Examining the Impact of Sustainable Supply Chain Practices on HSE Outcomes in the Alloy Steel Industry Using Structural Equation Modeling

Rohollah Fallah  Madvari; Abolfazl Kamel  Rastegar Qavi; Ali Sadri  Esfahani; Afarin Akhavan; Sepideh  Kamali

doi:10.18502/jehsd.v11i1.21159

Rohollah Fallah Madvari Department of Occupational Health Engineering, School of Public Health, Shahid Sadoughi University of Medical Sciences, Yazd, Iran.
Abolfazl Kamel Rastegar Qavi Department of Industrial Engineering, Science and Arts University, Yazd, Iran.
Ali Sadri Esfahani Department of Industrial Engineering, Science and Arts University, Yazd, Iran.
Afarin Akhavan Department of Industrial Engineering, Science and Arts University, Yazd, Iran
Sepideh Kamali Department of Occupational Health, Esfarayen Faculty of Medical Sciences, Esfarayen, Iran

DOI: https://doi.org/10.18502/jehsd.v11i1.21159

Keywords: Supply Chain Management, Occupational Health, Safety Management, Environmental Health, Sustainability

Abstract

Introduction: This study investigates the connection between sustainable supply chain practices and Health, Safety, and Environment (HSE) outcomes in the alloy steel industry using Structural Equation Modeling (SEM).

Materials and Methods: A cross-sectional survey was conducted among 120 industry professionals, selected through purposive, non-random sampling to ensure their expertise in HSE and supply chain management. Data were collected using validated questionnaires measuring four dimensions of sustainable supply chain practices—supplier management, customer relationships, internal processes, and organizational learning—alongside HSE outcomes.

Results: The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS software, selected for its suitability in modeling complex constructs with moderate sample sizes. The measurement model demonstrated acceptable reliability (Cronbach's alpha > 0.7) and satisfactory convergent and discriminant validity. The findings from the structural model indicated that all four dimensions of sustainable supply chain practices had a significant and positive impact on HSE outcomes (path coefficients = 0.131–0.325, p < 0.05), with internal processes showing the strongest influence. The model exhibited high explanatory power (R² = 0.854).

Conclusion: These findings suggest that aligning sustainable supply chain practices—particularly internal process optimization—with HSE objectives can substantially enhance the sustainable performance of the alloy steel industry. However, the findings should be interpreted with caution due to the cross-sectional design, and depended on self-reported data, and use of purposive, non-random sampling, which may limit causal inference and generalizability.