The role of top management commitment to improve operational performance through it adoption, supply chain integration, and green supply chain management

Abstract

Manufacturing companies constantly strive to produce products that promote better competitiveness. In addition, the current business environment requires manufacturing companies to adopt environmentally friendly concepts, which have become a global customer concern. Therefore, companies must inevitably meet environmental protection requirements through ecologically friendly processes and products. Meanwhile, environmentally friendly adoption requires a capital-intensive investment, which doubts the management regarding the investment return. Hence, top management commitment is highly needed to maintain eco-friendly products and contribute to the company's performance. This study examines the role of top management commitment to operational performance through adopting information technology, supply chain integration, and green supply chain management. This study surveyed manufacturing companies that have implemented ISO 14000, as many as 73 companies with criteria of having more than 100 employees. Data is collected using questionnaires directly and online with Google Forms. The results of data processing analysis found that top management commitment influences information technology adoption with a priority scale to maintain competitiveness and strategies that increase competitiveness. Top management commitment through information technology can improve supply chain integration and green supply chain management. In addition, supply chain integration improves green supply chain management and operational performance. Implement environmental-friendly measures by involving external partners to impact operational performance. The results of this study contribute to enriching supply chain management theory by significantly adopting green supply chain management to improve sustainable development and performance. It also makes a practical contribution by providing insight for practitioners to generate added value for customers.