ABSTRACT
Green Supply Chain Management (GSCM) is a traditional supply chain concept that combines environmental concerns such as product design, supplier selection, material procurement, production, packaging, consumer delivery, and product end use. This research is based on the collaboration of independent and dependent variables by examining the effect of GSCM, and competitive advantage on the operational performance of SMEs in the city of Malang. The purpose of this study was to determine the effect of GSM on the competitive advantage and operational performance of SMEs in Malang City. A total of 124 SMEs became respondents in this study. Data collection was carried out directly to respondents who were determined to share criteria. Data analysis uses path analysis techniques with analysis tools using SmartPLS. The results of this study indicate that GSCM has a strong impact on operational performance, GSCM has a significant positive impact on competitive advantage, and competitive advantage has a significant positive effect on operational performance. The interesting thing that can be found and reported is that competitive advantage can mediate the effect of GSCM on the operational performance of SMEs in the city of Malang. Overall, it can be concluded that good GSCM management is able to make a tactical strategy and is able to improve the operational performance of SMEs in the city of Malang.
