Servitized SMEs’ performance and the influences of sustainable procurement, packaging, and distribution: The mediating role of eco-innovation

The current paper is one of the pioneering studies to specifically analyze the role of both inbound and outbound sustainable supply chain practices (SSCP) of servitized SMEs in a relatively high-risk emerging economy context of Pakistan. Building on Porter’s Value Chain Model, this study analyzes the influence of sustainable servitization on multiple performance indicators (including environmental, economic, social, and operational) of servitized SMEs. We further investigate the role of eco-innovation as a mediator. The study employs a time-lagged research design, based on primary data collected from 280 managers of servitized SMEs. We found that sustainable practices positively impact servitized SMEs’ performance, except for sustainable procurement’s influence on operational performance. Finally, eco-innovation was found to partially mediate the analyzed inter-relationships.