Environmental Management System Implementation in MSMEs: A Literature Review

Abstract

The amount of MSMEs units about 99.99 percent of the overall number of business operators in Indonesia showed that MSMEs play a significant role in economic growth and development. At the same time, MSMEs cumulative contribution to environmental issues is not recorded MSMEs participation in the cleaner environment has not yet been noticed. Thus, the environmental management system for MSMes is crucial. This study is a literature review about the implementation of the ISO 14001 environmental management system in MSMEs, challenges and its future potential. The result and discussion discussed the case study of ISO 14001 implementation in Indonesia and other countries. Case studies from Indonesia and other countries showed that implementation of ISO 14001 is possible for MSMEs. The biggest challenges of its implementation is cost, the competence of employees, and resources available for the organization. An alternative for overcoming these challenges is implementing other models of EMS that is more suitable for MSMEs. The important aspects is the environmental awareness of the stakeholders and the internal and external drivers within the organization. Further studies can be done to research specific case studies of EMS such as ISO 14001 or AMEMs implementation in MSMEs. AbstrakJumlah unit UMKM sekitar 99,99 persen dari keseluruhan jumlah operator bisnis di Indonesia menunjukkan bahwa UMKM memainkan peran penting dalam pertumbuhan dan perkembangan ekonomi. Pada saat yang sama, kontribusi kumulatif UMKM terhadap masalah lingkungan tidak dicatat. Partisipasi UMKM dalam lingkungan yang lebih bersih belum diperhatikan. Dengan demikian, sistem manajemen lingkungan untuk UMKM sangat penting. Studi ini adalah tinjauan literatur tentang penerapan sistem manajemen lingkungan ISO 14001 dalam UMKM, tantangan dan potensi masa depannya. Hasil dan diskusi membahas studi kasus implementasi ISO 14001 di Indonesia dan negara lain. Studi kasus dari Indonesia dan negara lain menunjukkan bahwa penerapan ISO 14001 dimungkinkan untuk UMKM. Tantangan terbesar dari implementasinya adalah biaya, kompetensi karyawan, dan sumber daya yang tersedia untuk organisasi. Alternatif untuk mengatasi tantangan-tantangan ini adalah menerapkan model EMS lain yang lebih cocok untuk UMKM. Aspek penting adalah kesadaran lingkungan dari para pemangku kepentingan dan pendorong internal dan eksternal dalam organisasi. Studi lebih lanjut dapat dilakukan untuk meneliti studi kasus EMS tertentu seperti penerapan ISO 14001 atau AMEM di UMKM.

Characterisation of the drivers of environmental management system implementation

“…, 2016). It is also described as a coordinated framework that assists an organisation in complying with environmental regulations and achieving environmental goals (Gunawan et al. , 2020).…”

Impact of digital literacy and market orientation through e-commerce adoption on the MSME performance moderated by O2O business adoption

“…However, the high number of MSMEs in Indonesia is also inseparable from the existing challenges (Hill, 2018). To answer this challenge, the government has implemented a number of MSME support programs, including incentive and financing assistance through the PEN program, People's Business Credit, the Proudly Made in Indonesia National Movement (Lin, 2018), Digitalization of MSME marketing, strengthening alumni entrepreneurs of the Pre-Employment Card Program through KUR Financing, and including a long-term strategy to raise the MSME class through the Job Creation Law (Gunawan, M., Asyahira, R., & M Sidjabat, 2020). Apart from government support, the existence of MSMEs can be done by increasing brand concept, seize market share, and interact with customers at the right time to gain growth momentum in the new economic environment.…”

A Comparative Analysis of Environmental Management System Implementation in Fertilizer Industries: Case Study of PT Pupuk Kaltim, PT Pupuk Kujang, and PT Petrokimia Gresik

“…In addition, many fertilizer industries have a strategy to manage the environment in order to get an ISO certification. As we know, ISO that organizes environmental management system is ISO 14001 [4]. They try to obtain the certification of ISO 14001 to earn customer trust that they have carried out the environmental management.…”