Sustainable supply chain management in emerging economies: Trade-offs between environmental and cost performance

Conducting an empirical study of 128 manufacturing firms (72 in China and 56 in Iran), this study examines and compares the impact of SSCM adoption on environmental and cost performance within these two emerging markets. Using a multiple regression analysis, the results show that there are more similarities than differences amongst these two emerging economies. The results also reveal that the adoption of SSCM practices results in higher levels of the environmental performance of Chinese and Iranian manufacturers, but does not necessarily lead to improved cost performance. Our findings suggest that firms operating within emerging markets need to undertake SSCM initiatives with a broader consideration of their financial bottom line in order to minimise trade-offs between the environmental and cost performance.