Abstract

The main objective of the current research is to identify and prioritize factors affecting the efficacy of green supply chain management (GSCM) in the agricultural sector in Indonesia. For this purpose, three factors of production, purchase and green transportation were considered in the green supply chain. This research is applied in terms of purpose and descriptive-quantitative in terms of data type. To collect information, both library and field methods were used, and in this way, the statistical population in this study is 415 employees of the green food manufacturing companies in Indonesia, such as: BOHAN Food , Asian Agri, Ardena Food and others, who were selected by Cochrane sampling method, and to measure information from a standard 19-item questionnaire in the period of 2022-2023. A five-point Likert scale was used. To analyze the data, partial least squares method and Smart-PLS software were employed. In order to fit the reliability, Cronbach’s alpha was used and its coefficient is more than 0.7 for all research constructs. The results indicated that the performance evaluation of GSCM in the agricultural industry is significantly related to green purchasing, production, and transportation, whilst the green production is the most affecting variable. Based on the results of this research, it can be suggested to the agricultural and food companies of the studied area that, If the green supply chain is employed instead of the traditional one, the environmental performance will be maintained and the financial performance of their businesses will be improved concurrently.

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