Unlocking Environmental Supply‐Chain Performance
The Interplay of Product Responsibility, Innovation, and SDG‐Aligned Practice
Bibliographic Data
| ID | 22418234 |
|---|---|
| Authors | Suzan Dsouza (0000-0002-6274-6110, College of Business Administration American University of the Middle East Egaila Kuwait), Marsela Thanasi-Boçe (0000-0001-9117-9453, College of Business Administration American University of the Middle East Egaila Kuwait, corresponding author), Julian Hoxha (0000-0002-4286-5841, College of Engineering and Technology American University of the Middle East Egaila Kuwait) |
| Year | 2026 |
| Publication date | 2026-06-30 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Business Strategy and the Environment (JOURNAL) |
| Journal identifiers | ISSN: 0964-4733 • E-ISSN: 1099-0836 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/bse.71171 |
| OpenAlex | W7166644436 |
| Language | EN |
| References cited | 81 |
Supply‐chain environmental performance increasingly depends on governance of product‐related impacts that occur beyond firms' operational boundaries. Drawing on the natural‐resource‐based view and institutional and stakeholder perspectives, this study examines whether product responsibility functions as a stewardship capability that improves environmental supply‐chain performance, and whether its payoff is contingent on adjacent sustainability capabilities and SDG‐aligned practices. Using a panel of 952 EU firms (5154 firm‐year observations; 2010–2024), dynamic system‐GMM regression models are estimated to address unobserved heterogeneity and performance persistence. Results show that product responsibility is positively associated with environmental supply‐chain performance, but its marginal benefit is significantly weaker when environmental innovation, product environmental responsible use, and SDG 12 alignment are high, indicating capability saturation and partial substitution rather than simple complementarity. The findings extend sustainability strategy research by demonstrating that product‐stewardship, environmental‐innovation, lifecycle‐use, and institutional‐alignment capabilities operate as a nonadditive portfolio, and they offer managerial guidance on sequencing and coordinating responsibility and innovation investments to avoid diminishing marginal payoffs in supply‐chain environmental upgrading.
Corporate governance · Environmental stewardship · Panel data · Stakeholder · Stochastic game · Sustainability · Environmental Sustainability in Business · Supply Chain Resilience and Risk Management · Sustainable Supply Chain Management
A framework of sustainable supply chain management
Trade‐offs in corporate sustainability
A Simple Test for Heteroscedasticity and Random Coefficient Variation
Mainstreaming Green Product Innovation
Organizational responses to environmental demands
Business Ethics
The Too-Much-of-a-Good-Thing Effect in Management
Does it pay to be really good? addressing the shape of the relationship between social and financial performance
Green supply‐chain management
A Natural-Resource-Based View of the Firm
Institutional Evolution and Change
Mandatory CSR and sustainability reporting
Multinational enterprises and the Sustainable Development Goals
Diagnostics for heteroscedasticity in regression
Complementarities and fit strategy, structure, and organizational change in manufacturing
The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan
How to do Xtabond2
Toward a Theory of Stakeholder Identification and Salience
Firm Resources and Sustained Competitive Advantage
Green supply chain management for a more sustainable manufacturing industry in China
Digital Transformation and Sustainable Supply Chain Performance for Sustainable Development
Tensions in Corporate Sustainability
The Iron Cage Revisited
| Citation velocity | historical |
|---|---|
| Highly cited | No |