Erina Rahmadyanti, Titiek Rachmawati, Nanis Susanti and Pramita Studiviany
Abstract
Sustainability and small industries are the two contradictory things in Indonesian economic growth. Small industries have significant role in economic growth which is inverse with environmental management awareness. One of the economy boosters in Indonesia is batik industry majority of them are small industries. This study aimed to identify the factors affecting the performance of small batik industry environment friendly which applies supply chain management approach. The results of the test of homogeneity of variance showed that there are 23 factors describing the performance of supply chain management (P-value = 0.021). Those 5 (five) main affecting factors are 1) the company performs formal evaluation to suppliers to determine the performance of suppliers every year; 2) the company carries out standards evaluation in production facilities and suppliers operational processes; 3) the company makes on-time payments in purchasing raw materials as scheduled agreed; 4) information technology mastery in order to facilitate communication between companies and suppliers for communication; and 5) modifying the production process in order to produce environment friendly products