The green supply chain and sustainability performance in emerging country

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Abstract

This study explicates the effect of green supply chain management on corporate sustainability performance in Indonesia. We conducted an online survey to collect data from targeted respondents with three years of experience on average in the supply chain management field. The respondents consist of company managers, public accountants, public sector accounting managers, and accounting lecturers. We analyzed the data by implementing ordinary least square regression procedures. Our study results suggest that green purchasing, green manufacturing, and internal environmental management can hardly improve economic performance, social performance, and environmental performance. However, strong evidence shows that green distribution triggers a positive effect on economic, social, and environmental performance. Our study implicates that both private sector companies and public sector organizations in Indonesia, as an emerging country, should consider green supply chain management as a necessity. More organizations should pay more attention to apply the green supply chain framework to nourish the competitive advantage.

Keywords: Green Supply Chain, Sustainability, Performance, Management Accounting, Indonesia

Authors’ individual contribution: Conceptualization – A.F., R.A.Q., and Z.A.; Methodology – A.F. and R.A.Q.; Formal Analysis – A.F., R.A.Q., and Z.A.; Investigation – A.F., R.A.Q., and Z.A.; Writing – Original Draft – R.A.Q.; Writing – Review & Editing – A.F., R.A.Q., and Z.A.; Supervision – A.F.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: We would like to express our utmost gratitude to The Research Centre of Polytechnic of State Finance STAN, Indonesia, for the publication funding. We would like to show our appreciation to anonymous reviewers for the insightful comments.

JEL Classification: M41, M14, Q56

Received: 06.01.2021
Accepted: 09.03.2021
Published online: 10.03.2021

How to cite this paper: Firmansyah, A., Qadri, R. A., & Arfiansyah, Z. (2021). The green supply chain and sustainability performance in emerging country. Journal of Governance & Regulation, 10(1), 139-152. https://doi.org/10.22495/jgrv10i1art13