Environmental Sustainability of the Digitalized Food Supply Chains in Indonesia

Sammanfattning: Background: Today, the environmental challenge presents a growing concern for the food supply chains around the world; and developing countries in particular, suffer from it. UN Global Compact has defined environmental sustainability as dealing with three main environmental challenges: climate change, water and sanitation, and food and agriculture. Digital tools have disruptive potential, especially in the food supply chains, and the adoption of these tools can be crucial to the success of food industry. Purpose: In the light of the digitalization trend and the need to create environmentally sustainable food supply chains, it is of researchers’ interest to investigate how digitalization benefits the environmental sustainability of the food supply chains in real-life companies; and what factors influence the digitalization process of the food supply chains. For the purpose of this research, a combination of various types of food supply chains was chosen in order to acquire generalizability. Indonesian food supply chains were chosen for research as agriculture plays a crucial role in the country’s economy; additionally, the Indonesia’s government currently emphasizes the digital transformation of the country. Methodology: A qualitative methodology based on a Grounded Theory approach was applied in this study. The research questions were answered with the empirical data obtained through semi-structured interviews with ten experts from eight companies operating in Indonesia’s food industry. Results: This research paper uncovers that the digitalization process is very beneficial towards the environmental sustainability of the food supply chains in Indonesia. Three main benefits consist in added visibility, traceability, and optimization of the supply chains expressed through multiple sub-categories. Likewise, this study revealed that the digital transformation of the food supply chains in Indonesia is yet at an early stage. Multiple factors which influence that process have been identified and grouped into four families that drive the digitalization process: obstacles, pushers, challenges, and opportunities. Importance: A lack of environmental sustainability within food supply chains may lead to negative environmental impact. This is putting in danger the environment and the profitability of the business as this issue leads to a loss of financial and natural resources.