The role of government regulation on sustainable business and its influences on performance of medium-sized enterprises
2020
Rakhmawati, Antin | Kusumawati, Andriani | Rahardjo, Kusdi | Muhammad, Nizar
Industrial activities do not only contribute positively to the country's economy and society’s prosperity but also carry negative impacts, such as causing air pollution, water pollution, and noise. Regarding the advantages as well as the inevitable disadvantages, a sustainable business concept such as green supply chain management (GSCM) is needed. The purpose of this study is to examine sustainable business practices, particularly GSCM, in the medium-sized enterprises engaged in food and beverage sector. This study displayed and thoroughly explained several variable relationships, namely the antecedent variable of the green supply chain management, i.e. government regulation, and consequences of the green supply chain management, i.e. financial and environmental performance. The respondents of this study were 160 medium-sized enterprises engaged in the food and beverage sector in Pasuruan Regency. The sampling method used was a saturation sampling that involved all members of the population. This study employed SEM-based variance analysis (PLS) using SmartPLS 3.0 statistical software. The results of this study indicate that government regulations have a significant positive effect on GSCM, and sequentially it has a significant positive effect on financial and environmental performance.
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