The Impact of Cleaner Production Strategy On Sustainable Supply Chain Performance

PRODUCTION ENGINEERING ARCHIVES 2024, 30(2), 166-181
PRODUCTION ENGINEERING ARCHIVES

ISSN 2353-5156 (print) Exist since 4th quarter 2013
ISSN 2353-7779 (online) Available online at https://pea-journal.eu
The impact of cleaner production strategy on Sustainable

supply chain performance
Sadiq Kamel Obaid Al-Humairi1* , Mahmood Fahad Abd Ali1 , Ali Abdulhassan Abbas2
1 University of Kerbala/ College of Administration and Economics/ Department of Business Administration, Iraq; [email protected];
[email protected] (SKOA); [email protected] (MFAA)
2 University of Kerbala/ College of Administration and Economics/ Department of Accounting, Iraq; [email protected],
[email protected]
*Correspondence: [email protected]
Article history Abstract

Received 24.01.2024 There is a paradigm shift occurring in organizations towards sustainable production through cleaner
Accepted 08.04.2024 production strategies. This cleaner production concept has been proven to be cost-effective, result-
Available online 31.05.2024 oriented, environment-savvy and provides the organizations a cutting edge over their counterparts.
However, there is a lack of awareness about cleaner production practices in Iraq while the current study
Keywords analyzed one of the most important factories in Iraq for sugar production to understand the factors
Cleaner Production Strategy, required for successful application of cleaner production strategy and the challenges to be expected. In
Sustainable Supply Chain. this study, the researchers followed an exploratory research approach. For this study, a questionnaire
was designed, validated and distributed randomly among 700 potential respondents working in various
departments of the organization under study. Out of the total responses, 482 responses were considered
and SEM-PLS analysis was conducted. The cleaner production strategies were applied through nine
dimensions and the relationship between the performance of the factory and sustainable supply chain
was found to be prominent. With a few limitations such as the choice of a single factory, weak rela-
tionship between the variables identified from hypothesis testing, the study is a first-of-its-kind in this
domain, especially in dealing with sugar refineries. Based on the outcomes, policy recommendations
were made to the decision makers and the government. It can be concluded that the application of
modern technologies and effective resource management can help in achieving the goal of the study.
DOI: 10.30657/pea.2024.30.16
1. Introduction the most important tool to achieve this integration is the ac-
quisition of green technologies that can improve environmen-
Recently, business organizations have started realizing that tal performance following the policies and frameworks. Such
the current production and consumption patterns are unsus- technologies have been developed by various industrial organ-
tainable and the resources are bound to deplete sooner izations and are extensively applied without legislative pres-
(Chungyalpa, 2021). So, it has become the duty of every or- sures. This method of dealing the environmental issues is rel-
ganization to strategize for the integration of cleaner produc- atively new and has resorted to highly industrialized countries
tion strategies into their operations and pay attention to so far. The studies conducted in such countries proved that
achieving a sustainable supply chain. The core components of cleaner production is an effective and efficient method in
this strategy include focusing on environmental considera- terms of benefits reaped from protecting the environment
tions, development of long-term strategic plans for the imple- (Chen et al., 2023; Gamage, Arachchige and Godakanda,
mentation of cleaner production and sustainable supply chain 2023; Kumar et al., 2024), Abd Ali et al., 2020). Despite this,
and the integration of environmental considerations into the the extent of negligence in applying cleaner production strat-
organization’s core operations (Gamage et al., 2023). Perhaps,
© 2024 Author(s). This is an open access article licensed

under the Creative Commons Attribution (CC BY)
License (https://creativecommons.org/licenses/by/ 4.0/). 166 ARCHIWUM INŻYNIERII PRODUKCJI
SADIQ KAMEL OBAID AL-HUMAIRI ET AL. / PRODUCTION ENGINEERING ARCHIVES 2024, 30(2), 166-181
egies in the Iraqi environment heavily destructed the environ- services intending to reduce the consumption of natural re-
ment and it has been ranked as fifth most vulnerable country sources and save the environment (Dehshiri et al., 2023;
to climate change (Al-Shammari, 2016; USAID, 2023), as a Hariga et al., 2023). It is an integrated strategy to avoid the
result of primitive production methods. The environmental negative effects of industrial processes in terms of human
standards have not been complied with by numerous Iraqi pro- health and the environment. Cleaner production strategies in-
jects. This is aggravated by the absence of a clear vision clude a set of procedures and initiatives in industrial organiza-
among the decision-makers in productive organizations re- tions such as employee training on cleaner production con-
garding the importance of preserving the environment (Moyel cepts, strategic plan development, self-monitoring and envi-
et al., 2023). ronmental auditing operations, product life assessment stud-
The problem undertaken in the current study is to develop ies, implementing the suggestions derived from the study out-
cleaner production strategies in light of the financial capabili- comes, disseminating the information inside and outside the
ties available to the organization and identify the most im- organization, and periodical follow-up (David et al., 2023;
portant requirements to achieve a sustainable supply chain. (Al-Tami and Al-Zaidi, 2012; Handhal, 2017).
The lack of environmental culture in Iraqi society and the lack Some of the possible goals of cleaner production practices
of awareness about the harm caused by environmental pollu- include 1) obtaining the financial returns and environmental
tion made the majority assume that the application of cleaner benefits at a relatively low cost, 2) developing novel produc-
production and sustainable supply chain strategies are too ex- tion methods and making appropriate modifications to the life
pensive and reduce the organization’s net profits, though cycle of products including the extraction, classification, stor-
cleaner production practices mitigate the expenses of the com- age, application and safe disposal of raw materials, 3) integra-
pany (Prigozhin et al., 2023; Soror and Ahmed, 2023). This tion of health and environmental considerations in all the pro-
assumption led the decision-makers to avert the execution of duction processes 4) protection of human health and the envi-
environment-friendly production methods. Hence, there is a ronment, 5) alleviating the pressure from compliance to envi-
need to create awareness about the process, and develop strat- ronmental laws, and 6) efficient production by reducing the
egies and intellectual frameworks for organizations to achieve waste at the source (Majeed and Shaker, 2016). One of the
a sustainable supply chain. Through the problem statement of most important goals of cleaner production is to coherently
the study, the authors attempt to answer several questions, work with others to achieve broader economic development
namely: Can a cleaner production strategy be applied success- that meets the basic needs of society and also links it with both
fully? What are the most important areas of support or prefer- development plans as well as the principles of environmental
ence for a cleaner production strategy? What are the limits of conservation. This sort of application reduces the depletion of
the contribution of a cleaner production strategy in supporting natural resources, and environmental protection costs and in-
the performance requirements of a sustainable supply chain? creases the economic returns from recycling and reuse of raw
And are there any specific preferences for cleaner production materials, production, energy savings (Hasiany et al., 2023;
strategies and for some dimensions of the performance of the Morero et al., 2024), and product quality. (Handhal, 2013;
sustainable supply chain. The current study is a first-of-its- AL-Sammk and AL-Rahawi, 2018).
kind in this domain in Iraq, though a few studies have been Cleaner production is approached from two aspects such as
conducted earlier in Iraq that suggested the incorporation of a narrow aspect that focuses on inputs (energy sources). Ac-
cleaner production process to achieve sustainability (Kinani cordingly, cleaner production is defined as the optimal utiliza-
and Najjar, 2019; AL-Munim and Hameed, 2021). Further, to tion of resources to reduce both waste and emissions. The sec-
the best of the authors’ knowledge, no study has been con- ond aspect is a broader one that emphasizes sustainability in
ducted so far focusing sugar mills in Iraq or the study com- the whole production system i.e., inputs, processes and out-
pany. Thus, the current research work is a valuable contribu- puts. The latter provides a comprehensive, integrated and pre-
tion to the research community, policy-makers in the govern- ventive approach to protect the environment, leverage the in-
ment and decision-makers at the organizations to revive their puts, processes, and outputs, reduce the emission of pollutants,
production strategies towards achieving sustainability. reach zero pollution, ensure the product’s quality, reduce the
cost and ensure cleaner production. This process has four
2. Literature review stages such as the inputs, processes, products and services as
briefed below. Inputs: It denotes the raw materials used in the
2.1. Cleaner production strategy organizations that are renewable and recyclable. This aspect
includes the energy required for the transformational pro-
Cleaner production strategy calls for the adoption of con- cesses, the possibility of minimally using non-renewable and
sumer and production practices that focus on integrated pre- non-recyclable materials and energy, and excluding the toxic
ventive strategies such as the evaluation of environmental im- and polluting materials that harm the environment. Processes:
pact, product life cycle, alterations in priorities from waste This component involves the storage of inputs, production line
treatment strategy to prevention of waste generation and envi- tasks and reduction of hazardous emissions during the opera-
ronment-friendly production processes that are compatible tion process. Products (goods): This stage has a minimum neg-
with consumer requirements. This strategy is continuously ative impact along the product’s life cycle from the extraction
evolving in industrial processes that deal with products and of raw materials to its safe disposal and its reuse. Services: It
includes environmental concerns in both design and provision
167 ARCHIWUM INŻYNIERII PRODUKCJI

of the services (Ismael, 2014; Al-Shawi, 2017; (Qasim, 2019; 3.Automation of the processes
Rosak-Szyrocka and Abbase, 2020). The researchers (Ismael, 4.Changes in the processes such as flow rates, temperatures
2014; Handhel, 2013) identified a set of practices that an or- and working environment.
ganization should adopt while implementing a cleaner produc- Product Design Change: It includes the changes brought in
tion strategy and it is briefed below. the product to reduce the emissions during its use and after
Good Operating Practices: These are the procedural and disposal. These changes can lead to redesigning the product
administrative measures to be implemented in every depart- and its technical composition. These changes are made
ment of an organization to reduce costs, emissions and pollu- through quality specifications, product formulation, reliability
tion and improve efficiency. and replacement of the product.
1.Management and employee practices: Training programs Reducing, Reusing & Recycling
must be developed for employees related to cleaner produc- It refers to the prevention of waste generation at its source
tion practices and their implementation. Further, incentive that starts from reducing the usage of raw materials and en-
programs should be developed to reduce emissions and pol- ergy, reusing the waste generated and recycling it as useful
lutants. materials through a set of treatments. To be precise, the pro-
2.Storage and handling practices for materials: This part in- cesses correspond to repetitive usage of the product by chang-
cludes the development of personnel and practices for dealing its original use. The recycling process means returning the
ing with raw materials and appropriate storage conditions to product or materials that can be treated by adding some chem-
reduce material damage, leakage, and their negative effects icals or biological materials or through physical treatment
on the environment. This committee monitors the ware- methods. Recycling supports the usage of raw materials in the
houses periodically, reviews and incorporates the modern production process using the once-useless waste. However,
storage methods as per the global competitors or identifies such waste gains high value once it is recycled. Further, the
suitable alternatives to reduce pollution during the storage waste generated in some industries can be sold to other com-
period. panies either after recycling or as a raw material.
3.Deployment of policies and personnel regarding the reduc-
tion of pollutants and emissions from ageing machines and 2.2. Sustainable supply chain performance
equipment through periodic evaluation and methods to ei-
ther repair or replace them. Sustainable supply chain performance is relatively a new
4.Waste separation/sorting practices: This component reduces terminology that closely associates sustainability with supply
the volume of hazardous waste by preventing the hazardous chain performance. This amalgamation started with a special
waste from mixing with non-hazardous waste. focus on integrating the ‘green’ considerations in supply chain
5.Cost accounting practices: This component involves the cal- management practices. Further, it also expanded by encom-
culations of costs allocated to waste treatment and disposal. passing social considerations within the concept of supply
Change in raw materials: Air and water are the most com- chain management. A sustainable supply chain is considered
monly affected natural elements. So, the production materials to be an extension of green supply chain performance. Many
that cause harm to the environment must be replaced in the studies (Tundys, 2020; Pereira et al., 2023; Sarfraz, Khawaja,
pursuit of health reasons. For instance, the replacement of cer- et al., 2023) infer the effectiveness of sustainable supply chain
tain cancer-causing solvents and compounds like lead-con- performance as an important business strategy to improve the
taining paints with non-carcinogenic materials such as water- environmental and social sustainability of the organization.
based cleaners instead of organic solvent-based cleaners, ap- The literature emphasizes that a sustainable supply chain helps
plication of alternative compounds that do not harm the ozone in achieving the profit goals, expanding the market share, and
layer, avoiding the usage of asbestos fibres (glass fibres) due reducing the negative environmental and social impacts. It fur-
to non-renewable nature of the source. ther represents an evolution of the traditional supply chain
Technology Change: This component involves the modifi- management combined with the overall goals of sustainabil-
cations made in machines and equipment, removal of pollut- ity. It has been defined as the management of the flow of ma-
ing machines, (either partial or at times, the complete revamp terials, information, and funds, as well as cooperation between
of the machinery), and identifying cost-effective machines to the organizations along the supply chain, to achieve economic,
ensure the sustainable production capability of the organiza- environmental, and social objectives that stem from the re-
tion, high efficiency and the discharge of less environmental quirements of customers and stakeholders. In addition to this,
pollutants. This includes the removal of processes that cause it also represents “a strategic and transparent integration
harmful substances. A well-known example lies in the manu- within which the organization’s social, environmental and
facture of chlorine products and caustic soda in which the dis- economic goals are achieved, through comprehensive coordi-
charge of mercury into the environment can be avoided by fac- nation of the main operations between the organizations to im-
tories by following the membrane cell method. prove the long-term economic performance of the focal insti-
These changes may include changes brought in production tution and its supply chains.” According to (Mahmahi and Ma-
technology as well zhouda, 2021), sustainable processing is a supply chain man-
1.Changes in the production process agement process that is aimed at preserving environmental,
2.Modification of equipment and internal design of the equip- economic and social stability to achieve sustainable growth.
ment and machines Organizations that adopt sustainable practices can generate
ARCHIWUM INŻYNIERII PRODUKCJI 168

economic returns and new revenue sources. In addition to cus- and supporting sustainable supply chains. Adopting cleaner
tomer and employee satisfaction, the integration of sustaina- production technology within industry 4.0 technologies has a
bility into business has become a strategic choice. The strate- significant and positive impact on the performance of sustain-
gic choices that seek sustainability can be a decisive factor in able supply chains. In the literature, the authors went further
giving organizations a competitive edge in terms of product by adopting industry 4.0 technologies in developing precise
image, sales, and market share. For this outcome, a sustaina- and focused cleaner production strategies (Karmaker et al.,
bility strategy should be implemented in the supply chain pro- 2023).
cess to accomplish economic, environmental and social well- The driving forces for adopting sustainability practices in
being (Hassan and Al-Nima, 2020). The goal of supply chain the supply chain are as follows (Gajanayake et al., 2024)
management practices is to deliver the required products or (Mahmahi et al., 2022; Saadi, 2020):
services at the right time to customers by managing all the 1. Scientific progress was achieved in the observation, as-
supply chain activities and increasing the profitability of the sessment and determination of the environmental damage
organizations. However, today’s organizations cannot focus caused by the industries.
only on profitability or financial performance, but also on so- 2. Rapid communication and dissemination of information
cial and environmental performance. Unlike the traditional through the internet to both consumers as well as stake-
concept, the modern concept encompasses economic, environ- holders about the impact caused by the organizational ac-
mental and social considerations in evaluating the organiza- tivities. Being the most influential, the organizations con-
tion’s performance (Sehgal et al., 2022; Coelho et al., 2023; stantly communicate with their consumers to dispel envi-
Sarfraz, Ozturk, et al., 2023). As briefed earlier, supply chain ronmental concerns.
management is an integrated process that manages the flow of 3. Predicted long-term occurrence of environmental prob-
materials, information and capital and ensures cooperation be- lems due to rapid technological changes.
tween the companies in the supply chain to achieve customer 4. The increase in population increases the costs incurred
and stakeholder requirements sustainably. It acts as a compre- from environmental damage.
hensive key business process between the organizations to im- 5. The spread of some negative practices due to the lack of
prove their long-term economic performance (Al-juboury and implementation and respect for regulatory and legal rules
Al-Nima, 2021). It creates a crucial link between the inputs to protect the workers.
and outputs. Traditional challenges involved in the supply 6. Pressure from stakeholders; two stakeholders play a major
chain include high costs, timely delivery, and reduced sustain- role in creating interest towards sustainability such as the
able product design according to business needs. However, the customers and the organization’s employees who have an
increasing environmental, social and economic costs of these important role in the organization’s initiative to include
networks and the increasing consumer pressure for eco- sustainability in operations.
friendly products led numerous organizations to view ‘sustain- 7. Resource depletion: Resource consumption cannot be con-
able supply chain’ as a new metric for profitable logistics man- sidered a proactive driver of sustainability. The main goal
agement (Li, 2023; Sadeghi and Qaisari Hasan Abadi, 2024). of any organization is to increase profitability within
This paradigm shift translates that sustainable supply chains a short period. However, it is a fact that resources are non-
mean profitable supply chains. The idea of integrating the con- renewable and tend to deplete. Therefore , organizations
cepts of environmental sustainability and supply chain prac- must focus on recycling or reducing their raw materials’
tices motivated major companies to adopt the approach for usage. Though it reduces the financial performance, the
achieving sustainable supply chains. This integration enables environmental performance of the firm increases. In other
the companies to preserve the environment, as well as safe- terms, the profitability in both medium- and long-term in-
guard their employees. This, in turn, gets reflected in a culture creases despite a short-term low in profits.
between the consumer and the company, since the purchasing 8. Low-carbon economy. When the rate of carbon emissions
decisions of consumers are decided by the potential negative per capita reduces, it results in a low-carbon economy. The
effects of the products (Sadeli et al., 2023). According to Al- main reasons for the increased volume of carbon in nature
Shamroukh, 2022, the reason behind the shift of the compa- are industrial organizations, unsustainable supply chain
nies to manufacture in an eco-friendly manner is yet to be ex- processes, and human activities and efforts should be taken
plored. However, the consumers already started preferring to reduce carbon emissions.
products from eco-friendly production practices (Shahrukh et 9. Environmental standards: The Standardization Company
al., 2023; Lopes, Gomes and Trancoso, 2024). The benefits (ISO) has provided 14001 certification to organizations
reaped by a customer in the supply chain include less inven- starting in 1996 to reduce the environmental risks due to
tory and its optimal distribution, high-quality products, low their operations. This standard focuses on strategic man-
transportation cost, increased sales, rapid marketing time, agement, legal compliance, and working with business
heightened customer service and loyalty, supply of highly-ef- partners to standardize the operations in an eco-friendly
ficient raw materials and finished goods, improved employee manner.
productivity waste reduction, cost mitigation and highly effi- 10. Social responsibility: Equal importance should be given
cient supply chain operations (Bedawd and Hussein, 2022). to social responsibility standards to ensure good working
According to (Onu and Mbohwa, 2019), a critical role will be conditions, fair business practices and a sense of well-be-
played by robots in developing cleaner production technology ing in the community.

From the review of the literature, it can be understood that the savings, cost savings, increased production and improved en-
application of cleaner production strategies in Iraqi firms is vironmental performance. Sustainable supply chain, which
yet to be complied though a few studies highlighted the im- combines the concept of sustainability and supply chain, helps
portance of incorporating cleaner production practices (Hh et the industries in reducing the waste and carbon emissions by
al., 2020; Soror and Ahmed, 2023; Sulaiman, 2023). No study using advanced technologies (Yadav et al., 2021; Agility Lo-
has so far focused on the sugar refining industries in Iraq while gistics, 2021; Surgere, 2023) for which the hypothesis is as
the current study is a first-of-its-kind attempt towards the follows:
same. The rationale behind the selection of the sugar refining Second sub-hypothesis: There is a significant influence re-
industry in Iraq is that the industry also contributes to pollu- lationship between waste and the performance of the sustain-
tion in addition to petroleum refineries from known times (Ah- able supply chain.
mad and Mahmoud, 1982; Al-Rawi, 2005) while globally the A sustainable supply chain process can develop multiple
researchers (Sahu, 2018; Ibrahim and Workneh, 2023) empha- scenarios for waste disposal and recycling without affecting
sized the contribution of pollution by sugar industries. In this the environment using modern technologies. These technolo-
scenario, it is crucial to investigate the supportive and destruc- gies can digitally identify and isolate the materials (Czekała,
tive factors that help in the implementation of a cleaner pro- Drozdowski and Łabiak, 2023). Waste recycling is one of the
duction strategy in Iraqi industries. important strategies to reduce the negative impact on the en-
vironment (Zheng et al., 2022) for which the hypothesis is as
3. Methodology follows:
Third sub-hypothesis: There is a significant influence rela-
3.1. Building hypotheses tionship between recycling and the performance of the sus-
tainable supply chain
As discussed in the literature, various studies have indicated The adoption of Industry 4.0 technologies positively affects
the presence of a relationship between cleaner production the performance of a sustainable supply chain including a
technology and sustainable supply chains (Arshed, Hameed product’s life cycle. In Industry 4.0, sustainable supply chain
and Saher, 2022; Yu et al., 2022). It has been pointed out that processes help organizations to design products with extended
cleaner production technology creates an impact on sustaina- life cycles, generating low waste (Kmar et al ., 2023). It is es-
ble supply chains and green supply chains (Ahmad et al., sential to evaluate the organization's sustainable supply chain
2022). Cleaner production technology affects three dimen- as a part of product life cycle management. This evaluation
sions of sustainability simultaneously such as environmental, remains useful in developing appropriate strategies for risk
social, and economic. In the literature, it was found that there mitigation (Sayles, 2023). Based on this notion, the following
is a state of integration between the supply chain and sustain- hypothesis is drafted.
ability while cleaner production technology is an independent Fourth sub-hypothesis: There is a significant influence re-
variable (Govindan et al., 2014). Cleaner production technol- lationship between the life cycle and the performance of the
ogy and sustainable innovation re-engineering affect the sus- sustainable supply chain.
tainable supply chain outcomes and they are integrated as a The application of cleaner production strategies helps in lev-
result of the current environmental revolution. In this back- eraging resources and reducing pollution effectively and effi-
ground, the current study follows the exploratory approach to ciently. When a cleaner production strategy is applied on an
analyze cleaner production technology initiatives, according ongoing basis, it results in an integrated preventive environ-
to the sustainable supply chain management. Through the re- mental strategy towards the production processes and the final
view of literature, the current study focuses on the most im- product. This in turn reduces the risks posed upon human be-
portant aspects discussed earlier based on which the hypothe- ings. Further, the raw materials and energy can be preserved
ses have been developed. and the removal of toxic materials and toxic emissions can be
First main hypothesis: There is a significant influence achieved. In addition to this, enhanced production processes,
relationship between cleaner production strategies and the environmental performance and productivity can be attained
performance of the sustainable supply chain: (Shekarian et al., 2023; Prigozhin et al., 2023) Therefore, the
Sub-hypotheses hypothesis is as follows:
From this hypothesis, several sub-hypotheses branch out. In Fifth sub-hypothesis: There is a significant influence rela-
today’s business environments, sustainability has become a tionship between resources and the performance of the sus-
factor that provides competitive edge to many companies from tainable supply chain.
their competitors. Therefore, organizations started devising Adopting energy-efficient practices within supply chains not
strategic plans to integrate sustainability and supply chain to only brings environmental benefits but economic benefits too
improve their performance. According to (Sun et al., 2022), (Ahi et al., 2016). The application of a cleaner production
the most important strategies required for this integration are strategy in effective energy management is an essential foun-
the selection of appropriate processes and correct eco-friendly dation for a sustainable supply chain. It involves the applica-
technologies as it affects the performance of the sustainable tion of renewable energy throughout the sustainable supply
supply chain (Sachin and Rajesh, 2022). chain to reduce costs, mitigate risks, generate new revenues,
One of the basic principles of sustainable supply chain is to and enhance the brand value (Beheshtinia and Fathi, 2023).
reduce emissions and waste generation. This results in energy On this basis, the following hypothesis is drafted.

Sixth sub-hypothesis: There is a significant influence rela- 3.2. Sample and data collection
tionship between energy and the performance of the sustaina-
ble supply chain. Al-Ittihad Food Industries Company, Babylon was selected
Applying a cleaner production strategy increases the effi- for the study as it is one of the leading companies in the region.
ciency of the production process. Further, it provides control The company was established in 2012 at the Al-Madhatiya
of the inventory, energy consumption, integrated production area, Babil governorate. In the beginning, it was established
system, production planning, and resource management and as a sugar refining factory whereas the production of refined
also provides a positive impact on the organization’s perfor- white sugar was started in 2015. At present, the company has
mance including environmental performance and increased a production capacity of 3,600 tons of refined white sugar per
productivity (Govindan et al., 2020; Shekarian et al., 2022). day. The company established a vegetable oil refining factory
So, the hypothesis is as follows: in 2016, adjacent to its sugar refining factory. In early 2017,
Seventh sub-hypothesis: There is a significant influence re- the production of refined vegetable oil began with an initial
lationship between production and the performance of the sus- production capacity of 2,000 tons per day. The production ca-
tainable supply chain. pacity has doubled in recent years and employs over 2,000
Using a cleaner production strategy means enhanced work employees (with 700 in sugar production and 400 in oil plant).
safety, teamwork, exchange of knowledge among the teams Al-Ittihad Transport Company owns 200 trucks to transport
and planning and implementation to improve the working con- raw sugar and 100 tankers to transport crude oil from the port
ditions. These factors enhance the performance of a sustaina- of Umm Qasr in Basra. The trucks also transport the com-
ble supply chain (Subramanian and Gunasekaran, 2015). pany’s products to the local market. The rationale behind the
When cleaner production strategies are applied at work, it in- choice i.e., Al-Ittihad Company is its suitability to the current
creases employee efficiency and competitiveness and reduces research aim, as the company obtained ISCC-EU certificate
the workplace that gets reflected in increased sustainable sup- and GMP+ certificate for secondary products, after meeting
ply chain performance (Roy et al., 2020) for which the hypoth- all the international conditions and requirements. This norm
qualifies the company to export its food products to Europe
esis is as follows: and all global countries. Therefore, the current study sought to
Eighth sub-hypothesis: There is a significant influence re- investigate the extent of applying cleaner production strategies
lationship between work and the performance of the sustaina- and determine the performance of a sustainable supply chain.
ble supply chain The company is also committed to environmental standards
Various studies conducted earlier recorded that there exists and monthly visits are paid to the factory by the Environmen-
a positive impact of a sustainable supply chain on the environ- tal Department, Babylon Governorate. Therefore, the aim of
mental performance of the factors (Jum’a et al., 2021). The the current study is compatible with the sample factory cho-
use of a cleaner production strategy also contributes to im- sen. The current study attempts to find the weak points to be
proved organizational performance and efficient environmen- addressed since the factory management is keen on environ-
tal management. This gets reflected in the increased perfor- mental issues and is trying to enter the field of global exports.
mance of sustainable supply chains (Wang and Dai, 2018). On For conducting the study, the required approvals were ob-
this basis, the following hypothesis is framed. tained from the factory through the letter numbered: D6 2607
Ninth sub-hypothesis: There is a significant influence rela- on 11/15/2023. The study period was two months and the data
tionship between the performance environment and the per- was collected in November 2023 from a group of randomly
formance of the sustainable supply chain. selected employees from different departments such as admin-
By reviewing the literature that was used to build the hy- istrative, technical and human resources. The data was col-
potheses, the following model has been developed: lected through an electronic questionnaire (Google Forms). A
total of 482 complete questionnaires, suitable for statistical
analysis, was obtained, representing (68.85%) of the total
sugar factory population of (700) employees. The question-
naires that were invalid, incomplete, or not filled out correctly
were not considered. Employees were given 25 days to com-
plete the survey. Many field visits were made to the Al-Ittihad
Company’s sugar factory site, the production lines were
viewed and many interviews were conducted with the fac-
tory’s workers and employees in all the departments. Refer to
Table (1) for the demographic distribution of the sample.
Fig. 1. Hypothetical diagram of the study

Table 1. Shows the demographic distribution of the sample A five-point Likert scale was used in all the measures with
terms such as Strongly Disagree being valued at (1) to
Demographic Categories Frequency (n) Strongly Agree valued at (5).
20 years and less 150
4. Statistical Data Analysis
21-30 300
Age The Structural Equation Modelling (SEM) technique was
31-40 200 used in this investigation while Partial Least Squares was em-
ployed as an analytical tool (PLS). PLS was used to investi-
41-50 50 gate the psychometric characteristics and provide evidence for
male 700 the existence or lack of relationships. The data in this research
Gender was analysed in two stages using SmartPLS 3.2.9 and SPSS
Female 0 29. The first step was the measurement model that analysed
the content, convergent validity, and discriminant validity.
Single 250
marital status The structural model and hypotheses were tested in the second
married 450 stage (Structural Model). Harman's single-factor test was used
to investigate the Common Method Bias (CMB) (Aguirre-Ur-
Intermediate education 200 reta and Hu, 2019); the proportion of the factor's explained
and above
variation for the common factor (15.7%) was less than 50%,
Preparatory school 50 suggesting the absence of this issue (MacKenzie and Pod-
sakoff, 2012;).
Education diploma 20
Bachelor's 410 4.1. Measurement Model

Higher Diploma 10 The measurement model was examined for reflective and la-
tent variables to determine the reliability and validity of the
Master's 10 model's constructs, see Figure (2). To examine the reliability
and construct validity, factor loadings, composite reliability
5 years and less 300
(CR), and discriminant validity were utilized (Hair and Lukas,
6-10 250 2014). Hair et al. (2017) suggested that the indicators with
Work Year loadings less than 0.4 should be removed to improve Compo-
11-15 100 site Reliability (CR) while above 0.6 should be maintained
16-20 50 (Fornell and Larcker, 1981). As demonstrated in Table (2) and
Figure (2), some items were removed from the model since it
Head of the Department 20 had factor loading values below 0.4. Furthermore, Average
Variance Extracted (AVE) values should be greater than 0.5
Division official 50
job position (Hair et al., 2017); however, the values greater than 0.4 are
Unit official 100 also acceptable, provided if the values of CR are greater than
0.6 (Fornell and Larcker, 1981). These findings in Table (2)
employee 530
show that the study met the criteria for convergent validity and
internal consistency of the measures.
3.3. Study scales
Table 2. Convergent validity and internal reliability consistency
By reviewing the literature, the following best-approved
standards were obtained. Construct Item CR AVE Loading
Cleaner production strategy: For this independent variable,
STR1 0.726 0.583 0.565
the scale was adopted from literature (Satyro et al., 2023) with Strategy
nine dimensions: Strategy (2) paragraphs, Waste (3) para- STR2 0.92
graphs, Recycling (3) paragraphs, and Life cycle (2) Para-
graph, Resources (2) Paragraph, Energy (2) Paragraph, Pro- WAS1 0.745 0.593 0.771
duction (8) Paragraph, Work (4) Paragraph, Performance En- Waste WAS2 0.77
vironment (2) Paragraph.
Sustainable supply chain performance: For this dependent WAS3 Deleted
variable, the scale was adopted from literature (Paulraj et al.,
REC1 0.854 0.746 0.863
2017) with four dimensions Sustainable product design (7)
Paragraph, Sustainable process design (5) Paragraph, and Sus- Recycling REC2 0.864
tainable design in one aspect. Supply-side sustainability col-
laboration (6) paragraph, Demand-side sustainability collabo- REC3 Deleted
ration (5) paragraph.

LIF1 0.732 0.583 0.641 SDDS2 0.784 0.478 0.603

Life cycle
LIF2 0.868 Sustainable SDDS3 0.781
design on the
RES1 0.705 0.556 0.563 demand side SDDS4 0.641
Resources
RES2 0.892 SDDS5 0.726
ENE1 0.7 0.54 0.791 Remark: Reliability and convergent validity are attained
Energy
ENE2 0.675
After establishing the convergent validity, the discriminant
PRO1 0.802 0.412 0.67 validity was examined. This aspect examined how much
a construct differs from the rest of the constructs. Discrimi-
PRO2 0.774
nant validity is usually established by examining the Fornell-
PRO3 0.474 Larcker criterion that ensures that the indicator loads heavily
only on the construct to which it is associated. When using the
PRO4 0.658 Fornell-Larcker criterion, the square root of the construct’s
Production
PRO5 0.743 AVE should be higher than any of the construct’s correlations
with other constructs (Ab Hamid, Sami and Mohmad Sidek,
PRO6 Deleted 2017). As per this guideline, the discriminant validity was
constructed since the square root values of the construct’s
PRO7 0.465
AVE were found to be higher than any of the construct’s cor-
PRO8 Deleted relations with other constructs as in Table (3).
WOR1 0.843 0.574 0.659
4.2. Descriptive statistics and multiple correlations
WOR2 0.81
Work In this section, some of the descriptive statistics and multiple
WOR3 0.832 correlations between the selected constructs are shown. These
include mean (M) and Standard Deviation (SD) as shown in
WOR4 0.717 Table (4). The descriptive statistics for ‘Cleaner Production
PER1 0.704 0.551 0.864 Strategy’ was (𝑀 = 4.159, 𝑆𝐷 = 0.359), and for “Sustaina-
Performance ble Supply Chain Performance”, it was (𝑀 = 4.145, 𝑆𝐷 =
Environment PER2 0.597 0.376). Between the dimensions of the independent variable,
‘Performance Environment’ had the highest mean (𝑀 =
SPD1 0.776 0.412 0.573
4.319, 𝑆𝐷 = 0.575) whereas ‘Resources’ had the least mean
SPD2 0.758 (𝑀 = 3.962, 𝑆𝐷 = 0.687). Between the dimensions of the
dependent variable, ‘Sustainable design of operations’ had the
Sustainable SPD3 0.664
product de-
highest mean (𝑀 = 4.295, 𝑆𝐷 = 0.458) and ‘Sustainable de-
sign SPD5 0.606 sign on the demand side’ had the lowest mean (𝑀 =
4.022, 𝑆𝐷 = 0.562).
SPD6 0.592
SPD7 Deleted
SDO2 0.743 0.433 0.657

Sustainable SDO3 0.428
design of oper-
ations SDO4 0.852
SDO5 0.625
SDSS1 0.795 0.40 0.553
SDSS2 0.733
Sustainable SDSS3 0.597
design on the
supply side SDSS4 0.726
Fig. 2. Measurement model
SDSS5 0.549
SDSS6 0.588

Table 3. Discriminant validity (Fornell-Larcker criterion)
Performance Environ-
Sustainable design on
Sustainable design on
Sustainable design of
Sustainable product
the demand side
the supply side

Production
Construct
operations
Resources
Recycling
Life cycle
Strategy
Energy
design
Waste
Work
ment
Energy 0.735
Life cycle 0.208 0.763
Performance 0.34 0.024 0.742

Environment
Production 0.312 0.082 0.439 0.642
Recycling 0.209 0.23 0.276 0.186 0.864
Resources 0.226 -0.013 0.149 0.195 0.201 0.746
Strategy 0.028 0.062 0.229 0.097 0.22 0.057 0.763
Sustainable 0.501 0.127 0.5 0.273 0.273 0.15 0.246 0.658

design of op-
erations
Sustainable 0.137 0.234 0.191 0.165 0.395 0.114 0.061 0.245 0.691
design on the
demand side
Sustainable 0.424 0.175 0.255 0.405 0.266 0.302 -0.02 0.302 0.34 0.629
design on the
supply side
Sustainable 0.386 0.336 0.234 0.307 0.217 0.154 0.005 0.424 0.386 0.547 0.642
product de-
sign
Waste 0.195 0.119 0.232 0.274 0.196 0.233 0.344 0.417 0.077 0.267 0.152 0.77
Work 0.212 0.307 0.101 0.482 0.228 0.263 0.067 0.277 0.197 0.545 0.521 0.259 0.758
Remark: Discriminant validity are attained
Table 4. Descriptive statistic
Construct N Mean SD Skewness Kurtosis
Strategy x1 482 4.2199 0.689 -0.926 0.959

Waste x2 482 4.1639 0.676 -1.211 2.272
Recycling x3 482 4.1888 0.790 -1.758 4.419
Life cycle x4 482 3.9865 0.826 -0.749 -0.192
Resources x5 482 3.9616 0.687 -0.692 0.675

Energy x6 482 4.1680 0.620 -0.639 -0.109

Production x7 482 4.1667 0.615 -1.415 2.413
Work x8 482 4.2552 0.648 -1.559 3.183
Performance Environment x9 482 4.3185 0.575 -0.693 0.146
Sustainable product design y1 482 4.1292 0.534 -0.602 -0.264
Sustainable design of operations y2 482 4.2946 0.458 -0.849 0.748
Sustainable design on the supply side y3 482 4.1324 0.588 -1.259 3.157
Sustainable design on the demand side y4 482 4.0216 0.562 -0.471 -0.562
Cleaner Production Strategy X 482 4.1588 0.359 -0.818 0.952
Sustainable Supply Chain Performance Y 482 4.1445 0.376 -0.793 0.820
The values for Skewness between -2 to

+2 and kurtosis between -7 and +7 are
considered to be acceptable for establish-
ing normal distribution (Hair et al. 2014;
Byrne 2016). The results in Table (4)
show that the Skewness and kurtosis val-
ues for the constructs were within the
specified range. The Pearson product-mo-
ment correlation coefficient was calcu-
lated to determine the strength and direc-
tion of the relationship between the se-
lected constructs. Correlation coefficients
marked with two stars (**) are significant
at 0.01, coefficients marked with one star
(*) are significant at 0.05, and finally, the
coefficients that are NOT marked remain
insignificant at 0.05, i.e., the P-values are
greater than 0.05. Figure (3) shows the
scatterplots of each pair of numeric varia-
bles on the left part of the figure.
Pearson correlation is displayed on the
right. Variable distribution is available on
the diagonal. The results indicate the pres-
ence of a positive relationship between the
independent variable (and its dimensions)
and the dependent variable (and its dimen-
sions). It is also observed that there exists
a significant positive relationship between
Cleaner Production Strategy and Sustain-
able Supply Chain Performance since Fig. 3. Visualization of scatter plots, distributions and correlations
(𝑟(482) = 0.613, 𝑃 < 0.01).
In Table (5), using variance inflation factors (VIF), all the
4.3. Structural model assessment values were determined to be less than the threshold of 5 (Hair
et al., 2017). The formula for the variance inflation factor is as
Path coefficients, collinearity diagnostics, coefficient of de-
follows (Murray et al., 2012).
termination (R2), effect size (f2), predictive relevance (Q2),
and global goodness of fit criteria were used to examine the 1
𝑉𝐼𝐹𝑖 = 𝑟 𝑖𝑖 = , 𝑖 = 1, … 9 (1)
1−𝑅𝑖2
structural model in this study. Before analysing the structural
model, the collinearity across the constructs was investigated.

Table 5. Structural model assessment
H Path B t-value P- 95% Bias-Cor- f-Square VIF Remark

value rected CI
LB UB >0.02 <5
H1 Cleaner Production Strategy -> Sustaina- 0.678 18.16 0 0.59 0.739 0.851 1 Supported
ble Supply Chain Performance
H1.1 Strategy -> Sustainable Supply Chain Per- -0.062 1.434 0.152 -0.149 -0.001 0.009 1.185 Not Sup-
formance ported
H1.2 Waste -> Sustainable Supply Chain Perfor- 0.12 2.858 0.004 0.039 0.195 0.032 1.259 Supported
mance
H1.3 Recycling -> Sustainable Supply Chain 0.111 3.57 0 0.055 0.176 0.028 1.259 Supported
Performance
H1.4 Life cycle -> Sustainable Supply Chain Per- 0.036 1.026 0.305 -0.042 0.097 0.003 1.222 Not Sup-
formance ported
H1.5 Resources -> Sustainable Supply Chain 0.007 0.159 0.874 -0.085 0.083 0 1.231 Not Sup-
Performance ported
H1.6 Energy -> Sustainable Supply Chain Per- 0.301 9.161 0 0.241 0.369 0.188 1.346 Supported
formance
H1.7 Production -> Sustainable Supply Chain -0.007 0.21 0.834 -0.077 0.051 0 1.529 Not Sup-
Performance ported
H1.8 Work -> Sustainable Supply Chain Perfor- 0.45 11.125 0 0.372 0.535 0.354 1.602 Supported
mance
H1.9 Performance Environment -> Sustainable 0.258 8.46 0 0.205 0.324 0.141 1.321 Supported
Supply Chain Performance
R-Squared (>0.19): Main Hypothesis =0.46; Sub-Hypotheses = 0.643
Q-Squared (>0): Main Hypothesis =0.101; Sub-Hypotheses = 0.134
GGoF (>0.36): Main Hypothesis = 0.493; Sub-Hypotheses = 0.582
CI=Confidence Interval; LB=Lower Bound; UB=Upper Bound.

Cut-off values: Chin (1998), Cohen (1988), Hair et al. (2017),
The results of the hypotheses analyses are shown in Table

(5) while Figure (4) shows that a cleaner production strategy
yielded a significant positive effect on sustainable supply
chain performance, since (𝛽 = 0.678, 𝑡 = 18.16, 𝑃 <
0.001,95%𝐶𝐼𝑓𝑜𝑟𝛽 = [0.59,0.739]), with large Cohen's ef-
fect size as (𝑓 2 = 0.851). Cohen’s effect size is determined
𝑀 −𝑀
by 𝐷 = 1 2 where M1 and M2 represent the sample means
𝑆𝑝
for the two groups being compared and Sp denotes the pooled
estimated population standard deviation (National University,
2024). As a consequence, the main hypothesis is confirmed.
The results of hypothesis testing, shown in Table (5) and Fig-
ure (5), confirmed that Waste yielded a significant positive ef-
fect on Sustainable Supply Chain Performance since (𝛽 =
0.12, 𝑃 < 0.01) , with a small Cohen's effect size as
(𝑓 2 = 0.032) and consequently, the second sub-hypothesis is
confirmed. Fig. 4. Structural model (Main Hypothesis)

(𝑂−𝐸)2
∑𝑘 (2)
𝐸
Here, O denotes the observed values E denotes the ex-

pected values and k corresponds to the number of different
data cells or categories. This measure is used as a global fit
metric to determine if the GGoF values are too little, too mod-
erate, or too high to be considered a globally adequate PLS
model. The GGOF value of (0.493) for the main hypothesis
and (0.582) for the sub-hypothesis were greater than 0.36, thus
indicating a high fit. So, it can be safely concluded that the
GGoF model is large enough to be considered as a sufficiently
valid global PLS model.
4.4. Importance of Performance Map Analysis

Importance Performance Map Analysis (IPMA) is generally
conducted to provide additional insights by combining the im-
portance (I) and performance (P) dimensions analysis (Ringle
and Sarstedt, 2016).
Fig. 5. Structural model (Sub-Hypothesis)
Also, Recycling yielded a significant positive effect on Sus-
tainable Supply Chain Performance since (𝛽 = 0.111, 𝑃 <
0.001), with a small Cohen's effect size (𝑓 2 = 0.028), con-
sequently, the third sub-hypothesis is confirmed. Further, En-
ergy yielded a significant positive effect on Sustainable Sup-
ply Chain Performance since (𝛽 = 0.301, 𝑃 < 0.001), with
moderate Cohen's effect size as (𝑓 2 = 0.188), consequently,
the sixth sub-hypothesis is confirmed. Moreover, Work
yielded a significant positive effect on Sustainable Supply
Chain Performance since (𝛽 = 0.45, 𝑃 < 0.001) , with a
large Cohen's effect size (𝑓 2 = 0.354) , consequently, the
eighth sub-hypothesis is confirmed. Finally, the Performance
Environment yielded a significant positive effect on Sustaina- Fig. 6. Importance performance map
ble Supply Chain Performance since (𝛽 = 0.258, 𝑃 <
IPMA enables the identification of places where action is
0.001) , with almost moderate Cohen's effect size (𝑓 2 =
necessary. Specifically, one may identify elements of the pro-
0.141), consequently, the ninth sub-hypothesis is confirmed. cess that are relatively important yet perform poorly to deploy
The other sub-hypotheses were not supported as the P-values management methods that lead to changes. Figure (6) depicts
for each factor were below the threshold of 0.05. the dimensions of the constructs that influence the dependent
Furthermore, 46% of the variations in sustainable supply variable Sustainable Supply Chain Performance (Y). The
chain performance were explained by the variations in cleaner IPMA findings are displayed as a two-dimensional graph, with
production strategy. On the other hand, 64% of the variations the horizontal axis describing the "importance" (total effect)
in sustainable supply chain performance were explained by of influential factors on a scale of 0 to 1, and the vertical axis
the variations in the dimensions of cleaner production strat- describing their performance on a range of 0 to 100. Figure (6)
egy. All the values of the Variance Inflation Factor (VIF) in shows that Work was the most important construct (0.295),
Table (5) were below 5, thus indicating the absence of a col- followed by Energy (0.201), Performance Environment
linearity problem. Then, the predictive relevance was deter- (0.198), Waste (0.076), and Recycling (0.061). Moreover,
mined by assessing Stone-Geisser’s Q2 sourced from Work performed the best (80.346), followed by Recycling
(Ratzmann, Gudergan and Bouncken, 2016). (79.734), Production (78.943), Strategy (76.494), Energy
Blindfolding is a sample reuse technique that is used to cal- (76.194), Waste (75.455), Life cycle (74.432), Performance
culate the Q2 values for latent variables. The current study ex- Environment (72.959) and Resources (71.097).
ecuted the blindfolding procedure and calculated the Q2 values
for the endogenous variables. All the values were higher than
zero for the Main Hypothesis (𝑄2 = 0.101) and Sub-Hypoth-
4.5. Discussion
eses (𝑄2 = 0.134). Thus, the results indicate predictive rele- As shown in Table (2), based on the convergent validity val-
vance for endogenous latent variables in the PLS path model ues numerous questions were erased while the degree of dis-
of the study (Hair et al. 2017). The Global Goodness of Fit criminant validity was found to be good. This finding infers
(GGoF) was introduced by Tenenhaus et al. (2005)

the ability of the scale to distinguish between two or more dis- example, the 4th and 5th sub-hypotheses (life cycle and re-
tinct concepts. Further, it also establishes that the scale sources) were not met, because they had a very weak influence
measures a specific construct and not another and also the relationship. With regards to 1st and 7th sub-hypotheses i.e.,
scale tool is accurate. Also, the Composite Reliability (CR) strategy and production, the effect relationship was inverse
was not less than 0.7 for all the dimensions of the dependent and very small to consider. Further, the study considered only
and independent. This is a good indication of the high reliabil- one factory as its study location while future studies should
ity of the composite and all the items consistently measure the focus on conducting parallel investigations in multiple loca-
same construct. In other terms, the questions in the question- tions, about sugar production and refineries. In addition to
naire are correct and have a relationship with the variables. this,future researchers can also focus on oil refineries since it
Table (3) shows about achieving the discriminant validity. also contribute heavily to the environmental pollution issues
The shaded numbers indicate the relationship of each dimen- in Iraq.
sion with itself and it was found to be larger than the numbers
that indicate the relationship of each dimension with the rest 5. Conclusion
of the dimensions. Figure (3) shows the correlations between
the dimensions of each variable and between independent and To increase environmental awareness among companies
dependent variables. All the correlations were found to be pos- and society and to confront the pressure from environmental
itive and significant. The forms of the normal distribution organizations to reduce pollution, a set of restrictions has been
were included in the diagonal axis and the distribution was imposed on organizations in recent years in Iraq (Ministry of
found to be normal for most of the dimensions of the study Environment Iraq, 2009; Shilan Aziz Salih, 2015). These re-
variables. For the lower triangle on the left side, the drawings strictions make the firms take numerous measures to improve
were placed to show the shape of the spread between the di- their workplace and reduce pollution by applying cleaner pro-
mensions of the variables. It can be observed that the points duction strategies. The application of these strategies largely
take an ascending shape which indicates that as the independ- depends on the development of technology. In addition to this,
ent variable increases, the dependent variable increases di- applying cleaner production strategies increases competitive-
rectly. As per the importance-performance map analysis out- ness. The presence of an influential relationship between a
comes, work was found to be most important construct with cleaner production strategy and a sustainable supply chain re-
good performance while resources remained the least. This in- sults in achieving a sustainable competitive advantage. The
fers that the working environment, culture among the employ- reason for rejecting the first sub-hypothesis is the lack of stra-
ees, and working conditions have been provided much focus tegic plans in the firm under study, to achieve some aspects
while the policymakers should strategize their plans to im- regarding cleaner production strategy. Therefore, the factory
prove the resources and recycling techniques to achieve a sus- management must develop long-term plans and strategies for
tainable supply chain. the implementation of cleaner production strategies. However,
The current study proves the existence of a significant and this does not indicate that the factory failed to adhere to envi-
influential relationship between a cleaner production strategy ronmental standards since the main hypothesis proved the ex-
and the performance of a sustainable supply chain from Table istence of a morally influential relationship and positive cor-
(5) which aligns with that of the literature (Severo, Guimarães relations at a good level. Since the factory management as-
and HENRI DORION, 2017; Hei et al., 2019; Kinani and Naj- pires to enter the global field, it must establish a few mecha-
jar, 2019; Gamage, Arachchige and Godakanda, 2023). This nisms to implement, achieve and sustain the performance. In
confirms the validity of the main hypothesis and its fulfilment. addition to this, the policy makers should also focus on
The factory studied in this research work applies several product's life cycle since this was not supported. It is important
cleaner production strategies and is committed to achieving for the sugar products to have a longer shelf life for consump-
sustainable supply chain performance. On the whole, the study tion while it should also be free from chemicals. With this in-
found that there exists a relationship between waste genera- formation, the decision makers can draft the future policies.
tion, recycling, energy consumption, work and environmental The resources utilized in the factory must be leveraged to the
performance with that of the sustainable supply chain perfor- best possibility and achieve zero waste policy so that energy
mance. According to the literature (Hernandez et al., 2023), can be generated while the existing resources can be used for
there exists a positive relationship between customers, envi- better outcomes. The production capacity and novel technol-
ronment, government, suppliers, and the intention to adopt ogy-enabled production practices must be improved so that
sustainable supply chain management practices. In addition to the company can achieve a sustainable supply chain shortly.
this, institutional pressure (Hebaz, Oulfarsi and Sahib Eddine, The seventh sub-hypothesis also had negative results. This re-
2024) also acts as an important driving factor for its imple- quires planning for efficient production and an integrated pro-
mentation. So, it is important for the policymakers in the fac- duction system. The factory has great potential to achieve the
tory must take the necessary initiatives to drive the operations aim and has well-trained human cadres with modern devices
towards a sustainable supply chain. Some of the limitations of and equipment. The current study recommends framing the
the study are as follows; the impact rate was good 0.678 alt- procedures to be followed to implement all cleaner production
hough it is not very high which is attributed to not meeting strategies, because it is one of the important factories in Iraq.
some of the dimensions of cleaner production technology. For In the future, training workshops should be conducted with

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PRODUCTION ENGINEERING ARCHIVES 2024, 30(2), 166-181

PRODUCTION ENGINEERING ARCHIVES

The impact of cleaner production strategy on Sustainable

Article history Abstract

© 2024 Author(s). This is an open access article licensed

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Fig. 1. Hypothetical diagram of the study

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Bachelor's 410 4.1. Measurement Model

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LIF1 0.732 0.583 0.641 SDDS2 0.784 0.478 0.603

SDO2 0.743 0.433 0.657

SDSS1 0.795 0.40 0.553

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Table 3. Discriminant validity (Fornell-Larcker criterion)

the supply side

Life cycle 0.208 0.763

Performance 0.34 0.024 0.742

Production 0.312 0.082 0.439 0.642

Recycling 0.209 0.23 0.276 0.186 0.864

Resources 0.226 -0.013 0.149 0.195 0.201 0.746

Strategy 0.028 0.062 0.229 0.097 0.22 0.057 0.763

Sustainable 0.501 0.127 0.5 0.273 0.273 0.15 0.246 0.658

Remark: Discriminant validity are attained

Table 4. Descriptive statistic

Construct N Mean SD Skewness Kurtosis

Strategy x1 482 4.2199 0.689 -0.926 0.959

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Energy x6 482 4.1680 0.620 -0.639 -0.109

The values for Skewness between -2 to

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Table 5. Structural model assessment

H Path B t-value P- 95% Bias-Cor- f-Square VIF Remark

R-Squared (>0.19): Main Hypothesis =0.46; Sub-Hypotheses = 0.643

Q-Squared (>0): Main Hypothesis =0.101; Sub-Hypotheses = 0.134

GGoF (>0.36): Main Hypothesis = 0.493; Sub-Hypotheses = 0.582

CI=Confidence Interval; LB=Lower Bound; UB=Upper Bound.

The results of the hypotheses analyses are shown in Table

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Here, O denotes the observed values E denotes the ex-

4.4. Importance of Performance Map Analysis

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