Bright against dark: how supply chain slack influences sustainable performance

Purpose This study aims to examine how supply chain slack influences sustainable performance, both directly and indirectly, through the mediating roles of operational resilience, specifically resistance and recovery capacity. It further investigates how environmental complexity conditions these relationships, providing a comprehensive understanding of when supply chain slack contributes to sustainable performance. Design/methodology/approach The analysis is based on a dataset of 2,067 Chinese A-share-listed manufacturing firms during the COVID-19 pandemic. Findings The authors find that supply chain slack has a direct negative effect on sustainable performance and positive indirect effects through the two aspects of operational resilience: resistance and recovery capacity. Furthermore, environmental complexity negatively moderates the direct effect and positively moderates the two indirect effects. Originality/value This study contributes to the literature by unveiling the double-edged sword effect of supply chain slack under environmental complexity. It highlights how operational resilience can transform the positive aspects of supply chain slack into sustainable performance, offering a nuanced understanding of the effect of supply chain slack on sustainable performance under environmental complexity.