•  
  •  
 

Abstract

Research Aims: This study discusses the practice of green supply chain management (GSCM) on environmental performance and operational costs in micro, small and medium enterprises (MSMEs) in Indonesia's food and beverage industry. Especially to examine the existence of ecocentricity and supply chain traceability that moderates GSCM practices with environmental performance and operational costs.

Design/Methodology/Approach: The judgement sampling method was used in this study, and 85 respondents contributed. Research questionnaires were distributed online, and data were analysed using Partial Least Square-Structural Equation Modelling (PLS-SEM).

Research Findings: The results of this study indicate that GSCM practices have a significant relationship to environmental performance and operational costs of MSMEs in the food and beverage industry in Indonesia. Supply chain ecocentricity moderates the relationship between GSCM practices, environmental performance, and operating costs. However, supply chain traceability does not moderate the relationship between GSCM practices, environmental performance, and operational costs.

Theoretical Contribution/Originality: The concept and practice of GSCM is gaining popularity in developing countries, but is still limited to the scope of MSMEs. Thus, research on GSCM still has to be extended to MSMEs because most research is limited to large organisations.

Managerial Implication in the South East Asian Context: This research covers the concept and practice of GSCM on MSMEs in Indonesia. For MSMEs in the food and beverage industry, this research is expected to be taken into consideration in implementing GSCM for supply chain ecocentricity to improve business performance.

Research Limitation & Implications: Respondents are limited to the Java and Bali area and the food and/or beverage industry group.

References

Abdallah, A. B., & Al-Ghwayeen, W. S. (2019). Green supply chain management and business performance. Business Process Management Journal, 26(2), 489–512.

Agyabeng-Mensah, Y., Afum, E., Acquah, I. S. K., Dacosta, E., Baah, C., & Ahenkorah, E. (2021). The role of green logistics management practices, supply chain traceability and logistics ecocentricity in sustainability performance. The International Journal of Logistics Management, 32(2), 538–566.

Alfaro, J. A., & Rábade, L. A. (2009). Traceability as a strategic tool to improve inventory management: A case study in the food industry. International Journal of Production Economics, 118(1), 104–110.

Amemba, C. S., Nyaboke, P. G., Osoro, A., & Mburu, N. (2013). Elements of green supply chain management. European Journal of Business and Management, 5(12), 51–61.

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.

Bechini, A., Cimino, M. G. C. A., Marcelloni, F., & Tomasi, A. (2008). Patterns and technologies for enabling supply chain traceability through collaborative e-business. Information and Software Technology, 50(4), 342–359.

Björklund, M., Martinsen, U., & Abrahamsson, M. (2012). Performance measurements in the greening of supply chains. Supply Chain Management: An International Journal, 17(1), 29–39.

Carter, C. R., Kale, R., & Grimm, C. M. (2000). Environmental purchasing and firm performance: an empirical investigation. Transportation Research Part E: Logistics and Transportation Review, 36(3), 219–228.

Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: moving toward new theory. International Journal of Physical Distribution & Logistics Management, 38(5), 360–387.

Cohen, J. (1992). A power primer. Psychological Bulletin, 112(1), 155–159.

Cousins, P. D., Lawson, B., Petersen, K. J., & Fugate, B. (2019). Investigating green supply chain management practices and performance: The moderating roles of supply chain ecocentricity and traceability. International Journal of Operations and Production Management, 39(5), 767–786.

Dabbene, F., Gay, P., & Tortia, C. (2014). Traceability issues in food supply chain management: A review. Biosystems Engineering, 120, 65–80.

Eltayeb, T. K., Zailani, S., & Ramayah, T. (2011). Green supply chain initiatives among certified companies in Malaysia and environmental sustainability: Investigating the outcomes. Resources, Conservation and Recycling, 55(5), 495–506.

Epoh, L. R., & Mafini, C. (2018). Green supply chain management in small and medium enterprises: Further empirical thoughts from South Africa. Journal of Transport and Supply Chain Management, 12.

Hair, J. F. Jr., G. Tomas M. Hult, Christian M. Ringle, Marko Sarstedt Sage, & Ketchen, D. J. (2017). A Primer on Partial Least Squares Structural Equation Modeling. SAGE Publications, 46, 184–185.

Hanim Mohamad Zailani, S., Eltayeb, T. K., Hsu, C., & Choon Tan, K. (2012). The impact of external institutional drivers and internal strategy on environmental performance. International Journal of Operations & Production Management, 32(6), 721–745.

Hart, S. L. (1995). A Natural-Resource-Based View of the Firm. Academy of Management Review, 20(4), 986–1014.

Hart, S. L., & Dowell, G. (2011). Invited Editorial: A Natural-Resource-Based View of the Firm. Journal of Management, 37(5), 1464–1479.

Jacobs, B. W., Singhal, V. R., & Subramanian, R. (2010). An empirical investigation of environmental performance and the market value of the firm. Journal of Operations Management, 28(5), 430–441. Johnson, J. L., Dooley, K. J., Hyatt, D. G., & Hutson, A. M. (2018). EMERGING DISCOURSE INCUBATOR: Cross-Sector Relations in Global Supply Chains: A Social Capital Perspective. Journal of Supply Chain Management, 54(2), 21–33.

Katadata Insight Center. (2020). Alasan UMKM Makanan Menggunakan Kantong Plastik.

Kementerian Perencanaan Pembangunan Nasional/BAPPENAS. (2021). Laporan Kajian Food Loss & Waste di Indonesia.

Kirchoff, J. F., Omar, A., & Fugate, B. S. (2016). A Behavioral Theory of Sustainable Supply Chain Management Decision Making in Non-exemplar Firms. Journal of Supply Chain Management, 52(1), 41–65.

Klassen, R. D., & Vachon, S. (2009). Collaboration And Evaluation in The Supply Chain: The Impact on Plant-Level Environmental Investment. Production and Operations Management, 12(3), 336–352.

Klassen, R. D., & Whybark, D. C. (1999). The Impact of Environmental Technologies on Manufacturing Performance. Academy of Management Journal, 42(6), 599–615.

Lamming, R., & Hampson, J. (1996). The Environment as a Supply Chain Management Issue. British Journal of Management, 7(s1), S45–S62.

Laosirihongthong, T., Adebanjo, D., & Choon Tan, K. (2013). Green supply chain management practices and performance. Industrial Management & Data Systems, 113(8), 1088–1109.

Lee, S.-Y., & Klassen, R. D. (2008). Drivers and Enablers That Foster Environmental Management Capabilities in Small- and Medium-Sized Suppliers in Supply Chains. Production and Operations Management, 17(6), 573–586.

Malhotra, N., & Birks, D. F. (2007). An applied approach. Prentice Hall.

Pagell, M., & Wu, Z. (2009). Building A More Complete Theory Of Sustainable Supply Chain Management Using Case Studies Of 10 Exemplars. Journal of Supply Chain Management, 45(2), 37–56.

Penrose, E., & Penrose, E. T. (2009). The Theory of the Growth of the Firm. Oxford university press.

Plambeck, E., Lee, H. L., & Yatsko, P. (2012). Improving environmental performance in your Chinese supply chain. MIT Sloan Management Review, 53(2), 43.

Pullman, M. E., Maloni, M. J., & Carter, C. R. (2009). Food For Thought: Social Versus Environmental Sustainability Practices and Performance Outcomes. Journal of Supply Chain Management, 45(4), 38–54.

Sarkis, J., Zhu, Q., & Lai, K. (2011). An organizational theoretic review of green supply chain management literature. International Journal of Production Economics, 130(1), 1–15.

Schmidt, C. G., Foerstl, K., & Schaltenbrand, B. (2017). The Supply Chain Position Paradox: Green Practices and Firm Performance. Journal of Supply Chain Management, 53(1), 3–25.

Seroka-Stolka, O. (2014). The Development of Green Logistics for Implementation Sustainable Development Strategy in Companies. Procedia - Social and Behavioral Sciences, 151, 302–309.

Shrivastava, P. (1995). Environmental technologies and competitive advantage. Strategic Management Journal, 16(S1), 183–200.

Simpson, D., Power, D., & Samson, D. (2007). Greening the automotive supply chain: a relationship perspective. International Journal of Operations & Production Management, 27(1), 28–48.

Skilton, P. F., & Robinson, J. L. (2009). Traceability and Normal Accident Theory: How Does Supply Network Complexity Influence the Traceability of Adverse Events? Journal of Supply Chain Management, 45(3), 40–53.

Tate, W. L., Dooley, K. J., & Ellram, L. M. (2011). Transaction Cost and Institutional Drivers of Supplier Adoption of Environmental Practices. Journal of Business Logistics, 32(1), 6–16.

Touboulic, A., & Walker, H. (2015). Theories in sustainable supply chain management: a structured literature review. International Journal of Physical Distribution & Logistics Management, 45(1/2), 16–42.

Wowak, K. D., Craighead, C. W., & Ketchen, D. J. (2016). Tracing Bad Products in Supply Chains: The Roles of Temporality, Supply Chain Permeation, and Product Information Ambiguity. Journal of Business Logistics, 37(2), 132–151.

Yakob, S., Yakob, R., BAM, H. S., & Ahmad Rusli, R. Z. (2021). Financial Literacy and Financial Performance of Small and Medium-sized Enterprises. The South East Asian Journal of Management, 15(1), 72-96.

Younis, H., Sundarakani, B., & Vel, P. (2016). The impact of implementing green supply chain management practices on corporate performance. Competitiveness Review, 26(3), 216–245.

Zhu, Q., & Sarkis, J. (2007). The moderating effects of institutional pressures on emergent green supply chain practices and performance. International Journal of Production Research, 45(18–19), 4333–4355. Zhu, Q., Sarkis, J., & Geng, Y. (2005). Green supply chain management in China: pressures, practices and performance. International Journal of Operations & Production Management, 25(5), 449–468.

Download

Share

COinS