Track: Operations Management

Abstract

The objective of the research is to develop a conceptual framework for the adoption of Green Manufacturing (GM) by Small and Medium Enterprises (SMEs) in Indonesia. This study used the extended Technology, Organizational and Environmental framework (TOE) and institutional theory to analyze the factors that influence GM’s adoption by SMEs and the effect this has on their financial and environmental performance. This paper examines four variables, three factors (TOE) plus the characteristics of managers. In an SME, the manager/owner is the key person, as the actor who makes various decisions. In previous studies, the construct of the characteristics of managers tended to focus on cognitive and contextual problems. This paper observes that emotional problems, which are related to the spiritual aspects of managers, are important things that are widely investigated in individual ecological behavior.  Spiritual aspects have not been widely studied in the construct of a manager's characteristics, whereas in the realm of psychology, this aspect influences their behavior related to the environment. This paper contributes by considering the spiritual factors in the characteristics of managers. A quantitative research technique using the survey method will be applied for the research.