Drivers for Sustainable Supply Chain Management and the Practices in Ethiopian Apparel Industries

Environmental, social, and economic concerns in the apparel manufacturing industries have grown in recent years. The sustainability of the apparel supply chain management in developing countries is characterized by operations highly hazardous to the environment and unethical to society and of important economic value. Studies showed that socioeconomic and cultural differences in different countries affect the success of sustainability practices. Therefore, extensive research is required to measure the current challenges of sustainable practices from environmental, social, and economic perspectives of the apparel industry. Due to unsustainable practices, competitiveness in export and local markets is low in the Ethiopian apparel industries. This paper explores the effect of different factors on the sustainable practices of Ethiopian apparel manufacturing industries. A conceptual framework was formulated to measure sustainable practices. Questionnaires, interviews, and secondary data sources were used for data collection. The data are prepared and pretested for reliability. Integrated interpretive structural modelling and structural equation modelling techniques have been employed for model building and data analyses to see the relationship between the challenges and the existing practices. The proposed model was validated using partial least squares structural equation modelling. The Bootstrapping technique in smart partial least square ensures the reliability of the data for small sample size. The result showed a significant relationship between the factors and sustainable practices. All the environmental, economic, and social perspectives were statistically tested and found significant at p values of 0.05. Sustainable practice in the apparel manufacturing supply chain was found to be low with a mean value of three. This performance is far below the average standard in developing and developed countries. This research provides customized areas of intervention from environmental and social aspects that recognize the societal difference towards sustainability awareness and motivation to implement sustainability initiatives in Ethiopian apparel manufacturing industries. This research could provide awareness for business owners and policymakers and help understand the limitations of existing sustainability practices and the need for interventions. Therefore, apparel manufacturing industries could be potential sourcing destinations for global apparel manufacturing industries.