Analysis of the Driving Factors of Implementing Green Supply Chain Management in SME in the City of Semarang

TL;DR

This study investigates the factors motivating SMEs in Semarang to adopt green supply chain management during the COVID-19 pandemic, highlighting the roles of strategic orientation and government regulation in enhancing environmental performance.

Contribution

It identifies the significant influence of strategic orientation and government regulation on green supply chain management and environmental performance in SMEs during a pandemic context.

Findings

Strategic orientation strongly influences green supply chain management.

Government regulation positively impacts environmental performance.

Green supply chain management enhances environmental performance.

Abstract

This study set out to determine what motivated SMEs in Semarang City to undertake green supply chain management during the COVID-19 and New Normal pandemics. The purposive sampling approach was used as the sampling methodology in this investigation. There are 100 respondents in the research samples. The AMOS 24.0 program's structural equation modelling (SEM) is used in this research method. According to the study's findings, the Strategic Orientation variable significantly and favourably affects the Green Supply Chain Management variable expected to have a value of 0.945, and the Government Regulation variable has a positive and strong influence on the variable Green Supply Chain Management with an estimated value of 0.070, the Green Supply Chain Management variable with an estimated value of has a positive and significant impact on the environmental performance variable. 0.504, the Strategic Orientation variable with an estimated value of has a positive and significant impact on the environmental performance variable. 0.442, The Environmental Performance variable is directly impacted positively and significantly by the Government Regulation variable, with an estimated value of 0.041. This significant positive influence is because SMEs in Semarang City have government regulations, along with government support for facilities regarding efforts to implement the concept of environmental concern, causing high environmental performance caused by the optimal implementation of Green supply chain management is built on a collaboration between the government and the supply chain's participants.