The impact of green supply chain management on the economic performance of SMEs, considering environmental conditions

Abstract

Green supply chain management in small and medium-sized companies tries to benefit from this category in the entire supply chain as a strategic tool in sustainable competitive advantage through creating a favorable and indicative relationship from an environmental point of view throughout the supply chain. The aim of the research is to investigate the impact of green supply chain management (GSCM) on economic performance through the moderating role of customer governance in small and medium-sized companies. The research method is descriptive-survey. The statistical population consists of 345 small and medium-sized companies throughout Indonesia. The sample size was determined using Cochran’s formula and random sampling method of 300 cases. The instrument used is a questionnaire. Their reliability was confirmed by the method of Cronbach’s alpha coefficient of 0.70, and the validity of the instrument was confirmed by the content and structure method. Research data was analyzed using SPSS software. The results showed that the measuring tool of research variables has the necessary validity and reliability. The findings of the research show that the implementation of GSCM has a positive and significant effect on the environmental and operational performance of the company, and the implementation of GSCM does not have a significant effect on the economic performance of the company. Managers can consider improving the capacity of knowledge, skills and experience through employee training and benefiting from experienced people to develop relationships with customers.