Supply chain relational capital for sustainability through governance: the moderating effect of network complexity

Abstract

Purpose This study aims to investigate the conditional direct and indirect effects of supply chain relational capital (RC) on supply chain sustainability via sustainability governance. Design/methodology/approach In line with the study’s aims, a quantitative survey-based approach was adopted. This study uses a random sample of 272 manufacturing firms from the apparel industry in Bangladesh. This study assesses the measurement model using partial least square-based structural equation modelling and test the proposed hypotheses using the Hayes PROCESS. Findings The results reveal that the indirect effect of supply chain RC on supply chain sustainability via sustainability governance is significant. While at low levels of network complexity (NC), the conditional indirect effect of supply chain RC on supply chain sustainability via sustainability governance is significant, this study finds that such indirect effects are insignificant at high levels of NC. This study further shows that NC positively moderates the relationship between supply chain RC and supply chain sustainability. Originality/value While previous studies have demonstrated the role of RC in adopting sustainability practice, this study explores this link further by investigating the conditional direct and indirect effects of supply chain relational capital on supply chain sustainability via sustainability governance.

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