RETRACTED: Achieving supply chain sustainability: enhancing supply chain resilience, organizational performance, innovation and information sharing: empirical evidence from Chinese SMEs

The study emphasizes the critical importance of information exchange, supply chain resilience (SCR) and innovation (INN) in boosting the effectiveness of organizations within Chinese small and medium-sized enterprises (SMEs). By promoting resilience, encouraging INN and implementing effective information-sharing (IS) procedures, companies can enhance their competitiveness. Recognizing the mediating role of INN and the moderating role of information sharing aids in the integration of innovative practices and technologies to bolster resilience. Key areas impacted include alternative sourcing, advanced inventory management and flexible manufacturing. INN helps manage disruptions and risks proactively, highlighting the need for investments in real-time monitoring, predictive analytics and blockchain technology to improve visibility and risk identification. Globalization may cause companies to broaden their customer bases, operate internationally and serve more customers. However, it also entails dangers, including shifting circumstances, disruptions and elevated prices. To address these issues, outsourcing has evolved, lowering outputs and service costs (Kazancoglu et al., 2023).

Due to the exposure of global supply network vulnerabilities during COVID-19, organizations need to improve their versatility. SCR is crucial for recovering from unforeseen events and ensuring operational continuity (Alsmairat and Al-Shboul, 2023). Disruptions in the supply chain, exemplified by events like the COVID-19 pandemic, underscore the importance of resilience (Sá and Serpa, 2020; Lehmann et al., 2021). INN is crucial for organizational success, allowing businesses to remain competitive and adapt to market changes. Companies with strong SCR are better equipped to drive INN, resulting in enhanced overall performance (Lii and Kuo, 2016). INN fosters a deep understanding of component interactions, driving the development of new goods, processes and technologies and facilitating organizational growth and improvement (Khan et al., 2018). It significantly impacts business success, enabling continuous enhancement, survival and expansion, thus driving competitiveness (Timothy, 2022). Understanding risks enables organizations to mitigate disruptions and maintain operational stability (Cui and Idota, 2018). Information sharing (IS) and organizational performance (OP) are positively linked across various sectors (Ungar and Wall, 2021; Abdalla Hamza et al., 2021). Internal adjustments play a key role in enhancing SCR and mitigating external shocks (Ali and Gölgeci, 2019). Research and technology play pivotal roles in laying the groundwork for INN, encompassing both the adoption of existing technology and organizational readiness for new technologies (Jianguo et al., 2022).

According to the 2003 SME Promotion Law, Chinese SMEs account for nearly 60% of gross domestic product (GDP), 50% of tax revenue, 70% of technological INN and 79% of jobs in the country. As such, they are vital to the economy. They’re renowned for their adaptability to changing markets, speed of market penetration and profound influence on patents and the creation of new products. Their flexibility contributes to SCR even in the face of budgetary limitations and reliance on private sources. Because of their smaller size, SMEs are the driving force behind 65% of patents, 75% of technological advancements and 80% of new goods. They also benefit from simple IS. Performance, however, can be impacted by issues like funding and inadequate technological assistance. Understanding these traits' importance in China’s economy requires examining how they affect supply chain performance, resilience and INN.

According to a prior study (Aslam et al., 2020), resilient supply networks have a favorable consequence on performance and competitiveness. Research demonstrates that SCR significantly enhances operational performance. Firms equipped with SCR can adeptly navigate disruptions, mitigate risks and maintain uninterrupted operations, directly correlating with organizational success (Liu and Atuahene-Gima, 2018). Previous research has shown the link between a firm’s INN and resilience (Al-Hakimi et al., 2022; Sabahi and Parast, 2020; Mehmood et al., 2024). Theoretical assessments and empirical validation (Adobor, 2020) highlight the critical role of INN in developing flexible strategies to navigate environmental disruptions and changes. IS involves disseminating knowledge to others within the organization. IS is widely recognized as a critical aspect of knowledge management (Muhammed and Zaim, 2020). The current research on SCR and OP has mainly looked at their connection overall, without focusing on Chinese manufacturing SMEs. Belhadi et al. (2021a) emphasized the need to explore this link in different places and industries, while Wieland and Durach (2021) highlighted that there’s more to consider than just one-dimensional factors. There’s also a lack of research on how other factors might affect the SCR–OP relationship, especially in China. By investigating these gaps, the proposed study aims to deepen our understanding of how SCR influences OP in Chinese manufacturing SMEs, shedding light on factors that could shape this relationship. While the importance of SCR and its impact on OP is widely recognized, there is still a knowledge gap concerning the intermediary role of INN and IS in this relationship. Specifically, in the context of the Chinese manufacturing SMEs enterprise, existing studies have not comprehensively examined all relevant variables, including mediation and moderation effects. This study aims to fill this gap by exploring the intervening role of INN and the moderating role of IS.

Furthermore, this study shows how innovative IS approaches can bolster SCR impacting OP. An SCR can withstand disruptions, minimizing their impact and bouncing back quickly. Operational risks threaten supply chain aspects and overall business resilience, as seen during events like COVID-19. Other disruptions include competition, market shifts and changes in customer behavior (Ambrogio et al., 2022). Organizational INN, led by upper management, transforms business operations to achieve strategic goals like cost containment and efficiency. It drives the adoption of new technologies, fosters INN and enhances operational effectiveness, competitiveness and adaptability (Azeem et al., 2021). A study by Sahoo and Upadhyay (2024) examines how combining Industry 4.0, Lean Six Sigma and circular supply chain management can enhance triple bottom line (TBL) performance, focusing on economic, environmental and social aspects.

IS facilitates better decision-making and problem-solving by exchanging resources, data and insights among individuals, groups or systems. It enhances performance through effective communication via various channels like video conferencing, messaging and face-to-face interactions, fostering cooperation, openness and trust (Azeem et al., 2021; Swart et al., 2022). OP, on the other hand, encompasses the achievement of goals, optimization of results and efficient utilization of resources and strategies for adaptation and success. It involves evaluating members, teams, programs and procedures to ensure alignment with the organization’s mission and strategic objectives (Nafari and Rezaei, 2022; Putra and Adawiah, 2023). Modern supply chains are intricate, dynamic and interdependent, and this is reflected in the multifaceted character of SCR. For supply chain disruptions and uncertainties to be effectively anticipated, addressed and adapted to, resilience necessitates capabilities spanning numerous dimensions (Piprani et al., 2022). Comparing this multidimensional viewpoint to a limited, single-dimensional one yields a more thorough knowledge of SCR (Khan et al., 2023). This study incorporates the answers to the following questions.

The many characteristics of resilience are interrelated, and when combined, they allow supply networks to recover from disturbances and continue operations (Ke et al., 2023). Figure 1 shows resilient supply benefits.

The COVID-19 epidemic has made the sustainability and resilience of supply chains a major concern for Chinese SMEs. Global supply networks were severely disrupted by the epidemic, which resulted in industrial closures, delays in transportation and shortages of merchandise (Zhao et al., 2023). These supply networks became even more stretched during the rapid economic recovery in late 2020, as businesses found it difficult to keep up with the unexpected spike in demand (Mnyakin, 2023). SMEs frequently lack the technological and financial means to invest in cutting-edge technology necessary for resilience and sustainable supply chain operations. It is difficult to establish and evaluate sustainable practices because of their activities inside intricate supply chains that involve several partners, suppliers and customers. SMEs are also less able to improve supply chain sustainability since they do not have the same access to data and information as larger businesses (Dey et al., 2021).

Building specifically on the work titled “Navigating uncertainties: The impact of SCR on OP, mediated and moderated models in Pakistan” (Mehmood et al., 2024), this study provides a thorough analysis and extension of prior research in the manufacturing sector. This current research focuses on the Chinese manufacturing sector, whereas the previous study looked at the relationships between SCR, OP, INN and IS. With a larger sample size and more techniques used, this study offers insightful information on these connections and how they relate to attaining sustainability. Chinese SMEs can boost supply chain sustainability and resilience by focusing on waste reduction, energy efficiency and responsible sourcing while using cloud solutions for real-time data and collaborative platforms for communication. Key actions include investing in training, partnering with industry groups, involving stakeholders and aligning sustainability with corporate strategy. According to the search results, there have been difficult circumstances pertaining to SCR and sustainability in the business (Table 1), especially in recent years. Following are some essential details and business examples:

To achieve supply chain sustainability in the face of persistent global difficulties, these strategies seek to enhance SCR, OP, INN and information exchange.

The primary aim of this study was to investigate the intricate relationship between SCR and OP. Specifically, the study sought to understand how innovation operates as a mediator in this relationship, facilitating a deeper understanding of how advancements and creativity influence the association. Moreover, the study aimed to ascertain the moderating effect of IS in this relationship, elucidating the role of collaborative knowledge exchange in achieving enhanced OP through SCR. The research is based on a logical framework derived from existing literature and theoretical concepts. This study is crucial for achieving a sustainable supply chain. Exploring the interconnected dynamics of SCR, OP, INN and IS is essential, especially with increasing awareness of global supply chain vulnerabilities and the need for organizational adaptability. It enables organizations to make informed strategic decisions, improve risk management and resilience strategies, adopt innovative practices and foster collaborative ecosystems by leveraging creativity and shared knowledge.

The previous literature supports the study on SCR boosts OP by improving cost efficiency, adaptability and customer relations. It serves as a crucial link between stakeholder connections, emphasizing the need to nurture relationships with suppliers and customers to strengthen SCR and amplify OP (Qazi et al., 2022). The manufacturing SMEs in China comprehending the influence of supply chain integration (SCI) on SCR, thereby affecting supply chain performance is imperative. Studies indicate that SCI exerts a notable sway on Supply Chain Resilience (SCRES), ultimately shaping supply chain performance (Piprani et al., 2020). Moreover, proactive resilience strategies and ambidexterity serve as dynamic capabilities capable of further refining OP by strengthening SCR (Pertheban et al., 2023; Mehmood et al., 2024). Empirical findings underscore the pivotal roles of SC ambidexterity and risk management in erecting SCR, thus bolstering overall OP (Baird et al., 2019). Additionally, digitalization emerges as a critical catalyst for enhancing SCR within organizations, furnishing valuable insights for companies seeking to bolster their resilience through technological advancements. Saddique et al. (2023) and Sharma et al. (2022) investigate how environmental dynamism (ED) impacts the role of digital supply chain (DSC) networks and low-carbon practices in enhancing manufacturing firms' sustainable performance. The study examines whether DSCs improve sustainability and the mediating effect of low-carbon practices under different ED levels.

According to the dynamic capabilities’ theory, for businesses to succeed in quickly changing settings, they must constantly integrate, reconfigure and adjust both their internal and external skills. It is believed that sustainability is a dynamic organizational skill that may greatly increase the performance and resilience of the supply chain. According to research, SCR and overall organizational effectiveness are greatly improved by green INN, which is one of these dynamic competencies (Issa et al., 2024). According to the resource-based view (RBV) theory, businesses can obtain a competitive advantage by efficiently utilizing their resources and competencies. Important resources in supply chain management, like information exchange, creativity and resilience, are necessary to keep a competitive edge. According to studies, these resources can significantly increase the resilience and performance of the supply chain (Zhou et al., 2024). According to a meta-analysis of Sustainable Supply Chain Management (SSCM) activities, they improve business performance and foster INN. Upstream and internal practices have the biggest effects, whereas downstream practices have the biggest impact (Wang et al., 2023). Additionally, studies demonstrate the importance of green INN in strengthening SCR, particularly for Chinese SMEs (Miemczyk and Luzzini, 2019). According to Gichuhi (2021) and Mehmood et al. (2024), efficient IS is essential for enhancing OP because it promotes creativity, improves decision-making and builds resilience. Dynamic capacities and RBV frameworks, in addition to empirical data from meta-analyses and studies on green INN and proactive resilience tactics, complement the study’s focus on supply chain sustainability.

SMEs need resilient supply networks for competitive advantage and flexibility in the face of change. The COVID-19 epidemic further underscores the need for robust supply networks (Li et al., 2022). According to a study by Alkhatib and Momani (2023) on garment companies in Sri Lanka, SCR improves business performance and competitive advantage. Studies have demonstrated that stronger supply chains are preceded by more resilient supply chains, particularly when organizational culture plays a moderating role. Resilience positively influences gaining a competitive edge, increasing profitability and restoring organizations following disruptions (Hejazi, 2021). To thrive in a competitive world, resilience is essential and significantly impacts OP. Ramezankhani et al. (2018) and Pu et al. (2023) conducted a study from a dynamic capabilities perspective on the impact of SCR on a company’s sustainable competitive advantage. Proactive capabilities, reactive skills and supply chain design quality – the three components of SCR – have been shown to have a favorable impact on firm performance and sustained competitive advantage.

According to a prior study by Khan et al. (2022b) and Aslam et al. (2020), resilient supply networks have a favorable consequence on performance and competitiveness. A study by Jraisat et al. (2023) investigates the necessity of collaboration mechanisms within triads for sustainable supply chains. The research focuses on the interactions between focal actors and their dyads, emphasizing the importance of sustainable collaboration and IS within agricultural supply chain triads. Ogbuke et al. (2022) and Mehmood et al. (2024) explore the positive association between SCR and financial performance and confirm its beneficial impact on business effectiveness and customer happiness. Novak et al. (2021) revealed a strong correlation between environmental performance and SCR. Additionally, research shows that companies that invest in SCR do better than their competitors in the face of disruptive occurrences. Sarkis (2020) investigate companies with more robust SCR network levels may recover more quickly from SC interruptions. Similarly, Son et al. (2021) exposed that firms with a more resilient supply network are better able to recover from disruptions brought on by natural disasters. This study formulates the following hypothesis by leveraging the insights.

INN determines how well a business performs in attaining long-term success and growth. It entails using innovative thinking and problem-solving techniques to create valuable solutions. According to Ke et al.'s (2023) study on the essential components of SCR utilizing grounded theory and SEM verification, resource resilience greatly increases overall SCR. The study conducted by Atieh Ali et al. (2024) investigated the correlation between resilience and DSC capabilities, revealing a multifaceted interaction between the two. According to their research, supply chain performance and resilience are increased by digital breakthroughs like blockchain and artificial intelligence. According to research by Al-Hakimi et al. (2022), Khan et al. (2022a) and Mehmood et al. (2024), a company’s capacity to react to market changes, foster INN and guarantee its survival and continuity in the business environment are all strongly correlated. Previous research has shown the link between a firm’s INN and resilience (Sabahi and Parast, 2020). Theoretical assessments and empirical validation highlight the critical role of INN in developing flexible strategies to navigate environmental disruptions and changes. Manufacturing companies have increasingly recognized the need to expand their INN capacity to effectively respond to environmental risks and disruptions (Belhadi et al., 2021b). A study by Kumar et al. (2022) examines how the Internet of Things (IoT) affects vaccine supply chain performance amidst COVID-19 in India. With Covishield and Covaxin distribution underway, states like Bihar face challenges due to health infrastructure, poverty and low literacy. Supply chain experts are exploring IoT’s potential to address supply, demand and behavioral obstacles in vaccine distribution.

Similarly, Parast et al. (2019) investigate how process and technological INN have been recognized as crucial elements of SC INN in previous studies (Hahn, 2020). Technological INN aims to develop real-time tracking technologies, state-of-the-art logistics machinery and integrated information systems to enhance and distinguish logistics services (Belhadi et al., 2021b). Conversely, process INN entails re-engineering and revamping the SC to enhance service quality and cut costs (Kwak et al., 2018). Process INN is essential since it leads to product INN and is strongly related to output volume (Bhatti et al., 2022). Various examinations have zeroed in on researching the association between SCR and INN (Yuan et al., 2022). A favorable correlation exists between SCR and INN, which thus improves business success. Similarly, Saragih et al.'s (2020) examination uncovered a positive impact of SCR on creativity, particularly within the background of SMEs. Additionally, the research by Ivanov et al. (2021) underscores the crucial significance of SC stability in facilitating and promoting INN. Most of the study shows a positive connection between a strong SCR and INN, which may lead to work on authoritative execution. Accordingly, the study suggested the following:

Improving OP is a crucial objective for organizations and INN has been perceived as a critical factor in higher performance (Chavez et al., 2017). According to studies by Imran et al. (2022), INN favors organizational success and is considered a competitive tool for success in a changing environment. However, the effects of INN on organizational success involve disseminating knowledge to others within the organization. IS is widely recognized as a critical aspect of knowledge management (Muhammed and Zaim, 2020). It involves a reciprocal process of exchanging knowledge and explores factors influencing individuals’ willingness to participate in this exchange (Al-Kurdi et al., 2020). Research indicates that IS has a positive influence on OP, promoting competitive advantage, organizational learning, INN and survival (Soomro et al., 2021). Several studies have delved into the advantages and obstacles of collaborative IS among supply chain partners. These inquiries often investigate various factors affecting successful collaboration, such as trust, reciprocity and incentives related to IS (Wamba et al., 2020). A study by Awan (2019) examines how social supply chain practices influence social sustainability in manufacturing firms. It looks at safety, environmental cooperation and sustainable manufacturing to pinpoint key practices driving social sustainability. The study also explores how internal environmental investment moderates the link between social supply chain practices and social sustainability performance.

Additionally, research by Ferreira et al. (2021) has explored the role of information is influenced by corporate culture (Arabeche et al., 2022). Technological advancements and external pressures require organizations to review their processes and innovate to ensure sustainability and overcome performance challenges (Tidd and Bessant, 2020). Apart from organizational efficiency and culture, the ability to integrate new ideas significantly influences an OP (Khedhaouria et al., 2020). Research spanning diverse disciplines has explored the relationship between INN and organizational effectiveness, consistently revealing that fostering INN is crucial for improving organizational effectiveness (Coccia, 2017). There is ample research highlighting the correlation between INN and business success (Arabeche et al., 2022). Research constantly demonstrates that an OP, suitability and competitiveness are significantly impacted by INN (Scaliza et al., 2022). The Indonesian wooden furniture industry’s INN and performance were compared, and it was shown that there was a significant association between the two (Hu et al., 2020; Zafar and Mehmood, 2019). Mehmood et al.'s (2024) studies revealed that employing intangible resources like creative knowledge and values had an optimistic influence on the performance of Sri Lankan SMEs, highlighting the quantity, kind and resource allocation for INNs as the leading company performance-influencing determinants. Waseem et al. (2018) emphasized the beneficial effects of new product and process developments on profits, market share and sales, with product developments having a higher influence. Hajar (2015) demonstrated that INN had a substantial and optimistic influence on firm success in the manufacturing business. The data consistently indicate a positive correlation between INN and company performance (Aljuboori et al., 2021). Khan et al. (2022a) stated that enhancements made to processes and products exhibited a positive impact on performance within the assembling area of Malaysia, yet no immediate connection among INNs in business success had been found. The review we saw above drove us to propose following hypothesis.

When examining INN as a mediator between SCR and OP, the component theory of creativity can explain how creative thinking and problem-solving processes contribute to generating innovative solutions within the SC setting (Srimulyani et al., 2023). Enhancing INN skills not only enhances performance but also bolsters resilience against disruptions in the industrial sector (Siagian et al., 2021). Adaptability to swift shifts in products, challenges and consumer preferences hinges on INN. It empowers organizations to introduce fresh perspectives by leveraging theories, practices, expertise and insights, thus augmenting competitiveness and fostering distinctive capabilities (Antunes et al., 2017). A study by Zhang et al. (2019) finds that both management and technological INNs significantly boost OP through sustainability. Sustainability acts as a partial mediator between both types of INN and OP, highlighting its crucial role in driving success. A study by Samadhiya et al. (2023) explores how artificial intelligence techniques (AITs) impact disruption management in healthcare supply chains (HSCs), particularly amidst events like COVID-19. It delves into whether supply chain dynamism affects this influence. The study highlights AITs' role in enhancing HSC resilience (HSCR) by fostering better adoption and collaboration within the supply chain.

Moreover, INN plays a pivotal role in driving operational efficiency in service-oriented enterprises, as evidenced by numerous studies linking INN to enhanced operational performance (Singh et al., 2021). Bahrami et al. (2022) and Mehmood et al. (2024) explored the impact of big data analytic (BDA) capabilities on supply chain performance. Their focus was on how BDA capabilities influence supply chain performance by way of SCR and INN. Within the dynamic and uncertain landscape of commerce, INN is recognized as a dynamic capability that not only adds value but also confers a competitive edge to companies (Huang et al., 2021). Al-Hakimi et al. (2021) explored the link between entrepreneurial orientation (EO) and SCR in Yemeni manufacturing SMEs, addressing uncertainties about how EO enhances SCR. Their study examines absorptive capacity (AC) and innovation as mediators in this relationship, analyzing survey data from 171 SMEs in Sana’a, Yemen, utilizing structural equation modeling (SEM) with SmartPLS. According to studies (Nasrollahi et al., 2021; Khan et al., 2024), the relationship between SCR and organizational achievement is mediated through INN capabilities. INN has been found to work as a mediator in the association of supply chain resiliency and organizational success investigated by Al-Hakimi et al. (2022). Businesses with robust SC can better withstand disturbances and deploy novel solutions, which boost company performance. Overall, the research shows a direct connection between SCR and INN. Hence, this study utilizes the above findings in formulating the following hypothesis:

IS practices influence SCR, and studies may examine the types of information shared, the frequency and channels of communication and the role of technology in facilitating information exchange (Tan et al., 2022). A study by Ganguly et al. (2020) is conducted to evaluate the role of social capital and knowledge sharing in achieving the INN capability of an organization. It also discusses the role that knowledge quality might play in fostering the INN capability of an organization. In their study, Yang et al. (2022) examined how IS affects supply chain adaptability and operational performance. They utilized SEM to analyze data from 216 manufacturers in China, revealing the interconnections between supply chain IS, adaptability and operational performance. Coşkun and Erturgut (2023) explored how uncertainties affect SCR and whether IS moderates this relationship. Their study, based on 244 survey data points from global manufacturing firms in Turkey, revealed that uncertainties, driven by various internal and external factors, can disrupt supply chains, increasing vulnerability and operational costs. Kim and Chai (2017) analyze how electronic supply chain management spread is influenced by IS, noting that while SCR has attracted substantial attention, empirical research on its sources and results, especially in SMEs, is limited. Mehmood et al. (2024) investigate how INN mediates and IS moderates the link between SCR and OP in the Pakistani manufacturing sector.

Yuan and Li (2022) explored how supply chain risk information processing capabilities (such as sharing and analysis) and supply chain finance (SCF) influence SCR, with a focus on environmental uncertainty’s moderating role in the SCF–resilience relationship. IS involves sharing in enhancing organizational learning and adaptive capacities. Various studies have analyzed the factors that either facilitate or impede IS within SC contexts. These factors include corporate culture, information technology infrastructure, governance structures and risk perceptions (Bahrami and Shokouhyar, 2022; Al-Matari et al., 2022). Atieh Ali et al. (2024) examine the intricate relationship between SCR, DSC and sustainability, with a particular focus on the moderating role of supply chain dynamism. This research aims to understand how these components interact within modern supply chain management and their collective impact on sustainability outcomes. Research might compare IS strategies across different industries to understand how context-specific factors influence the relationship between IS, SCR and OP (Ferreira et al., 2021). Scholars have developed frameworks and models to measure SCR and assess the role of IS in enhancing resilience capabilities (Giancotti and Mauro, 2020). Hence, this study utilizes the above findings in formulating the following hypothesis:

This research is exploratory and employs a quantitative methodology. The sample was selected through convenience sampling, which is generally more cost-effective and less time-consuming than other methods. This approach also offers flexibility in data collection settings and methods. The study uses convenience sampling to select manufacturing SMEs from three Chinese cities Xian, Hainan and Guangzhou based on accessibility criteria such as proximity, ease of communication or willingness to participate. The study focuses on Chinese manufacturing SMEs, vital for economic growth, employment and development, aiming to understand the link between SCR and OP in this sector, especially during disruptions like COVID-19. Given the unique supply chain challenges, reverse logistics and competitive advantage within this industry, it is a prime subject for research, particularly in the context of recent changes brought about by globalization, technology and financial pressures. Researchers likely chose this industry for its homogeneity, providing a targeted sample for examining the relationships between competitive advantage, OP and reverse logistics.

Potential firms were identified based on the established criteria, and contact was made via phone and email to explain the research objectives and seek their participation. The selected SMEs were informed that convenience sampling was used for practical reasons, focusing on easily accessible firms. Once willing participants were identified, survey data were collected to gather the necessary information for the study. The sufficiency of the data was validated using Monte Carlo simulations, which systematically varied model types, the number of variables, indicators, intensity of indicator loadings, regressive pathways and the amount of missing data per indicator. The analysis of these simulations confirmed that the sample size was adequate, ensuring that the collected data could reliably and validly support the study’s analyses and conclusions. The authors adapted measurement items from previous studies and modified the questionnaire to meet the specific requirements of their current research, ensuring the relevance and validity of their data collection instrument.

The sample consists of 400 manufacturing enterprises from various industry sectors, including electronics, textiles, sports goods, cosmetics and food manufacturing. These categories were selected to study the application of International Organization for Standardization (ISO) 14001.

The sample size was determined using the Krejcie and Morgan formula: s = X2NP(1−P)d2(N−1) + X2P(1−P)s = \frac{Xˆ2NP(1P)}{dˆ2(N1) + Xˆ2P(1P)}s = d2(N−1) + X2P(1−P)X2NP(1−P). In this formula, SSS represents the required sample size, X2Xˆ2X2 is the critical chi-square value for 1 degree of freedom at the specified confidence level (3.841), NNN is the population size and PPP is the population proportion. According to this method, a sample size of 400 is sufficient for populations exceeding 10,000 (Chuan and Penyelidikan, 2006).

This criterion was established as the minimal prerequisite for figuring out the sample size. Convenience sampling methodology was used to choose the sample. The manufacturing SMEs participation percentages appear in Table 2.

The research utilized a structured survey as its primary instrument. Data collection occurred online via tools such as emails and WeChat. A total of 480 questionnaires were distributed in February and March 2023. Through diligent efforts, 425 respondents agreed to participate and 400 provided usable responses. The survey was divided into three sections: the first gathered background information, the second collected demographic data about the respondents' businesses and the third assessed components related to OP and SCR. For data analysis, SmartPLS-4 software was employed. The study strictly adhered to ethical guidelines, ensuring respondent confidentiality and emphasizing voluntary participation. SmartPLS-4 is ideal for identifying relationships between observed and latent variables, making it suitable for predicting and exploring complex data. It is adaptable to any sample size and does not require data to be normally distributed. Tools like SmartPLS make partial least squares structural equation modeling (PLS-SEM) superior to covariance-based structural equation modeling (CB-SEM) for prediction and managing complex models.

In adherence to procedural recommendations for addressing potential common method bias (CMB) concerns by Podsakoff and Organ (1986), this study prioritized participant confidentiality and anonymity to discourage insincere responses and mitigate the risk of CMB. Additionally, in line with the guidance provided by Gu et al. (2021), Harman’s single-factor test was conducted to assess CMB within the datasets. The results of the test confirmed the absence of significant CMB, as the variance explained by a single factor was less than 50%.

Moreover, we conducted tests to scrutinize multicollinearity using variance inflation factor (VIF) values. The results of these tests demonstrated that all VIF values for the variables remained below 5, indicating that concerns regarding multicollinearity were unwarranted for this study. To assess non-response bias, we employed the Armstrong and Overton (1977) method, comparing the responses of early and late respondents. The analysis revealed no significant differences between the two groups. The respondents' and companies’ demographic percentages are given in Table 3.

Incorporating these elements will provide a more thorough description of survey respondents, showcasing their suitability as informants. This improved methodology will bolster the study’s credibility and help readers evaluate the findings' relevance to their own contexts.

A conceptual framework serves as a tangible representation that emphasizes the relationships and interactions between variables and concepts in a study. It acts as a guiding tool to help researchers organize their ideas, contextualize concepts and formulate hypotheses, as illustrated in Figure 2. This framework indicates that SCR directly impacts both OP and innovation. INN, in turn, has a direct effect on OP and mediates the relationship between SCR and OP. Additionally, IS moderates the relationship between SCR and OP, suggesting that the effect of SCR on OP varies based on the level of IS implementation or effectiveness.

Some slight adjustments were made to the wording in certain categories to better suit the current research context. The measurement items were adapted from established research scales. The survey employs a Likert scale with five options, spanning from “1” representing “strongly disagree” to “5” indicating “strongly agree. Sources of the measurement instrument SCR included nine items by Zhao et al. (2019), OP included seven items by Damanpour and Schneider (2009), INN included ten items by ATAN (2020) and IS included seven items by Abdullah et al. (2016). Each measurement item was extensively described, outlining the constructs being assessed along with the precise questions or statements employed for evaluation. This approach aimed to ensure transparency in how variables were operational and to enable readers to grasp the measurement procedure comprehensively. The study’s replicability and transparency will be enhanced by providing detailed information on the methods and measurement instruments used. This approach ensures that other researchers can accurately replicate the study, improving both its validity and reliability.

The present study used a quantitative research method that relied on the quantitative approach and adopted a cross-section research methodology. The researchers used the method of SmartPLS to analyze data through the Smart PLS-4 software. It is a common method of investigation of facts in the social sciences, management studies and business research. It is a robust rank-free test for both irregular data and small sample sizes and is therefore a logical candidate for a conjoint fact. The prime focus of SmartPLS is to test the existing hypotheses with the intricate model structures (Ringle et al., 2020).

The measurement model’s definition and the structural model’s assessment comprise the SmartPLS analysis method (Iqbal et al., 2019). To ensure that these constructs could be operationalized in the context of humanistic methodology, the constructs were examined in more detail as part of the development of the measurement model. All constructs with good indicator loading, composite reliability and convergent and discriminant validity were further analyzed. The phase of the model assessment of the structural model was used for the evaluation of route coefficients and its significant using bootstrapping process. The main goal of this phase was to assess the strength of correlations between variables. The researchers used Preacher and Hayes’ methodology for the mediation and moderation analysis (Hayes, 2009). Table 4 presents a comprehensive analysis of descriptive statistics.

Reliability and validity analysis is essential because it helps researchers determine the extent to which the results obtained from their research are consistent and can be trusted (Alexander et al., 2017). To test the validity and reliability of the survey and the questionnaire, this study applied the measurement model. A valid indicator in confirmatory factor analysis (CFA) confirmed the measurement model applied to the structural model were very appropriate. The results are shown in Table 5 in terms of item loading and convergent validity obtained through the SmartPLS analysis. Table 6 displays results of convergent validity (discriminant validity). In addition, discriminator credibility, which is widely recognized standard used in this context, was determined using the average variance extracted (AVE) square root (Fornell and Larcker, 1981).

The constructs were convergent and valid since the AVEs were higher than 0.5 (Fornell and Larcker, 1981). The composite reliabilities (CRs) were over 0.7 and the value is above 0.7, i.e. the data’s internal consistency or dependability is quite high. As a result, the data proved reliable for future investigation.

In the context of SEM, the heterotrait-monotrait ratio (HTMT) serves as a statistical method to assess discriminant validity. The HTMT ratio compares the average correlation among items assessing various constructs (heterotrait) to the average correlation among items measuring a single construct (monotrait). The outcomes of the HTMT are presented in Table 7.

Multicollinearity is when two or more independent variables in a regression model are highly correlated, making it difficult to separate their individual effects on the dependent variable (Alin, 2010). A common rule of thumb to assess multicollinearity is to consider a VIF value greater than 5 or 10 indicatives of problematic multicollinearity. The goodness-of-fit (GoF) value of 0.53 significantly surpasses the threshold of 0.36, indicating a solid fit per the criteria proposed by Wetzels et al. (2009). Furthermore, the R² value of 0.605 exceeds the recommended minimum threshold of 0.1, as suggested by Falk and Miller (1992). Additionally, the Q² value of 0.840 surpasses 0 and is consistent with established evaluation criteria.

Next to conducting an essential evaluation of the measurement model, the study proceeded to the subsequent phase, analyzing the structural model. Hypothesis testing was conducted through a series of procedures. Firstly, the relationship between SCR and OP was assessed. Secondly, the relationship between SCR and INN was examined. Subsequently, the connections between INN and OP were investigated. Furthermore, the study explored the connection between INN on the association between SCR and OP. Lastly, the study examined the connection of IS to the association between SCR and OP. The direct link hypothesis testing findings are presented in Table 8, while Figure 3 depicts the interrelationships among these variables.

Since Table 8 revealed a substantial correlation between SCR and OP (β = 0.391, t-value, 8.870 p > 0.002), H1 is reasonable. Due to the significant direct influence of SCR and IN (β = 0.785, t-value, 18.14 p > 0.001), H2 is detected. Since the immediate effects of IN and OP were both favorably significant (β = 0.661, t-value, 9.190 p > 0.003), H3 is also acceptable. The Preacher and Kelley (2011) technique is employed to investigate INN mediation. The p-value for the indirect impact was determined via bootstrapping. The findings demonstrate that the relation between SCR and OP is mediated by INN H4 with (β = 0.652, t-value 7.433, p 0.001). The finding also revealed that the relation between SCR and OP is moderated by INN H5 with (β = 0.528, t-value 6.345, p 0.002). The outcomes of the mediation and moderation research are contained in Table 8.

The study results highlight the dynamic nature of SCR and the need for flexibility in sourcing, production, logistics and distribution, among other areas (Piprani et al., 2022). Businesses must learn how to adjust and react to changes in different supply chain segments. SCRs are essential for businesses to successfully negotiate China's volatile and evolving business climate. Events including missing or delayed shipments, low inventory, poor quality and natural or man-made calamities can seriously impair a company’s ability to operate profitably (Qazi et al., 2022; Mehmood et al., 2024). Significantly, in the Chinese context, it has been discovered that stakeholder relationships, especially those with suppliers and customers, play a critical mediating role in the relationship between SCR and organizational success. Improved stakeholder relations can both lessen the negative effects of supply chain risks and increase a firm’s resilience.

The study hypothesis result supported by research emphasizes the crucial role of SCR in navigating disruptions and uncertainties within supply networks, which is essential for sustaining operational efficiency (Qazi et al., 2022). Moreover, organizational resilience mediates SCI and sustainable performance (Arshad Ali and Mahmood, 2023). Consequently, businesses prioritize enhancing resilience, employing strategies such as bolstering buffer capacity and implementing robust risk management (Malesios et al., 2018). Contingency theory underscores the need for aligning internal processes with the external environment for optimal functioning (Feng et al., 2021). This body of work supports (H1) the positive correlation between SCR and OP.

Recent studies show a strong correlation between internal INN within businesses and robust SCR (Yu et al., 2022; Mehmood et al., 2024). An SCR, capable of adapting to changes, enables businesses to identify opportunities and devise creative solutions. Arranz et al. (2020) suggest that agile businesses, adept at adapting to external changes, are more likely to innovate a concept supported by the dynamic capabilities’ theory. The research underscores the crucial role of SCR in enabling businesses to navigate uncertainty effectively and fostering creative problem-solving. Organizations with sturdy supply networks exhibit greater adaptability to environmental disruptions, enhancing INN and sustaining their competitive advantage (Yan et al., 2023; Ozdemir et al., 2022; Pu et al., 2023). Research confirms that SCR is positively associated with INN (H2). A strong supply chain not only helps businesses overcome obstacles but also fosters INN and competitiveness in dynamic markets.

The significant relationship that exists between INN and OP emphasizes how important INN is to success as a whole (H3). Empirical research, such as by Ullah et al. (2022), highlights this relationship and shows that INN and financial performance in Pakistani businesses are positively correlated. Mueller et al. (2013), however, issue a warning, pointing out that contextual factors such as industry and country might affect how INN affects performance.

Furthermore, Migdadi et al. (2016) and Mehmood et al. (2024) highlight the significance of taking a variety of factors into account as they examine conflicting results on the relationship between organizational INN and business performance. The benefits of INN are supported theoretically, but their practical effects can differ depending on certain situations. However, industrial organizations can benefit from implementing organizational INNs in terms of increased productivity, quality, customer relations, employee satisfaction and overall OP.

In the realm of supply chain management, the interplay between INN, SCR and OP (H4) is crucial. INN acts as a mediator between SCR and OP, enhancing adaptability and positively impacting performance (Beka Be Nguema et al., 2022). Effective integration of information systems further amplifies SCR’s beneficial effects on OP, underscoring the importance of INN in bolstering resilience (Lin and Fan, 2024).

Moreover, studies show that INN positively influences various aspects of supply chain performance, such as operational efficiency, networking and management practices, leading to competitive advantage and improved performance (Lin and Fan, 2024). Digital INN, in particular, plays a pivotal role as a mediator between SCR and firm performance, enabling effective responses to disruptions and highlighting INN’s significance in building resilience (Zhao et al., 2023; Bahrami and Shokouhyar, 2022). Additionally, the moderating role of IS, particularly in facilitating IS, strengthens SCR and positively impacts OP in dynamic business environments (Goaill and Al-Hakimi, 2021). Hypothesis (H5) suggests that IS is a critical factor in shaping the relationship between SCR and OP, with strong collaboration amplifying the positive impact of SCR on performance (Al-Matari et al., 2022; Bahrami and Shokouhyar, 2022; Mehmood et al., 2024). Although relationships and performance in the supply chain can benefit from IS, these advantages are not always clear-cut or substantial. The researchers may have chosen to concentrate on its moderating influence, especially for the SCR-OP path due to certain hypotheses.

Thus, by fostering INN and facilitating IS through robust IS integration, organizations can enhance SCR and drive improvements in overall performance, as supported by INN diffusion theory. This study examines the connection between INN, OP and SCR, emphasizing the role SCR plays in maintaining operational effectiveness amid disruptions. We advocate for stronger buffer capacity and effective risk management, highlighting the importance of organizational resilience in mediating SCI and sustainable performance. Based on the contingency theory, the study confirms positive relationships between SCR and INN, OP and INN and strategic corporate responsibility and OP.

Additionally, we explore how INN serves as a catalyst to enhance performance and flexibility. The beneficial effects of SCR on OP are amplified through effective integration of information systems, with digital INN playing a mediating role in this relationship. Moreover, the link between SCR and OP is further moderated by information systems, and the performance benefits of SCR are enhanced by robust teamwork. This study highlights the critical importance of supporting SCR, integrating information systems and fostering INN for company success. By prioritizing these initiatives, organizations can navigate disruptions and gain a competitive edge in dynamic marketplaces.

According to the study’s findings, Chinese SMEs enterprises gain significant advantages from robust SCR. This resilience enhances business key performance indicators (KPIs), stimulates INN and cultivates a culture of sustained competitiveness. SCR not only drives INN and facilitates the exploration of new opportunities but also enables companies to effectively respond to disruptions, leading to improved overall OP. Fostering a creative culture is essential for maintaining competitiveness and achieving superior business outcomes, particularly for Chinese manufacturing enterprises. INN acts as a bridge between SCR and OP, underscoring the critical role of resilience in achieving INN-driven success.

Furthermore, internal systems within the organization moderate the effectiveness of resilience tactics, highlighting the importance of internal communication practices in optimizing the impact of SCR on OP. The study reveals a strong correlation between organizational success and SCR, with businesses that have resilient networks outperforming others. Additionally, supply chain and OP flexibility are influenced by INN and internal systems. These findings, particularly relevant in manufacturing, emphasize the importance of enhancing SCR for improved OP. Businesses are encouraged to prioritize INN and IS to fully leverage the benefits of SCR, which is crucial in the dynamic manufacturing landscape. To support this, policymakers should focus on initiatives that foster SCR and INN, such as employee education programs, partnerships between businesses and universities and tax incentives for supply chain INN and flexibility.

The findings underscore the necessity of enhancing SCR, harnessing digital transformation, integrating marketing with supply chain management and cultivating AC to effectively navigate uncertainties and boost OP in the manufacturing sector.

Understanding resilience factors like redundancy, flexibility and agility is essential for firms to effectively endure disruptions. Investing in INN, including research, technology adoption and process improvements, enhances adaptive capabilities and resilience. Strategic IS through collaborative relationships ensures timely and accurate information flow, mitigating disruption impacts. Capacity building and skill development initiatives in areas such as risk management and decision-making strengthen workforce resilience. Policymakers' support through regulations, incentives and infrastructure investments is crucial for resilience and INN. Collaborative networks across the supply chain ecosystem enable firms to anticipate and respond to disruptions effectively. Continuous monitoring and evaluation of resilience strategies and INN practices are key to sustaining a competitive advantage. Recognizing INN as a mediator and information systems as a moderator between organizational success and supply chain flexibility provides a competitive edge. Promoting a culture of continuous improvement, prioritizing INN and information systems initiatives, investing in employee training and cultivating an agile workforce led to overall organizational success through innovative solutions.

From a theoretical perspective, INN anchored in creative processes and domain-specific skills acts as a crucial link between organizational success and supply chain flexibility, highlighting the essential role of creative thinking in problem-solving. Emphasizing creativity and skill development among employees increases the likelihood of innovative solutions, thereby bolstering SCR. According to dynamic capabilities theory, organizational adaptability is essential, with information systems serving as key moderators. These systems enable real-time IS and agile decision-making, which enhance supply chain flexibility. Meanwhile, RBV theory stresses the importance of fostering a culture of continuous improvement, aligning organizational norms with the adoption and diffusion of INN. This focus on INN, combined with investments in training and a supportive environment for experimentation, promotes organizational agility and adaptability, leading to greater resilience and success in dynamic environments. Theoretical ramifications highlight how closely supply chains' digitization, resilience and sustainability are related. They draw attention to the need for an integrated strategy that considers how supply chains are changing and makes use of digital technology to increase resilience. This method, which is especially beneficial for Chinese SMEs, improves on current theories and provides a more comprehensive foundation for comprehending sustainable supply chain management.

The research has several limitations. First, the quality of the data may be subpar, potentially reducing the reliability of the findings. Second, determining causality versus mere correlation is challenging, which could lead to misunderstandings. Third, the results may only be applicable to specific contexts and not generalize to others, limiting their broader usefulness. Fourth, different measurement methods might render the results biased or difficult to compare with other studies. Lastly, the research may focus excessively on a few factors, overlooking other important elements that influence the resilience of supply chains. Future research should consider these limitations and seek ways to address them.

Future research should utilize longitudinal and cross-industry approaches to track trends over time and across various sectors. It should incorporate qualitative perspectives to enhance understanding of supply chain dynamics and examine the influence of policies on resilience, given their effect on operational strategies. Additionally, research should benchmark exemplary practices to identify effective strategies for improving resilience and sustainability, investigate the role of INN in enhancing resilience to adapt to disruptions and evaluate supply chain sustainability to assess environmental and social impacts. Adopting a global perspective will also be crucial to understanding resilience in diverse contexts.

The publisher of Modern Supply Chain Research and Applications wishes to retract the article Saqib Mehmood, Samera Nazir, Jianqiang Fan, Zarish Nazir; Achieving supply chain sustainability: enhancing supply chain resilience, organizational performance, innovation and information sharing: empirical evidence from Chinese SMEs. Modern Supply Chain Research and Applications 24 March 2025; 7 (1): 2–29. https://doi.org/10.1108/MSCRA-01-2024-0002. It has come to our attention that there are significant concerns regarding the authorship and the source of this article. The authors did not respond to our attempts to contact them regarding this article. As a result, the findings of the article cannot be relied upon. The decision to retract has been informed by COPE’s guidelines on retractions and Emerald’s publishing ethics. Emerald’s authorship policy guidelines make it clear that authorship is a fundamental aspect of transparency in the publication process and ensures accountability and responsibility for reported research. The authors would like to note that they do not agree with the content of this notice. The publisher of the journal sincerely apologizes to the readers.