Share:


Enhancing environmental sustainability in Asian textile supply chains: insights from agile practices and mediating variables

    Rizwan Raheem Ahmed Affiliation
    ; Wadim Strielkowski Affiliation
    ; Dalia Štreimikienė Affiliation
    ; Faryal Salman Affiliation
    ; Jahanzeb Asim Affiliation
    ; Justas Štreimikis Affiliation

Abstract

The current energy crisis has shown all states that energy from renewable sources can be a determining factor in the states’ sustainable development. Several papers have studied the relationship between renewable energy consumption and economic development, finding various situations, but there is no consensus. Thus, this study aims to first investigate the causal relationship between economic growth and total and sectoral renewable energy consumption (European Union and each Member State, for 2004–2020) by testing various linear and non-linear regressions to choose the fit model. Second, the investigation extends to analysing the impact of renewable energy consumption by sector on economic development. A hybrid approach is used, namely structural equation modelling and artificial neural networks. The study findings indicate the effect and the meaning (directly or inversely) exerted by the three sectoral components on economic growth, with different intensities from one country to another. There is a significant influence on the consumption of renewable energy in the heating and cooling sectors and transport on gross domestic product at the European Union level and for most member states. Based on the obtained results, a series of theoretical, practical, and political implications are provided.

Keyword : environmental sustainability, agile supply chain, supply chain resilience, real-time information, operational agility, resilience and risk management, responsive systems and analytics

How to Cite
Ahmed, R. R., Strielkowski, W., Štreimikienė, D., Salman, F., Asim, J., & Štreimikis, J. (2024). Enhancing environmental sustainability in Asian textile supply chains: insights from agile practices and mediating variables. Journal of Business Economics and Management, 25(5), 872–891. https://doi.org/10.3846/jbem.2024.21789
Published in Issue
Sep 27, 2024
Abstract Views
9
PDF Downloads
7
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Abdelilah, B., El Korchi, A., & Amine Balambo, M. (2023). Agility as a combination of lean and supply chain integration: How to achieve a better performance. International Journal of Logistics Research and Applications, 26(6), 633–661. https://doi.org/10.1080/13675567.2021.1972949

Afthanorhan, A., Ghazali, P. L., & Rashid, N. (2021). Discriminant validity: A comparison of CB-SEM and consistent PLS using Fornell & Larcker and HTMT approaches. Journal of Physics: Conference Series, 1874(1), Article 012085. https://doi.org/10.1088/1742-6596/1874/1/012085

Ahmad, R., Shahzad, K., Ishaq, M. I., & Aftab, J. (2023). Supply chain agility and firm performance: testing serial mediations in the pharmaceutical industry. Business Process Management Journal, 29(4), 991–1009 https://doi.org/10.1108/BPMJ-11-2022-0586

Ahmed, R. R., Streimikiene, D., Streimikis, J., Siksnelyte-Butkiene, I. (2024). A comparative analysis of multivariate approaches for data analysis in management sciences. E&M Economics and Management. https://doi.org/10.15240/tul/001/2024-5-001

Ahmed, R. R., Pahi, M. H., Nadeem, S., Soomro, R. H., Parmar, V., Nasir, F., & Ahmed, F. (2023). How and when ethics lead to organizational performance: Evidence from South Asian firms. Sustainability, 10(10), Article 8147. https://doi.org/10.3390/su15108147

Ahmed, W., & Huma, S (2021). Impact of lean and agile strategies on supply chain risk management. Total Quality Management & Business Excellence, 32(1–2), 33–56. https://doi.org/10.1080/14783363.2018.1529558

AI Humdan, E. S., Shi, Y., Behina, M., & Chowdhury, M. (2023). Examining agile supply chains: An empirical study in Australia. Production Planning & Control. https://doi.org/10.1080/09537287.2023.2180683

Aldhaheri, R. T., & Ahmad, S. Z. (2023). Factors affecting organizations’ supply chain agility and competitive capability. Business Process Management Journal, 29(2), 505–527. https://doi.org/10.1108/BPMJ-11-2022-0579

Alfalla-Luque, R., García, D. E. L., & Marin-Garcia, J. A. (2023) Supply chain agility and performance: Evidence from a meta-analysis. International Journal of Operations & Production Management. https://doi.org/10.1108/IJOPM-05-2022-0316

Alzoubi, H., & Yanamandra, R. (2020). Investigating the mediating role of information sharing strategy on agile supply chain. Uncertain Supply Chain Management, 8(2), 273–284. https://doi.org/10.5267/j.uscm.2019.12.004

Battistella, C., De Toni, A. F., De Zan, G., & Pessot, E. (2017). Cultivating business model agility through focused capabilities: A multiple case study. Journal of Business Research, 73, 65–82. https://doi.org/10.1016/j.jbusres.2016.12.007

Chatterjee, S., Chaudhuri, R., Shah, M., & Maheshwari, P. (2022). Big data-driven innovation for sustaining SME supply chain operation in post COVID-19 scenario: The moderating role of SME technology leadership. Computers and Industrial Engineering, 168, Article 108058. https://doi.org/10.1016/j.cie.2022.108058

Dos Santos, P. M., & Cirillo, M. Â. (2023). Construction of the average variance extracted index for construct validation in structural equation models with adaptive regressions. Communications in Statistics-Simulation and Computation, 52(4), 1639–1650. https://doi.org/10.1080/03610918.2021.1888122

Dubey, R., Gunasekaran, A., & Childe, S. J. (2018). Big data analytics capability in supply chain agility: The moderating effect of organizational flexibility. Management Decision, 57(8), 2092–2112. https://doi.org/10.1108/MD-01-2018-0119

Fadaki, M., Rahman, S., & Chan, C. (2020). Leagile supply chain: design drivers and business performance implications. International Journal of Production Research, 58(18), 5601–5623. https://doi.org/10.1080/00207543.2019.1693660

Fayezi, S., Zutshi, A., & O’Loughlin, A. (2017). Understanding and development of supply chain agility and flexibility: A structured literature review. International Journal of Management Review, 19(4), 379–407. https://doi.org/10.1111/ijmr.12096

Fornell, C. G., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18, 39–50. https://doi.org/10.1177/002224378101800104

Freeman, R. E., Dmytriyev, S. D., & Phillips, R. A. (2021). Stakeholder theory and the resource-based view of the firm. Journal of Management, 47(4), 1757–1770. https://doi.org/10.1177/0149206321993576

Gefen, D., Straub, D., & Boudreau, M. C. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information Systems, 7(7), 1–78. https://doi.org/10.17705/1CAIS.00407

Gruchmann, T., Topp, M., & Seeler, S. (2022). Sustainable supply chain management in tourism: A systematic literature review. Supply Chain Forum: An International Journal, 23(4), 329–346. https://doi.org/10.1080/16258312.2022.2085504

Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM). European Business Review, 26, 106–121. https://doi.org/10.1108/EBR-10-2013-0128

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (pls-sem) (3rd ed.). Sage publications inc. https://doi.org/10.1007/978-3-030-80519-7

Han, Y. C., Chong, W. K., & Li, D. (2020). A systematic literature review of the capabilities and performance metrics of supply chain resilience. International Journal of Production Research, 58(15), 4541–4566. https://doi.org/10.1080/00207543.2020.1785034

Hickford, A. J., Blainey, S. P., Ortega Hortelano, A., & Pant, R. (2018). Resilience engineering: Theory and practice in interdependent infrastructure systems. Environment Systems and Decisions, 38, 278–291. https://doi.org/10.1007/s10669-018-9707-4

Hosseini, S., Barker, K., & Ramirez-Marquez, J. E. (2016). A review of definitions and measures of system resilience. Reliability Engineering & System Safety, 145, 47–61. https://doi.org/10.1016/j.ress.2015.08.006

Hsu, C. H., Chang, A. Y., Zhang, T. Y., Lin, W. D., & Liu, W. L. (2021). Deploying resilience enablers to mitigate risks in sustainable fashion supply chains. Sustainability, 13(5), Article 2943. https://doi.org/10.3390/su13052943

Hsu, C. H., Yu, R. Y., Chang, A. Y., Liu, W. L., & Sun, A. C. (2022). Applying integrated QFD-MCDM approach to strengthen supply chain agility for mitigating sustainable risks. Mathematics, 10(4), Article 552. https://doi.org/10.3390/math10040552

Hussain, S., Ahmed, R. R., & Shamsi, A. F. (2021). Technology confirmation is associated to improved psychological wellbeing: Evidence from an experimental design. Transformations in Business & Economics, 20(2), 177–196.

Kamis, A., Saibon, R. A., Yunus, F. N., Rahim, M. B., Herrera, L. M., & Montenegro, P. Y. (2021). The Smart-PLS analyzes the approach to validity and reliability of graduate marketability instruments. Turkish Journal of Computer and Mathematics Education, 12(3), 829–841. https://doi.org/10.17762/turcomat.v12i3.791

Kazancoglu, I., Ozbiltekin-Pala, M., Mangla, S. K., Kazancoglu, Y., & Jabeen, F. (2022). Role of flexibility, agility, and responsiveness for sustainable supply chain resilience. Journal of Cleaner Production, 362, Article 132431. https://doi.org/10.1016/j.jclepro.2022.132431

Kittisak, J., Jutamat, S., Thanaporn, S., Rachata, K. (2019). The role of customer responsiveness in improving the external performance of an agile supply chain. Polish Journal of Management Studies, 19(2), 206–217. https://doi.org/10.17512/pjms.2019.19.2.17

Korucuk, S. T., Tirkolaee, E. B., Aytekin, A., Karabasevic, D., & Karamasa, C. (2023). Agile supply chain management based on critical success factors and most ideal risk reduction strategy in the era of industry 4.0: Application to the plastic industry. Operations Management Research. https://doi.org/10.1007/s12063-023-00360-5

Ku, E. C. S. (2022). Technological capabilities that enhance tourism supply chain agility: Role of E-marketplace systems. Asia Pacific Journal of Tourism Research, 27(1), 86–102. https://doi.org/10.1080/10941665.2021.1998162

Liu, C. L., & Lee, M. Y. (2018). Integration, supply chain resilience, and service performance in third-party logistics providers. International Journal of Logistics Management, 29(3), 5–21. https://doi.org/10.1108/IJLM-11-2016-0283

Lubis, N. W. (2022). Resource Based View (RBV) in improving company strategic capacity. Research Horizon, 2(6), 587–596. https://doi.org/10.54518/rh.2.6.2022.587-596

Mackay, J., Munoz, A., & Pepper, M. (2020). Conceptualizing redundancy and flexibility towards supply chain robustness and resilience. Journal of Risk Research, 23(12), 1541–1561. https://doi.org/10.1080/13669877.2019.1694964

Mandal, S. (2017). Supply chain resilience and internal integration: An empirical examination of different visibility categories. International Journal of Business Performance Management, 18(2), Article 216. https://doi.org/10.1504/IJBPM.2017.083076

Mandal, S., & Dubey, R. K. (2021). Effect of inter-organizational systems appropriation in agility and resilience development: An empirical investigation. Benchmarking: An International Journal, 28(9), 2656–2681. https://doi.org/10.1108/BIJ-10-2020-0542

McMaster, M., Nettleton, C., Tom, C., Xu, B., Cao, C., & Qiao, P. (2020). Risk management: Rethinking fashion supply chain management for multinational corporations in light of the COVID-19 outbreak. Journal of Risk and Financial Management, 13(8), Article 173. https://doi.org/10.3390/jrfm13080173

Mosalam, K. M., Alibrandi, U., Lee, H., & Armengou, J. (2018). Performance-based engineering and multi-criteria decision analysis for sustainable and resilient building design. Structural Safety, 74, 1–13. https://doi.org/10.1016/j.strusafe.2018.03.005

Najar, T. (2022). Lean-Agile supply chain innovation performance; the mediating role of dynamic capability, innovation capacity, and relational embeddedness. Supply Chain Forum: An International Journal, 23(3), 285–306. https://doi.org/10.1080/16258312.2022.2031276

Nayak, B., Bhattacharyya, S. S., & Krishnamoorthy, B. (2023). Integrating the dialectic perspectives of resource-based view and industrial organization theory for competitive advantage – a review and research agenda. Journal of Business & Industrial Marketing, 38(3), 656–679. https://doi.org/10.1108/JBIM-06-2021-0306

Nguyen, T., Li, Z. H. O. U., Spiegler, V., Ieromonachou, P., & Lin, Y. (2018). Big data analytics in supply chain management: A state-of-the-art literature review. Computers & Operations Research, 98, 254–264. https://doi.org/10.1016/j.cor.2017.07.004

Oliveira-Dias, D., Maqueira-Marin, J. M., Moyano-Fuentes, J., & Carvalho, H. (2023). Implications of using Industry 4.0 base technologies for lean and agile supply chains and performance. International Journal of Production Economics, 262, Article 108916. https://doi.org/10.1016/j.ijpe.2023.108916

Panigrahi, R. R., Jena, D., Meher, J. R., & Shrivastava, A. K. (2023). Assessing the impact of supply chain agility on operational performances – a PLS-SEM approach. Measuring Business Excellence, 27(1), 1–24. https://doi.org/10.1108/MBE-06-2021-0073

Pettit, T. J., Croxton, K. L., & Fiksel, J. (2019). The evolution of resilience in supply chain management: A retrospective on ensuring supply chain resilience. Journal of Business Logistics, 40(1), 56–65. https://doi.org/10.1111/jbl.12202

Piya, S., Shamsuzzoha, A., Khadem, M., & Al-Hinai, N. (2020). Identification of critical factors and their interrelationships to design agile supply chain: Special focus to oil and gas industries. Global Journal of Flexible Systems Management, 21, 263–281. https://doi.org/10.1007/s40171-020-00247-5

Queiroz, M. M., Wamba, S. F., Jabbour, C. J. C., & Machado, M. C. (2022). Supply chain resilience in the UK during the coronavirus pandemic: A resource orchestration perspective. International Journal of Production Economics, 245, Article 108405. https://doi.org/10.1016/j.ijpe.2021.108405

Rahimi, A., Raad, A., Tabriz, A. A., & Motameni, A. (2020). Providing an interpretive structural model of agile supply chain practices. Journal of Modelling in Management, 15(2), 661–684. https://doi.org/10.1108/JM2-09-2018-0142

Raji, I. O., Shevtshenko, E., Rossi, T., & Strozzi, F. (2021). Industry 4.0 technologies as enablers of lean and agile supply chain strategies: an exploratory investigation. The International Journal of Logistics Management, 32(4), 1150–1189. https://doi.org/10.1108/IJLM-04-2020-0157

Reyna-Castillo, M., Santiago, A., & Martínez, S. I., & Rocha, J. A. C. (2022). Social sustainability and resilience in supply chains of Latin America on COVID-19 times: Classification using evolutionary fuzzy knowledge. Mathematics, 10(14), Article 2371. https://doi.org/10.3390/math10142371

Ribeiro, J. P., & Barbosa-Povoa, A. (2018). Supply chain resilience: Definitions and quantitative modeling approaches – A literature review. Computers & Industrial Engineering, 115, 109–122. https://doi.org/10.1016/j.cie.2017.11.006

Richey, Jr. R. G., Morgan, T. R., Lindsey-Hall, K., & Adams, F. G. (2016). A global exploration of big data in the supply chain. International Journal of Physical Distribution & Logistics Management, 46(8), 710–739. https://doi.org/10.1108/IJPDLM-05-2016-0134

Rigdon, E. E., Sarstedt, M., & Ringle, C. M. (2017). On comparing results from CB-SEM and PLS-SEM: Five perspectives and five recommendations. Marketing ZFP, 39, 4–16. https://doi.org/10.15358/0344-1369-2017-3-4

Sadeghi Asl, R., Bagherzadeh Khajeh, M., Pasban, M., & Rostamzadeh, R. (2023). A systematic literature review on supply chain approaches. Journal of Modelling in Management, 18(2), 372–415. https://doi.org/10.1108/JM2-04-2021-0089

Samdantsoodol, A., Cang, S., Yu, H., Eardley, A., & Buyantsogt, A. (2017). Predicting the relationships between virtual enterprises and agility in supply chains. Expert systems with applications, 84, 58–73. https://doi.org/10.1016/j.eswa.2017.04.037

Sarstedt, M., Hair, Jr. J. F., Cheah, J. H., Becker, J. M., & Ringle, C. M. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal, 27(3), 197–211. https://doi.org/10.1016/j.ausmj.2019.05.003

Shahed, K. S., Azeem, A., Ali, S. M., & Moktadir, M. A. (2021). A supply chain disruption risk mitigation model to manage COVID-19 pandemic risk. Environmental Science & Pollution Research. https://doi.org/10.1007/s11356-020-12289-4

Sharma, V., Raut, R. D., Mangla, S. K., Narkhede, B. E., Luthra, S., & Gokhale, R. (2021). A systematic literature review to integrate lean, agile, resilient, green, and sustainable paradigms in supply chain management. Business Strategy and the Environment, 30(2), 1191–1212. https://doi.org/10.1002/bse.2679

Singh, C. S., Soni, G., & Badhotiya, G. K. (2019). Performance indicators for supply chain resilience: Review and conceptual framework. Journal of Industrial Engineering International, 15, 105–117. https://doi.org/10.1007/s40092-019-00322-2

Sood, G., & Jain, R. K. (2022). Organizational enablers of advanced analytics adoption for supply chain flexibility and agility. International Journal of Business Information Systems, 41(3), 379–407. https://doi.org/10.1504/IJBIS.2022.126998

Tarigan, Z. J., Siagian, H., & Jie, F. (2021). Impact of internal integration, supply chain partnership, supply chain agility, and supply chain resilience on sustainable advantage. Sustainability, 13(10), Article 5460. https://doi.org/10.3390/su13105460

Urbach, N., & Ahlemann, F. (2010). Structural equation modeling in information systems research using partial least squares. Journal of Information Technology Theory and Application, 11(2), 5–40.

Williams, L. J., Vandenberg, R. J., & Edwards, J. R. (2009). Structural equation modeling in management research: A guide for improved analysis. The Academy of Management Annals, 3(1), 543–604. https://doi.org/10.1080/19416520903065683

Wong, C. W., Lirn, T. C., Yang, C. C., & Shang, K. C. (2020). Supply chain and external conditions under which supply chain resilience pays: An organizational information processing theorization. International Journal of Production Economics, 226, Article 107610. https://doi.org/10.1016/j.ijpe.2019.107610

Wright, P. M., Dunford, B. B., & Snell, S. A. (2001). Human resources and the resource-based view of the firm. Journal of Management, 27(6), 701–721. https://doi.org/10.1177/014920630102700607

Yusoff, A. S. M., Peng, F. S., Abd Razak, F. Z., & Mustafa, W. A. (2020). Discriminant validity assessment of religious teacher acceptance: The use of HTMT criterion. Journal of Physics: Conference Series, 1529(4), Article 042045. https://doi.org/10.1088/1742-6596/1529/4/042045

Zhu, G., Chou, M., & Tsai, C. (2020). Lessons learned from the COVID-19 pandemic exposing the shortcomings of current supply chain operations: A long-term prescriptive offering. Sustainability, 12(14), Article 5858. https://doi.org/10.3390/su12145858