ethics, 92, 305-322. DOI: https://doi.org/10.1007/s10551-009-0156-3
Paulraj, A., Chen, I. J., & Blome, C. (2017). Motives and performance outcomes of sustainable supply chain management practices: A multi-theoretical perspective. Journal of Business Ethics, 145, 239-258. DOI: https://doi.org/10.1007/s10551-015-2857-0
Quddoos, M. U., Akhtar, M. H., & Zafar, J. (2022). Investigating the Impact of Safe, Healthy, and Quality Environment Practices in Textile Industry of Pakistan: A Commitment Towards Sustainable Development. Journal of Business & Economics, 14(1), 14-30.
Scott, N. (2016). The impact of ambidexterity in supply chain capabilities on manufacturing performance: examples from the global semiconductor industry. International Journal of Logistics Systems and Management, 23(3), 394-417. DOI: https://doi.org/10.1504/IJLSM.2016.074718
Seman, N. A. A., Govindan, K., Mardani, A., Zakuan, N., Saman, M. Z. M., Hooker, R. E., & Ozkul, S. (2019). The mediating effect of green innovation on the relationship between green supply chain management and environmental performance. Journal of cleaner production, 229, 115-127. DOI: https://doi.org/10.1016/j.jclepro.2019.03.211
Sembiring, N., Tambunan, M. M., Ginting, E., & Dewi, I. S. (2020). Sustainable Supply Chain Management in Manufacture. DOI: https://doi.org/10.5220/0008854300740078
Simmou, W., Govindan, K., Sameer, I., Hussainey, K., & Simmou, S. (2023). Doing good to be green and live clean!-Linking corporate social responsibility strategy, green innovation, and environmental performance: Evidence from Maldivian and Moroccan small and medium-sized enterprises. Journal of cleaner production, 384, 135265. DOI: https://doi.org/10.1016/j.jclepro.2022.135265
Tamayo-Torres, J., Roehrich, J. K., & Lewis, M. A. (2017). Ambidexterity, performance and environmental dynamism. International Journal of Operations & Production Management, 37(3), 282-299. DOI: https://doi.org/10.1108/IJOPM-06-2015-0378
Tascioglu, M. (2015). Sustainable supply chain management: A literature review and research agenda. Journal of Management Marketing and Logistics, 2(1). DOI: https://doi.org/10.17261/Pressacademia.2015111519
Tounsadi, H., Metarfi, Y., Taleb, M., El Rhazi, K., & Rais, Z. (2020). Impact of chemical substances used in textile industry on the employee's health: Epidemiological study. Ecotoxicology and Environmental Safety, 197, 110594. DOI: https://doi.org/10.1016/j.ecoenv.2020.110594
Tseng, M.-L., Bui, T.-D., Lim, M. K., Fujii, M., & Mishra, U. (2022). Assessing data-driven sustainable supply chain management indicators for the textile industry under industrial disruption and ambidexterity. International Journal of Production Economics, 245, 108401. DOI: https://doi.org/10.1016/j.ijpe.2021.108401
Úbeda‐García, M., Marco‐Lajara, B., Zaragoza‐Sáez, P. C., Manresa‐Marhuenda, E., & Poveda‐Pareja, E. (2022). Green ambidexterity and environmental performance: The role of green human resources. Corporate Social Responsibility and Environmental Management, 29(1), 32-45. DOI: https://doi.org/10.1002/csr.2171
Wang, J., & Dai, J. (2018). Sustainable supply chain management practices and performance. Industrial management & data systems, 118(1), 2-21. DOI: https://doi.org/10.1108/IMDS-12-2016-0540
Wetzels, M., Odekerken-Schröder, G., & Van Oppen, C. (2009). Using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS quarterly, 177-195. DOI: https://doi.org/10.2307/20650284
Williams, C. (2007). Research methods. Journal of Business & Economics Research (JBER), 5(3). DOI: https://doi.org/10.19030/jber.v5i3.2532
Younis, H., & Sundarakani, B. (2020). The impact of firm size, firm age and environmental management certification on the relationship between green supply chain practices and corporate performance. Benchmarking: An International Journal, 27(1), 319-346. DOI: https://doi.org/10.1108/BIJ-11-2018-0363
Yusliza, M.-Y., Norazmi, N. A., Jabbour, C. J. C., Fernando, Y., Fawehinmi, O., & Seles, B. M. R. P. (2019). Top management commitment, corporate social responsibility and green human resource management: A Malaysian study. Benchmarking: An International Journal, 26(6), 2051-2078. DOI: https://doi.org/10.1108/BIJ-09-2018-0283
Zavala-Alcívar, A., Verdecho, M.-J., & Alfaro-Saiz, J.-J. (2020). A conceptual framework to manage resilience and increase sustainability in the supply chain. Sustainability, 12(16), 6300. DOI: https://doi.org/10.3390/su12166300
