The objective of this study is to investigate the impact of restorative supply chain practices on sustainability performance in a circular economy (CE). The moderating effect of supply chain managers' perceived professional status on restorative supply chain practices and stakeholder collaboration is also examined.
The theoretical model was developed via the practice-based view, and the model was tested using a sample comprising 142 respondents. WarpPLS 8.0 software was utilized to run the structural equation model.
The analysis shows that restorative supply chain practices result in an intermediate outcome (i.e. stakeholder collaboration), which ultimately improves the sustainability performance of the restorative supply chain. Interestingly, the perceived professional status of supply chain managers acts as a moderate-level mediator in the relationship between restorative supply chain practices in a CE and the sustainability performance of the restorative supply chain in a CE.
Collaboration with stakeholders fosters enhanced communication, cooperation and shared responsibility, thereby creating a socially inclusive and cooperative environment within the restorative supply chain. Improving supply chain sustainability performance supports broader environmental goals, including reducing greenhouse gas emissions and waste and conserving natural resources. Recognizing the perceived professional status of supply chain managers underscores the need to empower them and acknowledge their strategic role in driving sustainability within the organization. Companies can contribute to a more sustainable business environment by adopting restorative practices in the supply chain and addressing the social impacts.
The unique contribution of the findings of this study lies in the examination of the relationship between restorative supply chain practices, stakeholder collaboration, perceived status of supply chain managers and sustainability performance in the context of the CE. The findings imply that restorative supply chain practices positively impact stakeholder collaboration, which in turn improves supply chain sustainability performance. In addition, the study highlights the moderating role of the perceived status of supply chain managers and underscores their influence on strengthening restorative practices and stakeholder collaboration. This study provides valuable insights into the dynamics and mechanisms driving sustainability performance in the context of restorative supply chains operating within a CE.
