The Effects of Innovation Adoption and Social Factors between Sustainable Supply Chain Management Practices and Sustainable Firm Performance: A Moderated Mediation Model

Abstract

The aim of this study was to develop higher-order scales for assessing sustainable supply chain management practices, innovation adoption, and sustainable firm performance in the restaurant sector. Three different higher-order scales were developed for assessing the SSCM, SFP and innovation adoption. The first scale for SSCM higher-order construct consisted of service–product supply chain management practices (SPSSCM), service–setting supply chain management practices (SSSSCM), and service–delivery supply chain management practices (SDSSCM). The second higher-order scale for sustainable firm performance (SFP) consisted of economic, operational, environmental, and socio-cultural performance. The third higher-order scale for innovation adoption (INNO) consisted of “product- and process-based innovation”, “marketing-based innovation”, “technology-based innovation” and “organizational innovation”. The face, content, construct, convergent, and discriminant validity was tested using pilot study, expert opinion, EFA, and CFA. With 178 responses collected from restaurateurs, managers, and supervisors of casual restaurants in Prachuap Khiri Khan province in Thailand, this study evaluates the direct effects of SSCM on SFP. It further evaluates the mediating role of innovation adoption between sustainable supply chain management practices and firm performance and the moderated mediation effects of socio-demographic factors such as age, gender, education, and experience. The results reveal that sustainable supply chain management practices can positively lead to sustainable firm performance. However, irrespective of the indirect effects of socio-demographic factors, adopting innovation completely mediates the relationship between sustainable supply chain management practices and firm performance.