Enhancing the Influence of Sustainable Supply Chain Management on Manufacturing Firm Performance through Organizational Innovation

Abstract

Purpose: The worsening case of global warming and the beleaguered eco-system have necessitated a compelling need for manufacturing organisations to embed sustainable supply chain management practices into their operations and deploy cutting-edge innovative initiatives to salvage the environment and the health of mankind. This paper is purposed to extend and strengthen theory- building on sustainable supply chain management (SSCM) concept and innovation to foster improved operational performance based on institutional theory. Design/Methodology/Approach: The study is designed to test the proposition that pressure from external institutions impels organisations engaged in sustainable supply chain management practices to adopt state-of-the-art innovative practices as a tool to resolving inherent challenges in order to improve operational performance. The study therefore employs a model that makes practical utilisation of organisational innovation, underpinned by institutional theory to accentuate the predictive potential of the Triple Bottom Line on firm performance. Findings: Empirical findings indicate that sustainable supply chain management practices have positive correlation with operational performance. However, contrary findings exist that reveal that the relationship is weak when construed as direct. This justifies the introduction of innovation into the SSCM-performance model aimed at amplifying the predictive potential of the concept on operational performance goals. Originality/Value: The study introduces a robust and comprehensive model that exploits three overarching sustainability concepts that generate far-reaching implications for researchers as well as industry practitioners. These concepts have scarcely been studied as a holistic integrated model. The examination of the mediating effects of organisational innovation in the Sustainable Supply Chain Management-Operational Performance link offers a novel theoretical contribution to the SSCM literature and is expected to serve as a roadmap for successful implementation of future sustainability initiatives by firms.