Evaluating sustainable practices and supply chain management effectiveness in African small and medium-sized enterprises (SMEs)

Objective: This study seeks to analyse the viability and competitiveness of African small and medium-sized enterprises (SMEs) by exploring the potential of sustainable practices and supply chain management (SCM) strategies. It focuses on the important need to quantitatively evaluate the effects of sustainability on the operational and strategic outcomes of African SMEs in various economic contexts. Approach: This study utilises a rigorous quantitative analysis and a cross-sectional survey design to gather data from SMEs in fourteen African countries. An analysis using structural equation modelling (SEM) was conducted to examine the relationship between sustainable practices, supply chain management (SCM) strategies, stakeholder support, and the competitiveness of SMEs. Findings: The study’s results suggest that implementing sustainable practices can greatly improve the competitiveness of small and medium sized enterprises and the effectiveness of SCM. Incorporating sustainability into SCM strategies enhances operational efficiencies and contributes to resilience and strategic market positioning. Stakeholder support is crucial in ensuring the successful adoption of sustainability practices. Furthermore, the research illustrates that internal capabilities and strategic alignment with sustainability are key factors in determining long-term viability and gaining a competitive edge. Originality/Contribution: This research adds to the existing body of knowledge by presenting empirical evidence on the strategic advantages of sustainability in resource-constrained settings, such as African SMEs. It goes beyond the traditional focus on cost savings and operational efficiencies. This research builds upon established theories like the Resource-Based View and Stakeholder Theory but applies them specifically to African SMEs. Doing so provides a deeper understanding of how sustainability can be used as a competitive advantage in emerging markets. The study’s thorough analysis across various African regions offers various viewpoints, strengthening the findings’ relevance and usefulness for other developing economies.