Green Supply Chain Management and Competitive Advantage: Evidence of Just-in-time Management on Firm Performance SMEs in Indonesia

Abstract

The turnaround of the wheels of the economy has an important meaning in terms of accelerating development in Indonesia. This industrial sector not only has the potential to make a large economic contribution through added value, employment and foreign exchange, but also is able to make a major contribution in the cultural transformation of the nation towards modernizing people's lives that support the formation of national competitiveness. This study aims to test the influence of just in time, green supply chain management, and competitive advantage on company performance in SMEs in Indonesia. This study used a quantitative approach with a data collection method using a 1-5 Likert scale questionnaire which was distributed online and processed using SPSS version 25 software. The population and sample of this study are 175 SMEs in Indonesia which are engaged in the manufacturing sector. As for testing the model in this study using the Structural Equation Model Partial Least Square (SEM PLS). The results of this study provide the fact that the just-in-time system, green supply chain management, and competitive advantage have a significant positive effect on the performance of SMEs companies in Indonesia, both directly and indirectly. Recommendations that can be given to the company are to maintain the just-in-item system that has been carried out such as managing production costs, maintaining production levels, and providing good relations to suppliers. Not only that, companies must also continue to protect the surrounding environment by enacting environmentally friendly policies.