Drawing on the relational view and contingency theories, this study explores supply chain relationship conditions' roles in interrelationships between environmental, social and supply chain performance (SCP), i.e. triple bottom line (TBL).
The data from industries and structural equation modeling (SEM) were used to validate the proposed model. Interviews with industry experts were conducted to further understand the findings.
The authors find that relationship conditions, such as inventory information sharing, dependency, opportunistic behavior and conflicts, moderate TBL linkages. Interestingly, power asymmetry does not moderate the linkages. Social performance mediates between environmental and SCP. This indirect effect is stronger than the effect of environmental performance on SCP.
This research is perhaps the first to bring a much-needed nuanced view on the importance of relationship conditions for TBL performance linkages. The research further underlines the importance of social performance in an emerging economy.
