THE EFFECT OF GREEN SUPPLY CHAIN MANAGEMENT AND COMPETITIVE ADVANTAGES ON SUSTAINABLE PERFORMANCE OF INDONESIAN SMEs

This research was carried out in Malang, Indonesia, focusing on Small and Medium-
sized Enterprises (SMEs) and involving a sample of 100 participants. It explores the
complex relationships between competitive advantage, green innovation, knowledge
management, green supply chain management, and sustainable performance. The direct
impact of competitive advantage and knowledge management on sustainable performance
is revealed. Nonetheless, it seems that green supply chain management has little impact as
a link between green innovation and sustainable performance, suggesting that
environmentally friendly practices may not be widely or efficiently implemented in the
supply chain management of small and medium-sized enterprises in Malang. The study
points out that green innovation may not have a direct impact on sustainable performance,
possibly because of difficulties in implementing innovative environmentally friendly
solutions throughout the entire supply chain. Tailored strategies are crucial for overcoming
barriers to the adoption of sustainable supply chain practices in Malang, in order to
strengthen the long-term sustainability of small and medium-sized enterprises. This
involves enhancing the spread and integration of knowledge related to sustainability and
stressing the significance of incorporating sustainability goals alongside considerations of
competitive advantage.