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An Empirical Examination of Sustainable Supply Chain Risk and Integration Practices: A Performance-Based Evidence from Pakistan

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  • Muzzammil Wasim Syed

    (School of Economics and Management, Taiyuan University of Technology, Taiyuan 030000, China)

  • Ji Zu Li

    (School of Economics and Management, Taiyuan University of Technology, Taiyuan 030000, China)

  • Muhammad Junaid

    (School of Economics and Management, Taiyuan University of Technology, Taiyuan 030000, China)

  • Xue Ye

    (School of Economics and Management, Taiyuan University of Technology, Taiyuan 030000, China)

  • Muhammad Ziaullah

    (Department of Business Administration, Ghazi University, Dera Ghazi Khan 32200, Pakistan)

Abstract

In today’s emerging environment sustainable supply chain risks play a vital role in firms’ performance more than ever, because risks tend to disrupt sustainable operations, which ultimately reduces a firm’s performance, but these risks can be managed through supply chain integration practices, which leads to higher firms’ performance. Therefore, this paper examines the relationship between sustainable supply chain risks, supply chain integration, and firm’s financial performance. This study employs 296 survey observations along with financial data of published annual statements to estimate the quantitative causal-effects of three dimensions of sustainable supply chain risks on supply chain integration and financial performance. The findings of the study suggest that sustainable internal business process risks, sustainable supply risks, and sustainable demand risks have a negative relationship with supply chain integration. Furthermore, results of the study explored that all the three supply chain integration practices have a positive impact on firms’ financial performance, which suggests that implementing supply chain integration practices reduces the effect of supply chain risks and increases the firm’s performance.

Suggested Citation

  • Muzzammil Wasim Syed & Ji Zu Li & Muhammad Junaid & Xue Ye & Muhammad Ziaullah, 2019. "An Empirical Examination of Sustainable Supply Chain Risk and Integration Practices: A Performance-Based Evidence from Pakistan," Sustainability, MDPI, vol. 11(19), pages 1-21, September.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:19:p:5334-:d:271258
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    3. Anwar, Muhammad Azfar & Zong, Zupan & Mendiratta, Aparna & Yaqub, Muhammad Zafar, 2024. "Antecedents of big data analytics adoption and its impact on decision quality and environmental performance of SMEs in recycling sector," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    4. Hassan, Nadir Munir & Abbasi, Muhammad Nauman, 2021. "A review of supply chain integration extents, contingencies and performance : A post Covid-19 review," Operations Research Perspectives, Elsevier, vol. 8(C).
    5. Manavalan Ethirajan & Thanigai Arasu M & Jayakrishna Kandasamy & Vimal K.E.K & Simon Peter Nadeem & Anil Kumar, 2021. "Analysing the risks of adopting circular economy initiatives in manufacturing supply chains," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 204-236, January.
    6. Samuel Foli & Susanne Durst & Lidia Davies & Serdal Temel, 2022. "Supply Chain Risk Management in Young and Mature SMEs," JRFM, MDPI, vol. 15(8), pages 1-15, July.
    7. Marta Negri & Enrico Cagno & Claudia Colicchia & Joseph Sarkis, 2021. "Integrating sustainability and resilience in the supply chain: A systematic literature review and a research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 2858-2886, November.
    8. André Luiz Romano & Luís Miguel D. F. Ferreira & Sandra Sofia F. S. Caeiro, 2021. "Modelling Sustainability Risk in the Brazilian Cosmetics Industry," Sustainability, MDPI, vol. 13(24), pages 1-26, December.
    9. Chih-Hung Hsu & Ru-Yue Yu & An-Yuan Chang & Wan-Ling Liu & An-Ching Sun, 2022. "Applying Integrated QFD-MCDM Approach to Strengthen Supply Chain Agility for Mitigating Sustainable Risks," Mathematics, MDPI, vol. 10(4), pages 1-41, February.
    10. Manel Elmsalmi & Wafik Hachicha & Awad M. Aljuaid, 2021. "Prioritization of the Best Sustainable Supply Chain Risk Management Practices Using a Structural Analysis Based-Approach," Sustainability, MDPI, vol. 13(9), pages 1-15, April.

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