The effects between social sustainability and performance outcomes in sustainable development: The case of SMEs in Vietnam

Abstract

Due to the increased public awareness of social issues, the significance of sustainability in the supply chain has progressively increased over the past few decades. The Vietnamese government has published “Orientation for sustainable development of the country” in an effort to successfully implement the goals for sustainable development goals (SDGs). 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 common goals and objectives. The purpose of this study is to identify the relationship between social sustainability and performance outcomes in small and medium enterprises (SMEs) in Vietnam. The author adopted and revised the measurement items from previous studies and applied PLS- SEM model in this study. In addition, 228 samples were used for further analysis. Research result demonstrated how sustainability has a significant impact on supply chain performance as well as enhancing integration among members. Furthermore, policy-makers and managers pay more attention on the social sustainability practices will achieve goals effectively and efficiently. In conclusion, businesses should adopt sustainable values to enhance the well- being, working conditions, safety, and healthcare of their employees and strategic partners as well as the development of the local community in order to support sustainable development.