Green Innovation and Sustainable Supply Chain Practices as Drivers of Social Performance in the Food and Beverage Industry

Abstract

This study aims to analyze the effect of Green Product Innovation and green supply chain on social performance in the food and beverage industry in the Special Region of Yogyakarta. This research employed a quantitative approach with a causal design and was based on the Stakeholder Resource Based View (SRBV) theory. Data were collected through online questionnaires distributed to 100 food and beverage business actors who had implemented environmentally friendly Standard Operating Procedures (SOPs) using a purposive sampling technique. Data analysis was conducted using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method through SmartPLS software. The results indicate that green innovation product has a positive and significant effect on both green supply chain and social performance. In addition, green supply chain also has a positive and significant effect on social performance. These findings indicate that the implementation of environmentally friendly product innovation and green supply chain management can improve corporate social performance through reducing environmental impacts, improving product safety, and enhancing the welfare of communities and stakeholders. This study confirms that the integration of sustainability strategies into company operational activities plays an important role in creating sustainable social value. The results of this study are expected to contribute theoretically to the development of sustainability and operational management studies, as well as provide practical references for companies in designing sustainability-based business strategies.