Drivers and barriers in the adoption of green supply chain management in construction projects: A case of Indonesia

Abstract

The concept of Green Supply Chain Management (GSCM) is attracting attention to the construction industry to minimise adverse environmental effects. However, its application is not common in developing countries like Indonesia. Based on contractors’ and construction design consultants’ point of view, the current study attempts to identify the drivers and barriers to adopting GSCM in construction projects in Central Java Province, Indonesia. The research study used previous literature, observation, questionnaires, and in-depth interviews with experts on drivers and barriers to implementing Green Supply Chain Management in construction. Data were analysed using SPSS and evaluated by the ordinal regression analysis method. Based on testing in ordinal regression analysis, seven factors were identified as drivers or barriers to the adoption of GSCM in construction projects in Central Java Province, and four of them affect significantly. The driving factors that significantly affect the adoption of GSCM include government regulations on environmental protection and pressure from the supply chain stakeholders. On the other hand, the barrier factors include the shortage of suppliers who implement GSCM practices in the construction area and inadequate knowledge and awareness about the impact of construction activities on the environment. This work could give the policymakers’ insight into the barriers and drivers to GSCM, thus enabling them to develop strategies in implementing GSCM in the construction industry.