The Impact of Top Management Commitment, Green Purchasing, and Supply Chain Management Practices on Operational Performance

Siagian, Hotlan and Tarigan, Zeplin Jiwa Husada (2021) The Impact of Top Management Commitment, Green Purchasing, and Supply Chain Management Practices on Operational Performance. [UNSPECIFIED]

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Abstract

Globalisation has forced the manufacturing industry to take care of environmental sustainability. This research examines the impact of top management commitment, green purchasing, supply chain management practices on operational performance. This research distributed questionnaires to 150 manufacturing companies in East Java, Indonesia, and 135 questionnaires were returned and completed correctly. Of the 135, only 81 questionnaires were considered valid due to the respondent profile relevance. Data analysis used the Partial least square, utilising the SmartPLS software. The results reveal that top management commitment directly influences green purchasing and supply chain practices. However, top management commitment does not directly affect operational performance. Green purchasing affects supply chain management practices and operational performance. Supply chain practices directly affect operational performance. This study provides insight for managers to improve the companys operational performance. This study also contributes to the current research on supply chain management theory.

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