GREEN SUPPLY CHAIN SYNERGY: HOW INTEGRATION AND RISK MANAGEMENT DRIVE FINANCIAL PERFORMANCE
Abstract
Companies strive to win the competition to maintain sustainability. This study aims to analyze the effect of supply chain integration on financial performance through green supply chain management and supply chain risk management in manufacturing companies in East Java. This study employs a quantitative approach, utilizing a causal research design, with 90 respondents from manufacturing companies that have implemented environmentally friendly practices. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (SmartPLS 4.0) to examine the relationship between research variables. The results indicate that supply chain integration affects both green supply chain management and supply chain risk management, but it does not directly impact financial performance. Green supply chain management and supply chain risk management have been shown to have a positive effect on financial performance. Manufacturing companies with supply chain integration do not directly influence financial performance; instead, they do so through well-managed green supply chains and by mitigating supply chain risk. The results of the study emphasize the importance of synergy between supply chain integration, green supply chain, and supply chain risk management in building a sustainable and resilient supply chain. The theoretical contribution of this research is to broaden the understanding of the relationship between integration, sustainability, and risk in the context of the manufacturing industry in developing countries. The practical contribution of the research results provides manufacturing managers with guidance to strengthen internal and external coordination in implementing green management and risk management, thereby improving operational efficiency and financial performance.
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