Green Supply Chain Management and Sustainability Performance: The Mediating Role of Competitive Advantage in Bandung SMEs

Abstract

Environmental issues encourage companies, especially food and beverage SMEs in Bandung City, to integrate green supply chains to reduce waste. The implementation of green supply chain management not only supports environmental conservation but also increases economic benefits. Research shows that sustainability performance, which includes environmental, social, and economic aspects, is positively influenced by green supply chain management. However, there are differences in the results in previous studies, so further studies are needed to understand the relationship between supply chain management and sustainability performance in the SME sector. This research explores how Green Supply Chain Management (GSCM) affects Sustainability performance, intervening in the role of competitive advantage within small and medium-sized food and beverage enterprises in the city of Bandung. A quantitative approach is undertaken for the study, where the data was collected from 100 owners of businesses within Bandung City using questionnaires. GSCM includes green purchasing, green manufacturing, and green distribution; therefore, these were analyzed along with competitive advantage indicators: cost efficiency, quality, delivery, and flexibility; and sustainable performance aspects: environmental, social, and economic factors. The results, analyzed using SEM-PLS, show that the GSCM practices are moderately implemented among SMEs, and the competitive advantage significantly positively mediates the relationship between GSCM and Sustainable Performance. The study underlined the crucial role of GSCM in enhancing competitiveness and sustainability performance, meanwhile indicating that the SMEs are in need of further improvements in energy efficiency and the use of recyclable packaging.