Sustainable Supply Chain Capabilities: Accumulation, Strategic Types and Performance

This paper explores the cumulative sustainable supply chain (SC) capabilities and their effects on supply chain performance, including economic, environmental, and social performance. Using empirical analyses with data from 198 small- and medium-sized suppliers in Korea, this paper provides evidence about the cumulative sustainable SC capabilities, indicating that economic, social, and environmental capabilities in the supply chain mutually reinforce each other rather than traded off. This study also presents the positive effect of cumulative sustainable SC capabilities on supply chain sustainability performance. This paper identifies four distinctive groups of cumulative capabilities: the laggard, environmental-focused, social-cautious, and all-round. This study provides a better understanding about sustainable capabilities and important guidelines for managers of suppliers and buyers who wish to build strong social/environmental management capabilities without compromising economic capability throughout the entire supply chain.