Linking supply chain strength to sustainable development: a country-level analysis

Several global corporations have been severely criticized by different lobbying groups for the impact of their operations on the natural environment and on the local communities. Because corporate operations cannot be studied in isolation but rather as a part of a large network often referred to as a supply chain, this paper investigates the potential link between supply chain characteristics and sustainable development at the country level. In particular, the linkage between supply chain strength, generally defined as the number and quality of the suppliers and customers in a country, and the three dimensions of sustainable development namely environmental performance, corporate environmental practices, and social sustainability is assessed. Using archival data from The Global Competitiveness Report (2004–2005) and the 2005 Environmental Sustainability Index, a statistical assessment of the linkage was conducted. The results indicate that supply chain strength is positively linked to all three dimensions of sustainable development.