Green Supply Chain Management in Indonesian Crumb Rubber Factories: Designing Strategies towards Implementation.

Abstract

Green supply chain management (GSCM) is a new technical innovation that has been touted to improve supply chain performance as well as minimize the environmental impacts. Unfortunately, this concept has not been entirely implemented in Indonesian rubber industries. The primary objective of this research were identify current green practices, to explore influencing factors and formulate green approach as well as select strategies to accelerate GSCM implementation in Indonesia’s crumb rubber factories (CRFs). The case studies were conducted in two private CRFs. The data were collected through semi-structure interviews with stakeholders, field observation, and examination of QMS documents. The GSCM model for CRFs was constructed, and the influencing factors were analyzed through thematic analysis through the lens of innovation diffusion theory. The Analytical Hierarchy Process was employed to prioritize the strategies. The findings suggest CRFs have not committed themselves to integrating the environmental management intentionally into the current production system; their motive of green efforts may be more to maximize efficiency and reduce the cost production rather than to be more environmental friendly. The results reveal that technological, organizational and environmental factors may influence the decision on GSCM adoption. In addition, green procurement which emphasizes increasing the quality of raw material from the rubber block supplier and educate farmers or supplier are the prioritized green approach to accelerate GSCM implementation. The practical results of this research provide valuable insights and guidelines for CRFs to integrate the green concepts into operational business strategy.