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Analysing the critical success factors for implementation of sustainable supply chain management: an Indian case study

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Abstract

Critical success factors (CSFs) are the enablers to address the successful implementation of sustainable supply chain management (SSCM) practices in organizations. This study identifies and consolidates various relevant factors to develop the SSCM constructs conducive to supply chains in the Indian steel sector. A comprehensive framework of sustainability measurement has been developed through successive stages of data collection, analysis and refinement. Data have been collected from various departments of Tata Steel, SAIL, Essar and Jindal in India. The outcome of this research is a set of reliable, valid and unidimensional first-order measurements that can be subsequently used in conceptualization and measurement of the sustainability of supply chains in steel industry. Using factor analysis, we identify four constructs, namely favourable organizational environment, sustainable procurement initiatives, compliances to sustainability standards and external environmental pressures, which the organizations need to focus on. Additionally, using relative importance index ranking based on the survey data, the top three CSFs are compliance to environmental standards (ISO 14001 certification), safety and health focus (OHSAS 18001 certification) and top leadership commitment and support-all of which are within the organization’s own control. This study contributes to the continuing research of supply chain sustainability and provides supply chain managers with a practical approach for measuring and implementing sustainability practices across the steel supply chains.

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Fig. 1

Note: adapted with modification from Mani et al. (2016)

Fig. 2

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Notes

  1. The advantages of using EFA are: (1) it is not so expensive and simple to run and can be used for a wide variety of situations; (2) it can be used to identify lots of important factor which are not possible through other statistical technique; (3) it is very useful for lots of survey questions; and (4) it is the basis for other instruments (regression analysis with factor scores) and easy to combine with other instruments (confirmatory analysis). However, the use of EFA has some disadvantages: (1) interval scale variables need to be used; (2) it is always difficult to design good set of questionnaires which covers all types of gateway for variation; (3) it is difficult to decide how many factors to be chosen; and (4) sample size should be more than three times than the number of variables.

  2. This validation is as per the recommendation of Field (2009).

  3. See Nunnally (1978).

  4. It stands for Global Reach Initiative.

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Authors and Affiliations

  1. Vinod Gupta School of Management, Indian Institute of Technology Kharagpur, Kharagpur, WB, 721302, India

    Dayal S. Prasad, Rudra P. Pradhan, Kunal Gaurav & Saurav Dash

  2. Jamshedpur Utilities and Services Company (JUSCO) Limited, Jamshedpur, 831001, India

    Partha P. Chatterjee, Inderpal Kaur & Sagar Nayak

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  1. Dayal S. Prasad
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  2. Rudra P. Pradhan
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  3. Kunal Gaurav
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  4. Partha P. Chatterjee
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  5. Inderpal Kaur
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  7. Sagar Nayak
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Corresponding author

Correspondence to Rudra P. Pradhan.

Appendices

Appendix 1: Summary of SSCM literature

See Table 12.

Table 12 Summary of literature review
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Appendix 2: Reliability, validity and non-response bias

See Tables 13, 14 and 15.

Table 13 Reliability statistics
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Table 14 Discriminant validity
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Table 15 t test for non-response bias
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Prasad, D.S., Pradhan, R.P., Gaurav, K. et al. Analysing the critical success factors for implementation of sustainable supply chain management: an Indian case study. Decision 45, 3–25 (2018). https://doi.org/10.1007/s40622-017-0171-7

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