Reconstruction and Validation of Sustainable Supply Chain, Risk Management and Sustainable Performance Using Factor Analysis: Evidence from SMEs in Indonesia
Main Article Content
Abstract
Sustainable Supply Chain Management (SSCM), Supply Chain Risk Management (SCRM), and Sustainable Performance (SP) have largely been conceptualized for large enterprises in developed countries, leaving gaps in implementation for small, and medium-sized enterprises (SMEs) in the context of developing countries. This study aims to reconstruct and validate the core dimensions of SSCM, SCRM, and SP practices in SMEs Indonesia through exploratory factor analysis. Data was collected through a survey of 205 SMEs in various sectors. The analysis identified four key factors: Sustainable Supply Chain Management Practices, Risk Mitigation, Risk Evaluation and Planning, and Sustainable Performance. Notably, SCRM emerged as a multidimensional construct, separating the tactical and strategic aspects from risk management. These findings highlight the contextual specificity of sustainability frameworks in SMEs, emphasizing the need for simplified and adaptable models that reflect the resource constraints and informal structures typical of emerging markets. This research contributes to theoretical refinement and offers practical guidance for SME managers aiming to improve sustainability outcomes.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
https://creativecommons.org/licenses/by-sa/4.0/
References
Alzubi, Y., & Akkerman, R. (2022). Sustainable supply chain management practices in developing countries. Cleaner Production Letters, 2, 100005. https://doi.org/10.1016/j.clpl.2022.100005
Bhatti, A., Rehman, S. U., & Akram, U. (2023). Green supply chain practices and performance of SMEs: The mediating role of eco-innovation. Journal of Cleaner Production, 381, 134860. https://doi.org/10.1016/j.jclepro.2022.134860
Christopher, M., & Peck, H. (2004). Building the resilient supply chain. The International Journal of Logistics Management, 15(2), 1–13.
Costache, R., Surugiu, M. R., & Ionescu, R. (2021). Drivers and barriers of sustainable supply chain practices in SMEs: A Romanian perspective. Sustainability, 13(1), 148.
Dubey, R., Gunasekaran, A., Papadopoulos, T., Childe, S. J., Shibin, K. T., & Wamba, S. F. (2017). Sustainable supply chain management: Framework and further research directions. Journal of Cleaner Production, 142, 1119–1130.
Dyllick, T., & Hockerts, K. (2002). Beyond the business case for corporate sustainability. Business Strategy and the Environment, 11(2), 130–141.
El Baz, J., & Ruel, S. (2020). Can supply chain risk management practices mitigate the disruption impacts on supply chains’ resilience and robustness? International Journal of Production Economics, 233, 107972. https://doi.org/10.1016/j.ijpe.2020.107972
Fan, Y., Stevenson, M., & Gu, M. (2017). Supply chain risk management: Past, present and future. International Journal of Production Research, 55(7), 2083–2106.
Han, N., & Um, J. (2024). Risk management strategy for supply chain sustainability and resilience capability. Risk Management, 26, Article 6. https://doi.org/10.1057/s41283-023-00138-w
Hsieh, C.-C., Chen, S.-L., & Huang, C.-C. (2023). Investigating the role of supply chain environmental risk. Sustainability, 15(20), 15003. https://doi.org/10.3390/su152015003
Kauppi, K., Longoni, A., Caniato, F., & Kuula, M. (2016). Managing country disruption risks and improving operational performance: Risk management along integrated supply chains. International Journal of Production Economics, 182, 484–495.
Kot, S. (2018). Sustainable supply chain management in small and medium enterprises. Sustainability, 10(4), 1143.
Li, Y., Wang, X., & Huang, Z. (2015). Risk identification and evaluation for China's supply chain management. Journal of Cleaner Production, 87, 398–408.
Mamun, M. S. A. (2021). The influence of green purchasing and supplier environmental collaboration on sustainable performance. Journal of Cleaner Production, 285, 124952.
Meidinger, C. (2019). Corporate transparency and community engagement in sustainable supply chains. Sustainability, 11(5), 1260.
Owuor, S. J. O., Oginda, M. N., & Obura, J. (2019). The effect of supply chain risk management practices on the supply chain performance of public universities in Kenya. The Strategic Journal of Business & Change Management, 6(2), 18–24.
Paul, S., Ali, S. M., Hasan, M. A., Paul, S. K., & Kabir, G. (2022). Critical success factors for supply chain sustainability. Sustainability, 14(3), 1863. https://doi.org/10.3390/su14031863
Raza, J., Liu, Y., Zhang, J., Zhu, N., Hassan, Z., Gul, H., & Hussain, S. (2021). Sustainable supply management practices and sustainability performance: The dynamic capability perspective. SAGE Open, 11(1), 1–14. https://doi.org/10.1177/21582440211000046
Reklitis, P., Mihiotis, A., & Kafetzopoulos, D. (2021). Environmental and social performance in SMEs: A grounded theory approach. Journal of Small Business Strategy, 31(2), 77–89.
Saglam, Y. C., Çankaya, S. Y., & Sezen, B. (2020). Proactive risk mitigation strategies and supply chain risk management performance. Journal of Manufacturing Technology Management, 31(6), 1291–1311. https://doi.org/10.1108/JMTM-08-2019-0299
Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699–1710.
Tummala, R., & Schoenherr, T. (2011). Assessing and managing risks using the Supply Chain Risk Management Process (SCRMP). International Journal of Production Research, 49(16), 4877–4904. https://doi.org/10.1080/00207543.2011.563901
Um, J., & Han, N. (2020). Understanding the relationships between global supply chain risk and supply chain resilience. Supply Chain Management: An International Journal, 25(6), 689–705. https://doi.org/10.1108/SCM-06-2020-0248
Yanginlar, G., Civelek, M. E., & Gülçür, E. (2023). The effect of supply chain risk management on logistics performance and innovation performance. International Journal of Professional Business Review, 8(11), 1–22. https://doi.org/10.26668/businessreview/2023.v8i11.3164
Zailani, S., Jeyaraman, K., Vengadasan, G., & Premkumar, R. (2012). Sustainable supply chain management (SSCM) in Malaysia. International Journal of Production Economics, 140(1), 330–340. https://doi.org/10.1016/j.ijpe.2012.02.008
Zhu, T., Liu, G. (2023) A Novel Hybrid Methodology to Study the Risk Management of Prefabricated Building Supply Chains: An Outlook for Sustainability. Sustainability, 15, 361. https://doi.org/10.3390/su15010361