Circular supply chain management in Vietnamese manufacturing smes: dynamic capabilities, practices and firm sustainability performance.

Abstract

Circular supply chain management practices and supply chain dynamic capabilities are critical to achieving firm sustainability. However, it has yet to be discovered how circular supply chain management practices and supply chain dynamics capabilities influence the sustainable performance of SMEs in developing countries. By adopting a resource-based view perspective, this study explores how circular supply chain management practices and supply chain dynamic capabilities impact firm sustainable performance in developing countries through survey research on 53 Vietnam SMEs. Data is analyzed using Smart PLS, and the results show that circular supply chain management practices positively influence firm social, economic, and environmental performance while supply chain dynamic capabilities impact only healthy8 environment performance. Interestingly, the results indicate that supply chain dynamic capabilities moderate the relationships between circular supply chain management practices and Vietnamese SMEs' social, economic, and environmental performance. The study thus highlights the moderating role of supply chain dynamic capabilities in facilitating firm circular supply chain management practices and sustainable performance.