Adoption, Implementation, and Performance of Green Supply Chain Management: The Case of Coal Power Generation Industry in Indonesia

  • Caroline H. Santoso
  • Marzieh Khakifirooz
  • Mahdi Fathi
  • Jei-Zheng WuEmail author
Part of the Studies in Systems, Decision and Control book series (SSDC, volume 186)


Environmental issues like water, energy, and waste are necessitated organizations to understand that they are part of a more extensive system and their system needs to be radically transformed to respect to the society and guarantee the future of their business. More meticulously, the environmental issues would shape the future of the business. Therefore, to confront these issues practically, organizations need to be innovative and have the vision to redesign products, processes, and business models to reserve their seat for the future. This perspective is called sustainability. With the sustainability point of view, organizations have to have an understanding of their membership as a human community first, and a machine for making money second. However, there are several interpretations of sustainable business which translate it into the profitable business.

Among all components of an organization, supply chains (SCs) are critical links that connect an organization’s inputs to its outputs. Therefore, a sustainable SC can create opportunities and offers significant competitive advantages for early adoption of environmental changes and mandatory innovation. Consequently, a green SC management (GSCM) can lead to the profitability after adoption. With regard to the critical role of GSCM in the lifetime of any organization, this study aims to explore the key factors of GSCM, influencing the adoption, implementation, and performance of GSCM considering interdependency within an organization. Indonesia coal power generation as one of the world’s largest coal producers is selected as a case study.


  1. 1.
    Bayazit, O., & Karpak, B. (2007). An analytical network process-based framework for successful total quality management (TQM): An assessment of Turkish manufacturing industry readiness. International Journal of Production Economics, 105(1), 79–96.CrossRefGoogle Scholar
  2. 2.
    Biswal, J. N., Muduli, K., & Satapathy, S. (2017). Critical analysis of drivers and barriers of sustainable supply chain management in Indian thermal sector. International Journal of Procurement Management, 10(4), 411–430.CrossRefGoogle Scholar
  3. 3.
    Bowen, F. E., Cousins, P. D., Lamming, R. C., & Farukt, A. C. (2001). The role of supply management capabilities in green supply. Production and operations management, 10(2), 174–189.CrossRefGoogle Scholar
  4. 4.
    Brundtland, G., Khalid, M., Agnelli, S., Al-Athel, S., Chidzero, B., Fadika, L., et al. (1987). Our common future (∖’brundtland report∖’).Google Scholar
  5. 5.
    Carroll, A. B. (2016). Carrolls pyramid of CSR: Taking another look. International Journal of Corporate Social Responsibility, 1(1), 3.MathSciNetCrossRefGoogle Scholar
  6. 6.
    Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: Moving toward new theory. International Journal of Physical Distribution & Logistics Management, 38(5), 360–387.CrossRefGoogle Scholar
  7. 7.
    Chiu, W. Y., Tzeng, G. H., & Li, H. L. (2013). A new hybrid MCDM model combining DANP with VIKOR to improve e-store business. Knowledge-Based Systems, 37, 48–61.CrossRefGoogle Scholar
  8. 8.
    Department of the Environment, Heritage and Local Government (2007). National climate change strategy, 2007–2012. Ireland. Website:
  9. 9.
    Elkington, J. (2013). Enter the triple bottom line. In The triple bottom line (pp. 23–38). London: Routledge.Google Scholar
  10. 10.
    Fang, C., & Zhang, J. (2018). Performance of green supply chain management: A systematic review and meta analysis. Journal of Cleaner Production, 183, 1064–1081.CrossRefGoogle Scholar
  11. 11.
    Firoz, F., Biswal, J. N., & Satapathy, S. (2018). Supplier selection criteria for sustainable supply chain management in thermal power plant. In IOP Conference Series: Materials Science and Engineering (Vol. 310, p. 012016). Bristol: IOP Publishing.Google Scholar
  12. 12.
    Guinée, J. B. (2002). Handbook on life cycle assessment operational guide to the ISO standards. The International Journal of Life Cycle Assessment, 7(5), 311.CrossRefGoogle Scholar
  13. 13.
    Handfield, R., Walton, S. V., Sroufe, R., & Melnyk, S. A. (2002). Applying environmental criteria to supplier assessment: A study in the application of the analytical hierarchy process. European Journal of Operational Research, 141(1), 70–87.CrossRefGoogle Scholar
  14. 14.
    Hassini, E., Surti, C., & Searcy, C. (2012). A literature review and a case study of sustainable supply chains with a focus on metrics. International Journal of Production Economics, 140(1), 69–82.CrossRefGoogle Scholar
  15. 15.
    Hsu, C. W., & Hu, A. H. (2009). Applying hazardous substance management to supplier selection using analytic network process. Journal of Cleaner Production, 17(2), 255–264.CrossRefGoogle Scholar
  16. 16.
    Hsu, C. W., Kuo, T. C., Chen, S. H., & Hu, A. H. (2013). Using DEMATEL to develop a carbon management model of supplier selection in green supply chain management. Journal of Cleaner Production, 56, 164–172.CrossRefGoogle Scholar
  17. 17.
    Jeng, D. J. F., & Tzeng, G. H. (2012). Social influence on the use of clinical decision support systems: Revisiting the unified theory of acceptance and use of technology by the fuzzy DEMATEL technique. Computers & Industrial Engineering, 62(3), 819–828.CrossRefGoogle Scholar
  18. 18.
    Lucarelli, B. (2010). The history and future of Indonesias coal industry: Impact of politics and regulatory framework on industry structure and performance. In Program on Energy and Sustainable Development. Freeman Spogli Institute for International Studies, Stanford University, Stanford. Retrieved May 10, 2011.Google Scholar
  19. 19.
    Nagurney, A., Dong, J., & Zhang, D. (2002). A supply chain network equilibrium model. Transportation Research Part E: Logistics and Transportation Review, 38(5), 281–303.CrossRefGoogle Scholar
  20. 20.
    Pohekar, S., & Ramachandran, M. (2004). Application of multi-criteria decision making to sustainable energy planning—A review. Renewable and Sustainable Energy Reviews, 8(4), 365–381.CrossRefGoogle Scholar
  21. 21.
    Savitz, A. (2013). The triple bottom line: How today’s best-run companies are achieving economic, social and environmental success-and how you can too. New York: Wiley.Google Scholar
  22. 22.
    Seuring, S. (2013). A review of modeling approaches for sustainable supply chain management. Decision Support Systems, 54(4), 1513–1520.CrossRefGoogle Scholar
  23. 23.
    Tate, W. L., Ellram, L. M., & Kirchoff, J. F. (2010). Corporate social responsibility reports: A thematic analysis related to supply chain management. Journal of Supply Chain Management, 46(1), 19–44.CrossRefGoogle Scholar
  24. 24.
    Wu, J. Z., Santoso, C. H., & Roan, J. (2017). Key factors for truly sustainable supply chain management: An investigation of the coal industry in Indonesia. The International Journal of Logistics Management, 28(4), 1196–1217.CrossRefGoogle Scholar
  25. 25.
    Zhang, M., Tse, Y. K., Doherty, B., Li, S., & Akhtar, P. (2018). Sustainable supply chain management: Confirmation of a higher-order model. Resources, Conservation and Recycling, 128, 206–221.CrossRefGoogle Scholar
  26. 26.
    Zhu, Q., & Sarkis, J. (2004). Relationships between operational practices and performance among early adopters of green supply chain management practices in Chinese manufacturing enterprises. Journal of Operations Management, 22(3), 265–289.CrossRefGoogle Scholar
  27. 27.
    Zhu, Q., Sarkis, J., & Lai, K. (2012). Green supply chain management innovation diffusion and its relationship to organizational improvement: An ecological modernization perspective. Journal of Engineering and Technology Management, 29(1), 168–185.CrossRefGoogle Scholar
  28. 28.
    Zhu, Q., Sarkis, J., & Lai, K. (2013). Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices. Journal of Purchasing and Supply Management, 19(2), 106–117.CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Caroline H. Santoso
    • 1
  • Marzieh Khakifirooz
    • 2
  • Mahdi Fathi
    • 3
  • Jei-Zheng Wu
    • 1
    Email author
  1. 1.Department of Business AdministrationSoochow UniversityTaipeiTaiwan
  2. 2.Industrial Engineering and Engineering ManagementNational Tsing Hua UniversityHsinchuTaiwan
  3. 3.Industrial and System EngineeringUniversity of FloridaGainesvilleUSA

Personalised recommendations