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August 16, 2025Proceeding of International Conference on Science and Technology UISU.3 citationsOpen Access

Green Supply Chain Management: Strategies for Sustainable Industrial Development

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AHAbdurrozzaq HasibuanSNSuhela Putri NasutionTHTaufiqurrahman Hasibuan

Key Points

  • Sustainable industrial performance significantly improves with the implementation of green supply chain management strategies, especially green manufacturing.
  • Quantitative analysis shows that GSCM dimensions explain 62.4% of the variance in sustainability performance, with green manufacturing having the highest influence.
  • Mixed methods approach combined survey data from 132 manufacturing firms and qualitative insights from stakeholder interviews.
  • Though GSCM helps achieve sustainability, challenges in reverse logistics implementation highlight the need for better infrastructure and behavioral change.

Abstract

This study aims to develop and empirically test a conceptual model of Green Supply Chain Management (GSCM) as a strategic approach to achieving sustainable industrial performance. In the face of increasing global environmental pressures, industries are expected to integrate sustainability principles across all operational levels. This research investigates the impact of five core GSCM dimensions, Green Purchasing, Eco-Design, Green Manufacturing, Reverse Logistics, and Environmental Collaboration, on sustainable performance indicators, encompassing economic, environmental, and social aspects.The study adopts a mixed methods approach, combining quantitative analysis using Partial Least Squares - Structural Equation Modeling (PLS-SEM) on survey data collected from 132 manufacturing firms in Indonesia, and qualitative insights gathered through in-depth interviews with key stakeholders. The quantitative findings reveal that all GSCM dimensions significantly and positively influence sustainable industrial performance, with Green Manufacturing demonstrating the highest path coefficient (β = 0.376). The model explains 62.4% of the variance in sustainability performance (R² = 0.624), indicating strong explanatory power.The qualitative results support the statistical analysis, revealing practical efforts such as renewable energy adoption, supplier certification, product redesign, and environmental partnerships. Despite the overall positive influence, challenges remain, particularly in implementing reverse logistics due to infrastructural and behavioral barriers.This study contributes to the theoretical advancement of GSCM by integrating multiple perspectives, operational, strategic, and organizational. It also provides actionable recommendations for industry leaders and policymakers to strengthen the institutionalization of sustainable supply chain practices. The findings emphasize that GSCM is not only a compliance tool but a source of long-term competitive advantage in the era of green transformation.

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Cite This Study

Hasibuan et al. (2025) studied this question.

synapsesocial.com/papers/68af5095ad7bf08b1ead83ddhttps://doi.org/10.30743/dsxge072
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