Relationship between Supply Chain Strategy and Sustainable Performance of SMEs: The Mediating Role of Competiveness

Abstract: This study investigates the relationship between supply chain management and the sustainable performance of Small and Medium Enterprises (SMEs) within the manufacturing sector in Bauchi State, Nigeria, while examining the mediating role of competitiveness. Utilizing a quantitative research design and an "A Priori" power analysis via G Power 3.1, data were gathered from registered manufacturing firms across the state. Out of 210 questionnaires distributed, 197 valid responses were analyzed using SmartPLS 4 to evaluate both the measurement and structural models. The findings reveal a positive and significant direct relationship between supply chain management and the sustainable performance of SMEs. Furthermore, the structural equation modeling results confirm that competitiveness significantly mediates the relationship between supply chain management and sustainable performance. The coefficient of determination indicates that the model explains 24.4% of the variance in sustainable performance and 34.2% of the variance in competitiveness. Based on these findings, SME owner/managers in Nigeria should actively incorporate robust supply chain management practices such as green procurement, ethical sourcing, and supplier environmental compliance audits into their core business models to boost both ecological and financial viability. Additionally, policymakers and industrial development agencies should design targeted training programs to help SMEs leverage their sustainable operations for market differentiation, thereby enhancing their overall competitiveness and alignment with national and global sustainability goals.