Sustainable performance and supply chain leadership in logistic firms: the role of corporate sustainability strategies and digital supply chain
Authors: Esangbedo Caroline Olufunke , Zhang Jingxiao , Ballesteros-Pérez Pablo , Skitmore Martin 
Published: September 2024

Purpose

This study aims to investigate the relationship between supply chain leadership, digital supply chain practices and corporate sustainability strategies on the sustainability performance of logistics firms in Nigeria, one of Africa’s largest economies. It indicates that collaborative efforts within the supply chain context can improve sustainability performance.

Design/methodology/approach

Data from 468 firms in a major sub-Saharan African market were collected through a structured questionnaire. The analysis used descriptive statistics, principal component analysis and hierarchical regression analysis. Factor analysis and Cronbach’s alpha analysis were used to assess the validity and reliability of the instrument.

Findings

The results of this study reveal significant findings: proactive sustainability strategies exert a substantial positive effect on sustainability performance (β = 0.694, SE = 0.025, p < 0.01). Even when proactive sustainability strategies are included in the model, the positive impact of reactive sustainability strategies remains significant (β = 0.694, SE = 0.025, p < 0.01: Model 5). Regarding the moderating role of proactive and reactive corporate sustainability strategies, there is a notable interaction effect between supply chain leadership and proactive sustainability strategies concerning sustainability performance (p < 0.05). This confirms the positive relationship between supply chain leadership and sustainability performance when proactive sustainability strategies are at a high level (β = 0.844, SE = 0.0010, p < 0.01), supporting H4 that this relationship strengthens with higher levels of proactive sustainability strategies. Conversely, for Hypothesis H5, the interaction effect of reactive sustainability strategies with supply chain leadership changes the relationship from significantly positive to significantly negative (β = −0.068, SE = 0.0009, p < 0.01). Using the Baron and Kenny approach to test mediation, the mediating effect of digital supply on digital leadership is significant (β = 0.345, p = 0.000, p < 0.01). Furthermore, the effect of digital supply on sustainability performance is statistically significant (β = 0.081, p = 0.006, p < 0.01), as is the effect of digital leadership on sustainability performance (β = 0.181, p = 0.000, p < 0.01). These results indicate a mediation effect of digital supply.

Research limitations/implications

This study of logistic management has limitations, including its cross-sectional nature, which precludes the establishment of causality, thus necessitating longitudinal research to determine causal relationships. In addition, the focus on Nigerian firms, which vary significantly in their stages of learning and institutional development, emphasizes the need for further research in diverse contexts. Future studies should examine alternative institutional environments or developed economies to validate these assumptions. Another limitation is the potential for bias due to six employees rating their firms on each variable; therefore, using multiple data sources is recommended to objectively evaluate the validity of the self-reported questionnaire.

Practical implications

This study advises managers to exercise caution when selecting between proactive and reactive sustainability strategies to enhance sustainability performance. Proactive strategies reinforce the relationship between supply chain leadership and sustainability performance, while reactive strategies diminish it. Therefore, managers are encouraged to adopt more proactive strategies. This paper suggests that managers in emerging economies should recognize the distinct impacts of proactive sustainability strategies and allocate more resources toward them to improve sustainability performance, even in competitive markets. In addition, it highlights the importance of digital supply in fostering sustainability performance.

Originality/value

This study presents a novel perspective on the moderating role of corporate sustainability strategies in the relationship between supply chain leadership and the sustainability performance of logistics firms. It provides empirical evidence and fresh insights on proactive and reactive sustainability strategies for logistics firms in Nigeria. The findings highlight that proactive sustainability strategies enhance the connection between supply chain leadership and sustainability performance, whereas reactive strategies do not.