Antecedents of green manufacturing implementation by local MSMEs in Indonesia

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This study aims to investigate the adoption of green manufacturing in the micro, small, and medium enterprises in Indonesia using the integrated framework. The paper used purposive sampling to select 258 micro, small, and medium enterprises in Indonesia that adopt green production processes to determine the supporting and inhibiting factors experienced in green manufacturing. Structural equation modeling with SmartPLS 3.0 application is used for data processing. The results show that the internal factors (organizational capabilities, internal competencies development, relative advantage, and organizational resources) affect green manufacturing implementation. This indicates that micro, small, and medium enterprises in Indonesia tend to adopt green manufacturing when they have organizational capabilities, internal competencies development, relative advantage, and organizational resources that support this practice. External factors that influence green manufacturing practices are government support. Indonesian micro, small, and medium enterprises consider that government support in the form of subsidies or regulations related to green practices will make it easier to adopt green manufacturing.

Acknowledgment
This study is funded by the Ministry of Education, Culture, Research and Technology of the Republic of Indonesia (Kementerian Pendidikan, Kebudayaan, Riset dan Teknologi Republik Indonesia). The scheme of the grant is Fundamental Research entitled “Implementasi Green Manufacturing dan Dampaknya pada Kinerja UMKM Industri Kerajinan Lokal dalam Rangka Pengentasan Kemiskinan di Indonesia”).

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    • Table 1. Descriptive statistics
    • Table 2. Validity and reliability test
    • Table 3. Hypotheses testing results
    • Conceptualization
      Noormalita Primandaru, Manggar Wulan Kusuma, Olivia Barcelona Nasution
    • Investigation
      Noormalita Primandaru, Manggar Wulan Kusuma, Olivia Barcelona Nasution
    • Methodology
      Noormalita Primandaru, Manggar Wulan Kusuma, Olivia Barcelona Nasution
    • Supervision
      Noormalita Primandaru, Manggar Wulan Kusuma
    • Validation
      Noormalita Primandaru, Manggar Wulan Kusuma
    • Writing – original draft
      Noormalita Primandaru
    • Writing – review & editing
      Noormalita Primandaru
    • Formal Analysis
      Manggar Wulan Kusuma
    • Project administration
      Manggar Wulan Kusuma, Olivia Barcelona Nasution
    • Data curation
      Olivia Barcelona Nasution
    • Visualization
      Olivia Barcelona Nasution