Exploring the Roles of Circular Supply Chain Management Practices and Supply Chain Dynamic Capabilities in Vietnamese SMEs’ Sustainability Performance

Abstract

The literature has increasingly indicated the direct effects of circular supply chain management (CSCM) practices and supply chain dynamic capabilities (SCDCs) on firm sustainability performance (FSP). However, there are few studies examing the indirect role of SCDCs in the relationship between CSCM practices and FSP, especially in the context of developing countries. This study examines both the direct and indirect roles of SCDCs in the relationship between CSCM practices and FSP in Vietnamese small and medium-sized enterprises (SMEs). We surveyed 53 SMEs in Vietnam in several sectors such as agriculture, textile, electronics, chemicals. Data was analyzed using Smart PLS software. Our research results indicate that while CSCM practices positively impact on both firm economic, social and environmental performance, SCDCs merely affect environmental performance. Interestingly, the present study reveals the moderating roles of SCDCs in facilitating the relationships between CSCM practices and FSP in Vietnamese SMEs. It highlights the importance of building SCDCs in implementing CSCM practices in order to enhance sustainability performance of SMEs in developing countries.