SUSTAINABLE SUPPLY CHAIN MANAGEMENT PRACTICE AND SUSTAINABILITY PERFORMANCE IN THE ORGANIC-CERTIFIED COFFEE INDUSTRY IN EAST JAVA PROVINCE, INDONESIA
Sustainable development has recently been identified as a challenge for many countries and has become a critical issue for food-related industries. Business actors of industries apply the concept of Sustainable Supply Chain Management (SSCM) as a pivotal component in improving the company's competitiveness in the market. Therefore, sustainable supply chain management practices in this industry must be properly addressed for the sustainability performance. The present study aims to analyze the effect of sustainable supply chain management on the sustainability performance of supply chain on organic-certified coffee commodities. Sustainable supply chain management practices can be examined through three aspects, i.e., supplier, manufacturing, and consumer; while the performance of the supply chain can be examined through the aspects of economy, environment and social. A quantitative method was used in this study. Data regarding the respective supply chains were garnered from managers of small and medium enterprises producing organic-certified coffee in East Java, Indonesia. Structural Equation Modeling-Partial Least Square (SEM-PLS) was adapted for the analysis. The results of the study revealed that the practice of sustainable supply chain management affected the sustainability of environment, economy, and social. Based on these findings, it is critical to engage in the practices of sustainable supplier management, operation management, and customer management to promote the overall sustainability performance of supply chain.
Organic Coffee; Performance; Small and Medium Enterprises; Supply Chain; Sustainability