Corporate Waste Management and Sustainable Supply Chain Management: Does Environmental Performance Matter?

Abstract

This study examines the impact of waste management (WMG) practices on sustainable supply chain management (SSCM), with environmental performance (ENVP) as a moderating factor. Drawing on the natural resource–based view and stakeholder theory, this study distinguishes between recycling‐oriented WMG and total waste generation to capture their differing sustainability effects. Using data analysis, the results show that recycling activities significantly promote SSCM, whereas excessive waste generation hinders sustainability integration across supply chains. The findings further reveal that ENVP amplifies the positive influence of recycling practices on SSCM, indicating that firms with stronger environmental capabilities are more effective in translating recycling efforts into sustainable supply chain outcomes. However, the ENVP does not fully mitigate the adverse effects of high waste generation. Robustness tests, including alternative measures, endogeneity checks, propensity score matching, entropy balancing, and industry‐based heterogeneity analyses, confirm the results. This study highlights the heterogeneous effects of WMG dimensions on SSCM.