Green supply chain practices and its impact on community empowerment and poverty reduction in Indonesia

Abstract

This study aims to investigate the influence of green supply chain management practices on community empowerment and poverty reduction in the region of Indonesia. Primary data collection technique like questionnaire was adopted and a sample of 305 respondents was finally collected. For the better understanding, a structural model was developed for the green supply chain factors and community empowerment. For analyzing the data, descriptive findings, confirmatory factor analysis, structural equation modelling and finally regression analysis were applied. Through structural equation modelling, it is found that all three factors of green supply chain (eco design, environment friendly approaches, and green manufacturing and distribution) had positive and significant influence on community empowerment in Indonesia. In addition, findings under regression analysis show that for the poverty reduction factors green supply chain can also play significantly when integrated through all three factors. As per the implication, this research is a meaningful contribution in the field of green supply chain management practices, community development and poverty reduction.