Organisational culture and sustainable supply chain performance: the role of supply chain integration

Organisational culture (OC) and supply chain integration (SCI) have long been considered as effective enablers of sustainable supply chain performance (SSCP) of manufacturing firms. Nonetheless, research investigating the role OC and SCI could play on improving SSCP of firms have not been given enough consideration in literature. From the lenses of institutional, relational view and resource-based view theories, this research examines the impact of OC and SCI on SSCP and assesses the mediation role of SCI drawing from a study in the food manufacturing industry in both the UK and Greece. The flexibility-control dichotomy of the competing value framework (CVF) was adopted in operationalising OC into; developmental, group, rational and hierarchical cultures. SCI was classified into internal, customer and supplier integration and SSCP was operationalised using environmental, social and economic performance. The mixed method approach utilising both qualitative and quantitative approaches were employed. Eleven top managers from different food manufacturing firms in the UK were interviewed. A total of 315 usable responses were also obtained from a survey and the data was analysed using PLS-SEM technique.

The findings from the study revealed that, only developmental, group and hierarchical cultures play a key role in the implementation and achievement of higher SSCP (environmental, social and economic performance). SCI was also found to be very significant for increasing the SSCP of the food manufacturing firms, however, internal integration lays the foundation for external integration within the context of sustainability. Furthermore, it was found that all the competing values of OC especially the values in group culture strengthen internal integration which serves as a prerequisite for establishing a formidable external integration for a higher SSCP. The study also confirmed that the dimensions of SCI individually and collectively mediate the relationship between OC and SSCP. OC was also found to positively influence SCI and SCI had a positive relationship with SSCP. The findings in this research introduces a new insight into literature of OC, SCI and SSCP by confirming that; (i) only group, developmental and hierarchical culture are significant for SSCP, (ii) all the dimensions of OC are crucial for SCI and (iii) internal integration is significant for external integration and SSCP. The research also develops a new framework that links OC, SCI and SSCP for future studies.

Based on the findings, managers are encouraged to firstly pursue the values inherent in developmental, group and hierarchical culture to improve and achieve a higher SSCP. Developmental culture instils sustainability learning and creativity. Group culture encourages the pooling of skilled workers together to collate ideas on sustainability improvement whiles hierarchical culture maintains sustainability discipline and control in firms. Secondly, managers are encouraged to pursue developmental, hierarchical, rational and group culture to establish strong levels of SCI. The values present in these cultures encourage a stronger internal integration which enables organisational members to integrate easily with their supply chain partners. Lastly, after adopting the sustainability-oriented cultures (developmental, group, hierarchical) managers are encouraged to establish strong ties with their suppliers and customers and through this share the relevant knowledge, skill, information and resources to improve the sustainability performance of the supply chain.