Green Supply Chain Integration and Environmental Uncertainty on Performance: The Mediating Role of Green Innovation

Abstract

Small and medium enterprises (SMEs) are expected to be more creative and innovative to survive in the business competition and to make their businesses environmentally friendly, to develop global supply chain strategies, and to make innovations in products and business processes to become indispensable. This study discusses the effect of green supply chain integration (GSCI) and environmental uncertainty on performance through the moderation of green innovation. Structural equation modeling and maximum likelihood estimation were used to analyze a sample of 130 SMEs in East Java, Indonesia. The result shows that GSCI and environmental uncertainty significantly affect performance, and green innovation significantly moderates the effect. This research found that SME’s performance is influenced by GSCI concept and green innovation application as well as SME’s understanding about recent and future environmental uncertainties; this fits the market demand.

Citation

Aisjah, S. and Prabandari, S.P. (2021), "Green Supply Chain Integration and Environmental Uncertainty on Performance: The Mediating Role of Green Innovation", Barnett, W.A. and Sergi, B.S. (Ed.) Environmental, Social, and Governance Perspectives on Economic Development in Asia (International Symposia in Economic Theory and Econometrics, Vol. 29B), Emerald Publishing Limited, Leeds, pp. 39-62. https://doi.org/10.1108/S1571-03862021000029B025