The effect of sustainable supply chain management on business performance: Implications for integrating the entire supply chain in the Chinese manufacturing sector

This paper proposes an integrative approach to exploring the contribution of supply chain management (SSCM) to business performance. Three dimensions of SSCM, i.e., inbound sustainability, internal sustainability, and outbound sustainability, were proposed. The conceptual model was tested in the context of the Chinese manufacturing sector using partial least squares structural equation modeling. The results showed that outbound sustainability was directly related to business performance, while inbound and internal sustainability indirectly affected business performance. The model also revealed that customer integration enhanced the relationship between internal sustainability and outbound sustainability. The results suggested that supply-side and demand-side sustainability had unique roles and that the entire supply chain should be integrated when exploring the link between SCCM and business performance. A supply-side collaborative advantage was necessary but not sufficient, and business performance was achieved only when demand-side value creation was realized. The findings emphasize the distinctive role of each dimension of SSCM and the importance of integrating the entire supply chain.