Effect of economic and social aspects in sustainable supply chain management in apparel industry

Abstract

Apparel industry being a labor sensitive arena in the global market, the social sustainability conscious global consumers are demanding for transparency along the global apparel supply chain. Meanwhile, the outsourced apparel manufacturing in developing countries such as Sri Lanka, Bangladesh along with other local manufacturers are seeking for economic improvements despite the attention towards sustainability practices. However, the social sustainability practices resulting in improved economic performance is an under investigated arena both in the operational and research level. Hence this research fills the gap of exploring the effect of social sustainability on the economic sustainability of the apparel supply chain. The inputs from industry experts were gathered and analyzed while initiating to develop a common framework for social sustainability and economic sustainability dimensions under the Global Goals (UN SDGs). Further, a survey was conducted in order to understand the socially and economically sustainable practices in the Sri Lankan apparel supply chain. Finally, the relationship between social and economic sustainability dimension was explored using Partial Least Square Structural Equation Modelling (PLS SEM) technique. The best social sustainability performance was well reflected by the actions of exporting apparel manufacturers compared to the local apparel manufacturers. However, it was revealed that the social sustainability practices are resulting in the economic performance improvements of the apparel manufacturers in the Sri Lankan context.