Green Supply Chain Management: Create Competitive Advantage and Sustainability Performance

Abstract

This research aims to examine the relationship between green supply chain management (GSCM), sustainable performance (SP), and competitive advantage (CA). This research is based on a survey in the form of a questionnaire, and there were 60 respondents from 25 manufacturing enterprises in the city of Padang, consisting of managers and business owners. The data was examined utilizing the structural equation modeling (SEM) technique through the SmartPLS software. The research found a positive and significant direct effect of GM and ED (eco-design) against SP, GP, and ED against CA and CA against SP. They also found a positive and insignificant effect of GM on CA. Finally, the impact of GP on SP is negative and not significant. This research contributes to a further scientific understanding of adopting green practices by creating competitive advantage and its role in influencing sustainability performance.