Do all the green manufacturing adoption drivers have the same influence? (survey study of Indonesian batik textile SMEs)

The main objective of this study is to analyze the extent of the influence the factors which drive the adoption of green manufacturing (GM) have within small and medium-sized enterprises (SMEs) in a specific sector: The producers of batik - a traditional textile from Indonesia. Green manufacturing’s drivers are classified by means of three factors based on the technological-organizational-environmental (TOE) framework. Data were obtained quantitatively, through a questionnaire survey of the owners/managers of batik SMEs. Their replies were analyzed using the partial least squares (PLS) approach on a sample of 144 Indonesian batik SMEs. This paper contributes to the empirical literature about the drivers of green manufacturing for small and medium-sized businesses in the batik textile industry in Indonesia. This study finds that external factors, government support and competitive pressures all encourage the adoption of GM by SMEs in Indonesia. Internal factors, relative advantage, the compatibility of technology, and organizations’ resources significantly drive GM’s adoption by Indonesian SMEs; while the complexity of technology and top managements’ support were not shown to have a significant effect on GM’s adoption. This study strengthens the empirical evidence in the field of GM’s adoption in a new context: Batik SMEs which produce one of the traditional textiles of Indonesia. © IEOM Society International.