The impacts of supply chain social sustainability on supply chain performance, mediating role of supply chain integration: the case of Vietnam

1

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY

DUONG NGOC HONG

THE IMPACTS OF SUPPLY CHAIN SOCIAL
SUSTAINABILITY ON SUPPLY CHAIN PERFORMANCE,
MEDIATING ROLE OF SUPPLY CHAIN INTEGRATION
THE CASE OF VIETNAM

Major : Business Administration
Code : 9340101

DISSERTATION

Academic Advisors:
1. Professor. Nguyen Dong Phong
2. Associate Professor. Bui Thanh Trang

Ho Chi Minh City – 2022


TABLE OF CONTENTS
TABLE OF CONTENTS.............................................................................................. ii
LIST OF FIGURES................................................................................................... viii
LIST OF TABLES....................................................................................................... ix
ABSTRACT.................................................................................................................. 1
CHAPTER 1. INTRODUCTION................................................................................. 3
1.1

Problem statement........................................................................................... 3

1.1.1

Research background................................................................................ 3

1.1.2

Overview of social sustainability in Vietnam............................................ 5

1.2

Research gap.................................................................................................... 7

1.3

Research objectives....................................................................................... 10

1.4

Research questions......................................................................................... 10

1.5

Research methodology and data collection.................................................... 11

1.6

Research contribution.................................................................................... 12

1.6.1

Theoretical contributions........................................................................ 12

1.6.2

Practical implications.............................................................................. 13

1.7

Research limitation........................................................................................ 14

1.8

Research structure.......................................................................................... 15

CHAPTER 2. LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT...16
2.1

Current status of sustainable development in Vietnam..................................16

2.1.1

Vietnam’s 17 sustainable development goals.......................................... 16

2.1.2

The importance of sustainable development........................................... 20

2.1.3

Supply chain sustainable development in Vietnam................................. 21

2.2

A systematic review of recent literatures in the social sustainability domain 23

2.2.1

The systematic review process................................................................ 23

2.2.2

A classification framework for analysis.................................................. 25


2.2.3
2.3

Keyword analysis (co-occurrence).......................................................... 31

Key concepts.................................................................................................. 37

2.3.1

Supply chain social sustainability........................................................... 37

2.3.1.1 Sustainability........................................................................................... 37
2.3.1.2 Social sustainability practices................................................................. 38

2.3.2

Supply chain integration......................................................................... 42

2.3.2.1 Internal integration.................................................................................. 42
2.3.2.2 Customer integration............................................................................... 43
2.3.2.3 Supplier integration................................................................................. 44
2.3.3

Supply chain risk management............................................................... 45

2.3.4

Sustainable supply chain management.................................................... 47

2.3.4.1 Supply chain............................................................................................ 47
2.3.4.2 Supply chain management...................................................................... 48
2.3.4.3 Sustainable supply chain management.................................................... 49
2.3.5

Supply chain performance....................................................................... 54

2.3.5.1 Supplier performance.............................................................................. 55
2.3.5.2 Customer performance............................................................................ 55
2.4

Theoretical backgrounds................................................................................ 56

2.4.1

Stakeholder theory view.......................................................................... 56

2.4.2

Dynamic capabilities view...................................................................... 57

2.4.3

Stakeholder resource-based view............................................................ 58

2.5

Hypotheses development............................................................................... 60

2.6

Proposed research model............................................................................... 68

CHAPTER 3. RESEARCH METHODOLOGY......................................................... 69
3.1

Research process............................................................................................ 69


3.2

Pilot study...................................................................................................... 71

3.2.1

Design questionnaire............................................................................... 71

3.2.2

Cronbach’s Alpha testing........................................................................ 73

3.3

Ethics in primary research............................................................................. 83

3.3.1

The core principles of research ethics..................................................... 83

3.3.2

The practices of research ethics............................................................... 84

3.3.2.1 Research design...................................................................................... 84
3.3.2.2 Research method..................................................................................... 84
3.3.2.3 Incentives................................................................................................ 85
3.3.2.4 Data collection........................................................................................ 85
3.4

The main study.............................................................................................. 85

3.4.1

Sampling method.................................................................................... 85

3.4.2

Sample size............................................................................................. 86

3.4.3

Participants and data collection............................................................... 87

3.4.4

The quality of the research model........................................................... 89

3.4.5

PLS-SEM................................................................................................ 90

CHAPTER 4. DATA ANALYSIS, RESULTS, AND DISCUSSIONS.....................100
4.1

Sample characteristics.................................................................................. 100

4.2

Descriptive statistics.................................................................................... 102

4.3

Reliability and discriminant validity............................................................ 104

4.3.1

First-order constructs............................................................................ 105

4.3.2

Second-order constructs........................................................................ 106

4.4

Common method bias.................................................................................. 113

4.5

Hypothesized model testing......................................................................... 114

4.5.1

The repeated indicators approach.......................................................... 115


4.5.2
4.6

The two-stage approach......................................................................... 118

The results of PLS-SEM.............................................................................. 120

4.6.1

Quality testing....................................................................................... 120

4.6.2

The direct effects................................................................................... 124

4.6.3

The mediation effects............................................................................ 125

4.6.4

Control variables................................................................................... 127

4.6.5

Multi-group analysis............................................................................. 128

4.7

Summary results of hypotheses testing........................................................ 134

4.8

Discussions.................................................................................................. 139

CHAPTER 5. CONCLUSION AND IMPLICATIONS........................................... 147
5.1

Conclusion................................................................................................... 147

5.2

Theoretical contributions............................................................................. 148

5.3

Practical implications................................................................................... 151

5.3.1

Implications for managers..................................................................... 151

5.3.2

Implications for policy-makers............................................................. 152

5.4

Limitations and future research................................................................... 154

PUBLICATION........................................................................................................ 155
REFERENCES......................................................................................................... 156
Appendix 1................................................................................................................ 183
Appendix 2................................................................................................................ 187
Appendix 3................................................................................................................ 189
Appendix 4................................................................................................................ 196
Appendix 5................................................................................................................ 200
Appendix 6................................................................................................................ 201

LIST OF ABBREVIATIONS
Notation

Full Definition

AVE

Average Variance Extracted

CB-SEM

Covariance-Based SEM

CICT

Corrected Item Correlation

CMB

Common Method Bias

CR

Composite Reliability

CUPF

Customer Performance

DCB

Dynamic Capabilities View

EFA

Exploratory Factor Analysis

EQUI

Equity

ETHI

Ethics

HEWE

Health & Welfare

HTMT

Heterotrait-Monotrait

HURI

Human Rights

ICU

Customer Integration

INTE

Internal Integration

ISP

Supplier Integration

MGA

Multi Group Analysis

NGOs

Non-Government Organizations

PLS-SEM

Partial Least Squares SEM

RBV

Resource Based View

SAFE

Safety

SCP

Supply Chain Performance

SCSS

Supply Chain Social Sustainability

SCI

Supply Chain Integration

SCM

Supply Chain Management

SME

Small Medium Enterprise

SRBV

Stakeholder Resource Based View

SSCM

Sustainable Supply Chain Management


Notation

Full Definition

STV

Stakeholder Theory View

SUPF

Supplier Performance

TBL

Triple Bottom Line

VIF

Variance Inflation Factor

VRIN
WOS

Valuable, Rare, Inimitable, and Non-Substitutable
Web of Science


LIST OF FIGURES
Figure 1 - 17 sustainable development goals in Vietnam........................................... 17
Figure 2 - Articles selection process........................................................................... 24
Figure 3 - SSCS articles based on the year of publication.......................................... 26
Figure 4 - Classification according to publishers....................................................... 26

Figure 5 - Distribution of articles based on journals................................................... 27
Figure 6 - Classification according to survey country................................................ 28
Figure 7 - Classification according to research areas................................................. 29
Figure 8 - Classification according to authors............................................................ 30
Figure 9 - The keywords co-occurrence network (from 2009 – 2015).......................31
Figure 10 - The keywords co-occurrence network (from 2016 – 2021).....................32
Figure 11 - Sustainable Supply Chain Management................................................... 51
Figure 12 - The model of Mani et al., 2020................................................................ 60
Figure 13 - Proposed research model......................................................................... 68
Figure 14 - Research process...................................................................................... 70
Figure 15 - The repeated indicators approach........................................................... 117
Figure 16 - The two-stage approach......................................................................... 119
Figure 17 - PLS-SEM Results.................................................................................. 138


LIST OF TABLES
Table 1 - Existing literature reviews in SCSS domain................................................ 33
Table 2 - Definitions of Sustainable Supply Chain Management...............................49
Table 3 - Existing Literature Reviews relevant to Sustainable Supply Chain
Management, Supply Chain Integration, and Supply Chain Performance...................52
Table 4 - Summarization of proposed hypotheses...................................................... 67
Table 5 - Pilot test....................................................................................................... 73
Table 6 - Factor analysis, Reliability test.................................................................... 79
Table 7 - Final questionnaire...................................................................................... 91
Table 8 - PLS-SEM vs CB-SEM................................................................................ 98
Table 9 - Sample characteristics............................................................................... 100
Table 10 - Descriptive statistics................................................................................ 103
Table 11 - Outer loadings (1st order)......................................................................... 105
Table 12 - Outer loadings (1st order) continued......................................................... 106
Table 13 - Outer loadings (2nd order)........................................................................ 106

Table 14 - Construct Reliability and Validity............................................................ 108
Table 15 - Correlations between Research Constructs (Fornell-Larcker Criterion) .109
Table 16 - Correlations between Research Constructs (Fornell-Larcker Criterion –
continued)................................................................................................................. 110
Table 17 - Correlations between Research Constructs (HTMT)............................... 111
Table 18 - Correlations between Research Constructs (HTMT – continued)............112
Table 19 - Common method bias checking............................................................... 113
Table 20 - R-Square values....................................................................................... 120
Table 21 - f-square values......................................................................................... 121
Table 22 - Q-square values....................................................................................... 123
Table 23 - PLS-SEM (The direct effects)................................................................. 124
Table 24 - PLS-SEM (The mediation effects)........................................................... 126
Table 25 - Company’s operation time....................................................................... 127
Table 26 - Robust tests (Company’s operation time)................................................ 127
Table 27 - Company’s capital investment................................................................. 128
Table 28 - Robust tests (Company’s capital investment).......................................... 128


Table 29 - MGA (Manufacturing vs Other industries).............................................. 130
Table 30 - Bootstrapping Results (Manufacturing vs Transportation)......................131
Table 31 - MGA (Vendors vs Other industries)........................................................ 132
Table 32 - Bootstrapping Results (Vendors vs Warehouses/Transportation).............133
Table 33 - Summary of hypothesis testing results..................................................... 134
Table 34 - Harman’s single factor test (CMB).......................................................... 200
Table 35 - Rotated component matrix....................................................................... 201
Table 36 - KMO and Bartlett’s Test.......................................................................... 202


1

ABSTRACT
Problem: The importance of sustainability in the supply chain has steadily risen
in recent decades as a result of the growing awareness on the social issues. In order to
achieve sustainability successfully, set out by the 9 th National Congress of the
Communist Party of Vietnam on sustainable development, the Government has issued
the “Orientation for sustainable development of the country”. Reason for writing: is
to examine the relationship between supply chain social sustainability and supply
chain performance, as well as explore the mediating role of supply chain integration
on this relationship. Methods: PLS-SEM model is developed to identify the impacts
of sustainability on performance outcomes and the mediating role of supply chain
integration. The author received 428 responses from small, medium and large
companies located in Vietnam, and after filtering, 408 responses were used for further
analysis. Results: This finding showed that sustainability impacts significantly on
integration and performance in the supply chain. Moreover, the result indicates that
supplier integration and internal integration mediate the relationship between social
sustainability practices and supply chain performance, while customer integration
mediation role was not found significant. Conclusion: This result proves that social
sustainability practices can link all the stakeholders and enhance collaboration in the
supply chain. In addition, performance outcomes can be increased by implementing
social sustainability practices. To maintain sustainable development, firms should
embrace values of sustainability to improve the well-being, working condition, safety
and healthcare of their employees and their strategic partners as well as the
advancement of local society.
Key-words: Supply chain social sustainability, Supply chain integration, Supply
chain performance, PLS-SEM, Vietnam.


TÓM TẮT
Lý do lựa chọn đề tài nghiên cứu: Trong những năm gần đây, tại các nước
phát triển, quản lý chuỗi cung ứng bền vững đạt được sự chú ý đáng kể trong các công

ty đa quốc gia và giới học thuật. Việt Nam là quốc gia cam kết mạnh mẽ trong việc
thực hiện các mục tiêu phát triển bền vững thông qua việc ban hành Định hướng chiến
lược phát triển bền vững vào năm 2004 tại Đại hội đại biểu toàn quốc lần thứ IX. Mục
tiêu nghiên cứu: Nghiên cứu này trình bày mối liên hệ giữa phát triển bền vững về
mặt xã hội và hiệu quả hoạt động trong quản lý chuỗi cung ứng tại Việt Nam, với biến
trung gian là sự liên kết trong chuỗi cung ứng. Phương pháp nghiên cứu: Mơ hình
PLS-SEM được áp dụng nhằm xác định các yếu tố ảnh hưởng đến phát triển bền vững
về mặt xã hội và mối liên hệ giữa phát triển bền vững với sự liên kết và hiệu quả hoạt
động trong quản lý chuỗi cung ứng. Tác giả đã nhận được 428 câu trả lời từ nhân viên
và quản lý đến từ các công ty nhỏ, vừa và lớn tại Việt Nam; sau khi sàn lọc, 408 câu
trả lời được sử dụng để phân tích. Kết quả nghiên cứu: chứng minh rằng phát triển
bền vững về mặt xã hội có tác động tích cực đến sự liên kết giữa các thành viên trong
chuỗi cung ứng, đồng thời nâng cao hiệu quả hoạt động trong chuỗi cung ứng. Bên
cạnh đó, nghiên cứu cũng mở rộng khái niệm phát triển bền vững và nhấn mạnh tầm
quan trọng của phát triển bền vững trong bối cảnh “bình thường mới” tại Việt Nam.
Kết luận và hàm ý: đưa ra những khuyến nghị cho các nhà quản lý về việc lập kế
hoạch và phát triển doanh nghiệp theo hướng bền vững trong chiến lược kinh doanh.
Để đạt được các kết quả trên, nhà quản lý cần phải quan tâm đến an toàn lao động, sức
khỏe, phúc lợi và điều kiện làm việc của nhân viên cũng như các đối tác.
Từ khóa: Phát triển bền vững về mặt xã hội, Sự liên kết trong chuỗi cung ứng,
Hiệu quả hoạt động trong chuỗi cung ứng, PLS-SEM, Việt Nam.


CHAPTER 1.

INTRODUCTION

This chapter aims to introduce the research background and present research
gaps. Firstly, this chapter postulates research objectives and related research questions
based on the identified research gap. Next, the research methodology and scope are

described. Finally, expected research contributions are introduced in academic and
practical ways.
1.1 Problem statement
1.1.1

Research background

The last decade has witnessed the emergence of sustainability, one of the most
critical business concerns in a firm’s supply chain. Many firms have realized that it
may go wrong if the supply chain is ignored when facing global sustainability
challenges (Cherrafi, Garza-Reyes, Kumar, Mishra, Ghobadian, & Elfezazi, 2018).
Moreover, due to the advanced consciousness among collaborators of the local society
and environment, the importance of social sustainability in the supply chain has
regularly increased (Schmidt, Foerstl, & Schaltenbrand, 2017). According to
Bergman, Bergman, & Berger (2017), sustainability means satisfying today’s demands
without endangering the needs of future generations. Additionally, many researchers
have investigated whether enhancing sustainability practices in a firm’s supply chain
is essential to developing supply chain performance (Singh & Trivedi, 2016; Winter &
Knemeyer, 2013).
In addition, famous global brands such as Adidas, H&M, Nestle, and Coca-Cola
have gradually moved forward to build a more sustainable supply chain. They are
controlling the adherence of their strategic stakeholders and developing their ability to
identify social, economic, and environmental issues in focal companies (Nicolăescu,
Alpopi, & Zaharia, 2015). According to the triple bottom lines, managers should
improve the relationship between economic, social, and environmental activities to
achieve sustainability and high performance in their supply chain (SánchezHernández, Vázquez-Burguete, García-Miguélez, & Lanero-Carrizo, 2021). In other
words, these activities mentioned above must be integrated into the company’s final
strategies; also, managers should encourage other members in their supply chain to
contribute to the

development and wealth of their society (Schaltegger, Windolph, Harms, & Hörisch,
2014). It leads to increase company outcomes. As a result, policy-makers and
managers paid much attention to the performance of sustainable supply chain
management over the past decades, namely, economic performance, social
performance, and environmental performance.
Moreover, much of the current literature on sustainability pays attention to
developed economies (Gerner, 2019) where social values and norms are different
compared to developing economies (Ashby, Leat, & Hudson‐Smith, 2012). Supply
chain social sustainability has been examined in many multinational corporations in
developed countries, especially in Europe and Northern America (Walker, Seuring,
Sarkis, & Klassen, 2014; Yakovleva, Sarkis, & Sloan, 2012). Some works of literature
have examined this topic in developing economies and found that sustainability can
support and enhance a firm’s competitiveness and supply chain performance (Sodhi,
2015; Mani, Jabbour, & Mani, 2020; Mani, Gunasekaran, & Delgado, 2018; Mani,
Gunasekaran, Papadopoulos, Hazen, & Dubey, 2016).
To deal with the diversity and complexity of global sustainability problems, one
of the main aspects of tension is whether firms consider supply chain integration
(Kiron, Kruschwitz, Haanaes, & Reeves, 2015). There are three main components of
supply chain integration: internal, customer, and supplier integration (Shou, Li, Park,
& Kang, 2018). If firms can enhance collaboration with their strategic members
(suppliers, customers, and stakeholders), they will effectively and efficiently achieve
their goals (Ataseven & Nair, 2017). It also means that better supply chain integration
will lead to better performance. Although there have been many studies on sustainable
development in recent years, there is limited research on how companies and their
strategic stakeholders work together to accomplish their shared goals and objectives.
Hence, some research has examined this issue and identified the important role of
supply chain integration in achieving performance outcomes in the supply chain
(Huang, Yen, & Liu, 2014).
Furthermore, supply chain social sustainability may play an essential role in

enhancing the overall performance of the supply chain. The link between social


sustainability and supply chain performance could be explained by how a company
operates in ways that enhance society and the environment; thus, it will improve its
supply chain performance. Some authors have investigated how an organization can
apply supply chain integration practices to develop performance outcomes and
improve its sustainability activities (Gelhard & Von Delft, 2016; Brown, 2015).
Besides, the relationship between supply chain integration and sustainability practices
is still unclear in the previous studies (Kaliani Sundram, Rajagopal, Bahrin, &
Subramaniam, 2018; Fernandes, Sampaio, Sameiro, & Truong, 2017). As a result, our
research realizes the necessity for further study about the impacts of supply chain
social sustainability on firms’ supply chain performance with the mediating role of
supply chain integration, particularly in developing economies.
1.1.2

Overview of social sustainability in Vietnam

According to the International Union for Conservation of Nature declaration
about Environment and Development, Vietnamese Government issued the “National
Plan on Environment and Sustainable Development 1991 – 2000” (IUCN, 1991). The
system of legal documents and the state management system on environmental
protection was later promulgated, especially the Law on Environment, creating a
premise for the sustainable development process in Vietnam.
At the 9th National Congress of the Communist Party of Vietnam (2001-2010),
Vietnamese authorities declared the socio-economic development strategy as
“Bringing the country out of under-development; markedly improving the standard of
living. people’s material, cultural and spiritual lives; creating a foundation for Vietnam
to basically become an industrial country by 2020”. Human resources, scientific and
technological capacity, infrastructure, potential economic forces, national defense and

security have been strengthened; a socialist-oriented market economic institution has
been basically formed; the country’s position in the global market has been enhanced.
The development perspective in the above strategy is affirmed as “Fast, effective and
sustainable development, economic growth coupled with progress, social justice and
environmental protection”; “Socio-economic development is closely linked with the
protection and improvement of the environment, ensuring the harmony between the


artificial environment and the natural environment, preserving bio-diversity”
(Government News, 2022).
The objective goal of sustainable development is to achieve material adequacy,
spiritual and cultural wealth, equality of citizens and social consensus, and harmony
among people and the environment. Sustainable development must closely,
reasonably, and harmoniously combine three aspects, namely economic development,
social development, and environmental protection (Ministry of Industry and Trade,
2021).
Firstly, the objective of economic sustainable development is to achieve stable
growth with a reasonable economic structure, meet the requirements of improving
people’s living standards, avoid future recession or stagnation, and avoid leaving a
large debt burden on future generations (Tran, 2019).
Secondly, the goal of social sustainable development is to achieve high results in
the implementation of social progress and justice, to ensure that the people’s regime
and quality of health care are increasingly improved. People will have the opportunity
to study and get a job, reduce poverty and narrow the gap between the rich and the
poor between classes and social groups, reduce social evils, and improve the level of
equity in rights and interests. In addition, the Vietnamese government should maintain
and promote diversity and national cultural identity, and constantly improve the level
of civilization in terms of material and spiritual life (Lam, 2014).
Finally, the objective of environmentally sustainable development is to rationally
exploit, economically, and effectively use natural resources; effectively prevent, stop,

and control environmental pollution, well protect the living environment; protect
national parks, nature reserves, biosphere reserves and conserve biodiversity;
overcome degradation and improve environmental quality. To achieve the goals
successfully, set out by the 9th National Congress of the Communist Party of Vietnam
on sustainable development, the Government has issued the “Orientation for
sustainable development of the country” (Vietnam’s Agenda 21).
The United Nations 2030 Agenda covers all areas, such as hunger eradication,
poverty reduction, health care, and education. This is an opportunity for many
countries


to demonstrate their commitment to achieving the goal of improving people’s lives,
ending poverty, protecting the planet as well as maintaining peace and prosperity
globally. However, from 2020, the COVID-19 pandemic has seriously affected the
health and lives of people and all aspects of socio-economic life in many countries.
Besides this, the world situation continues to be complicated. In Vietnam, sustainable
development has been identified by the Government as a key strategy in all socioeconomic development policies, associated with the realization of social progress,
justice, protection, ensure the harmonious, taking care of the material and spiritual
life, and bringing a prosperous and happy life to the people (Government News,
2022).
In brief, sustainable development is both an urgent need and an inevitable trend
of the social development process in Vietnam. The Government has synchronously
implemented many solutions to promote sustainable development and gained some
achievements such as stable macroeconomics, and economic growth. However,
Vietnam needs to invest heavily in social sustainability. For example, the authorities
should focus on increasing the quality of life, gender equality, working condition,
health & safety, and well-being of people as committed to human development. The
main prioritizes serving people and maximizing the human factor in each development
strategy. Vietnam aims to be in the leading group of high-middle-income countries by
2030 and become a modern industrialized, socialist-oriented country by 2045

(Banking Review, 2020). As a result, the author realizes the necessity for further study
about social sustainability, especially in Vietnam.
1.2 Research gap

While attention to social sustainability practices has been increasing over the
globe recently, many researchers point out that there are limited studies on the Asian
context in this domain (Karam, & Jamali, 2017). Many focal companies are located in
developing countries, particularly in Asia. Social issues in the supply chain are
considered one of the most discussed topics in these countries; however, managers did
not pay much attention to understanding and addressing these issues. Furthermore,
applying social standards to measure environmental, financial, and social performance
is hardly practiced, especially in supply chains (Torugsa, O’Donohue, & Hecker,
2013;


Cheung, Kong, Tan, & Wang, 2015). Also, social manners are complex and diverse
based on a particular country’s social development. Therefore, many scholars suggest
that this domain needs further research to explore and identify these issues.
In this study, the author examines the subject of social sustainability practices,
which the author describes as an organization's capacity to handle social concerns
linked with the safety and wellbeing of individuals in developing markets. This group
includes not only consumers, suppliers, employees, and staff throughout the supply
chain, but also the community served by the supply chain. Consequently, the author
employs the concepts of a stakeholder resource-based view to investigate how social
sustainability practices may contribute to performance results in developing markets.
The company's supply chain (suppliers/customers/partners) resources and dynamic
capacities concerning social sustainability are essential to delivering performance
advantages and overall sustainable development. Indeed, academics and practitioners
have increasingly highlighted the need for a deeper understanding of the impact of
social sustainability on supply chain performance (Shafiq, Johnson, Klassen, &

Awaysheh, 2017; Mani et al., 2018a, b).
As a result, this study has been conducted for various reasons. Firstly, as
mentioned above, our research recognizes the necessity for further study about the
impacts of supply chain social sustainability on supply chain performance with the
mediating role of supply chain integration, particularly in developing economies.
Recently, as a responsible member of the United Nations, Vietnam has been actively
developing and implementing strategies to promote green growth and sustainable
development. There have been several policies and programs to raise awareness,
support, and encourage businesses to apply sustainable business models.
Therefore, our research examines these main subjects: (1) How do supply chain
social sustainability influence supply chain integration and supply chain performance?
(2) How does supply chain integration (internal integration, supplier integration, and
customer integration) enhance supply chain performance? and (3) How do the
integrations between supply chain members mediate the relationship between supply
chain social sustainability and supply chain performance? Through examining
the


subjects mentioned earlier, our research will gain the following contributions in the
context of developing economies.
The second reason for conducting this research is to examine the concept of
social sustainability practices. It clearly explains how sustainability can enhance
performance outcomes in the supply chain. Thirdly, our research is perhaps the first
study investigating the relationship between supply chain social sustainability and
supply chain integration in developing economies, particularly in Vietnam. In previous
studies, many authors stated that supply chain integration is positively related to
supply chain social sustainability (Kang, Yang, Park, & Huo, 2018; Huq, Chowdhury,
& Klassen, 2016; Koberg & Longoni, 2019; Gelhard & von Delft, 2016). However,
this study proves that firms that adopt social sustainability practices can increase the
integration with their strategic stakeholders. As a result, it will lead to highperformance outcomes in the supply chain.

Besides this, the Covid-19 pandemic negatively affected global socio-economic
life. In Vietnam, supply chains have been halted, many service sectors had to close
and stop providing for a while. The development level in some provinces is not the
same, lagging behind many countries. In addition, the awareness and capacity of the
whole system (people, infrastructure, finance, and institutions) are still low, making
old habits in production and management. Furthermore, the general knowledge and
understanding of the sustainable development of many enterprises, institutions, and
citizens are incomplete and inconsistent. Socio-economic policies are only focused on
economic growth and social stability but have not paid enough attention to
sustainability when exploiting and using natural resources, in association with the
protection of natural resources. This study proves the importance of supply chain
social sustainability and why managers must be aware of sustainable development in
the supply chain.
Last but not least, this study investigates three dimensions of supply chain
integration, the collaboration between external integration and internal integration,
and the influence of supply chain integration on performance outcomes in the supply
chain. The final reason is to broaden other research on supply chain integration by
including literature on the collaboration between supply chain integration and
performance. This


research also examined managerial implications and theoretical contributions based on
the results and findings.
1.3 Research objectives

The general objective of this research is to extend previous findings of (Mani,
Gunasekaran, & Delgado, 2018; Mani, Gunasekaran, Papadopoulos, Hazen, & Dubey,
2016; Mani, Jabbour, & Mani, 2020) about the importance of supply chain social
sustainability in developing economies. Accordingly, the specific objectives of this
research are:

Objective 1: Identifies the relationship between supply chain social sustainability
and supply chain performance, mediating role of supply chain integration.
Objective 2: Examines the impact of social sustainability on three dimensions of
supply chain integration: internal, customer, and supplier.
Objective 3: Identifies the influence of supply chain integration on customer
performance, supplier performance, and supply chain performance.
1.4 Research questions

Our research tries to examine the following research questions:
RQ1. How does social sustainability enhance supply chain performance,
mediating role of supply chain integration?
RQ2. How does social sustainability influence internal integration, supplier
integration, and customer integration in the supply chain?
RQ3. How do the three dimensions of supply chain integration affect supplier
performance, customer performance, and supply chain performance?
In addition, the author uses three main foundation theories to answer the research
questions, explain the hypotheses development and develop the research model: (1)
Stakeholder theory view explains the relationship between social sustainability and
supply chain integration (Barney & Harrison, 2020; Mohammed & Muhammed,
2017),
(2) Dynamic capabilities view examines the relationship between supply chain


integration and supply chain performance (Laaksonen & Peltoniemi, 2018;
Schoemaker, Heaton, & Teece, 2018), and (3) Stakeholder resource-based view
identifies the relationship between social sustainability and supply chain performance
(Kull, Mena, & Korschun, 2016; Freeman, Dmytriyev & Phillips, 2021).
1.5 Research methodology and data collection

This study is divided into two main parts: the pilot study and the main study.

Firstly, the pilot study is carried out to re-examine the questionnaire with respect to
logic, wording structure, and appropriateness. Secondly, the main study focused on
testing the reliability, convergent validity, and discriminant validity of construct
measurements and the proposed hypotheses. The author adopted and revised the
measurement items from previous studies and used a 7-point Likert scale (ranging
from Strongly disagree to Strongly agree) for these measurement items. The supply
chain social sustainability was adapted from the research of Mani et al., (2016) and
Mani and Agrawal (2015). In addition, the measurements from a prior study by Jajja,
Chatha, & Farooq (2018) were used to measure Supply Chain Integration, including
Supplier Integration (4 items), Internal Integration (4 items), and Customer Integration
(4 items). For the Customer performance (2 items), Supply chain performance (3
items), and Supplier performance (3 items), the author used items from Mani, Jabbour,
and Mani (2020).
The author delivered online and offline surveys to executive staff and managers
of companies located in Vietnam. This study’s data were from April to October 2021;
the survey subjects are small, medium, and large companies in the South of Vietnam,
particularly in HCMC, Dong Nai, Binh Duong, and Mekong Delta Rivers. The total
time for collecting the data from respondents will be approximately six months. All
companies have at least 4 to 5 years of operating. The author applied these criteria to
ensure all the companies are mature in operations and have enough knowledge of
social sustainability practices. In total, 428 responses were received.


1.6 Research contribution
1.6.1

Theoretical contributions

By examining these primary questions, this research will contribute to the social
sustainability domain. Firstly, the empirical result shows that supply chain integration

plays an integral part in accomplishing supply chain performance. To achieve a firm’s
goals effectively and efficiently, it is necessary to integrate collaboration between
firms and their strategic suppliers in the supply chain. Hence, this study supports
previous research on supply chain integration (Liu, Jia, Jia, & Koufteros, 2021; Raut,
Priyadarshinee, Gardas, Narkhede, & Nehete, 2018). Through the development of
internal integration, information and data can be exchanged and delivered quickly and
sufficiently (Xian, Sambasivan, & Abdullah, 2018). This leads to the addition of
mutual understanding across departments within an organization. In addition, this
study has revealed that when companies actively keep in touch and share information
related to inventory management and inventory status with their suppliers, the
production progress will be ensured once the raw materials and goods are supplied on
time at a reasonable price (Li, Yu, Wang, & Yan, 2017).
Secondly, the finding indicates that customer integration does not significantly
influence customer performance; it turns out to be contrary to previous studies (Lee,
2016; Schoenherr & Swink, 2012). This conflict conclusion can be explained due to
the differences in respondents’ perceptions which are probably influenced by
employee positions, job tenure, and managerial knowledge. Empirical results have
revealed that customer integration does not weigh the same significance as internal
integration and supplier integration, especially in some aspects. This finding is similar
to a previous study by (Wiengarten, Pagell, Ahmed, & Gimenez, 2014; Duong & Ha,
2021b; Duong & Ha, 2021a) which that means when it comes to cost and innovation
performance, the effect of customer integration on customer performance is weaker
than the others.
In addition, this study proves that supply chain social sustainability is positively
related to supply chain integration. It turns out to be contrary to previous research.
Many authors stated that supply chain integration is positively related to supply chain
social sustainability (Wilding et al., 2012; Huq et al., 2016; Klassen and Vachon,
2003;

Gelhard and von Delft, 2016). It can be explained when supply chain managers pay
attention to sustainable development, they will increase the integration with their
strategic partners (customers and suppliers) and their employees. Hence, supply chain
integration will improve, then lead to enhance the performance outcomes. In other
words, social sustainability practices are very important to achieve a firm’s goals
effectively and efficiently.
Last but not least, through perceiving social sustainability in emerging markets,
this study attempts to fill the current research gap by interpreting different dimensions
of supply chain social sustainability (Mani, Gunasekaran, et al., 2016). This result is
also similar to previous studies about the link between supply chain social
sustainability practices and supply chain performance (Bai, Satir, & Sarkis, 2019; Bai
& Sarkis, 2017). The finding indicates that companies frequently contribute to the
local community and support their employees, which helps firms improve their
corporate reputation and credibility. Customers are also willing to purchase products
and services from these firms that perform social sustainability commitments to the
whole

community. While

implementing

these

sustainable

and

responsible

commitments, companies should call for the collaboration of their strategic customers

to participate in these meaningful campaigns.
1.6.2

Practical implications

Firstly, firms’ managers should emphasize supply chain integration, including
supplier integration, customer integration, and internal integration. Furthermore, it
proves that different forms of integration influence different aspects of performance in
the supply chain. As a result, it provides many helpful guidelines for managers to
increase supply chain integration in a specific situation following firms’ objectives.
Secondly, the results help managers solve social issues responsively in several
aspects. It encourages managers to enrich employees’ welfare and working conditions
and contribute interests to the local community. Moreover, this study provides critical
guidance to the firms’ managers toward sustainable development by emphasizing the
importance of social sustainability motives and their impact on facilitating supply
chain performance.


Thirdly, to control and manage risks in the supply chain, managers should apply
risk management practices. As a result, managers can predict and recognize risks
quickly and effectively after the post-Covid-19 period. Based on the findings, the
authors suggested that collaborative practices within organizations and the firm’s
strategic partners are highly recommended to control risks and increase the firm’s
performance.
In addition, managers should better understand the importance of sustainability
practices and how they could contribute to supply chain performance. This study
suggests that managers should be more actively collaborating and encouraging their
partners, including upstream suppliers and downstream customers, to act responsibly
and contribute to the community. As a result, the supply chain performance will be
significantly enhanced.

Besides this, the government must continue to improve the legal framework for
sustainable environmental development. The government should diversify the
country's resources and exploit the private sector’s potential in the development of
sustainable goals. The authorities must pay more attention to improving citizens’
health systems. The state needs more support for provinces with a healthy low-level
system. In addition, they should reduce the income disparity between cities and rural
areas. Hence, it leads to stability in life and helps economic-socio growth more
sustainable.
Last but not least, the government should continue to invest in the education
system to improve the qualifications of citizens in Vietnam. This strategy cannot be
achieved immediately but will positively impact the long term, thereby ensuring more
sustainable economic growth. Besides, the states have to open policies to attract
foreign direct investment. It will contribute to the sustainable development of the
country. As a result, the government can solve social issues, ensuring a better life for
people.
1.7 Research limitation

Although our findings contribute both theoretical and practical aspects, this
study has some limitations. Firstly, the participants have different job positions, from
executive employees to top managers. Therefore, the perception and viewpoint of the


interviewees are different in terms of the work role, years of experience, and
knowledge about supply chain social sustainability. Secondly, the social manners in
developing countries are distinct from developed countries. Hence, this study may
only apply in the context of emerging economies. In addition, this research uses data
gathered from a single country (Vietnam); therefore, it may affect the generality of the
sample. Lastly, there are three main pillars of sustainable development, including
economic (profit), environment (planet), and society (people). In this research, the
author only examines the social aspect.

1.8 Research structure

This research is structured as follows.
Chapter 1 – Introduction
Chapter 2 – Literature Review and Hypotheses Development
Chapter 3 – Research Methodology
Chapter 4 – Data Analysis, Results, and Discussions
Chapter 5 – Conclusion and Implications
Overall, this chapter displays the dissertation’s background to present the critical
research problem, the research goals, and the research questions. By reviewing the
existing literature, this research proposes investigating the connection between supply
chain social sustainability and supply chain performance in Vietnam, specifically, the
mediating roles of supply chain integration.