Sustainable firm performance of green supply chain management practice at petrochemical industry

• Main Author: Yuary, Farradia
• Format: Thesis
• Language: English; English; English
• Published: 2020
• Subjects: HD Industries. Land use. Labor
• Online Access: http://eprints.uthm.edu.my/39/1/24p%20YUARY%20FARRADIA.pdf; http://eprints.uthm.edu.my/39/2/YUARY%20FARRADIA%20COPYRIGHT%20DECLARATION.pdf; http://eprints.uthm.edu.my/39/3/YUARY%20FARRADIA%20WATERMARK.pdf; http://eprints.uthm.edu.my/39/

Indonesia's petrochemical sector contributes to 3% of Indonesian Gross Domestic Products. One of the main problem in this industrial development is the green industry standard in line with the energy scarcity due to high demand on the energy within the industrial sector as well as availability of naphtha raw material. Therefore, to achieve the industry sustainability it is a need to have Green Supply Chain Management (GSCM) model toward petrochemical industry sustainability in line with the Green Industry Long Run Strategic Plan in Indonesia. This study aimed at exploring the relationship between internal and external GSCM practices on sustainable firm performance by having Green Marketing Mix (GMM) as mediator as well as external supply chain integration as moderator on the mediator (GMM) and developing the best model of the GSCM to be implemented in the local industry. The quantitative method involved a survey of 58 respondents among petrochemical olefin firms based in Banten Province, Indonesia. The data analysis using PLS SEM SmartPLS 3, revealed that the internal and external GSCM has no direct effect on sustainable performance but has a positive indirect effect on sustainability economic and social performance. GMM has a positive effect on both internal and external GSCM as well as sustainability economic, environment and social performance. The mediation effect results show that the GMM mediates the internal and external GSCM with sustainability economic and social performance. Hypotheses related to the moderated mediation interaction are rejected. Hence, it can be asserted that the sustainability firm performance of petrochemical industry in Indonesia is generated by mediator role of the GMM on the internal and external GSCM. The GSCM practice at local petrochemical industry has an indirect effect to the sustainability firm performance. The outcome of this study is the best-recommended model describe the relationship among the internal and external GSCM, GMM and sustainability firm performance. The implication of this research is providing insights on theory advancements and practical application at the specific segment of the petrochemical industry.