Green Supply Chain Management Innovation Diffusion 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 objectives of this research were to suggest the model that is relevant with the crumb rubber supply chain and formulate green approach as well as prioritize 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, field observation, and examination of QMS documents. The GSCM model for CRFs was constructed and the rooms for improvement were judged through comparing the current condition with the model. In addition, the Analytical Hierarchy Process was employed to prioritize the strategies. The results showed that green procurement which emphasizes on educating farmers and increasing the quality of raw material are the prioritized green approaches. The practical results of this research provide valuable insights and guidelines for CRFs to integrate the green concepts into operational business strategy.