Ranking of Drivers and Barriers for the Green Management Implementation at MSME in Banda Aceh City, Indonesia

Abstract

The Micro, Small and Medium Enterprises (MSMEs) still have low involvement in being environmentally friendly. Production processes that are associated with environmental pollution, such as the use of hazardous materials, and produce waste that are not properly managed, threaten sustainability. This study aims to determine the driving and inhibiting factors of the green management implementation in the micro, small and medium industries in the city of Banda Aceh. The data used in this study were obtained from perception of 60 MSME doer which randomly selected from 208 MSMEs, according to Office of Cooperative, MSME and Trade of Banda Aceh, in 9 sub districts of Banda Aceh represent the perception of entrepreneurs. Perception of 10 employees of Office Environmental Service, Cleanliness and Beauty of Banda Aceh and also perception of 10 academics or environmental activist representing perception of government and experts. Fuzzy TOPSIS method is used to rank the driver and inhibitor factors. The study found that the five highest driver factors for green management application which are: regulation and law enforcement, employees' awareness and motivation, ability to increase competitiveness, customer demand for environmentally friendly products, knowledge about technology and environment-friendly innovations that can be adopted. Meanwhile, the inhibiting factors are in the aspect of human resources such as low environmental knowledge of employees, lack of training for empowerment, and low ability to adopt technology. Inhibitors from the economic and organizational side are limited financial capacity and the absence of green planning.