Analysis of the Driving Factors of Implementing Green Supply Chain Management in SME’s in the City of Semarang

Abstract

: This study set out to determine what motivated SMEs in Semarang City to undertake green supply chain management during the COVID-19 and New Normal pandemics. The purposive sampling approach was used as the sampling methodology in this investigation. There are 100 respondents in the research samples. The AMOS 24.0 program's structural equation modelling (SEM) is used in this research method. According to the study's findings, the Strategic Orientation variable significantly and favourably affects the Green Supply Chain Management variable expected to have a value of 0.945, and the Government Regulation variable has a positive and strong influence on the variable Green Supply Chain Management with an estimated value of 0.070, the Green Supply Chain Management variable with an estimated value of has a positive and significant impact on the environmental performance variable. 0.504, the Strategic Orientation variable with an estimated value of has a positive and significant impact on the environmental performance variable. 0.442, The Environmental Performance variable is directly impacted positively and significantly by the Government Regulation variable, with an estimated value of 0.041. This significant positive influence is because SMEs in Semarang City have government regulations, along with government support for facilities regarding efforts to implement the concept of environmental concern, causing high environmental performance caused by the optimal implementation of Green supply chain management is built on a collaboration between the government and the supply chain's participants.