Rizky Aditya Putra, Abdul Hakim, Anthon Efani, Mohamad Khusaini
The transition toward renewable energy and circular economy principles necessitates fundamental transformation of agricultural waste management systems, particularly in Indonesia where palm oil industry generates substantial biomass resources with unrealized energy potential. This research investigates Green Supply Chain Management (GSCM) implementation in palm kernel shell supply chains through integrated quanitative analysis approach combining operational performance analysis of CV. Putra Mahodenk with Partial Least Squares Structural Equation Modeling (PLS-SEM) examining relationships between GSCM practices, green innovation (GI), environmental performance (EP), and competitive advantage (CA) among 150 stakeholders. Results demonstrate that GSCM implementation explains 69.8% of CA variance, with the strongest relationship between GSCM and GI (β = 0.636, p < 0.001), while mediation analysis reveals that 69% of competitive benefits manifest through indirect pathways via innovation and EP rather than direct operational advantages. Operational assessment indicates 100% productivity improvement through technological intervention, though continued diesel fuel dependency (87.12 kg CO2/hour) and fragmented GSCM adoption (40-70% across dimensions) constrain sustainability outcomes. The integrated framework demonstrates how palm kernel shells with calorific values of 4,000-4,500 kcal/kg can contribute to national energy resilience while creating economic value through circular economy principles. These findings establish GSCM as a dynamic capability generating CA through innovation and performance enhancement, providing empirical evidence that sustainability and competitiveness are complementary objectives in emerging bioeconomy contexts, with implications for policy frameworks incentivizing comprehensive rather than incremental green supply chain transformation. Copyright: ©2025 The authors. This article is published by IIETA and is licensed under the CC BY 4.0 license (http://creativecommons.org/licenses/by/4.0/).
Doctoral of National Security Sciences, Postgraduate School, Brawijaya University, Malang, 65145, Indonesia
