Sustainability Practices in Global Supply Chains: Examining the Moderating Role of Regulatory Environments and Responsible Consumption and Production (SDG 12)

Abstract

Aim: This study aims to explore how economic, environmental, and social sustainability efforts influence the performance of a supply chain and to investigate how the role of government regulations and SDG 12 (Responsible Consumption and Production) may impact these effects.

Method/Design: The study employed quantitative methods and utilised data collected from 365 professionals working in supply chains across various fields. The researchers used a questionnaire to assess factors such as sustainability dimensions, the overall regulatory framework, the incorporation of SDG 12, and performance in the supply chain. To assess the proposed hypotheses, structural equation modelling (SEM) was conducted using SmartPLS.

Findings: The results indicate that environmental and economic sustainability practices have a positive influence on supply chain performance, whereas social sustainability does not show a significant impact. The rules and regulations in place had a direct effect and played a significant role in shaping how economic sustainability affected the company's performance. But none of the sustainability-performance relationships were significantly affected by SDG 12. They emphasise that strong institutions and economic cooperation are crucial for achieving better results in sustainable supply chains.

Conclusion: This study brings a unique perspective to the field by examining sustainability in global supply chains through the lens of multiple theories, incorporating regulations and SDG 12 into the analysis. The research results help companies that aim to compete by following specific sustainability plans and understand how to interact with regulators.