The mediating role of risk management in the relationship between sustainable supply chain management practices and performance

Abstract

This study examines the mediating role of Supply Chain Risk Management (SCRM) in the relationship between Sustainable Supply Chain Management (SSCM) practices and sustainable supply chain performance (SSCP) in Ethiopia’s textile and apparel industry. A quantitative, cross-sectional survey was conducted using data from 155 textile and apparel firms. The data were analysed using Covariance-Based Structural Equation Modelling (CB-SEM) to test direct and mediated relationships among constructs. The results show that operational (β = 0.26, C.R. = 4.69, p  < 0.001), environmental (β = 0.19, C.R. = 2.27, p  = 0.02), and social practices (0.39, C.R. = 6.2, p < 0.001) significantly improve their respective performance dimensions. SSCM practices, including operational practices (β = 0.3, C.R. = 4.42, p < 0.001), environmental practices (β = 0.47, C.R. = 5.36, p < 0.001), and social practices (β = 0.35, C.R. = 5.12, p < 0.001), also have significantly enhanced SCRM capability, which in turn has a strong positive effect on sustainable supply chain performance: operational performance (β = 0.69, C.R. = 11.77, p < 0.001), environmental performance (β = 0.61, C.R. = 8.87, p  < 0.001), and social performance (β = 0.53, C.R. = 8.12, p < 0.001). Bootstrapping results (5000 resamples) confirm that SCRM partially mediates the relationship between SSCM practices and each performance dimension.