The Impact of Cluster Involvement on Supply Chain Sustainability Performance: Introducing the Sustainability/Involvement Index

Abstract

The main problem addressed by this research is the current debate between the negative and positive effects of industrial clusters. This debate is a result of gaps between theoretical implications and empirical evidence in both the classical agglomeration theory and the agglomeration lifecycle theory. The purpose of this study is to propose a framework for developing an index measuring both organizational cluster involvement and organizational supply chain including the three pillars (economic, social, and environmental). Furthermore, the index acts as a quantitative predictor of the stages of the life cycle of industrial clusters. Adopting a case study methodology, the applicability of the index development framework is demonstrated. First, cross-sectional exploratory interviews are performed to locate items measuring the three pillars of organizational sustainability within Egyptian communication industry. Second, an explanatory, cross-sectional approach is applied gathering data from eight professionals related to involvement and supply chain sustainability of their organizations. Analytical hierarchical process is used for weighting and aggregating individual item metrics into two indicators (Saaty, 1980). Measuring, managing, and controlling capabilities of organization's supply chains outweighs the need to manage risks. The proposed framework aids firms within a cluster in making timely decisions about what needs addressing to improve supply chain sustainability performance. Hence, all environmental, social, and economic capabilities can be effectively monitored and controlled.

Citation

Ali, M.A. (2023), "The Impact of Cluster Involvement on Supply Chain Sustainability Performance: Introducing the Sustainability/Involvement Index", El Ebrashi, R., Hattab, H., Hassan, R.S. and Bouchra, N.H. (Ed.) Industry Clusters and Innovation in the Arab World, Emerald Publishing Limited, Leeds, pp. 225-257. https://doi.org/10.1108/978-1-80262-871-520231010