Factors Affecting the Implementation of Green Supply Chain in Companies in Indonesia: A Qualitative Study

Diena Dwidienawati (), Bella Lorenza Indrajaya and Erik Van Zanten
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Diena Dwidienawati: Business Management, BINUS Business School, Bina Nusantara University, Jakarta 11480, Indonesia
Bella Lorenza Indrajaya: Business Management, BINUS Business School, Bina Nusantara University, Jakarta 11480, Indonesia
Erik Van Zanten: Research Group for Logistics and Alliances, HAN University of Applied Sciences Arnhem and Nijmegen, 6826 CC Arnhem, The Netherlands

Sustainability, 2025, vol. 17, issue 12, 1-19

Abstract: Implementation of green supply chain management (GSCM) has gained increasing attention as businesses seek to balance economic, social, and environmental sustainability. However, its adoption remains uneven across countries, particularly in developing economies such as Indonesia. This study aims to identify the key factors influencing the implementation of GSCM in Indonesian logistics companies using a qualitative approach. Data were collected via structured interviews with 14 senior management professionals from various logistics and supply chain companies. The findings reveal that, while awareness of GSCM exists, its implementation is hindered by high costs, regulatory limitations, inadequate infrastructure, and a lack of shared understanding or strategic prioritization among stakeholders, which points to a deeper organizational and policy disconnect regarding sustainability goals. Conversely, cost efficiency, brand image enhancement, and compliance with emerging regulations are identified as primary drivers of GSCM adoption. The study highlights the need for stronger government policies, financial incentives, and industry-wide collaboration to accelerate the adoption of sustainable supply chain practices. These insights contribute to both theoretical discussions on sustainable supply chain management and practical strategies for improving GSCM implementation in developing economies.

Keywords: green supply chain; logistic; supply chain; sustainability; warehouse (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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