The Impact of Sustainable Supply Chain Management Practices on Organizational Performance: A Quantitative Analysis of Manufacturing and Service Firms

Abstract

This study investigates the relationship between Sustainable Supply Chain Management (SSCM) practices and organizational performance across manufacturing and service firms, aiming to quantify the impact of environmental, social, and economic initiatives on operational and financial outcomes. We employed a quantitative cross-sectional design with a sample of 200 organizations, yielding 978 valid responses from supply chain managers and sustainability officers through structured questionnaires and semi-structured interviews, supplemented by secondary data from corporate reports and industry databases. Data analysis involved multiple linear regression, Pearson correlation, and structural equation modeling, which demonstrated that green procurement (, ), sustainable sourcing (, ), supplier collaboration (, ), and reverse logistics (, ) were significant predictors, with the model explaining 74.1% of the variance in organizational performance (). The correlation analysis revealed a strong positive association between SSCM adoption and overall performance (, ). Furthermore, firms with comprehensive SSCM practices achieved 24.8% higher operational efficiency, 19.7% greater financial performance, and 28.5% improved environmental performance compared to those with low adoption. The novelty of this research lies in its comparative analysis across manufacturing and service sectors, providing empirical evidence that integrated sustainability initiatives yield multifaceted benefits. Consequently, these findings offer strategic implications for business leaders, demonstrating that systematic incorporation of sustainable practices into supply chain operations fosters long-term competitive advantage and organizational resilience. This work thereby contributes to the growing literature on sustainable operations management by validating a robust framework for performance enhancement through SSCM