Analysis of supporting factors of the successful implementation of green manufacturing for Indonesian Manufacturing SMEs

Abstract

Many manufacturing SMEs experience difficulties in finding an effective framework for building green manufacturing system for production and operations activities. The study purpose to identify the elements support the successful implementation of green manufacturing systems in SMEs, develop a conceptual hierarchical model of elements based on the ISM approach, and identify and analyze the dominant elements. This study applies a survey method to obtain data that is relevant to the research objectives. The respondents involved were 32 managers/owners of manufacturing SMEs located in Tegal Regency, Central Java Province of Indonesia. The study results show the existence of 39 supporting elements for the successful implementation of green manufacturing in SMEs. Factor analysis shows that these elements can be simplified into 12 common elements. MICMAC analysis shows that five elements can be categorized as dependent elements; lower production costs, environmental knowledge, Improved waste management, investing in innovation and technology, and new market opportunities; seven elements can be categorized as independent elements, namely green supply chain, government promotion and regulation, pressure from the market, organizational culture, involvement of various business stakeholders, top management commitment, and environmental specialist assistance. ISM analysis shows there are four elements that can be categorized as dominant elements; namely green supply chain, involvement of various business stakeholders, top management commitment, and government promotion and regulation.