Supply chain socially sustainability practices and their impact on supply chain performance: a study from the Indian automobile industry

Abstract

While sustainability has been a well-researched area in academic literature, the performance impact of its social dimensions remains largely unexplored, especially in the context of emerging economies. The aim of this research paper is to test and validate the dimensions of supply chain social sustainability (SCSS) that firms should focus on and to examine the relationships between these practices and supply chain performance, both short term and long term. This paper adopts a questionnaire-based survey research approach in the context of Indian automobile industry. Empirical validation of the conceptual model developed was carried out using Confirmatory Factor Analysis. Multiple regression was used to test the relationships between SCSS practices and supply chain performance. This study finds empirical support to the proposition that a firm’s initiatives on SCSS dimensions of safety, labour rights, ethical practices and welfare initiatives for people and their communities provide performance benefits to them and to their partners in the supply chains. Regression analysis revealed that safety (0.339) and labour rights (0.601) contribute to both short term and long term performance for the supply chain. While ethical practices have a positive impact on short term performance, welfare initiatives only provide long term qualitative benefits. SCSS is in evolving concept and adopting the right mix of factors can help firms to achieve sustainability in all three dimensions of the triple-bottom-line framework (People, Planet and Profit). © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2024.

Keywords: Confirmatory factor analysis, Social sustainability, Supply chain performance, Supply chains