Impact of Planning, Sourcing, Delivery, Manufacturing and Sustainability Performance on Firm’s Supply Chain Performance in Manufacturing Industry of Pakistan: The Complementary Role of Human Resource, And Organization Strategies

Abstract

Nowadays, most organizations consider the adoption of sustainable practices as not only a competitive advantage but also a necessity for long-term survival. However, it yet remained inconclusive how they affect SC performance. Moreover, how do HR and organizational strategies complement these relationships. This study explored various supply chain functions that influence sustainability and supply chain performance. We also investigated the role of HR and organizational strategies moderating these relationships. For this, we proposed a theoretical framework modifying Katiyar et. al. (2018) model to incorporate the above-discussed moderation. We argue that Planning, Sourcing, and delivery performance improves the SC performance directly, as well as through increasing Manufacturing and Sustainability Performance. We also contend that the effect of these factors on SC performance is augmented where there are well-defined HR and organizational strategies. Empirical validity was established by conducting a survey using a close-ended questionnaire. The data was collected through a five-point Liker questionnaire, from which 1000 samples of 300 responses from Pakistan's manufacturing industry are obtained. Structured equation modeling was used to analyze data. The results suggested that manufacturing, and sourcing Performance, seem to have a direct positive effect on supply chain (SC) performance, whereas delivery performance seems to be affecting - Sustainability Performance. Hence, manufacturing performance seems to positively mediate the effect of sourcing performance on SC performance. Results also suggested that HR strategies seem to positively the effect of complement delivery performance whereas negatively complement the effect of sourcing performance on SC performance. Finally, implications to theory and practice are discussed, especially for emerging economies.