Strategies for Implementation of Sustainable Supply Chain Management in SMEs in Saudi Arabia

Abstract

Abstract

Small and medium-sized enterprises (SMEs) can greatly improve their sustainability performance by implementing sustainable supply chain management (SSCM) to address environmental, economic, and social issues that impact on their supply networks. While SSCM can promote business growth, efficiency, cost-effectiveness, skilled staff recruitment, customer loyalty, reduced CO₂ emissions, and sustainability in SMEs must be understood to the fullest potential while accomplishing this through supply chain management (SCM). The Saudi government has implemented various sustainability programs to achieve its Vision 2030, and this study aims to assess the factors and challenges necessary to address these barriers and enable the implementation of the 2030 vision objectives. Clear thinking and solid methodology are essential for achieving this objective. Consequently, this study utilized a quantitative approach, collecting data by means of surveys given to small and medium-sized enterprises (SMEs) in the Eastern Province of Saudi Arabia. The enablers and barriers were identified through discussions with SME managers and a thorough literature examination. Findings reveal that customers are the main driver of implementing SSCM, as they are the primary source of revenue and acknowledge government-led efforts to ensure sustainability. However, there are two main hindrances: a narrow profit margin derived from sustainable supply chain practices and a lack of awareness among senior management. Many SMEs face challenges in integrating sustainability practices into their supply chains, particularly due to limited financial resources, lack of specialized expertise and insufficient technological infrastructure. Addressing these weaknesses is therefore crucial, as improvements in these area would not only complement their existing strengths but also enable SMEs to compete more effectively in both domestic and global markets.