Green Manufacturing’s Adoption by Indonesian SMEs: A Conceptual Model

Green Manufacturing (GM) is one innovation that has attracted the attention of the industry. This paper is part of some research aimed at developing a framework for the adoption of GM by SMEs. The purpose of this study is to create a model that explains the influences of the determinant factors on an SME's decision to adopt GM in its operation. Individually, GM will be grouped in the operational, tactical and strategic levels of the firms to investigate whether, and at which level, SMEs have adopted GM. The Technological, Organization and Environment (TOE) framework is used as the basis of the conceptual model. Besides, the Resource-Based View (RBV) theory and institutional theory are used as a basis for the internal and external focus of this construct's development. The output of this research is a comprehensive model that describes a framework to be tested empirically.