Impact of sustainability and manufacturing practices on supply chain performance: Findings from an emerging economy

Nowadays, most organizations consider adoption of sustainable practices as not only a competitive advantage but also a necessity for long-term survival. It is, therefore, imperative that we include sustainability in measuring the supply chain performance of a firm. However, very few studies have investigated the impact of sustainability on supply chain performance. This paper presents a unique approach for calculating a supply chain performance index, which could be used by automobile firms. Based on literature review and expert opinion, we first identified the supply chain functions that influence sustainability and supply chain performance. Subsequently, a questionnaire was designed, and a survey of Indian automobile firms was conducted. The partial least squares technique was used to explore the relationship between the identified factors and supply chain performance. Moreover, an integrated model combining the partial least squares and analytic hierarchy process was developed to compute the supply chain performance index. We further found that sustainability performance mediates the relationships of supply chain functions to supply chain performance. Finally, implications to theory and practice are discussed, especially for emerging economies.