Muhammad Asrol, Muchammad Arief, Hendra Gunawan,
Volume 34, Issue 3 (9-2023)
Abstract
The food industry's supply chain primarily relies on materials that are not environmentally friendly. To address this issue and improve overall performance, the implementation of Green Supply Chain Management (GSCM) becomes crucial. The objective of this research is to analyze the factors influencing the adoption of GSCM and its impact on the performance of the food industry, particularly in Indonesia where there is a high potential for waste production and environmental impact. The study targeted 83 food industry companies as respondents, achieving a response rate of 76.82%. The research employed a Partial Least Squares (PLS) and statistical analysis approach to test hypotheses regarding food industry performance. The findings indicate that GSCM does not directly affect food industry performance. However, GSCM has a positive influence on Green Innovation, which in turn has a positive impact on Company Performance. Green Innovation acts as a mediator between GSCM and Corporate Performance. The implementation of a GSCM at the food industry not only enhances environmental performance but also to improved economic performance. It is emphasized that renewable company innovations should be integrated alongside the adoption of green supply chains. The study highlights that the positive effects of the GSCM are more significant when mediated by green innovation.
