Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Examining Sustainability Supply Chain Management (SSCM) Performance In The Palm Oil Industry: A Systematic Literature Review

Version 1 : Received: 17 May 2023 / Approved: 17 May 2023 / Online: 17 May 2023 (10:12:03 CEST)

How to cite: Adwiyah, R.; Syaukat, Y.; Indrawan, D.; Mulyati, H. Examining Sustainability Supply Chain Management (SSCM) Performance In The Palm Oil Industry: A Systematic Literature Review. Preprints 2023, 2023051222. https://doi.org/10.20944/preprints202305.1222.v1 Adwiyah, R.; Syaukat, Y.; Indrawan, D.; Mulyati, H. Examining Sustainability Supply Chain Management (SSCM) Performance In The Palm Oil Industry: A Systematic Literature Review. Preprints 2023, 2023051222. https://doi.org/10.20944/preprints202305.1222.v1

Abstract

Indonesia has emerged as one of the leading producers and exporters of palm oil, as supported by data from the Central Bureau of Statistics in 2021, which indicate that Indonesian palm oil exports reached an impressive value of US$ 18.44 billion, or IDR 258 trillion, in 2020, marking an 18.43 percent growth compared to the previous year. Furthermore, the domestic market for palm oil and palm kernel oil remains substantial, despite improvements in export quantities. Various industries, including cooking oil refineries, specialty fats, shortening, margarine, bath soaps, and oleochemicals, present potential markets for palm oil (CPO) and palm kernel oil (PKO). The palm oil industry encompasses four related sub-sectors, namely growers, millers, refiners, and oleochemicals, forming an integrated value chain from upstream to downstream. The current focus on environmental, economic, and social sustainability is driving companies to adopt internal green activities and expand their efforts into sustainability supply chain management (SSCM). Implementing SSCM practices is often seen as economically beneficial, as research has demonstrated their positive impact on firm performance from a resource perspective. Within the palm oil industry, a wide range of green management applications are being utilized. This study aims to examine and highlight the existing sustainable management practices across the entire palm oil supply chain, with a particular emphasis on producing high-quality palm oil. To achieve this objective, the paper utilizes a systematic review methodology, The number of papers analyzed were 62 articles published which involves an extensive review of relevant literature to identify research trends, gaps, and issues. The study seeks to contribute to the body of knowledge by expanding the theory of organizational readiness in preparing globally competitive palm oil products. The research findings hold practical significance for practitioners and academics, providing a comprehensive roadmap for implementing green management applications at the organizational level in the palm oil industry's upstream-to-downstream chain.

Keywords

Palm Oil; Performance; Sustainability Supply Chain; Systematic Literature

Subject

Business, Economics and Management, Business and Management

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