In a significant stride towards environmental stewardship, a recent study led by Alifurrohman from Universitas Gunadarma sheds light on the intricate relationship between Green Supply Chain Management (GSCM) and environmental performance within Indonesia’s micro, small, and medium enterprises (MSMEs). The research, published in ‘Jurnal Manajemen Dan Kewirausahaan’ (Journal of Management and Entrepreneurship), underscores the pressing need for sustainable practices in industries notorious for their environmental impact, particularly in the textile and convection sectors.
Indonesia’s MSMEs are crucial to the economy, providing substantial employment opportunities. However, they also contribute significantly to waste pollution, a reality that the Ministry of Economy, Maritime Affairs and Investment has flagged. Alifurrohman’s study dives deep into how GSCM can pivot these businesses towards greener practices, ultimately enhancing their environmental performance. “The findings reveal that implementing GSCM can lead to notable improvements in how these enterprises operate sustainably,” he explains.
Interestingly, the research also highlights the role of government regulations in this equation. While GSCM itself was found to positively influence environmental performance, the study concluded that government regulations did not significantly impact environmental outcomes or act as a mediator in the relationship between GSCM and environmental performance. This raises questions about the effectiveness of current regulatory frameworks in driving sustainable practices among MSMEs.
The implications of this research extend beyond environmental concerns; they carry substantial commercial weight. As global markets increasingly prioritize sustainability, Indonesian MSMEs that adopt GSCM practices could gain a competitive edge. Companies that proactively engage in green practices are not just responding to regulatory pressures; they are positioning themselves strategically in a marketplace that rewards sustainability. Alifurrohman emphasizes this potential: “By aligning their operations with GSCM, MSMEs can not only reduce their ecological footprints but also enhance their marketability and profitability.”
Looking ahead, this research could catalyze a shift in how both businesses and policymakers approach sustainability. The findings suggest a need for a more nuanced understanding of the interplay between regulation and business practices. If government policies are not effectively encouraging sustainable practices, it may be time for a reevaluation of these frameworks to ensure they support rather than hinder progress.
As the energy sector continues to evolve, the insights from this study could inspire a broader movement towards sustainability across various industries, reinforcing the idea that environmental responsibility and economic viability can go hand in hand.
