Sustainability Supply Chain Strategies and Operational Performance in Manufacturing SMEs: The Mediating Role of Sustainability Supply Chain performance in Jordan

Abstract

Purpose – This paper will analyze how the Sustainability Supply Chain Strategies (SSCS): cost, differentiation, response, and postponement affect operational performance (OP) of Jordanian manufacturing SMEs. The research is based on the Relational View (RV) and the Resource-Based View (RBV) which focuses on the mediating factor of the Sustainability  Supply Chain performance (SSCP) in the form of flexibility, delivery, quality and cost effectiveness. Through this, the research fills a gap in the available empirical literature as it examines the impact of Sustainability Supply Chain Strategies (SSCS) on performance outcomes in the environment of emerging economies.

Design/methodology/approach They sent a designed questionnaire to the managers and owners of manufacturing SMEs in Jordan. PLS-SEM was used to examine 454 valid responses and in the testing of both direct and mediating effect.

Findings The findings suggest performance of differentiation and response strategies has a more significant impact on the operational performance compared to the cost and postponement strategies. Additionally, it was discovered that the dimensions of Sustainability  Supply Chain performance (SSCP) mediate the relationship between Sustainability Supply Chain Strategies (SSCS) and operational performance completely or partially which points to the fact that strategies alone are not enough without effective Sustainability  Supply Chain performance capabilities.

Practical implications - The managers and owners of manufacturing SMEs in Jordan were given a structured questionnaire. The results were analyzed using PLS-SEM, which was applied to 460 valid responses, as well as evaluated the direct and mediating effects.

Originality/value The study has two significant implications to the literature. First it changes the orientation towards practices of supply chain management to Sustainability Supply Chain Strategies (SSCS), which provide a more strategic view of value creation in supply chains. Second, it offers empirical evidence based on a little known developing economy-Jordan which enhances the supply chain management body of knowledge and provides useful insights to SME managers and policymakers..