A strategic model for advancing environmental sustainability and service effectiveness in the automotive supply chain in South Africa

Abstract

Environmental sustainability has become a key topic of discussion in the global automotive industry, as well as in South Africa. However, the South African automotive industry lacks clear guidelines for implementing environmentally sustainable practices and linking these practices to service performance. The aim of this study was to develop and test a model that facilitates the implementation of environmentally sustainable practices and enhances service effectiveness in the automotive supply chain in selected regions of South Africa. The study was grounded on Institutional Theory (IT) and the Resource-Based Theory (RBT). Quantitative data were collected using structured questionnaires in a cross-sectional design from 392 supply chain professionals, including waste managers, auto-parts suppliers and technicians across automotive workshops and supply chains in Gauteng, Limpopo, Mpumalanga, and the Free State, achieving a high response rate. The structured online questionnaire was administered through Google Forms. The collected data were tested using a partial least squares structural equation modelling (PLS-SEM) through Smart-PLS 3 and the Statistical Package for the Social Sciences (SPSS) for data screening (descriptive statistics). Key findings reveal that compliance and certification, as well as optimised inbound logistics, are the primary and significant antecedents driving environmental sustainability (ES) adoption within this sector. Contrary to some expectations, factors such as top management support and technology adoption had no direct, significant impact. Furthermore, achieving environmental sustainability demonstrably enhances multiple dimensions of service effectiveness, including productivity, quality, innovation, and customer relationships. However, environmental sustainability did not have a significant direct effect on supplier relationships. Based on these empirically validated relationships, this study develops and proposes a focused, practical implementation model for the South African automotive supply chain. The model strategically prioritises leveraging regulatory compliance and certification, as well as optimising inbound logistics, as key drivers for achieving environmental sustainability, which subsequently enhances productivity, quality, innovation, and customer engagement. Theoretically, the study's findings contribute to institutional theory by showing that, in weak-enforcement contexts in South Africa, compliance and certification tend to spread because organisations copy what others are doing, rather than being forced to do so. In addition, the study identifies inbound logistics as a strategic capability that generates sustainability outcomes in SME-dominated settings where more capital-intensive capabilities do not. Key recommendations include strengthening government policy support, implementing systematic carbon footprint tracking, integrating sustainability into innovation strategies, and fostering long-term customer partnerships aligned with environmental goals. This study provides a vital roadmap for the industry to translate sustainability commitments into tangible operational performance improvements.