Effects of control mechanisms on supply chain resilience and sustainability performance

Supply chain resilience (SCRES) plays an important role in dealing with disruptions in a highly turbulent business environment and has received a fair amount of attention from industry and academia. This study explores the relationships among control mechanisms (process, social, and outcome control), SCRES (proactive and reactive resilience), and sustainability performance (economic, environmental, and social performance). Structural equation modeling is used to analyze data collected from 322 Chinese manufacturing firms. This study finds that process control and social control have a positive impact on the two dimensions of SCRES, while outcome control has no significant impact on SCRES. Proactive and reactive resilience both have a significant positive impact on the three dimensions of sustainability performance. The results deepen the understanding of the enablers and performance of SCRES. They also provide managerial insights into how to use control mechanisms to build SCRES capability for sustainable development. JEL Classification: M1