Strategic Sustainability and Green Actions for Capacity Building and Smallholder Empowerment within FSC-Certified Natural Rubber

Hendy Endarwan (), Gary P. Etwanto, Tiolina Evi, Aliy Rasid and Zian Fachrian
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Hendy Endarwan: Perbanas Institute
Gary P. Etwanto: Perbanas Institute
Tiolina Evi: Perbanas Institute
Aliy Rasid: Universitas Pertiwi
Zian Fachrian: Sekolah Tinggi Ilmu Ekonomi IGI

A chapter in Proceedings of the 4th International Conference on Management and Business (ICoMB 2025), 2026, pp 211-226 from Springer

Abstract: Abstract This study explores the strategic integration of sustainability and green capacity-building to empower smallholder farmers in the FSC-certified natural rubber supply chain in Indonesia. Using a quantitative approach with Structural Equation Modeling Partial Least Squares (SEM–PLS), data from 105 smallholders participating in the FSC Sharing Program were analyzed to examine the relationships among Green Capacity Building, Sustainability Awareness, Sustainability Performance, Smallholder Welfare, and Institutional Engagement. The results reveal that Green Capacity Building significantly enhances Sustainability Awareness, which, in turn, strongly influences Institutional Engagement, demonstrating a mediating effect. Meanwhile, Sustainability Performance and Smallholder Welfare directly affect Institutional Engagement without mediation. The model’s explanatory power is high (R2 = 0.911), indicating strong predictive validity. These findings highlight the strategic importance of integrating green capacity-building and awareness programs to strengthen institutional collaboration and promote inclusive, sustainable development in the natural rubber industry.

Keywords: Strategic Sustainability; Green Actions; Capacity Building; Small-holder Empowerment; FSC Certification; Sustainable Supply Chain; Natural Rubber Industry; Inclusive Development (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-656-2_17

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DOI: 10.2991/978-94-6239-656-2_17

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