Creating Social Value through Green Innovation Product: The Mediating Role of Green Supply Chain in the Food and Beverage Industry

Reva Dodi Suryo Prayoga and Anjar Priyono
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Reva Dodi Suryo Prayoga: Department of Management, Universitas Islam Indonesia, Yogyakarta, Indonesia.
Anjar Priyono: Department of Management, Universitas Islam Indonesia, Yogyakarta, Indonesia.

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Abstract: Background: Food and beverage businesses face increasing pressure to reduce environmental impacts while creating value for employees, customers, suppliers and communities. This study examined the relationships among green product innovation, green supply chain management and social performance. Methods: A quantitative cross-sectional survey was conducted among 100 owners and managers of food and beverage businesses that reported implementing environmentally responsible operating practices. Respondents were selected purposively and completed an online questionnaire measuring green product innovation, green supply chain management and social performance. The proposed model was analysed using partial least squares structural equation modelling with SmartPLS 4. Measurement quality was assessed through indicator loadings, average variance extracted, discriminant validity, Cronbach's alpha and composite reliability, while structural relationships were evaluated through bootstrapping. Results: All indicator loadings exceeded 0.70, average variance extracted values ranged from 0.595 to 0.739, Cronbach's alpha values ranged from 0.829 to 0.882, and composite reliability values ranged from 0.880 to 0.919. Green product innovation was positively associated with green supply chain management (β = 0.792, p < 0.001) and social performance (β = 0.401, p = 0.001). Green supply chain management was also positively associated with social performance (β = 0.448, p < 0.001). The model explained 62.8% of the variance in green supply chain management and 64.6% of the variance in social performance. Conclusion: Green product innovation and environmentally responsible supply-chain practices were positively associated with reported social performance among the surveyed businesses.

Date: 2026-08-07
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Published in Journal of Global Economics, Management and Business Research, 2026, 18 (3), pp.220-234

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