Open-access Sustainable supply chain management in bio-based industries: economic and biodiversity trade-offs

Gestão sustentável da cadeia de suprimentos em indústrias de base biológica: compensações econômicas e de biodiversidade

Abstract

The bio-based industries need to establish sustainable supply chain management practices because their operations depend on natural resources which lead to environmental harm. The study investigated how supply chains generate economic advantages in Jordan while helping to preserve biodiversity. The researchers gathered information from 24 companies which operate olive oil production facilities and medicinal plant farms throughout Ajloun Madaba and Karak Governorates. The research team used quadrats and transects to measure biodiversity indices which included plant, bird, and insect species richness and they calculated the Shannon-Wiener index. The research findings show that certified sustainable companies spent 10.5 Jordanian dinars more per tonne on supply chain costs than non-certified companies but their biodiversity index performance showed a 42.3% improvement. The 250-meter wide buffer zones enabled research teams to identify 43.5 plant species which exceeded the number of plant species found in areas without buffer zones by 135%. The width of buffer zones emerged as the main factor which determined biodiversity according to its regression model coefficient of 0.487. Certified companies showed superior financial performance because they managed to boost their profit margins to 16.8% while the non-certified companies achieved profit margins of 14.5% and their export shares reached 38.6% compared to 24.3% for non-certified companies. The analysis of different scenarios demonstrated that the combination of tax incentives and 250-meter buffer zone construction requirements would lead to a 38.5% biodiversity increase while increasing industry expenses by 7.4%. The research demonstrates that companies which invest in sustainable supply chains will achieve both environmental advantages and economic benefits through enhanced export market access and increased operational reliability. The combination of smart buffer zone design and micro-supplier empowerment provides two effective methods which help organizations achieve both their financial and their environmental objectives. The research results deliver practical advantages to industry managers and policymakers and NGOs who operate in Jordan and similar countries which require development of bio-based industries while safeguarding their biodiversity resources.

Keywords:
sustainable supply chain; bio-based industries; biodiversity; trade-off analysis; sustainability certification; Jordan; buffer zone

Resumo

As indústrias de base biológica precisam estabelecer práticas de gestão sustentável da cadeia de suprimentos, pois suas operações dependem de recursos naturais, o que leva a danos ambientais. O estudo investigou como as cadeias de suprimentos geram vantagens econômicas na Jordânia, ao mesmo tempo em que ajudam a preservar a biodiversidade. Os pesquisadores coletaram informações de 24 empresas que operam instalações de produção de azeite e fazendas de plantas medicinais nos governos de Ajloun, Madaba e Karak. A equipe de pesquisa utilizou quadrantes e transectos para medir índices de biodiversidade, incluindo a riqueza de espécies de plantas, aves e insetos, e calculou o índice de Shannon-Wiener. Os resultados da pesquisa mostram que as empresas certificadas como sustentáveis ​​gastaram 10,5 dinares jordanianos a mais por tonelada em custos da cadeia de suprimentos do que as empresas não certificadas, mas seu desempenho no índice de biodiversidade apresentou uma melhoria de 42,3%. As zonas de amortecimento de 250 metros de largura permitiram que as equipes de pesquisa identificassem 43,5 espécies de plantas, o que excedeu em 135% o número de espécies de plantas encontradas em áreas sem zonas de amortecimento. A largura das zonas de amortecimento emergiu como o principal fator determinante da biodiversidade, de acordo com seu coeficiente de regressão de 0,487. As empresas certificadas apresentaram desempenho financeiro superior, pois conseguiram aumentar suas margens de lucro para 16,8%, enquanto as empresas não certificadas alcançaram margens de lucro de 14,5%, e suas participações nas exportações atingiram 38,6%, em comparação com 24,3% para as empresas não certificadas. A análise de diferentes cenários demonstrou que a combinação de incentivos fiscais e requisitos de construção de zonas de amortecimento de 250 metros levaria a um aumento de 38,5% na biodiversidade, ao mesmo tempo em que aumentaria as despesas do setor em 7,4%. A pesquisa demonstra que as empresas que investem em cadeias de suprimentos sustentáveis ​​alcançarão vantagens ambientais e benefícios econômicos por meio de maior acesso ao mercado de exportação e maior confiabilidade operacional. A combinação de um projeto inteligente de zona de amortecimento e o empoderamento de microfornecedores oferece dois métodos eficazes que ajudam as organizações a atingir seus objetivos financeiros e ambientais. Os resultados da pesquisa demonstram vantagens práticas para gestores industriais, formuladores de políticas e ONGs que atuam na Jordânia e em países semelhantes que necessitam do desenvolvimento de indústrias de base biológica, ao mesmo tempo em que protegem seus recursos de biodiversidade.

Palavras-chave:
cadeia de abastecimento sustentável; bioindústrias; biodiversidade; análise de trade-off; certificação de sustentabilidade; Jordânia; zona tampão

1. Introduction

Sustainable supply chains have become one of the main pillars of sustainable development in bio-based industries today (Koberg and Longoni, 2019; Ghosh et al., 2020). The supply chains aim to achieve economic, social, and environmental equilibrium by directing their supply operations which begin at raw material acquisition and continue until they reach the end customer (Sarkis et al., 2011; Amrani Souhli and En-nadi, 2023). The biomass-based industrial sector depends on natural resources and ecosystems which makes this issue critical to their operations (Fianko et al., 2021; Mavlyanova et al., 2024; Ravikumar et al., 2026). Jordan faces specific obstacles that hinder its development of bio-based industries because it has limited natural resources and its particular geographical position in the Middle East (Diab et al., 2015; Abdallah and Al-Ghwayeen, 2020; Guangju et al., 2026). The nation contains valuable biodiversity ecosystems which include Ajloun Mountain Forests and Dana Biosphere Reserve and Mujib Protected Area and its vast desert and semi-desert regions across its 89000 square kilometer territory which supports 11 million residents (DoS, 2020). Agricultural development and associated industrial growth have created mounting threats to these ecosystems since the 1980s (Jia et al., 2018; Galal and Moneim, 2016; Zokirov et al., 2024; Rotinsulu et al., 2025).

The bio-based industries in Jordan which include olive oil production and medicinal and aromatic plant processing and dairy production face their main problem with achieving economic success while protecting biodiversity (Al-ghwayeen and Abdallah, 2018; Sharopova et al., 2024; Yuldasheva et al., 2025; Alshafei et al., 2025). The olive oil industry generates approximately 30% of the nation's agricultural output which serves as an essential economic force for rural communities (JIEC, 2021). The industrial growth in these sectors has resulted in environmental degradation through changes in land usage and destruction of natural vegetation and risk to local animal habitats (Balasubramanian and Shukla, 2017; Bellantuono et al., 2017). The supply chain management process for these industries experiences difficulties because suppliers operate in different locations and biomass production follows seasonal patterns while market prices for both domestic and international products experience volatility (Chen and Paulraj, 2004; Bloemhof et al., 2015). Companies must decide between using local suppliers who provide lower shipping expenses yet fail to meet eco-friendly standards or choosing remote suppliers who follow environmental regulations but charge higher costs (Walker and Jones, 2012; Abdikarimova and Yakubova 2024; Jumaniyazov and Khudayberganov, 2025). The business outcomes depend on these choices because they affect both the company's financial results and its ability to protect the environment (Green Junior et al., 2012; Zhu et al., 2012; Alkandi and Helmi, 2024).

Researchers have studied the relationship between supply chain management practices and biodiversity conservation in Jordanian territory only as a minor research subject (Alzubi et al., 2019; Al-Hyari et al., 2016; Okour et al., 2025). The majority of research has either examined technical agricultural production elements or studied environmental protection systems that operate at the national level (Das, 2018; Prasad et al., 2018). The absence of a unified framework has created a barrier that prevents industry executives from assessing both financial results and ecological impacts (Taylor and Vachon, 2018; Khan et al., 2021; Hashim et al., 2021a; Hashim et al., 2021b; Qawasmeh et al., 2026). Internationally, consumer pressure and stricter regulations in target markets, especially the European Union, which is the main destination for Jordanian agricultural exports, have forced companies operating in the country to reconsider their sourcing and production practices (Feng et al., 2018; Saeidi et al., 2015). The sustainability certifications Organic UTZ and Rainforest Alliance establish supply chain standards which demand companies to maintain higher levels of transparency and accountability (Ikram et al., 2020; Abid et al., 2021). The indigenous conditions of Jordan present specific difficulties for executing these standards because the country experiences drought and water scarcity and has limited fertile land resources (Alkandi et al., 2023; Alkandi and Helmi, 2024; Mangual et al., 2025; Mohammad et al., 2026).

The bioindustry supply chain management practices used by other countries will provide Jordan with essential knowledge (Jia et al., 2018; Govindan et al., 2014; Min et al., 2025). Brazil operates as a leading bioindustry nation which shows the world how to balance economic advantages with environmental conservation in its Cerrado ecosystem (Nureen et al., 2023). The lessons learned from these experiences will help Jordan develop its bioindustrial policies because both countries face similar difficulties in developing their bioindustries in dryland areas (Thanki et al., 2016; Aljahdali et al., 2026; Ahmad et al., 2022; Rehman et al., 2021). This study investigates how Jordanian bioindustrial supply chain management practices affect biodiversity through their implementation. The research employs field data to develop a quantitative model which assesses the trade-off relationship between economic efficiency and ecosystem conservation while identifying methods to maintain sustainable equilibrium. The study results serve as valuable resources for environmental organizations, industry leaders, and government officials who operate in Jordan and neighboring countries.

2. Materials and Methods

2.1. Study area and sample communities

The research study took place in Jordan where researchers studied two bio-based supply chains which included the production of olive oil and the cultivation of medicinal plants. The research study examined three locations which included Ajloun Governorate in the north that features olive groves and forest ecosystems and Madaba Governorate in the central region and Karak Governorate in the south which together produce about 65% of the bio-based industrial output in the country. The research team used stratified sampling to choose which companies would become part of their study by selecting 24 organizations that operated in both industries based on their production scale and operational history and geographical distribution. The research study used 15 protected areas that bordered farming territoriesas biodiversity monitoring sites which included Ajloun Forest Reserve and Dana Biosphere Reserve and Mujib Nature Reserve. The research team carried out their fieldwork activities throughout the entire period which started in January and ended in December of 2024.

2.2. Supply chain data collection

The researchers gathered supply chain data from three primary data sources. The first step involved sending structured questionnaires to senior supply chain managers from selected companies. The questionnaire contained 48 questions that covered raw material procurement processes and transportation operations and warehousing activities and distribution methods and performance assessment metrics. The researchers conducted semi-structured interviews with 36 experts and middle managers in these companies to identify the qualitative dimensions of decision-making and implementation challenges. The researchers collected secondary data from companies' annual reports and financial statements and documents that contained information about sustainability certificates. The researchers conducted fieldwork from January until December 2024.

2.3. Measurement of biodiversity indices

The research studied 60 sample plots which they divided into three land categories that included industrially cultivated areas, buffer zones, and adjacent protected regions. The researchers measured biodiversity indices in each sample plot by using 10 x 10 m quadrats to assess plant species richness and the fixed-radius point method to measure bird density and diversity and the light and ground traps to study insect diversity. The researchers conducted sampling during both dry and wet seasons to study the effects of seasonal changes. The researchers calculated Shannon-Wiener and Simpson diversity indices for data analysis and determined their average values for each study area.

2.4. Data analysis and modeling of economic-environmental trade-offs

The research employed both quantitative and qualitative research techniques for its data analysis work. The first step involved creating composite indices that measured both economic performance and environmental performance for each supply chain through confirmatory factor analysis. The researchers tested supply chain variables which included supply distance and number of suppliers and transportation costs and sustainability certificates to determine their impact on biodiversity indices in nearby areas through multivariate regression analysis. The researchers used stochastic efficiency frontier analysis and structural equation modeling to measure the trade-offs which existed between economic objectives and environmental objectives. The researchers conducted their analyses using three software programs which included SPSS version 26 AMOS version 24 and Stata version 17 while testing their hypotheses at a significance level of 0.05.

3. Results

The analysis of data collected from 24 bio-based companies operating in Jordan and 60 sampling plots across three land use categories provided comprehensive findings on the relationship between supply chain management practices and biodiversity conservation. The research outcomes are shown through nine tables and one figure which contain statistical details that demonstrate important research patterns and research trade-offs.

Table 1 displays characteristics of companies that took part in research for two main bio-based industries which exist in Jordan. The olive oil sector shows longer operational history averaging 32.5 years compared to 18.7 years in the medicinal plants sector, reflecting the traditional and established nature of olive cultivation in Jordanian agriculture. The medicinal plants sector requires companies to manage 156.8 suppliers while their transportation operations extend over 58.7 kilometers with transportation costs of JOD18.4 for each tonne, which demonstrates that their supply chains operate with extended geographical reach because of their need to obtain resources from wild-harvesting locations.

Table 1
Characteristics of Participating Companies by Industry Sector.

Table 2 compares biodiversity indicators across three land use categories in Jordan. Protected areas including Ajloun Forest Reserve, Dana Biosphere Reserve, and Mujib Nature Reserve exhibit their highest biodiversity because plant species richness reaches 64.8 species per plot while the Shannon-Wiener index reaches 3.12. Industrial cultivation areas demonstrate extreme biodiversity loss because they support only 18.5 plant species which represents a 71.5% decline from protected areas and 11.8 bird species which shows a 69.4% decrease from protected areas. Buffer zones sustain their intermediate biodiversity levels because they function as critical transition zones which connect different habitats throughout the Jordanian territory.

Table 2
Biodiversity Indicators Across Different Land Use Categories in Jordan.

Table 3 presents supply chain cost structures across different company sizes and certification statuses in Jordan. Certified companies show higher total supply chain costs than non-certified companies because their costs exceed JOD10.3 yet they reach JOD10.8 for every tonne in the same size category. The cost premium shows the expenses that companies incur for sustainable sourcing practices and supplier audits and organic certification requirements which they must meet to export their products to European markets. The evidence shows that large certified companies spend less money than small certified companies because their sustainable supply chain management operations benefit from economies of scale.

Table 3
Supply Chain Cost Structure by Company Size and Certification Status in Jordan.

Table 4 presents data about 2214 suppliers from 24 companies that participated in the study conducted in Jordan. Large-scale producers and cooperatives demonstrate the highest sustainability practice adoption because more than 68% of their workforce received sustainability training while over 64% of their operations underwent environmental assessments. Small-scale producers whose facilities exist near processing plants demonstrate the lowest sustainability compliance because only 22.3% of them obtained training while 14.6% underwent assessments. The Jordanian supply chains face a basic conflict between two objectives which involve preserving local smallholder income and attaining sustainability results.

Table 4
Supplier Characteristics and Sustainability Practices in Jordan.

Table 5 presents regression coefficients which demonstrate how supply chain configuration variables impact biodiversity indicators in agricultural areas of Jordan. The certification status of companies establishes a strong positive connection with all biodiversity measures because certified companies maintain higher biodiversity levels in their surrounding environments (β = 0.398 to 0.423, p < 0.001). Buffer zone width emerges as the strongest predictor (β = 0.456 to 0.487, p < 0.001) which demonstrates that transition areas between cultivated land and natural vegetation serve vital functions in Jordan's fragmented landscape. The distance to suppliers shows negative correlation which indicates that longer supply chains lead to decreasing biodiversity because distant harvesting areas experience increased pressure.

Table 5
Relationship between Supply Chain Configuration and Biodiversity Impact in Jordan.

Table 6 presents a comparison of economic performance between companies in Jordan that hold certification and those that do not. Certified companies demonstrate substantial revenue growth because their JOD4.8 million earnings exceed JOD3.9 million revenues of non-certified companies (p = 0.032) and their profit margins reach 16.8% while non-certified companies maintain 14.5% (p = 0.042). The most significant distinction exists in export share because certified companies export 38.6% of their output while non-certified companies export only 24.3% (p = 0.006). This result shows that sustainability certification functions as a requirement for businesses to enter premium European markets. Certified companies experience almost 50% reduction in annual supply chain disruption days because they face 9.8 days of disruption compared to 18.5 days for non-certified companies (p = 0.005). This finding indicates that sustainability investments improve supply chain resilience capabilities of businesses which operate in Jordan's difficult environmental conditions.

Table 6
Economic Performance Indicators by Sustainability Certification Status in Jordan.

Table 7 shows the expected biodiversity recovery results for different supply chain management methods which will be used in Jordan. The integrated scenario which combines 100% supplier certification with 250-meter buffer zone expansion shows the highest potential which enables plant species recovery to 51.2 (79% of protected area levels) at an implementation cost of JOD7.3 million across the study area. Supplier certification alone achieves 37.8 plant species at lower cost (JOD4.2 million) while buffer zone expansion alone reaches 43.5 species at intermediate cost (JOD5.1 million). The recovery process for buffer expansion needs between 2 to 4 years while the integrated scenario needs between 8 to 10 years because Jordan's semi-arid environment needs that time for ecological restoration.

Table 7
Biodiversity Recovery Potential under Different Supply Chain Scenarios in Jordan.

Table 8 shows the results of the cluster analysis which discovered four separate company groups that measured their supply chain efficiency and biodiversity results in Jordan. The "high efficiency, low biodiversity" cluster includes eight companies which operate without certification and use centralized sourcing methods to achieve an average efficiency of 84.6 and a biodiversity score of 31.8. The five companies in the "low efficiency, high biodiversity" cluster show an opposite pattern because they operate with efficiency levels of 51.3 and biodiversity levels of 74.6. The four companies that achieved balanced performance maintained an efficiency level of 64.8 and a biodiversity level of 67.8 which shows that Jordanian companies can reach both economic and environmental objectives when they use certification and cooperative sourcing and optimized buffer zones as their operational methods.

Table 8
Trade-off Analysis between Economic Efficiency and Biodiversity Conservation in Jordan.

The trade-off frontier which connects supply chain costs with biodiversity conservation results in Jordan establishes its operational boundary through the Shannon-Wiener biodiversity measurement system (Figure 1). The frontier shows a clear positive relationship between cost and biodiversity, with each increase in cost category associated with significant biodiversity improvement. Low-cost configurations (primarily non-certified companies with centralized sourcing) achieve average biodiversity index of 1.72 which corresponds to industrial cultivation areas in the Jordanian highlands. The medium-cost configurations achieve a biodiversity level of 2.56 which matches the biodiversity found in buffer zones of the hills surrounding Ajloun. The high-cost configurations reach a biodiversity score of 3.12 which nearly matches the protected area standards of Dana Biosphere Reserve. The very high-cost configurations which include certified companies that operate extensive buffer zones and implement cooperative sourcing achieve a biodiversity score of 3.28 which nearly matches the biodiversity standards of Jordan's most intact protected areas. The slope of the frontier decreases at higher cost levels, indicating that biodiversity investments in Jordan's semi-arid environment will produce decreasing benefits after reaching an unspecified cost threshold.

Figure 1
Trade-off Frontier between Supply Chain Cost and Biodiversity Conservation in Jordan.

The evaluation of six policy intervention scenarios which aim to achieve better sustainability-performance results in Jordanian bio-based supply chains appears in Table 9. The combination of tax incentives with certified company status produces optimal results because it results in 22.4% biodiversity gains and 1.8% cost reductions which the industry achieves through better efficiency and access to export markets. The payback period lasts 2.6 years while stakeholders show a high acceptance rate of 4.6 out of 5. The technical assistance program for small suppliers requires the lowest implementation expense which amounts to JOD1.1 million per year while achieving positive biodiversity results of 14.8% and receiving the highest stakeholder approval of 4.8 out of 5. The 250-meter buffer zones which the law mandates produce the highest biodiversity results which reach 31.2% yet they receive the lowest stakeholder support which scores 2.2 out of 5 and they require 5.6 years for payback because of land shortage in Jordan. The combined incentive and regulation scenario achieves the highest overall biodiversity gain (38.5%) with acceptable cost increase (7.4%) and moderate stakeholder acceptance (4.0/5), suggesting that balanced policy packages may be most effective for achieving sustainable supply chain transformation in Jordan's unique environmental and economic context.

Table 9
Policy Intervention Scenarios and Expected Outcomes for Jordan.

4. Discussion

The study results show that supply chain management practices in Jordanian bio-based industries have a substantial impact on biodiversity conservation efforts according to Nureen et al. (2023) and Ahmad et al. (2022). Sustainability-certified companies incur additional supply chain expenses of 10.5 Jordanian dinars for each ton of their products because their operations create 42.3% more biodiversity impact in their nearby environments. The two groups exhibited statistical significant difference because their results showed values below 0.001 while supply chain sustainability investment produced superior measurable results for adjacent ecosystems. Certification status serves as a primary indicator for biodiversity assessment in Jordanian industrial farming areas according to regression analysis which showed a 0.423 coefficient. The current results support earlier research which shows that sustainability certifications lead to positive environmental benefits while helping companies in developing nations to access new markets (Ikram et al., 2020; Abid et al., 2021).

The researchers found that buffer zones serve as vital components which protect biodiversity throughout Jordan's dry and semi-dry areas. The buffer zone width established the strongest connection with all biodiversity indices according to the regression model which assigned a coefficient value of 0.487. The areas which maintained a distance of 250 meters between their industrial crops and natural cover showed an average of 43.5 plant species which surpassed the species retention rate of unbuffered areas by 135%. The finding holds vital significance for Jordan's industrial planners and managers because it demonstrates that small land areas can deliver substantial biodiversity enhancements at low expenses (2.6 million dinars for the development of 100-m buffers) without decreasing the supply chain's economic effectiveness. The research findings demonstrate that buffer zones which researchers designed for dryland areas function as affordable methods to protect biodiversity in agricultural regions (Rehman et al., 2021; Aljahdali et al., 2026).

The efficiency frontier shown in Figure 1 demonstrates how supply chain costs and biodiversity protection efforts create trade-off relationships. The Shannon-Wiener diversity index for low-cost firms which operated with centralized suppliers and lacked certifications showed a value of 1.72. The low-cost companies that operated with centralized suppliers and neither obtained certification nor maintained their supply chains showed restricted biodiversity because their Shannon-Wiener index reached 1.72. The high-cost companies with certification and decentralized supply chains reached an index of 3.28 which mirrors the protected area biodiversity of Dana Reserve. The curve slope shows a decreasing pattern at high cost levels because biodiversity investments become less profitable after reaching their peak value. Jordanian companies can use these results to find their best investment amount based on their current regional situations. The research demonstrates how developing countries need to balance economic efficiency with environmental protection which creates a trade-off dynamic between the two elements (Nureen et al., 2023; Alkandi and Helmi, 2024).

The research of certified companies in Jordan revealed their financial results through their economic performance assessment. The companies achieved higher profit margins because they spent more on their supply chains yet their export share reached 14.3% which resulted in supply chain costs exceeding their competitors. The ability to access EU markets which enforce stricter standards on imported goods creates the main difference between these two groups. Non-certified companies experienced supply chain disruptions for 18.5 days while certified companies experienced supply chain disruptions for 9.8 days. The findings show that sustainability in Jordanian organizations requires investment because it generates economic returns through better brand reputation and access to international markets and stronger protection against environmental disruptions. The results of this study agree with Alkandi et al. (2023) research which found that sustainability practices improve business results through better stakeholder management and market positioning.

The Jordanian bio-industry supply chain experiences its primary difficulties through its small-scale supplier network. Traditional farmers control small land areas which make up the industry suppliers who operate their farms as small-scale farms. Only 22.3% of them had received sustainability training and only 14.6% had undergone an environmental audit. Supply chain managers face a core challenge because they must decide between two supplier types: local suppliers who support rural community needs but lack operational standards and bigger sustainable suppliers who operate at greater distances. The study results demonstrate that small supplier training and empowerment programs which cost 1.1 million dinars annually will result in 14.8% biodiversity enhancements and 4.8 out of 5 stakeholder acceptance which holds vital importance for Jordan's social and economic conditions. The research from Nureen et al. (2023) demonstrates that technical assistance together with capacity building for small suppliers will deliver substantial sustainability benefits while preserving social fairness according to this finding.

Researchers used cluster analysis to identify four separate business categories which exist in the bio-based industrial sector of Jordan. Eight organizations in the first cluster showed high operational performance because they utilized centralized supply systems which depended on traditional agricultural methods that lacked certification. The second cluster contained five organizations which achieved sustainability through their investments yet demonstrated low profitability. The four companies achieved balanced performance because they delivered 64.8 operational efficiency and 67.8 biodiversity results. The companies shared common characteristics which included holding certifications and using cooperative suppliers and optimizing their buffer zones and targeting their resources toward international markets. The research shows that Jordanian systems can achieve equilibrium between two aspects through methodical design and dedicated resource development which should consider existing limitations. The findings support Hashim et al. (2021a, b) work because balanced performance in supply chain management needs integrated approaches which handle both economic and environmental objectives simultaneously.

The research results showed that the combination of tax incentives for certified companies and the requirement of buffer zones produced the best biodiversity outcomes which reached 38.5% while incurring a 7.4% cost increase and receiving 4.0 out of 5 stakeholder acceptance. Tax incentives by themselves provided attractive benefits which reduced industrial expenses by 1.8% through enhanced operational performance and international trade opportunities while delivering a 2.6-year return on investment. The most effective method for delivering technical support to small suppliers in Jordanian rural areas requires implementation through technical assistance which costs 1.1 million dinars and receives 4.8 out of 5 stakeholder approval. The required 250-meter buffer zone implementation faced problems because it needed to achieve its maximum biodiversity benefits which reached 31.2%. Jordan has a land shortage problem which makes it difficult to implement this buffer zone. The Ministry of Environment and relevant organizations in Jordanian government need to understand that local conditions make it necessary to combine incentive programs with compliance requirements to achieve better results than using either approach on its own. These policy recommendations echo findings from Khan et al. (2021) and Taylor and Vachon (2018) which emphasized that effective sustainability governance requires context-specific policy mixes rather than one-size-fits-all approaches.

5. Conclusions

The research study investigated how supply chain management practices in Jordanian bio-based industries affect their biodiversity outcomes and discovered that both factors maintain a strong measurable connection. The companies that obtained sustainability certification faced increased supply chain expenses of 10.5 dinars for each ton yet achieved a 42.3% higher biodiversity index together with their higher profit margins of 16.8% compared to 14.5% and their higher export share of 38.6% compared to 24.3%. The finding demonstrates that investments in sustainable supply chains create economic benefits because they enhance market access to international markets especially EU markets and they boost Jordanian environmental resilience during extreme weather conditions.

The most critical element for biodiversity preservation in Jordanian agricultural areas proved to be buffer zones. The establishment of 250-meter buffer zones between industrial agricultural land and natural areas protected an average of 43.5 plant species which exceeds the protection achieved in non-buffered regions by 135%. The analysis of different scenarios showed that the combination of mandatory buffer zones and tax incentives for certified companies would result in a 38.5% increase in biodiversity protection while the industry would need to spend only 7.4% more. This finding offers Jordanian bioindustry planners and managers a budget-friendly method to minimize industrial environmental harm, which affects sensitive ecosystems, in light of the country's limited land.

Jordanian policymakers and bioindustry managers should implement a combination of incentives and requirements which match the specific conditions of their region to achieve economic efficiency together with biodiversity protection according to this study's results. The investment of 1.1 million dinars per year to empower small-scale suppliers has the highest acceptance level among stakeholders who scored it 4.8 out of 5 and this investment will lead to 14.8% biodiversity enhancement, which will also benefit rural community development. The design of optimal buffer zones needs to consider land scarcity while companies should be encouraged to obtain sustainability certificates that European markets find acceptable, which will help create more sustainable bioindustrial practices. The experience of the balanced-performing companies in this study shows that achieving this goal is possible through careful planning and targeted investment and participation from all stakeholders who include microsuppliers processing companies and rural cooperatives and regulatory bodies such as the Jordanian Ministry of Agriculture and the Ministry of Environment.

Acknowledgements

This research is funded by INTI International University.

Data Availability Statement

Research data is only available upon request.

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Edited by

  • Editor:
    Takako Matsumura Tundisi

Publication Dates

  • Publication in this collection
    24 July 2026
  • Date of issue
    2026

History

  • Received
    07 Apr 2026
  • Accepted
    07 May 2026
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This is an Open Access article distributed under the terms of the Creative Commons Attribution license (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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