Key factors for truly sustainable supply chain management: An investigation of the coal industry in Indonesia

Abstract

Purpose

The purpose of this paper is to explore key factors or criteria of sustainable supply chain management (SSCM) influencing Indonesian coal companies, using “adoption, implementation, and performance” (A-I-P) of SSCM, thru three means: first, to investigate which criteria have higher weight to achieve SSCM in Indonesia; second, to see whether there are any differences between the Indonesia case and existing literature of SSCM; third, to highlight any causal relationships between the Indonesia case and the SSCM theory.

Design/methodology/approach

DEMATEL-based analytic network process (DANP) questionnaire survey with a theoretical SSCM model is applied to conduct an empirical test for the coal production and supply chain companies in Indonesia.

Findings

The “performance” dimension out of the A-I-P of the SSCM is the most important one, while the “adoption” dimension is the least. Out of the 12 criteria under the three dimensions, the “operational, economic, environmental, and social” factors under the category of the performance dimension and the “ISO 14001 certification” criteria belonging to the dimension of “implementation” are the top five key factors in the SSCM.

Research limitations/implications

There are some limitations in this study. First and foremost is the relatively small sample size with a limited geographic area, although they are unavoidable owing to one country case study.

Practical implications

The test results are helpful to draw guidance for sustainable supply chain managers in implementing efficient SSCM in the wave of tough competition and changing marketplace.

Originality/value

This study contributes first to developing a theoretical framework for SSCM under the A-I-P model and second, to applying DANP to an empirical case of SSCM of the coal industry in Indonesia. As a result, the authors draw helpful guidelines and policy implications for SSCM of the coal industry, referring to the A-I-P dimension as drivers and enablers for the SSCM performances of the industry.

Citation

Wu, J.-Z., Santoso, C.H. and Roan, J. (2017), "Key factors for truly sustainable supply chain management: An investigation of the coal industry in Indonesia", The International Journal of Logistics Management, Vol. 28 No. 4, pp. 1196-1217. https://doi.org/10.1108/IJLM-07-2014-0103