Adoption, Implementation, and Performance of Green Supply Chain Management: The Case of Coal Power Generation Industry in Indonesia

Abstract

Environmental issues like water, energy, and waste are necessitated organizations to understand that they are part of a more extensive system and their system needs to be radically transformed to respect to the society and guarantee the future of their business. More meticulously, the environmental issues would shape the future of the business. Therefore, to confront these issues practically, organizations need to be innovative and have the vision to redesign products, processes, and business models to reserve their seat for the future. This perspective is called sustainability. With the sustainability point of view, organizations have to have an understanding of their membership as a human community first, and a machine for making money second. However, there are several interpretations of sustainable business which translate it into the profitable business. Among all components of an organization, supply chains (SCs) are critical links that connect an organization’s inputs to its outputs. Therefore, a sustainable SC can create opportunities and offers significant competitive advantages for early adoption of environmental changes and mandatory innovation. Consequently, a green SC management (GSCM) can lead to the profitability after adoption. With regard to the critical role of GSCM in the lifetime of any organization, this study aims to explore the key factors of GSCM, influencing the adoption, implementation, and performance of GSCM considering interdependency within an organization. Indonesia coal power generation as one of the world’s largest coal producers is selected as a case study.