Impact of sustainable supply chain management practices on competitive advantage and organizational performance in the manufacturing sector

Abstract

Purpose

The purpose of this study is to examine the impact of sustainable supply chain management (SSCM) practices on both competitive advantage (CA) and organizational performance (OP) in the manufacturing sector in Ethiopia.

Design/methodology/approach

Data for the study were collected from a sample of 221 manufacturing companies operating in the four manufacturing groups/sectors in Ethiopia. In addition, data analysis was performed using the partial least squares method, which is a variance-based Structural Equation Modeling approach in the Smart-PLS software version (SmartPLS 4.0).

Findings

Based on the statistical analysis of the collected data, it demonstrates that SSCM has a significant and positive impact on both competitive advantage and organizational performance. Furthermore, statistical findings offer proof of the clear connection between competitive advantage and organizational performance. Moreover, competitive advantage indirectly mediates the relationship between SSCM and OP.

Research limitations/implications

The primary limitation of this research is its reliance on a cross-sectional design. The generalizability of the findings obtained from the present study may be hindered. The variable under investigation in this research assessed organizational performance, a concept that is widely acknowledged to be extremely dynamic.

Practical implications

The study provides managers and researchers with valuable information on Sustainable Supply Chain Management strategies and how they influence competitive advantage and organizational performance in commercial and industrial environments.

Originality/value

This paper adds to the body of knowledge by providing new data and empirical insights into the relationship between SSCM practices and the performance of manufacturing companies in Ethiopia.