Article

Green Supply Chain Integration and Technology Innovation Performance in SMEs: A Case Study in Indonesia

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Abstract

The purpose of the research to analyze SMEs’ technological innovation performance in the Special Region of Yogyakarta based on green supply chains. This study’s technology innovation performance is influenced by environmental management practices, green supply chain integration, and supply chain knowledge-sharing. This research is important because many SMEs are underdeveloped in terms of technology innovation performance. Technology innovation performance shows that innovation has a multi-dimensional ecological performance in organizations. Therefore, SMEs’ sustainable supply chain could be achieved by managing operations, support, and information by focusing on environmental and social issues to maximize the entire chain. This study used primary data. The number of respondents in this study was 200 SMEs that have implemented green supply chain management practices. The data collection method used was a questionnaire. The data analysis technique tool used is a two-step approach to SEM-AMOS. The results of this study indicate that SMEs are willing to implement a green supply chain to increase their performance. The technological innovation performance model of this study is acceptable. The findings of this research suggest that companies must be encouraged to maintain and increase the implementation of green supply chain integration and better supply chain knowledge-sharing with improved technological innovation performance enhancements. © Copyright: The Author(s) This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

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... Previous studies have shown that Green IT (GITEM) empowerment is correlated with someone's lifestyle [17,18] and adaptive performance [19][20][21], particularly from Technology Innovation Performance (TIP) [22,23]. Nowadays, companies are required to have adaptive performance where all are required to provide IT-based services. ...
... TIP fully mobilizes scientific and technological resources, organizes innovative activities, and produces a series of studies with a high level of technology. When a company moves employees towards TIP, the company would need the integration of resources and technology allocation [22,23]. ...
... (2) Creative MSMEs rarely implement Green IT Empowerment when it is associated with Online Training [19] that have an impact on organizational performance, especially on Technology Innovation Performance [22,23,29]. ...
Green IT and online training have become the strategic themes in increasing Technology Innovation Performance for the creative industry in Indonesia. In the COVID-19 pandemic era, Green IT and online training became a strategic theme in improving Technology Innovation Performance. This study offers a moderating role of Green Life Style in testing and analyzing the effect of Green IT and online training. Respondent in this study is chosen by purposive sampling, namely the owners and managers of creative SMEs in Sleman, Special Region of Yogyakarta, Indonesia that is 156 SMEs. The data is collected by questionnaire and interview with SMEs that are considered as population representative. The statistical technique uses the Structural Equation Modelling with the Partial Least Square technique. The results prove the importance of Green IT and online training which have a partial impact on Technology Innovation Performance. Likewise, the green lifestyle is a strong moderator in seeing the effect of Green IT and online training on Technology Innovation Performance.
... Therefore, in the current study context, it is essential to clarify how different capabilities manage the outcome uncertainty of GI in order to attain distinct performance advantages. According to Effendi et al. (2021), GI performance in GSC covers green process innovation and eco-friendly product innovation. Information processing theory offers a fresh look at the intricacies that underpin the various implications of GSCI dimensions and GI on organizational performance (Wong et al., 2020). ...
... GSCI aims to reduce environmental consequences, increase resource utilization, and promote long-term performance improvement by managing intra-and inter-organizational processes magnificently (Vachon and Mao, 2008;Cousins et al., 2019). GSCI is an essential source of technical innovation in enterprises, SC members (including suppliers and customers), and expertise and an important source of ideas (Effendi et al., 2021). ...
... Organizations should collaborate with SC partners to turn to the GSCI paradigm . While prior research has shown a link between integration and creativity, GSCI gives chances to acquire and deploy resources (Wu, 2013;Dangelico, 2016;Effendi et al., 2021). Research also supports that environmental management practices, directly and indirectly, affect EP (Thong and Wong, 2018;Xu et al., 2020). ...
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Stakeholder pressure and public awareness of environmental protection drive organizations to improve environmental practices in the supply chain (SC), such as green supply chain integration (GSCI) and green innovation (GI). The use of information technology (IT) is crucial to manufacturing organizations’ GSCI and performance. However, the research on the relationship between IT capabilities, GSCI, GI, and organizational performance is still limited. Therefore, empirical research is needed on the cognitive thinking of employees using IT capabilities to improve GSCI and organizational performance. The data for this study comes from SC personnel in manufacturing organizations through a structured questionnaire and was analyzed by employing structural equation modeling. Based on the results, this paper concludes that organizational IT capabilities positively affect the GSCI and improve organizational performance (environmental and operational performance). Furthermore, the study discovered that GI increases organizational performance and acts as a positive mediator in the link between GSCI and performance. The findings contribute to existing GSCI and GI knowledge, which can provide a bird's eye-view to develop an organization’s IT capabilities to achieve competitive performance goals.
... Further, many studies have recently examined the concept of "green innovation" concerning the supply chain highlighting key economic and environmental returns from investing in clean innovations owing to their significant impact on emission reduction, consumer green awareness, and market demand for green products (e.g. Effendi et al., 2021;Kong et al., 2020;Zhou et al., 2020). Two decades of KM in SSC ...
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... When innovation talents are seen as a key competitive resource, it can lead to higher performance. (Effendi et al., 2021) Most SMEs operate in a climate of intense competition, thus it's critical to optimize company procedures. ...
... The other point raised by the respondents was that those SMEs which did not meet the criteria for one reason or another should be given support by allowing them to receive the relief grant while they set about rectifying the issues that prevented them from qualifying. In an occurrence of a pandemic, government support would be needed; it is not a matter of choice as to who qualifies for what (Effendi et al., 2021). ...
Chapter
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... The economy of the world has developed over the last few decades. Thus people are ignoring the ecological protection of the environment and focusing more on economic development benefits (Abdul Hamid et al., 2020;Effendi et al., 2021). Environmental issues are becoming intense due to the increase in industrial and human impact on the environment. ...
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Globally, environmental education and green supply chain (GSC) practices are considered essential elements for sustainable development, and this aspect needs new literature and policymakers' attention. Hence, the present article examines the impact of GSC practices on the sustainable development of manufacturing organizations in Indonesia. The article also investigates the moderating role of environmental education among green purchasing, IEM, and sustainable development in manufacturing organizations in Indonesia. The study applies primary data collection technologies such as survey questionnaires to gather primary data from respondents. The study also applies the smart-PLS to test the association among variables. The outcomes revealed that eco-design, green purchasing, and IEM have a positive linkage with sustainable development in manufacturing organizations in Indonesia. The outcomes also exposed the environmental education significantly moderating among green purchasing, IEM, and sustainable development in ABC organizations in Indonesia. The article guides the regulators in developing regulations regarding sustainable development using GSC practices and environmental education.
... These aspects, it has a critical importance for businesses. In the studies carried out, especially the green structural capital of the enterprise and the green supply chain integration it adopts positively affect the GI in achieving the sustainable performance that the enterprise needs (Ali et al., 2021;Effendı,Wıdjanarko, & Sugandını, 2021). The Characteristic features of the business leave their traces in every field, from the way of doing business to the practice of management. ...
Conference Paper
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... Green business practices contribute to maintaining the environmental quality that prevents damage to the earth caused by various business activities (Husnaini & Tjahjadi, 2021). Implementing greening practices can result in inappropriate actions, incorporating activities that do not hurt the surrounding environment and protect the planet from harmful and dangerous impacts (EFFENDI et al., 2021). Scholars have highlighted various practices that have created environmental and physical challenges for the company entity and have established green and supportive practices to lessen the negative footprints of business activities. ...
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... It is reported that knowledge-based SC develop an opportunity to attain improved value for customers, to encourage improved utilization of resources in multi-cultural and knowledge-intensive firms and to build sustainable business processes (Kassaneh et al. 2021). Effendi et al. (2021) asserted that a critical element of innovation is knowledge-based SC which offers firms opportunities through advanced, cutting-edge and improved technology to attain improved performance and sustainable SC integration. ...
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... Technology innovation can promote knowledge accumulation , and LC technology innovation depends on knowledge accumulation (Hoette et al., 2021). KS has a significant impact on the performance of LC technology innovation (Brandao Vinholis et al., 2021;Effendi et al., 2021). Gu et al. (2021) studied the impact of global LC technology transfer on carbon emission reduction. ...
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... Davis et al. (1989) andEffendi (2021) define perceived usefulness as a belief in the usefulness of T.A.M. (Technology acceptance model) is a technology-related model that can clarify the individual's use of information technology (Marangunic and Granis, 2015). Key technological factors are the goal of T.A.M.'s behavior in using information technology systems, Seeman (2009). ...
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