Aligning supply chain strategy with corporate environmental strategy: A contingency approach

Environmental sustainability is driving firms to extend their green effort across their supply chain. However, the literature has not thoroughly examined the multiple relationships among supply chain (SC) strategy, corporate environmental (CE) strategy, and firm performance. As such, this paper, adopts an alignment perspective to empirically examine the complex links between four SC strategies and four CE strategies on 172 manufacturing firms in Taiwan. Using profile deviation analysis, it is found that overall an SC strategy when properly aligned with a CE strategy leads to improved firm performance. Specifically, a risk-hedging SC strategy should be aligned with a defensive CE strategy to yield improved firm performance. Likewise, a responsive SC strategy should be aligned with an accommodative CE strategy, and an agile SC strategy with a proactive CE strategy. ► We employ an alignment analytic process using profile deviation analysis. ► We examine the multiple relationships among SC strategy, CE strategy, and firm performance. ► We offer guidelines for firms to align goals from a strategic alignment approach. ► An alignment between SC and CE strategies improves overall firm profitability.