The influence of eco-design, green information systems, green manufacturing, and green purchasing on manufacturing performance

Abstract

Companies today strive to integrate manufacturing processes with the environment to strike a balance. This study aims to examine the impact of green implementation for companies on the performance of manufacturing companies. Data was collected using Google Forms distributed online to the manufacturing companies domiciled in East Java. The criterion for the companies is that they have been committed to implementing a green approach to the production process, procurement of environmentally friendly raw materials, and green products. The partial least square technique analyzed data from as many as 115 respondents, with the position as senior staff level and higher, who have worked for at least two years and are permanent employees. The results showed that the implementation of eco-design has an impact on green purchasing and green manufacturing. Eco-design and green information systems implemented by the company can improve manufacturing performance by producing adequate overall product quality, and the number of products produced varies according to market demand. Therefore, the green information system affects green manufacturing and purchasing in manufacturing companies. Therefore, green manufacturing and green purchasing can impact manufacturing performance. The research results contribute to practitioners, especially top management, in committing to implementing Green which affects the performance of manufacturing companies. The theoretical contribution of the research is to enrich green supply chain management and sustainable performance for manufacturing companies.