Title: Sustainable Supply Chain Management Practices and their Effect on Firm Performance, A Case Study of Cheap General Hardware, Nansana Brach
Authors: Asiimwe Isaac Kazaara, Ahumuza Audrey
Volume: 8
Issue: 8
Pages: 268-274
Publication Date: 2024/08/28
Abstract:
This study investigated the relationship between Sustainable Supply Chain Management (SSCM) practices and firm performance in a developing economy. A mixed-methods research design was employed, combining quantitative and qualitative approaches. The quantitative phase involved a cross-sectional survey of 450 manufacturing firms, while the qualitative phase included in-depth interviews with senior supply chain managers and sustainability executives from a subset of 20 firms. The study found that manufacturing firms had adopted a range of SSCM practices to varying degrees, with Environmental Management being the most widely implemented. Structural equation modeling (SEM) analysis revealed a strong positive relationship between SSCM practices and both financial and operational benefits (FOB) and competitive advantage and brand reputation (CABR). The findings supported the resource-based view (RBV) and stakeholder theory, demonstrating that investing in SSCM practices led to the development of valuable resources and capabilities, while also addressing the needs and concerns of various stakeholders. The study also highlighted the importance of addressing barriers and challenges to the adoption of SSCM practices, such as organizational resistance, lack of expertise, and high initial costs. These findings align with the institutional theory, which suggests that external pressures from the institutional environment can influence a firm's strategic and operational decisions, ultimately affecting its performance outcomes. The study concluded that SSCM practices can significantly enhance firm performance, but organizations must overcome barriers and challenges to fully realize the benefits of sustainable supply chain management.