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.
Planet earth is currently faced with various environmental problems that are worrisome and threaten business sustainability. The manufacturing sector needs to take better and more consistent responsibility in mitigating this problem. Not only large industries, but also small industries that are widely cultivated such as MSMEs. The application of green management (GM) is an alternative to embrace sustainability. GM can use a variety of techniques that have an impact on reducing waste and environmental pollution. However, MSMEs face obstacles based on management functions, professionalism, and knowledge in implementing GM practices. The purpose of this research is to understand the main drivers for MSME Industry, in implementing Green Management in Banda Aceh City. The perception data of 60 MSME actors taken randomly was used in this study. The ranking of driving factors uses the Fuzzy TOPSIS method which is one of the Multi Criteria Decision Making (MCDM) methods. This study found that the five main drivers of GM implementation are increasing competitiveness (driver 1), incentives provided by the government (driver 2), law enforcement (driver 3), commitment from top management (driver 4), product distribution (driver 5). Employee awareness/motivation, customer demand, pressure from local community, environmental knowledge/technology, raw material sourcing, cost savings, financial resources, efficiency and pressure from business trade associations.
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