Achieving sustainability within supply chain operations is widely considered to boost firms’ competitiveness and bottom line. Thus, researchers have examined the implications of sustainable supply chain management (SSCM) practices on firm performance outcomes, albeit with inconclusive results. Also, significant unexplored gaps exist regarding the intervening role of supply chain integration (SCI). Anchored in the political economy theory, this study explored how different forms of SCI mediate the relationship between each of the triple-bottom-line (TBL) pillars of SSCM practices and firm performance.
The research model and associated hypotheses were tested using 455 survey data obtained from a cross-section of Ghanaian firms and the partial least square structural equation modeling (PLS-SEM) technique.
The results indicate that all the TBL dimensions of SSCM practices significantly and positively impact firm performance. Nevertheless, various forms of SCI mediate the link between SSCM practices and firm performance differently. Specifically, the findings reveal that customer integration and internal integration mediate the relationship between SSCM practices and firm performance. Supplier integration mediates the relationships between the economic and environmental aspects of SSCM practices and firm performance but not the relationship between the social dimension and firm performance.
This study fulfills a noteworthy literature gap by providing empirical evidence of the mediating role of SCI in translating SSCM practices into better firm performance, especially in the context of a developing country. Thus, it offers guidance for firms to leverage integration with strategic supply chain partners and implement SSCM practices effectively and, in turn, to ensure better performance.
