The Effect of Supply Chain Collaboration Efforts on Environmental Performance in the Manufacturing Industry

Abstract

Manufacturing firms compete to better adapt to market fluctuations in the highly competitive market economy of today. Given the interdependence between supply chain participants, collaboration is therefore a significant necessity for integrating activities in order to meet the mutual goals of all parties. This study aims to examine the effect of supply chain collaboration dimensions on environmental performance as well as the extent to which manufacturing firms have adopted dimensions of supply chain collaboration. The study used a quantitative research approach. A structured questionnaire was used to collect data from 45 respondents who work in various management roles at manufacturing companies in Jordan. Descriptive and regression analysis was conducted using SPSS version 24 software to test the proposed hypotheses in the conceptual model. The regression model included six supply chain collaboration dimensions as independent variables and environmental performance as a dependent variable. The implementation of six supply chain collaboration dimensions was evaluated using a five-point Likert scale, with the following results: information sharing (4.42), collaborative communication (3.91), joint knowledge (3.78), decision synchronization (3.54), resource sharing (2.46), and goal congruence (2.27). Moreover, the findings showed that four supply chain collaboration dimensions, namely information sharing, resource sharing, collaborative communication, and joint knowledge, are all having positive and significant effect on environmental performance of manufacturing firms in Jordan with a pvalue less than 0.05. The study presents policy implications from both theoretical and practical perspectives for managers, researchers, and academics. Managers can use the definition and performance measures of supply chain collaboration as a potential tool to build productive working relationships. By addressing these important dimensions of supply chain collaboration, businesses can reduce the likelihood of a failed collaboration. Managers in the manufacturing sector in Jordan should concentrate their efforts on enhancing resource sharing and goal alignment with supply chain partners. Moreover, using new technology should 40 enhance collaborative communication, joint knowledge, and decision synchronization aspects of collaboration. Additionally, information sharing is the most significant factor influencing supply chain collaboration and environmental performance. Finally, the government should enact new regulations and laws to enhance the environmental performance Jordan's manufacturing sector.