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

In: Environmental, Social, and Governance Perspectives on Economic Development in Asia

Author

Listed:
  • Siti Aisjah
  • Sri Palupi Prabandari

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.

Suggested Citation

  • Siti Aisjah & Sri Palupi Prabandari, 2021. "Green Supply Chain Integration and Environmental Uncertainty on Performance: The Mediating Role of Green Innovation," International Symposia in Economic Theory and Econometrics, in: Environmental, Social, and Governance Perspectives on Economic Development in Asia, volume 29, pages 39-62, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:isetez:s1571-03862021000029b025
    DOI: 10.1108/S1571-03862021000029B025
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    Citations

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    Cited by:

    1. Yadav, Sanjeev & Samadhiya, Ashutosh & Kumar, Anil & Luthra, Sunil & Kumar, Vikas & Garza-Reyes, Jose Arturo & Upadhyay, Arvind, 2024. "The interplay effects of digital technologies, green integration, and green innovation on food supply chain sustainable performance: An organizational information processing theory perspective," Technology in Society, Elsevier, vol. 77(C).

    More about this item

    Keywords

    Green supply chain integration; environmental uncertainty; green innovation; performance; small and medium enterprises; business environmentally friendly; L2;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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