Lately, an increase in demand for green initiatives and matters of sustainability has required a paradigm shift in the way firms, especially those in the manufacturing industry to conduct their operations. Consequently, the importance of studying sustainable performance has grown and sustainable supply chain management was introduced to integrate suppliers, manufacturers, and customers. The sustainable supply chain and social capital can be understood to be essentially correlated in which social capital is required through collaboration in ongoing networks. However, the number of sustainable supply chain studies considering social capital approach, in particular empirical studies, remain limited. Therefore, this study was conducted to identify the relationship between social capital and sustainable performance. A survey was conducted on manufacturing firms in Malaysia. A total of 106 questionnaires was completed by the respondents and considered to be appropriate for data analysis. The data was analysed using Partial Least Squares-Structural Equation Modelling (PLS-SEM). Further investigation has shown that structural social capital significantly influences all sustainable performance dimensions namely economic, environmental, and social performance. Apart from contribution to theoretical knowledge, the results would also be valuable in providing new insights to management in their environmental goals and sustaining successful performance within the pressures of stakeholders, customers, and environmental regulations. The value of R Square in this study also indicates that other variables or external factors can be included in future studies to improve the prediction on sustainable performance such as company ownership, type of industry, company age, technology advancement, or even enforcement on environmental regulations as moderating variables.
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In-Text Citation: (Sobry et al., 2022)
To Cite this Article: Sobry, S. C., Hasnan, N., & Abidin, R. (2022). The Influence of Social Capital on Sustainable Performance: A Context of Sustainable Supply Chain Management. International Journal of Academic Research in Business and Social Sciences. 12(6), 1293– 1309.
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