The Influence of Green Supply Chain Management on Business Sustainability Through Green Innovation as a Mediating Variable on Natural Color Batik SMEs in Bantul Regency

Authors

  • Erinna Indah Cahyaningrum Universitas Pembangunan Nasional "Veteran" Yogyakarta
  • Titik Kusmantini Universitas Pembangunan Nasional "Veteran" Yogyakarta
  • Nilmawati Universitas Pembangunan Nasional "Veteran" Yogyakarta

DOI:

https://doi.org/10.58812/wsbm.v2i03.1054

Keywords:

Green Supply Chain Management, Green Innovation, Business Sustainability

Abstract

This study shows how business sustainability is influenced by Green Supply Chain Management (GSCM) and uses the mediating role of Green Innovation (GI) to explain the relationship. The quantitative descriptive method was used in this study. With a sample size of 50 Natural Batik SMEs, the population of this study was all Natural Batik SMEs in Bantul Regency spread across two villages, namely Wukirsari and Trimulyo. The data analysis method used in this study was SmartPLS 3. The results of the study indicate that: 1) GSCM has a positive effect on Business Sustainability; 2) GSCM has a positive effect on Business Sustainability; 3) GI mediates the effect of GSCM on Business Sustainability of Natural Batik UKM in Bantul Regency.

References

Do, A. D., Nguyen, Q. V., Le, Q. H., & Ta, V. L. (2020). Green supply chain management in Vietnam industrial zone: Province-level evidence. Journal of Asian Finance, Economics and Business, 7(7), 403–412. https://doi.org/10.13106/jafeb.2020.vol7.no7.403.

Najmi, A., Kanapathy, K., & Aziz, A. A. (2019). Prioritising factors influencing consumers’ reversing intention of e-waste using analytic hierarchy process. International Journal of Electronic Customer Relationship Management, 12(1), 58–74. https://doi.org/10.1504/IJECRM.2019.098981.

Shahzad, M., Qu, Y., Zafar, A. U., & Appolloni, A. (2021). Does the interaction between the knowledge management process and sustainable development practices boost corporate green innovation? Business Strategy and the Environment, 30(8), 4206–4222. https://doi.org/10.1002/bse.2865.

Yusliza, M. Y., Norazmi, N. A., Jabbour, C. J. C., Fernando, Y., Fawehinmi, O., & Seles, B. M. R. P. (2019). Top management commitment, corporate social responsibility and green human resource management: A Malaysian study. Benchmarking, 26(6), 2051–2078. https://doi.org/10.1108/BIJ-09-2018-0283.

Schlitz, N. (2020). Environmental change and the informal plastic recycling networks of Kolkata. Singapore Journal of Tropical Geography, 41(3), 450–467. https://doi.org/10.1111/sjtg.12324.

Sugandini, D., Muafi, M., Susilowati, C., Siswanti, Y., & Syafri, W. (2020). Green supply chain management and green marketing strategy on green purchase intention: SMEs cases. Journal of Industrial Engineering and Management, 13(1), 79–92. https://doi.org/10.3926/jiem.2795.

Mitchell, S., O’Dowd, P., & Dimache, A. (2020). Manufacturing SMEs doing it for themselves: developing, testing and piloting an online sustainability and eco-innovation toolkit for SMEs. International Journal of Sustainable Engineering, 13(3), 159–170. https://doi.org/10.1080/19397038.2019.1685609.

Liu, Z., Mei, S., & Guo, Y. (2021). Green human resource management, green organization identity and organizational citizenship behavior for the environment: the moderating effect of environmental values. Chinese Management Studies, 15(2), 290–304. https://doi.org/10.1108/CMS-10-2019-0366.

Al-Shaikh, M. E., & Hanaysha, J. R. (2023). A conceptual review on entrepreneurial marketing and business sustainability in small and medium enterprises. World Development Sustainability, 2(May 2022), 100039. https://doi.org/10.1016/j.wds.2022.100039.

Bari, N., Chimhundu, R., & Chan, K. C. (2022). Dynamic Capabilities to Achieve Corporate Sustainability: A Roadmap to Sustained Competitive Advantage. Sustainability (Switzerland), 14(3). https://doi.org/10.3390/su14031531.

Tseng, M. L., Islam, M. S., Karia, N., Fauzi, F. A., & Afrin, S. (2019). A literature review on green supply chain management: Trends and future challenges. Resources, Conservation and Recycling, 141(June 2018), 145–162. https://doi.org/10.1016/j.resconrec.2018.10.009.

Ahmed, W., Najmi, A., Arif, M., & Younus, M. (2019). Exploring firm performance by institutional pressures driven green supply chain management practices. Smart and Sustainable Built Environment, 8(5), 415–437. https://doi.org/10.1108/SASBE-04-2018-0022.

Habib, M. A., Bao, Y., Nabi, N., Dulal, M., Asha, A. A., & Islam, M. (2021). Impact of strategic orientations on the implementation of green supply chain management practices and sustainable firm performance. Sustainability (Switzerland), 13(1), 1–21. https://doi.org/10.3390/su13010340.

Ofori Antwi, B., Agyapong, D., & Owusu, D. (2022). Green supply chain practices and sustainable performance of mining firms: Evidence from a developing country. Cleaner Logistics and Supply Chain, 4(April), 100046. https://doi.org/10.1016/j.clscn.2022.100046.

Roh, T., Noh, J., Oh, Y., & Park, K. S. (2022). Structural relationships of a firm’s green strategies for environmental performance: The roles of green supply chain management and green marketing innovation. Journal of Cleaner Production, 356(September 2021), 131877. https://doi.org/10.1016/j.jclepro.2022.131877.

Rahman, H. U., Zahid, M., Ullah, M., & Al-Faryan, M. A. S. (2023). Green supply chain management and firm sustainable performance: The awareness of China Pakistan Economic Corridor. Journal of Cleaner Production, 414(May), 137502. https://doi.org/10.1016/j.jclepro.2023.137502.

Suki, N. M., Suki, N. M., Sharif, A., Afshan, S., & Rexhepi, G. (2023). Importance of green innovation for business sustainability: Identifying the key role of green intellectual capital and green SCM. Business Strategy and the Environment, 32(4), 1542–1558. https://doi.org/10.1002/bse.3204.

Pinto, L. (2020). Green supply chain practices and company performance in Portuguese manufacturing sector. Business Strategy and the Environment, 29(5), 1832–1849. https://doi.org/10.1002/bse.2471.

Kumar, S., & Barua, M. K. (2022). A modeling framework of green practices to explore their interrelations as a conduit to policy. Journal of Cleaner Production, 335(December 2021), 130301. https://doi.org/10.1016/j.jclepro.2021.130301.

Silva, G. M., Gomes, P. J., Carvalho, H., & Geraldes, V. (2021). Sustainable development in small and medium enterprises: The role of entrepreneurial orientation in supply chain management. Business Strategy and the Environment, 30(8), 3804–3820. https://doi.org/10.1002/bse.2841.

Andersén, J. (2021). A relational natural-resource-based view on product innovation: The influence of green product innovation and green suppliers on differentiation advantage in small manufacturing firms. Technovation, 104(February). https://doi.org/10.1016/j.technovation.2021.102254.

Abu Seman, N. A., Govindan, K., Mardani, A., Zakuan, N., Mat Saman, M. Z., Hooker, R. E., & Ozkul, S. (2019). The mediating effect of green innovation on the relationship between green supply chain management and environmental performance. Journal of Cleaner Production, 229, 115–127. https://doi.org/10.1016/j.jclepro.2019.03.211.

Yong, J. Y., Yusliza, M. Y., Ramayah, T., & Fawehinmi, O. (2019). Nexus between green intellectual capital and green human resource management. Journal of Cleaner Production, 215, 364–374. https://doi.org/10.1016/j.jclepro.2018.12.306.

Yousaf, Z. (2021). Go for green: green innovation through green dynamic capabilities: accessing the mediating role of green practices and green value co-creation. Environmental Science and Pollution Research, 28(39), 54863–54875. https://doi.org/10.1007/s11356-021-14343-1.

Ge, B., Yang, Y., Jiang, D., Gao, Y., Du, X., & Zhou, T. (2018). An Empirical Study on Green Innovation Strategy and Sustainable Competitive Advantages : Path and Boundary. https://doi.org/10.3390/su10103631.

Novitasari, M., & Agustia, D. (2021). Green supply chain management and firm performance: the mediating effect of green innovation. Journal of Industrial Engineering and Management, 14(2), 391–403. https://doi.org/10.3926/jiem.3384.

Khan, M., Ajmal, M. M., Jabeen, F., Talwar, S., & Dhir, A. (2022). Green supply chain management in manufacturing firms: A resource-based viewpoint. Business Strategy and the Environment, May 2021, 1–16. https://doi.org/10.1002/bse.3207.

Castellacci, F., & Lie, C. M. (2017). A taxonomy of green innovators: Empirical evidence from South Korea. Journal of Cleaner Production, 143, 1036–1047. https://doi.org/10.1016/j.jclepro.2016.12.016.

Wang, C. H. (2020). An environmental perspective extends market orientation: Green innovation sustainability. Business Strategy and the Environment, 29(8), 3123–3134. https://doi.org/10.1002/bse.2561.

Morioka, S. N., Bolis, I., Evans, S., & Carvalho, M. M. (2017). Transforming sustainability challenges into competitive advantage: Multiple case studies kaleidoscope converging into sustainable business models. Journal of Cleaner Production, 167, 723–738. https://doi.org/10.1016/j.jclepro.2017.08.118.

Yusoff, Y. M., Omar, M. K., Kamarul Zaman, M. D., & Samad, S. (2019). Do all elements of green intellectual capital contribute toward business sustainability? Evidence from the Malaysian context using the Partial Least Squares method. Journal of Cleaner Production, 234, 626–637. https://doi.org/10.1016/j.jclepro.2019.06.153.

Downloads

Published

2024-07-08

How to Cite

Cahyaningrum, E. I., Kusmantini, T., & Nilmawati, N. (2024). The Influence of Green Supply Chain Management on Business Sustainability Through Green Innovation as a Mediating Variable on Natural Color Batik SMEs in Bantul Regency . West Science Business and Management, 2(03), 689–697. https://doi.org/10.58812/wsbm.v2i03.1054

Issue

Vol. 2 No. 03 (2024): West Science Business and Management

Section

Articles

License

Copyright (c) 2024 Erinna Indah Cahyaningrum, Titik Kusmantini, Nilmawati

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.