ABSTRACT

While many companies focus on their own internal sustainability initiatives there are a growing number of initiatives focused on promoting sustainability across the supply chain. The resulting Sustainable Supply Chain Management (SSCM) has to justify its contribution to the focal company’s performance. Based on survey responses of 242 professionals from the automotive, aerospace, electronics and telecommunications industries and using a mixed-methods methodology this study analyses how professionals perceive the contribution of SSCM to a company’s environmental, social and economic performance. The study also looks into the moderating effect of regulations on the relationship between SSCM and a company’s performance.

Survey respondents were from NAFTA-based companies and were mainly supply chain, SSCM and sustainability professionals. The results of the quantitative analysis using multiple regression and factorial plot analysis in Minitab 17 showed that SSCM is statistically significant to focal company’s environmental, social and economic performance. Likewise the regulatory framework was found to be a moderator of the SSCM–performance relationship. Thematic analysis showed SSCM’s benefits, challenges and ways to overcome the challenges at the levels of the company, industry 59and country. This study provides corporate leaders and professionals with meaningful business rationale for embarking on SSCM initiatives.