The Impact of Green Supply Chain Management Practices on Sustainable Development Goals: A Case of PT PJP in the Energy Sector
DOI:
https://doi.org/10.15282/ijim.19.3.2025.13224Keywords:
Green Supply Chain Management, Sustainable Development Goals, Energy SectorAbstract
The swift advancement of technology and urban growth has led to a substantial increase in the global demand for electricity, including in Indonesia, thereby exacerbating environmental concerns due to emissions from power plants. The current research thoroughly investigates the impact of Green Supply Chain Management (GSCM) strategies on achieving Sustainable Development Goals (SDGs) at PT PJP, a subsidiary of Freeport-McMoRan in Papua, Indonesia. Quantitative approaches and SEM-PLS analysis were conducted on a dataset comprising 125 employees of PT PJP. The results show that all GSCM practices, except for green purchasing and customer cooperation, have a positive and significant effect on environmental practices. Additionally, every GSCM strategy, aside from internal environmental initiatives, positively impacts community practices. Findings from the IPMA underscore eco-design as areas of high performance, highlighting the necessity for PT PJP to prioritize customer cooperation, green purchasing, and investment recovery to ensure sustainable operations. This research offers valuable insights to enhance both academic and managerial strategies concerning GSCM and SDGs.
References
Achillas, C., Bochtis, D. D., Aidonis, D., & Folinas, D. (2018). Green supply chain management. Routledge.
Ali, S. S., Kaur, R., & Marmolejo Saucedo, J. A. (2019). Best practices in green supply chain management: A developing country perspective. Emerald Publishing Limited.
Debnath, B., Siraj, M. T., Rashid, K. H. O., Bari, A. M., Karmaker, C. L., & Al Aziz, R. (2023). Analyzing the critical success factors to implement green supply chain management in the apparel manufacturing industry: Implications for sustainable development goals in the emerging economies. Sustainable Manufacturing and Service Economics, 2, 100013.
Eberling, E., & Langkau, S. (2024). Utilizing SDGs in sustainability assessments of innovations: Deriving methodological recommendations from existing approaches. Journal of Cleaner Production, 437, 140383.
Gonçalves, R., Vlačić, B., González-Loureiro, M., & Sousa, R. (2024). The impact of open innovation on the environmental sustainability practices and international sales intensity nexus: A multicountry study. International Business Review, 33(5), 102279.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage Publishing.
Hair Jr, J., Page, M., & Brunsveld, N. (2019). Essentials of business research methods. Routledge.
Hendayani, R., Emmanuel, A. A., Rachmawati, I., & Purwanadita, R. (2022). Environmental and Economic Performance Measurement Through Green Supply Chain and Green in Store Micro, Small and Medium Enterprises in Probolinggo City. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(2), 1018-1027.
Jeremić, V., & Sachs, J. D. (2014). The United Nations in the age of sustainable development. The economic and social review, 45(2, Summer), 161-188.
Jum'a, L. (2023). The impact of green supply chain management practices on sustainable development goals: The case of mining sector in Jordan. Environmental Development, 48, 100934.
Manurung, D. T., Hardika, A. L., Hapsari, D. W., & Christian, F. (2020). The affecting factors of greenhouse gases disclosure. Calitatea, 21(174), 121-127.
Moreira, A. C., Ribau, C. P., & Rodrigues, C. D. S. F. (2022). Green supply chain practices in the plastics industry in Portugal. The moderating effects of traceability, ecocentricity, environmental culture, environmental uncertainty, competitive pressure, and social responsibility. Cleaner Logistics and Supply Chain, 5, 100088.
Nitzl, C., & Chin, W. W. (2017). The case of partial least squares (PLS) path modeling in managerial accounting research. Journal of Management Control, 28(2), 137-156.
Paksoy, T., & Deveci, M. (Eds.). (2023). Smart and sustainable operations and supply chain management in industry 4.0. CRC Press.
Ringle, C. M., & Sarstedt, M. (2016). Gain more insight from your PLS-SEM results: The importance-performance map analysis. Industrial management & data systems, 116(9), 1865-1886.
Sabri, E. (Ed.). (2019). Technology optimization and change management for successful digital supply chains. IGI Global.
Sarkis, J., & Dou, Y. (2018). Green supply chain management: A concise introduction. Routledge.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & Sons.
Stafford-Smith, M., Griggs, D., Gaffney, O., Ullah, F., Reyers, B., Kanie, N., ... & O’Connell, D. (2017). Integration: the key to implementing the Sustainable Development Goals. Sustainability science, 12(6), 911-919.
Tavanti, M. (2023). Developing sustainability in organizations: A values-based approach. Springer Nature.
Yalviolita, C., & Hendayani, R. (2022). Pengaruh green supply chain management terhadap kinerja lingkungan dan ekonomi perusahaan pada peternakan ayam di Kabupaten Pesisir Selatan Sumatera Barat. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 5(2), 689-699.
Zimon, D., Tyan, J., & Sroufe, R. (2020). Drivers of sustainable supply chain management: Practices to alignment with un sustainable development goals. International Journal for Quality Research, 14(1).
Downloads
Published
Issue
Section
License
Copyright (c) 2025 The Author(s)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
