Be digital to be sustainable! The mediating role of sustainable supply chain practices in triggering the effects of digitalisation on Sustainable Development Goals in the European Union

Abstract

Research background: European Union (EU) economies need to enhance sustainable supply chains (SSCs) through digitalisation to realise sustainable development goals (SDGs). However, the impact of digitalisation on the SDGs is complex and multifaceted, and the role of SSCs in mediating this relationship is not fully understood. While extant research has delved into the influence of digitalisation on SSCs, predominantly within specific industries or geographic regions, a research gap persists concerning large-N samples and the generalisability of results. Purpose of the article: This study evaluates the role of digitalisation in achieving SDGs along with the mediation of SSCs based on the resource-based view, the triple-bottom-line, and dynamic capabilities theories. Methods: The study has extracted panel data from Eurostat from 2013 to 2022 and evaluated these data through partial least squares structural equation modelling to estimate the association among constructs. The sample covers the EU-27 countries and consists of 270 observations. Digitalisation is operationalised as the use of digital technologies to, for instance, innovate business models, provide new revenue streams and value-producing opportunities, and enhance, streamline, and make supply chain processes more efficient and environmentally sustainable. SSC practices encompass the design, planning, execution, and monitoring of supply chain activities to create value, optimise resources, and minimise environmental impact. Findings & value-added: The findings indicate that digitalisation has a positive association with SDGs and SSC practices. The study also noted that SSC initiatives play a mediating role between digitalisation and SDGs among the EU economies. These interesting insights could direct policymakers to enforce the initiative of digitalisation in SSCs to boost SDGs in EU economies. Although the literature on digitalisation and SSCs has gained significant attention, this is the first study in these domains.