Abstract
The objectives of this study are to measure and analyze the factors that significantly impact the performance of Sustainable Supply Chain Management (SSCM) container shipping industry in Indonesia. This research will then formulate recommendations on SSCM performance improvement strategy using SEM-PLS method. The results show that currently the business actor and service user perceive the SSCM performance of container shipping industry in Indonesia as low. Furthermore, four latent variables give significant and positive impact to SSCM performance. The latent variables include Technology, Integrated Logistic System, Sustainable Market Orientation and Fair-Trade System. The Technology and Integrated Logistic System as the priority should be give more attention. The conclusion of the research result shows that strategy to improve the SSCM performance of container shipping industry in Indonesia must be carried out through a holistic approach and seen as a system. The managerial implication of this study is that the four latent variables of the model sorted, according to their priorities from the total effect coefficients, can be applied as a strategy to improve SSCM performance. Keywords: sustainable supply chain, container shipping, SEM, SSCM
Highlights
The performance of sustainable supply chain management (SSCM) has proven to give a significant contribution to the superiority of industrial competitive advantage
Sustainable Supply Chain Management (SSCM) performance of Container Shipping Industry in Indonesia. In this SSCM optimization model, the SSCM performance of Indonesian container shipping can be measured from 3 parameters
It is significantly proven that, on an aggregate basis, the average perception value given by business actors and service users to Logistic System (LSI) variable is 2.92 out of five. This reflects the level of the Indonesian container shipping logistics system perceived to be low. This will be a huge task for all stakeholders in Indonesia container shipping industry because empirically, this study proves that this integrated logistics system aspect is one of the most important aspects in SSCM optimization strategy of Indonesia container shipping industry
Summary
The performance of sustainable supply chain management (SSCM) has proven to give a significant contribution to the superiority of industrial competitive advantage. Yusuf et al (2014) confirm that supply chain management influences competitive advantage in the petroleum industry. The issue of sustainability within the triple bottom line (3BL) framework of green supply chain management is confirmed to positively impact the competitive advantage and performance of container shipping companies (Yang et al 2013). Chain management is confirmed to positively impact the competitive advantage of the communications network industry (Liao et al 2017). The effectiveness of the supply chain influences has proven to contribute to the competitive advantage of the Greek container shipping industry (Lagoudis & Theotokas, 2007). Green supply chain management has an effect on competitive advantage and industrial economic performance (Rao & Holt, 2005)
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