Implementation of Green Supply Chain Management to Enhance Environmental Performance in The Batik Industry: The Role of Strategic Orientation and Government Regulation
Keywords:
Green Supply Chain Management, Environmental Performance, Strategic Orientation, Government Regulation, Batik Industry
Abstract
The batik industry is one of Indonesia’s creative industries that significantly contributes to economic growth while simultaneously posing serious environmental challenges due to intensive use of chemical dyes and wastewater disposal. This study aims to examine the effect of Green Supply Chain Management (GSCM) implementation on environmental performance in the batik industry in Pekalongan, with strategic orientation and government regulation serving as moderating variables. A quantitative research approach was employed using a survey method. Data were collected from batik industry owners and managers in Pekalongan and analyzed using Structural Equation Modeling (SEM) with AMOS. The results indicate that GSCM has a significant positive effect on environmental performance. Furthermore, strategic orientation and government regulation significantly strengthen the relationship between GSCM and environmental performance. These findings suggest that internal strategic alignment and supportive regulatory frameworks are critical for maximizing the environmental benefits of GSCM practices. This study contributes to sustainable supply chain literature by integrating organizational and institutional perspectives within the context of traditional creative industries
References
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Chen, Y. S. (2008). The driver of green innovation and green image–green core competence. Journal of Business Ethics, 81(3), 531–543. https://doi.org/10.1007/s10551-007-9522-1
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101
Gatignon, H., & Xuereb, J. M. (1997). Strategic orientation of the firm and new product performance. Journal of Marketing Research, 34(1), 77–90. https://doi.org/10.1177/002224379703400107
Green, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: Impact on performance. Supply Chain Management: An International Journal, 17(3), 290–305. https://doi.org/10.1108/13598541211227126
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014. https://doi.org/10.5465/amr.1995.9512280033
Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429–438. https://doi.org/10.1016/j.indmarman.2003.08.015
Klassen, R. D., & McLaughlin, C. P. (1996). The impact of environmental management on firm performance. Management Science, 42(8), 1199–1214. https://doi.org/10.1287/mnsc.42.8.1199
Miles, R. E., & Snow, C. C. (1978). Organizational strategy, structure, and process. McGraw-Hill.
Porter, M. E., & van der Linde, C. (1995). Toward a new conception of the environment–competitiveness relationship. Journal of Economic Perspectives, 9(4), 97–118. https://doi.org/10.1257/jep.9.4.97
Srivastava, S. K. (2007). Green supply-chain management: A state-of-the-art literature review. International Journal of Management Reviews, 9(1), 53–80. https://doi.org/10.1111/j.1468-2370.2007.00202.x
Teece, D. J. (2007). Explicating dynamic capabilities. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Zhu, Q., & Sarkis, J. (2004). Relationships between operational practices and performance. Journal of Operations Management, 22(3), 265–289. https://doi.org/10.1016/j.jom.2004.01.001
Zhu, Q., Sarkis, J., & Lai, K. H. (2013). Institutional-based antecedents and performance outcomes. International Journal of Production Economics, 146(1), 85–98. https://doi.org/10.1016/j.ijpe.2012.11.015
Aboelmaged, M. (2018). The drivers of sustainable manufacturing practices. Journal of Cleaner Production, 186, 25–39. https://doi.org/10.1016/j.jclepro.2018.03.088
Afum, E., Agyabeng-Mensah, Y., & Owusu, J. A. (2020). Translating green supply chain management into performance. Journal of Cleaner Production, 242, 118566. https://doi.org/10.1016/j.jclepro.2019.118566
Darnall, N., Jolley, G. J., & Handfield, R. (2008). Environmental management systems and green supply chain management. Business Strategy and the Environment, 17(1), 30–45. https://doi.org/10.1002/bse.557
Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. Capstone.
Golicic, S. L., & Smith, C. D. (2013). A meta-analysis of environmentally sustainable supply chain management practices. Journal of Supply Chain Management, 49(2), 78–95. https://doi.org/10.1111/jscm.12006
Govindan, K., Seuring, S., Zhu, Q., & Azevedo, S. G. (2016). Accelerating the transition towards sustainability. Journal of Cleaner Production, 112, 1640–1655. https://doi.org/10.1016/j.jclepro.2015.11.039
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning.
Handfield, R. B., Walton, S. V., Sroufe, R., & Melnyk, S. A. (2002). Applying environmental criteria to supplier assessment. European Journal of Operational Research, 141(1), 70–87. https://doi.org/10.1016/S0377-2217(01)00261-2
Laari, S., Töyli, J., & Ojala, L. (2018). Supply chain perspective on competitive strategies. Transportation Research Part E, 113, 69–86. https://doi.org/10.1016/j.tre.2018.03.006
Luthra, S., Garg, D., & Haleem, A. (2015). Green supply chain management practices in Indian automobile industry. Journal of Cleaner Production, 97, 81–92. https://doi.org/10.1016/j.jclepro.2014.04.045
Mardani, A., Streimikiene, D., Zavadskas, E. K., & Cavallaro, F. (2018). Carbon dioxide emissions in SMEs. Journal of Cleaner Production, 172, 2834–2848. https://doi.org/10.1016/j.jclepro.2017.11.113
Rasi, R. Z. R. M., Abdekhodaee, A., & Nagarajah, R. (2014). Supplier development practices. International Journal of Production Economics, 156, 72–82. https://doi.org/10.1016/j.ijpe.2014.05.020
Setyawan, N. A., Eviyanti, N., Pratiwi, M. I., Utami, H., Sadriatwati, S. E., Wiedayanti, D. F., & Wibowo, B. Y. (2026). Enhancing Batik SMEs Competitive Advantage Through Sustainable Performance, Big Data, SCM, e-CRM, and Circular Economy. Al-Kharaj: Journal of Islamic Economic and Business, 8(2).
Setyawan, N. A. (2021). The existence of Lasem Batik entrepreneurs during the COVID-19 pandemic. Admisi dan Bisnis, 22(1), 61-72.
Testa, F., & Iraldo, F. (2010). Shadows and lights of GSCM. Journal of Cleaner Production, 18(10–11), 953–962. https://doi.org/10.1016/j.jclepro.2010.03.014
Walker, H., Di Sisto, L., & McBain, D. (2008). Drivers and barriers to environmental supply chain management. Journal of Purchasing and Supply Management, 14(1), 69–85. https://doi.org/10.1016/j.pursup.2008.01.002
Zailani, S., Jeyaraman, K., Vengadasan, G., & Premkumar, R. (2012). Sustainable supply chain management in Malaysia. International Journal of Production Economics, 140(1), 330–340. https://doi.org/10.1016/j.ijpe.2012.01.008
Chen, Y. S. (2008). The driver of green innovation and green image–green core competence. Journal of Business Ethics, 81(3), 531–543. https://doi.org/10.1007/s10551-007-9522-1
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101
Gatignon, H., & Xuereb, J. M. (1997). Strategic orientation of the firm and new product performance. Journal of Marketing Research, 34(1), 77–90. https://doi.org/10.1177/002224379703400107
Green, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: Impact on performance. Supply Chain Management: An International Journal, 17(3), 290–305. https://doi.org/10.1108/13598541211227126
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014. https://doi.org/10.5465/amr.1995.9512280033
Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429–438. https://doi.org/10.1016/j.indmarman.2003.08.015
Klassen, R. D., & McLaughlin, C. P. (1996). The impact of environmental management on firm performance. Management Science, 42(8), 1199–1214. https://doi.org/10.1287/mnsc.42.8.1199
Miles, R. E., & Snow, C. C. (1978). Organizational strategy, structure, and process. McGraw-Hill.
Porter, M. E., & van der Linde, C. (1995). Toward a new conception of the environment–competitiveness relationship. Journal of Economic Perspectives, 9(4), 97–118. https://doi.org/10.1257/jep.9.4.97
Srivastava, S. K. (2007). Green supply-chain management: A state-of-the-art literature review. International Journal of Management Reviews, 9(1), 53–80. https://doi.org/10.1111/j.1468-2370.2007.00202.x
Teece, D. J. (2007). Explicating dynamic capabilities. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Zhu, Q., & Sarkis, J. (2004). Relationships between operational practices and performance. Journal of Operations Management, 22(3), 265–289. https://doi.org/10.1016/j.jom.2004.01.001
Zhu, Q., Sarkis, J., & Lai, K. H. (2013). Institutional-based antecedents and performance outcomes. International Journal of Production Economics, 146(1), 85–98. https://doi.org/10.1016/j.ijpe.2012.11.015
Aboelmaged, M. (2018). The drivers of sustainable manufacturing practices. Journal of Cleaner Production, 186, 25–39. https://doi.org/10.1016/j.jclepro.2018.03.088
Afum, E., Agyabeng-Mensah, Y., & Owusu, J. A. (2020). Translating green supply chain management into performance. Journal of Cleaner Production, 242, 118566. https://doi.org/10.1016/j.jclepro.2019.118566
Darnall, N., Jolley, G. J., & Handfield, R. (2008). Environmental management systems and green supply chain management. Business Strategy and the Environment, 17(1), 30–45. https://doi.org/10.1002/bse.557
Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. Capstone.
Golicic, S. L., & Smith, C. D. (2013). A meta-analysis of environmentally sustainable supply chain management practices. Journal of Supply Chain Management, 49(2), 78–95. https://doi.org/10.1111/jscm.12006
Govindan, K., Seuring, S., Zhu, Q., & Azevedo, S. G. (2016). Accelerating the transition towards sustainability. Journal of Cleaner Production, 112, 1640–1655. https://doi.org/10.1016/j.jclepro.2015.11.039
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning.
Handfield, R. B., Walton, S. V., Sroufe, R., & Melnyk, S. A. (2002). Applying environmental criteria to supplier assessment. European Journal of Operational Research, 141(1), 70–87. https://doi.org/10.1016/S0377-2217(01)00261-2
Laari, S., Töyli, J., & Ojala, L. (2018). Supply chain perspective on competitive strategies. Transportation Research Part E, 113, 69–86. https://doi.org/10.1016/j.tre.2018.03.006
Luthra, S., Garg, D., & Haleem, A. (2015). Green supply chain management practices in Indian automobile industry. Journal of Cleaner Production, 97, 81–92. https://doi.org/10.1016/j.jclepro.2014.04.045
Mardani, A., Streimikiene, D., Zavadskas, E. K., & Cavallaro, F. (2018). Carbon dioxide emissions in SMEs. Journal of Cleaner Production, 172, 2834–2848. https://doi.org/10.1016/j.jclepro.2017.11.113
Rasi, R. Z. R. M., Abdekhodaee, A., & Nagarajah, R. (2014). Supplier development practices. International Journal of Production Economics, 156, 72–82. https://doi.org/10.1016/j.ijpe.2014.05.020
Setyawan, N. A., Eviyanti, N., Pratiwi, M. I., Utami, H., Sadriatwati, S. E., Wiedayanti, D. F., & Wibowo, B. Y. (2026). Enhancing Batik SMEs Competitive Advantage Through Sustainable Performance, Big Data, SCM, e-CRM, and Circular Economy. Al-Kharaj: Journal of Islamic Economic and Business, 8(2).
Setyawan, N. A. (2021). The existence of Lasem Batik entrepreneurs during the COVID-19 pandemic. Admisi dan Bisnis, 22(1), 61-72.
Testa, F., & Iraldo, F. (2010). Shadows and lights of GSCM. Journal of Cleaner Production, 18(10–11), 953–962. https://doi.org/10.1016/j.jclepro.2010.03.014
Walker, H., Di Sisto, L., & McBain, D. (2008). Drivers and barriers to environmental supply chain management. Journal of Purchasing and Supply Management, 14(1), 69–85. https://doi.org/10.1016/j.pursup.2008.01.002
Zailani, S., Jeyaraman, K., Vengadasan, G., & Premkumar, R. (2012). Sustainable supply chain management in Malaysia. International Journal of Production Economics, 140(1), 330–340. https://doi.org/10.1016/j.ijpe.2012.01.008
Published
2026-08-03
How to Cite
Jati Nugroho, Noor Suroija, Muhammad Asrori, Kusmayadi, & Nanang Adie Setyawan. (2026). Implementation of Green Supply Chain Management to Enhance Environmental Performance in The Batik Industry: The Role of Strategic Orientation and Government Regulation. International Journal of Education, Vocational and Social Science , 5(03), 6849-6867. https://doi.org/10.63922/ijevss.v5i03.5741
Contact Person +6282139474255
Email : ijevss@citakonsultindo.or.id / editor.ijevss@gmail.com
