The eco-friendly commodity supply chain strategy and competitive advantage on Indonesia plastic industry

Abstract

The research aims to examine the role of supply chain strategy on eco-friendly commodity products and competitive advantage to improve financial performance of plastic recycling industries, export commitments and circular economic regulations as an intervening variable to see whether it will be better. This research involved a saturated sample of 176 employees in plastic recycle industries. Quantitative analysis was carried out through a survey approach using questionnaires and the Smart-PLS model structural analysis method. The interesting finding of this study is the eco-friendly commodity supply chain strategic and competitive advantage of plastic recycling products has a positive effect to improve financial performance. The circular economy regulation has a positive support also in this effect as well without any export commitment to the Indonesia plastic recycling industry. The importance of optimizing local resources in the eco-friendly commodities as recycling products to become a competitive advantage will be potentially in the export market.