Green supply chain management strategy in the Indonesian construction industry using analytic network process to improve sustainability

Department of Civil and Environmental Engineering, Faculty of Engineering, Universitas Indonesia, Depok 16424, Indonesia

^* Corresponding author: rossyarmyn@eng.ui.ac.id
^* Corresponding author: padantya.adi@ui.ac.id

Abstract

The construction industry is among the sectors associated with high environmental risks, with the construction supply chain process being a primary concern due to its potential for environmental damage. The absence of green practices in the Indonesian construction industry has led to an ongoing increase in energy consumption and greenhouse gas emissions, posing a significant environmental threat. Green supply chain management (GSCM) is a concept that integrates the environmental aspect into traditional supply chain processes and can provide benefits not only on environmental performance but also on economic and organizational performance. This study aims to derive a suitable GSCM strategy in the Indonesian construction sector and investigate the relationship of GSCM strategy on sustainability performance. This study employed ANP to select the GSCM strategy and correlation analysis to examine the relationship involving professionals and practitioners in construction. The findings revealed that the efficiency-based strategy had the highest weight among the various GSCM strategies, and sensitivity analysis demonstrated that this strategy was not significantly affected by changes, making it the most suitable GSCM strategy. Also, the result indicates that the efficiency-based strategy moderately impacts sustainability performance. Therefore, the implementation of efficiency-based strategy can improve the sustainability of the Indonesian construction industry.