Abstract

This study examines the correlation between internal drivers, external pressures, Green Entrepreneurial Orientation (GEO). In the context of wood processing companies in Lumajang, this study examines how green supply chain management (GSCM) practices and performance interact. The study relies on theoretical underpinnings grounded in both institutional theory and the Natural Resource-Based View (NRBV) theory to thoroughly explore and comprehend these complex interconnections. Data was collected from a sample of 98 wood processing companies registered as Primary Timber Forest Product Industries (IPHHK) in the Lumajang District Forestry Office up to 2020, using a saturated sampling technique over three months from January to March 2022. This study's data analysis was carried out using structural equation modeling (SEM), which uses the partial least squares (PLS) methodology. The results of the analysis indicate that internal drivers do not exert a significant influence on Green Supply Chain Management (GSCM) performance. In contrast, external pressure and Green Entrepreneurial Orientation (GEO) have a notable and statistically significant impact on GSCM performance. Furthermore, GSCM practices play a crucial mediating role, fully mediating the correlation between internal drivers and GSCM performance and partially mediating the correlation between external pressure, GEO, and GSCM performance. This research holds practical implications for managers, supply chain specialists, and Lumajang wood processing industry policymakers. It clarifies the significance of particular drivers in putting GSCM practices into practice and reaching improved performance levels. Future research should consider expanding the sample size, extending the scope of the survey, exploring additional research avenues, and implementing longitudinal designs to investigate green supply chain integration and firm behavior over time.

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