The mediating role of green supply chain management on the relationship between green innovation products and organizational social performance: evidence from Indonesian automotive industry
The mediating role of green supply chain management on the relationship between green innovation products and organizational social performance: evidence from Indonesian automotive industry

Summary/Abstract: In this study we investigate the mediating role of Green Supply Chain Management (GSCM) in translating Green Innovation Products (GIP) into multidimensional organizational outcomes, including Business Performance (BP) and Social Performance (SOP), within the Indonesian automotive industry. A quantitative approach was adopted using a cross-sectional survey of 225 employees from manufacturing and dealership-based automotive firms. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS software. Measurement model results demonstrate strong internal consistency and satisfactory convergent validity across all constructs. Structural model findings indicate that GIP exerts a significant positive effect on GSCM, which subsequently enhances Relational Efficiency (RE), Operational Efficiency (OE), Employee Job Satisfaction (EJS), and SOP. Moreover, RE, OE, and EJS significantly contribute to BP. The model exhibits substantial to strong explanatory power for all endogenous constructs, with BP showing the highest coefficient of determination. To strengthen managerial implications, an Importance-Performance Map Analysis (IPMA) was conducted using BP as the target construct, revealing GSCM and RE as the primary strategic priorities for performance improvement. Overall, the findings confirm that green product-oriented innovation improves organizational outcomes primarily through supply chain governance, relational coordination, operational resilience, and employee-centered mechanisms. This study provides empirical evidence from an emerging-market context and offers practical guidance for integrating sustainability initiatives into frontline automotive operations.

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