Sustainable Supply Chain Management and Organisational Performance: An Empirical Study

Abstract

Sustainable Supply Chain Management (SSCM) has become a critical strategic approach for organisations aiming to balance economic, environmental, and social objectives. This study investigates the relationship between SSCM practices and organisational performance, emphasizing empirical evidence from multiple industry sectors. Using a structured questionnaire, primary data were collected from 130 managers and executives across manufacturing, retail, logistics, and FMCG organisations. The instrument measured environmental, social, and economic sustainability practices alongside organisational performance indicators, including financial outcomes, operational efficiency, and market share. Factor analysis identified three key dimensions of SSCM—Environmental Sustainability, Social Sustainability, and Economic Sustainability—explaining 71.7% of total variance. Rotated component matrix results confirmed strong construct validity, with individual items loading significantly on their respective factors. Multiple regression analysis demonstrated that all three dimensions positively and significantly influence organisational performance, with economic sustainability exerting the strongest effect, followed by environmental and social sustainability. The findings indicate that SSCM is not merely a compliance or ethical initiative but a strategic capability that enhances operational efficiency, financial performance, and competitive advantage. Organisations embedding sustainability practices into their supply chains are better positioned to achieve superior performance while fulfilling social and environmental responsibilities. This study provides practical insights for managers and policymakers seeking to align sustainability initiatives with strategic business goals, reinforcing SSCM’s role in driving long-term organisational resilience and stakeholder value.