Performance of green supply chain management: Investigating the role of reverse logistics and green procurement aspects in SMEs

Abstract

The purpose of this study is to analyze the relationship between the performance of Reverse Logistics and Green Supply Chain Management, to analyze the relationship between Green Procurement Aspects and the performance of Green Supply Chain Management. This research method is quantitative, the analysis of research data uses the partial least square structural equation model (SEM-PLS) with a statistical data processing tool, namely SmartPLS 4.0 software. Research data was obtained by distributing online questionnaires through social media designed using a Likert scale of 7. Respondents in this study were 670 SMEs owners in Java Island, Indonesia. The stages of data analysis are validity test, reliability test and significance test or hypothesis test. The results of this study indicate that Reverse Logistics has a positive and significant effect on the performance of Green Supply Chain Management, Green Procurement Aspects has a positive and significant effect on the performance of Green Supply Chain Management. The novelty of this study is the relationship model between Reverse Logistics variables, the performance of Green Supply Chain Management and Green Procurement in SMEs which was not found in previous studies. Culinary SMEs are expected to be able to participate in supporting environmentally sound development. This is because the concept of Green Supply Chain Management (GSCM) is a concept that aims to minimize the negative impact of an organization and its supply chain on the environment related to climate change, pollution and resources that are not too large. In order to support GSCM, it is necessary to evaluate the extent to which this concept is carried out by Culinary SMEs. By conducting this evaluation, it is hoped that the constraints and obstacles faced by SMEs in carrying out GSCM can be identified. For this reason, it is necessary to have support from related parties, in this case the government, to conduct socialization and counseling and assistance in implementing GSCM.