In light of the growing complexity of globally dispersed, multi-tier supply chains; sustainable supply chain management (SSCM) has become instrumental in the quest for achieving sustainability compliance along the supply chain. This study investigates how sustainability capability develops within a firm, and then extends to SSCM. Using a fixed-effect model and a global dataset of 2,206 firms between 2002 and 2015, this study shows that a firm's information environment, proxied by their customers awareness, has a significantly positive effect on their sustainability performance, and on their implementation of SSCM. Our analysis suggests that the influence of a firm's information environment on a firm's SSCM performance is mediated by the firm's own sustainability capability. We also find that this relationship is affected by stakeholder engagement. This research is relevant because, by investigating the factors that influence the development of SSCM, it provides guidance for firms that wish to achieve sustainability improvements in their supply chains during an era when the natural environment, social responsibility and the related strategic opportunities have increased in importance.
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Abstract
20There has been an increasing interest in the use of decision-making models to achieve 21 sustainability goal in recent decades. However, a systematic review of performance 22 metrics, which are an important element of decision-making models to evaluate the 23 outcomes regarding firm's economic, environmental and social performance, is 24 lacking. This study provides critical reflections on the current state of literature and 25 industry development regarding sustainable performance metrics and offers concrete 26 suggestions to guide future research. This study contributes to existing studies by (1) 27 exploring the interrelationship between sustainable triple-bottom performance in the 28 decision making process; (2) integrating corporate governance mechanism into 29 decision making process for sustainable consideration; and (3) conducting a 30 comparison between academic theory and industry practice regarding the performance 31 metrics proposed and employed. 32 33 34 35 36
In light of the growing complexity of globally dispersed, multi-tier supply chains; sustainable supply chain management (SSCM) has become instrumental in the quest for achieving sustainability compliance along the supply chain. This study investigates how sustainability capability develops within a firm, and then extends to SSCM. Using a fixed-effect model and a global dataset of 2,206 firms between 2002 and 2015, this study shows that a firm's information environment, proxied by their customers awareness, has a significantly positive effect on their sustainability performance, and on their implementation of SSCM. Our analysis suggests that the influence of a firm's information environment on a firm's SSCM performance is mediated by the firm's own sustainability capability. We also find that this relationship is affected by stakeholder engagement. This research is relevant because, by investigating the factors that influence the development of SSCM, it provides guidance for firms that wish to achieve sustainability improvements in their supply chains during an era when the natural environment, social responsibility and the related strategic opportunities have increased in importance.
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