Drivers of the green supply chain initiatives: Evidence from Indonesian automotive industry

Abstract: Global warming, resource depletion, rising temperature, air pollution, and other environmental issues have raised several questions regarding the environmental effects of organizations. Thus, the organizations have started to pay attention on their processes. Bearing in mind the importance of ongoing environmental issues, the present study tries to elaborate the role of key drivers due to which the organizations go for adoption of green initiatives. This study considers the supply chain processes as a point of concern. Competitor pressure, customer pressure, regulatory measures (ISO 140001 etc.) and socio-cultural responsibility are the key drivers. Data are collected from the employees who were working in the automotive industry related companies in Indonesia by adopting the simple random sampling. 300 questionnaires are distributed among the employees out of which 200 valid responses are used for data analysis. Smart-PLS is used for data analysis. As per the results of the study the regulatory measures significantly and positively influence the green supply chain initiatives of the automotive car manufacturers. The results of the study also report a positive significant relationship between competitor pressure and green supply chain initiatives. Green supply chain initiatives are also found to be positively influence by the customer pressure. Finally, the study also reports a positive significant influence of socio-cultural responsibility on the green supply chain initiatives. Socio-cultural responsibility is found to be the strongest predictor of green supply chain initiatives. Practical implications and future directions are also provided at the end of the study.

How to cite this paper

 Thaib, D. (2020). Drivers of the green supply chain initiatives: Evidence from Indonesian automotive industry.Uncertain Supply Chain Management, 8(1), 105-116.

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