Implementation of green supply chain management practices on organizational performance

Abstract

This study aims to analyze the impact of green supply chain management practices on technological innovation, corporate social responsibility, and operational performance in the automotive parts manufacturing sector. Green supply chain management practices are becoming increasingly important for companies to achieve sustainability and operational efficiency. The research method employed is a survey with purposive sampling, involving 205 respondents who are active employees working in the supply chain division of manufacturing companies in Bogor and Karawang Regencies. The data were analyzed using structural equation modeling (SEM). The results indicate that green supply chain management practices have a significant impact on technological innovation, but do not have a direct and significant effect on corporate social responsibility and operational performance. Furthermore, technological innovation and corporate social responsibility were not found to mediate the relationship between green supply chain management practices and operational performance. These findings imply that while companies have started implementing environmentally friendly practices, their impact on operational performance remains limited and not fully integrated into operational systems. Therefore, companies need to strengthen the integration of environmental policies with innovation and social strategies to achieve more optimal and sustainable performance.