Sustainable Supply Chain Practices and Their Impact on Organizational Performance

Abstract

The business environment is becoming more competitive and limited in terms of the environment, and organizations are increasingly being pressurized to incorporate sustainability into their supply chain activities. This paper focuses on the interconnection between sustainable supply chain activities and performance of organization with respect to economic, environmental and operational performance. Green procurement, ethical sourcing, environmentally friendly logistics, waste minimization, supplier partnership, and adherence to environmental and social regulations are sustainable supply chain practices taken into account in the current study. It uses the available theories of resource-based view and the stakeholder theory to explain how sustainability-focused supply chain initiatives lead to long-term organizational competitiveness, and resilience.

The study is based on systematic review and analytical approach that integrates the findings of the past empirical research, industry literature, and peer-reviewed articles to establish the significant performance implications. The analysis reveals that organizations that have implemented sustainable supply chain practices have been experiencing more cost efficiencies, less risk, enhanced brand reputation and an enhanced customer satisfaction. Other environmental programs such as reduced emissions, energy saving, and the right utilization of resources are also found to be more effective in regulating compliance and stability in the operations. The article also throws some light on the mediating role of the organizational capabilities, leadership commitment and supplier integration in translating the sustainability efforts in terms of measurable performance improvements. Based on the results, sustainable supply chain practices are not just compliance-based activity, but is also a strategic tool that can improve innovation, flexibility and value creation. By aligning the sustainability objectives to the major business ones, the organizations are able to harmonize the economic growth and environmental responsibility. The research has contributed to the existing literature available on the research topic through synthesis of evidence on the performance implications of sustainable supply chains and also offers an insight into the desire of managers and policy makers who may be interested to promote sustainable business practices. The paper also indicates that sustainability should be inculcated within the chain of supply to achieve the long-term organizational performance.