The effect of supply chain integration capability and green supply chain management (GCSM) on manufacturing industry operational performance

Abstract

The purpose of this study was to determine the effect of supply chain integration capabilities on operational performance by mediating green supply chain management in manufacturing companies. This research method is quantitative and the sampling method in this study uses probability sampling. The primary data is obtained by distributing 490 online questionnaires to manufacturing companies. Validity and reliability testing were carried out using Structural Equation Modeling Partial Least Square (SEM-PLS) and data processing was accomplished using SmartPLS. The findings in this study found that supply chain integration capabilities had a direct positive and significant effect on operational performance while supply chain integration capabilities had a positive and significant effect on green supply chain management. In addition, green supply chain management had a direct positive and significant effect on operational performance. The ability of supply chain integration also maintained a positive and significant effect on operational performance mediated by green supply chain management.