Sustainable supply chain management practices in developing countries: An empirical study of Jordanian manufacturing companies

Abstract

Sustainable supply chain management (SSCM) is continuously gaining importance. It has been studied widely in developed countries and to some extent also in developing countries. This paper contributes to the latter by studying environmentally related SSCM practices in Jordanian manufacturing firms and provides a base for policy- and decision-makers as it assesses the current situation of the Jordanian manufacturing companies in terms of voluntarily adopting sustainable development practices or doing so under external pressure. This study aims to evaluate how adopting sustainable practices can affect economic performance in developing countries within the context of Jordanian manufacturing companies. Based on existing literature, a questionnaire was developed covering aspects of sustainability in internal and external supply chain practices, SSCM drivers, and company performance. A total of 92 responses were analyzed to test the proposed hypotheses using regression analyses to test the single-variable hypotheses, and structural equation modeling to test the multivariate hypotheses. The results show that the adoption of SSCM practices is still in its initial stages for Jordanian manufacturers. Sustainability awareness is quite low, and Jordanian companies mostly do not seem to consider the environmental impacts of their manufacturing operations. The results also show a difference between manufacturing types: process industries were less likely to adopt SSCM practices voluntarily, while discrete industries were more likely to do so. Finally, for Jordanian manufacturers to compete in international markets, they should take further steps toward adopting sustainability. To enhance the investment potential of multinational companies, Jordan should take the advantages of the industrial parks/estates and adopt regulations that force manufacturers to adopt sustainability practices under external pressure.