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

Abstract

<title>Abstract</title> Sustainable Supply Chain Management (SSCM) has become increasingly significant in addressing environmental and social challenges within global supply chains. This study explores the mediating role of Supply Chain Risk Management (SCRM) in the relationship between SSCM practices and supply chain performance, focusing specifically on Ethiopia's apparel sector, an area where empirical research is limited. A structured survey was conducted among professionals in the textile and apparel industry using purposive sampling. The results reveal that operational practices (OPP) had minimal impact on SSCM performance, highlighting gaps in process optimization and technology integration. In contrast, social sustainability practices (SOP) demonstrated the strongest direct effect on SSCM performance (β = 0.26) and contributed to enhanced supply chain resilience. Environmental practices (EVP) were found to significantly influence SCRM (β = 0.45). However, the mediating effect of SCRM on SSCM performance was weak and negative (β = − 0.05), indicating that the current risk management systems are inadequate in effectively translating environmental initiatives into improved performance. These findings emphasize the need for more proactive and integrated risk management strategies to bolster the resilience and effectiveness of sustainable supply chains in emerging economies.