The Impact of Green Manufacturing on Operational and Environmental Performance in Pharmaceutical Industries
DOI:
https://doi.org/10.38035/gijlss.v4i4.1102Keywords:
environmental performance, green manufacturing, operational performance, pharmaceutical industry, SEM-PLSAbstract
The pharmaceutical industry in Indonesia has experienced significant growth in the post-pandemic period. However, this growth has also increased the generation of hazardous and toxic waste, creating environmental management challenges. This study examines the effect of green manufacturing on operational and environmental performance in pharmaceutical companies in the Jabodetabek region, with firm size as a moderating variable. A quantitative approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. Data were collected from 100 managers, supervisors, and senior staff with at least three years of work experience. The results show that green manufacturing positively and significantly affects operational performance and environmental performance. Operational performance also has a significant positive effect on environmental performance. Firm size significantly moderates the relationship between green manufacturing and operational performance but does not moderate the relationship between green manufacturing and environmental performance. These findings highlight the importance of green manufacturing in improving operational efficiency and environmental sustainability in the pharmaceutical industry.
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