How Sustainability Practices Translate into Business Performance: The Mediating Role of Traceability Implementation in Food Supply Chain Operations

Background: Global food supply chains increasingly require sustainable and transparent operations; however, empirical evidence linking sustainability practices to firm performance remains inconsistent. This study examines how sustainability practices are translated into measurable business performance outcomes through traceability implementation in Thailand’s export-oriented food-processing sector. Methods: Grounded in Stakeholder Theory, traceability implementation was conceptualized as an accountability-oriented operational mechanism enabling the systematic verification of sustainability-related activities. Data were collected from 362 export-oriented food-processing firms in Thailand and analyzed using covariance-based Structural Equation Modeling (SEM). Results: The findings indicate that sustainability practices significantly influence both traceability implementation and business performance, while traceability implementation partially mediates the sustainability–performance relationship. The results further suggest that sustainability practices generate both direct and indirect performance benefits through structured monitoring, documentation, and verification routines. Conclusions: This study demonstrates that sustainability practices become more performance-relevant when institutionalized through traceable and verifiable operational processes. The findings highlight the importance of integrating traceability implementation into sustainability strategies to strengthen transparency, stakeholder confidence, and competitiveness within export-oriented food supply chain contexts.