Collaboration of structural equation modelling and data envelopment analysis for the performance magnitude of sustainable supply chain

Purpose This research focused on the sustainable supply chain (SSC) by using Structural Equation Modelling (SEM) and data envelopment analysis (DEA) in an agricultural context. SEM focuses on the relationship between a SSC and the sustainability performance (SP) of farmers in the form of combined data that are influenced by mediator variables such as joint effort and sharing activities. Design/methodology/approach This research designed a framework implemented for a sample of 60 farmers in both Buleleng and Tabanan Regencies, Bali Province, that is combined by the method of SEM and DEA to measure the efficiency of SP. Findings The critical results deliver information that Tabanan farmers are more efficient than Buleleng farmers when achieving SP, which is influenced by mediator variables. In addition, joint efforts and sharing activities significantly increase the efficient relationship between a SSC and the SP of farmers in the Buleleng Regency and Tabanan Regency. Practical implications Practically, farmers will work together with distributors to collaborate and plan to solve problems that occur in the business environment. They can also implement resource sharing (RS) as an intensive approach focusing on the costs of developing economic and environmental performance. Originality/value Combining joint efforts with RS can significantly impact the agricultural sector because RS provides detailed information for developing effective and efficient relationships.