Green Supplier Selection Practices and its Implications of Green Purchasing: Case Study at 5 Stars Hotel in Bali

Purpose: This study is to examine the practice of selecting green suppliers conducted by companies to be environmentally friendly and how these practices have implications for purchasing green products in 5-star hotels in Bali. Research methods: The study is guided by the green supply chain management model and the green selection model. A descriptive research design is used. Data were collected using a questionnaire. The population consists of 63 employees from companies that supply room supplies, food & beverage, chemical, and Spa. Data were analyzed using SPSS and presented using tables, graphs, frequencies, and percentages. Results and discussions: The selection of environmentally friendly suppliers had a positive and significant effect on the implementation of environmentally friendly purchases. The implications of selecting green suppliers create new market opportunities. Hotel cooperation with suppliers is getting closer and mutually committed to operational purchasing activities. Conclusion : Green supplier selection is a major factor that influences the implementation of green purchasing at 5 stars hotel in Bali.


INTRODUCTION
Pollution issues have become more and more local, national, and global concerns, especially in developing countries where many of the non-regulatory factors that reputedly motivate firms to improve environmental performance are relatively weak. Fewer regulations and enforcement are less effective (Blackman, 2010;Ling, C. H. ;Khor, 2002;Najam, 2005). Furthermore, competing in the global market increasingly requires products that are not only innovative but also environmentally friendly (Coyle J.J., Thomchick E.A., 2015;Smith, N., Halton, A. and Strachan, 2014). This obligation has led to a focus on creating green supply chains where companies adopt practices that minimize environmental damage (Aneyrao, T., & Ahemad, 2014;Zhang, X., Ma, X., & Wang, 2012). Green supply chains require integrating environmental thinking into supply chain management, including product design, procurement, and selection of materials, manufacturing processes, delivery of final products to consumers, and management of products whose economic and technical periods have ended (Srivastava, 2008).
Many levels of management will be involved during the implementation and ongoing operations phase relating to the selection of green suppliers that end in the decision to green purchasing by the user. The top-level will examine more strategic issues from the relationship, while middle and line managers will manage day-to-day operations. Communication often occurs either person-to-person or electronically to track the movement of goods and the effectiveness of interfaces between companies in the supply chain. Flexibility or assuming short-term difficulties may be needed for the benefit of the supply chain. However, this is expected to balance the length of the relationship (Gardner, J., & Cooper, 1988). Purchasing and logistics managers must utilize their unique position and knowledge to play a leadership role in the design and implementation of integrated supply chains. Both purchasing and logistics have contract negotiation experience and deal with external suppliers in general that can be used in forming supply chain relationships. Information about the external environment is collected by these two functions and passed on to the company. The traditional role of purchasing and logistics personnel as inventory managers, information gatherers, and information dissemination, and negotiators must serve the company well in the new atmosphere of supply chain management.
The process of managing product supply chains is then often referred to as supply chain management. Supply chain management is a network of companies that jointly work to produce and deliver products to end customers (Pujawan, I Nyoman and Mahendrawathi, 2017). Supply chain systems that are used in the hospitality industry now tend to implement long term relationships with suppliers and trust fully in these suppliers. A Supplier is a party that provides input, in the form of goods needed in production activities (Pujawan, I Nyoman and Mahendrawathi, 2017). Meanwhile, green suppliers are to help companies achieve a balance between economic and environmental performance, reduce the impact of products and services on the environment, and foster an environmental image. This aims to reduce the negative impact on the environment (Sarkis, 2001).
Green supply chain management practices involve organizations assessing the environmental performance of their suppliers, requiring suppliers to undertake measures that ensure the environmental quality of their products, and evaluating the cost of waste in their operation systems (Handfield, Walton, Sroufe, & Melnyk, 2002). Green supply chain management and its implication toward green purchasing is an interesting topic because the ''green'' icon will be able to create high-quality, fast products and ecofriendly. Therefore, many studies conduct research related to this topic.
The green supply chain management process in hospitality business practices especially in the hospitality industry in Indonesia is also an interesting topic to discuss. This is because the hotel industry has long been developing to contribute to the country's foreign exchange. Likewise, the development of the hospitality industry in Bali. Each 5-star hotel has a target market and uniqueness as a competitive advantage. To ensure the hospitality industry gets raw materials from environmentally friendly suppliers, one of the phenomena that are carried out is through the green supply chain selection approach, so that later the goods and services provided to guests have followed the environmentally friendly process.
Green purchasing activities in the public and private sectors usually take four main approaches: purchasing of products or services labeled as environmentally friendly, in-house product/service evaluation, third party product/service evaluation, and supply chain initiatives. These approaches often begin in the administrative, procurement, environmental, or operational departments of private companies. Green procurement activities often depend on product standards, labels, and certifications that declare environmental attributes or product performance. Driven by bottom-line performance, the hospitality chain industry sees green purchasing as a logical part of effective purchasing and supply chain management practices. Private companies often use internal and third-party evaluations to make green information procurement decisions. However, private businesses are reluctant to carry out green procurement activities unless there are business benefits that are demonstrated for themselves and/or their customers (Sarkis, 2012).
The purchasing department is responsible for obtaining information about the goods, determining suppliers for procurement of goods, and issuing purchase orders to selected suppliers. The purchasing system is a transaction activity carried out by the company to meet the needs of products or raw materials from suppliers (Galloway, L., Rowbotham, F., & Azhashemi, 2012). The results of previous studies (Astawa, Astawa, & Susyarini, 2017) showed that the level of efficiency for the purchase of food and beverages in star-rated hotels in Bali was calculated using the detailed Economic Order Quantity (EOQ) method starting from the cost of ordering, storage costs, and other costs using the number of goods ordered in each order and frequency of goods ordered during procurement.
Previous research results related to green purchasing capabilities, such as manufacturing, finance, intra-organizational capabilities, and integration, were found to have a significant positive effect on green purchasing practices. However, the ability of innovation does not significantly affect green purchasing practices. Regulation, customer, and competitor pressure positively moderate the relationship between capabilities and green manufacturing practices (Foo, Meow Yee., Kanapathy, Kanagi., Zailani, Suhaiza., and Shaharudin, 2019). Furthermore, the implications of the findings related to the moderating effect can be used to help policymakers, especially in setting the right policies and strategies to improve green purchases.
Other research result shows that green purchasing is associated with various positive benefits for individuals and organizations; this includes eliminating waste costs and/or hazardous material management, positive community relations, improving employee health, reducing solid waste, conserving water and protecting natural resources (Maris G. Martinsons, Andy K.Y. Leung, 1996).
Previous findings from research on business in the hotel industry found that hotel management build a network with hotels, bars, and restaurants that implement green business practices and integrate residents, government, and private sector and traditional villages. This shows that environmentally friendly business practices are used as a tool to enhance hotel competitiveness by collaborating with fellow hotels that carry green (Astawa, I. K., Budarma, I. K., Widhari, C. I. S., & Suardani, 2019).
The Previous study suggests that before a green purchasing program can be implemented, current purchasing practices and policies must be reviewed and assessed (Lozano & Vallés, 2007). A life cycle assessment of the environmental impact of a product or service is required and a set of environmental criteria on which to base purchase and contract decisions must be developed. The result is a periodic green purchasing policy that is integrated into plans, programs, and other organizational policies. Green purchasing policies include priorities, duties, responsibilities and accountability, communication plans, and promotions.
Based on this explanation, it is expected that the development of environmentally friendly hotel industry businesses in Indonesia in general and in Bali, particular will increase. This development provides a good opportunity for business suppliers who supply the needs of the hospitality industry. This article will try to look at opportunities for the integration of environmentally friendly supplier selection by fulfilling green raw materials for the needs of the hospitality industry. The purpose of this study is to examine the practices of selecting green suppliers conducted by companies to be environmentally friendly and how these practices have implications for purchasing green products in 5-star hotels in Bali. Thus, it can be seen how hotel management can utilize the integration of green supply chain management and green hotels as a tool of competitive advantage in running and maintaining their business going forward.
Based on the description and support of the previous research results presented above, some problems are described as follows: (1) How is the implementation of green supplier selection practices in 5-star hotels in Bali? (2) How is green supplier selection related to green purchasing implementation in 5-star hotels in Bali? (3) What is the implication of green supplier selection practices on green purchasing on 5-star hotels in Bali?

RESEARCH METHODS
Supplier selection is the process by which firms identify, evaluate, and contract with suppliers. To avoid results that are not in line with the expectations of the supplier, the buyer usually takes proactive steps to verify the supplier's qualifications before giving them a contract (Ishak, Dziyauddin, & Abdullah, 2015). Buyers can contact previous customers and ask about supplier delivery performance, compliance with contract terms, what problems (if any) arise, and how the problem is resolved. Buyers, in this case, the management of 5-star hotels in Bali, may require that suppliers have Tri Hita Karana (THK) or ISO (or similar) certification, which shows that suppliers have policies, procedures, documentation, and training to ensure continued compliance with quality standards. Purchases must focus on selecting quality suppliers and thus, the assessment of successful green suppliers must value suppliers rather than products (Buck, 2014). From the description above, the conceptual framework of this study is as shown in Figure 1. This research is a descriptive study using two stages, namely qualitative and quantitative approach. Descriptive surveys are carried out starting from the collection, measurement, and analysis of data, then plans arranged to get answers to research questions (Creswell, J. W., & Creswell, 2017). Descriptive research answers questions about the subject, location, time and method of a particular event. The purpose of using this method is to describe the nature of a situation, as it existed at the time of the study, and to explore the causes of certain phenomena. This study uses qualitative research methods because we need some information from the field from the bottom. The informants in this research are the management and operational staff of the purchasing, receiving, inventory of F&B, room supplies, chemical, and Spa from the suppliers. Informants were determined using a purposive sampling technique (Miles, M. B., & Huberman, 1994). The process of qualitative data analysis can be shown in Figure 2.  Miles and Huberman, 1992) The target sample consists of 75 employees from a 5-star hotel and supplier. Of the 75 respondents targeted by this study, 63 answered representing the 84 percent respondent rate. Data collection is done by observation, interviews, and questionnaires. The collected data were analyzed using excel 2016 and a statistical package for social science (SPSS version 23) to generate descriptive data presented using tables, graphs, frequencies, and percentages. In the first step, data is analyzed by linear regression in green supplier selection on green purchasing implementation, then the second step, examine the implication of green purchasing with descriptive qualitative.

RESULT AND DISCUSSIONS
The discussions on the practice of selecting green suppliers and their implications for green purchases begin with an explanation of the educational level of the respondent. Then, the implementation of green supplier selection practices, followed by a discussion on green supplier selection related to the implementation of green purchases, and finally the discussion on the Implications of green supplier selection practices on green purchases.

The education Level of Respondents
This study tried to show the level of education of respondents as presented in Figure  3. There are 24 percent of respondents had high school / vocational high school certificates, 30 percent had diploma qualifications, and 46 percent had bachelor's degree qualifications. This shows that respondents have sufficient knowledge and skills needed to assess criteria in selecting green suppliers and understand their implications for implementing environmentally friendly purchases at 5-star hotels in Bali. The implementation of green supplier selection practices Green supplier selection practices based on data collected and grouped, there are seven practices as shown in Table 1, on a Likert scale with categories 1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree and 5 = strongly agree.  Table 1 shows that all average scores above 4.0000 mean that hotel management agrees that all categories are factors to be considered in the selection of green suppliers. The category of suppliers understanding hotel needs is highly rated with an average score of 4.4762 and a standard deviation of 0.61846. This shows that suppliers are committed to the hotel, and with the category of selecting suppliers based on environmentally friendly criteria, it is possible to build long-term cooperation that will later be expected to bring benefits primarily related to costs.

Green supplier selection related to green purchasing implementation
The steps in the analysis of the influence of green supplier selection on green purchasing implementation were carried out through tests of the validity, reliability, and normality of research instruments. The test results fitted the criteria and regression models. Furthermore, a series of linear regression output results are presented in Table 2, Table 3,  and Table 4.  Table 2 shows that the correlation value (R) was 0.657. From the SPSS output obtained a coefficient of determination (R Square) of 0.431 shows that 43.1 percent of the green purchasing implementation variable is explained by a green supplier selection variable. From these outputs, the calculated F value of 46.204 with a significance level of 0.000<0.05, then the regression model can be used to predict the participation variable. That means, there is an influence of the green supplier selection variable on the green purchasing implementation variable. Based on the calculation results in Table 4, the value of constant is 6.459 at p-value 0.000 which less than 0.05, and the value of the regression coefficient is 0.793 at p-value 0.000 which less than 0.05. The equation of the linear regression model becomes; Y = 6,459 + 0.793X. The analysis indicates a positive and significant relationship between green supplier selection on the green purchasing implementation at the 5 stars Hotel in Bali. It also means that an increase of one unit of green supplier selection consideration increases green purchasing implementation by 0.793. The indication was that green supplier selection is a major factor that influences the implementation of green purchasing at 5 stars hotel in Bali.
The Implications of green supplier selection practices to green purchasing Choosing the right supplier has a significant effect in realizing the company's environmental goals. However, choosing the right supplier is not enough to improve environmentally-friendly performance. After the right supplier is chosen, the supply process must be managed in an integrated manner with the supplier. In addition to supplier selection and management, it is also important to assess whether suppliers meet environmentally friendly criteria.
The process of procurement of goods is very attentive to the accuracy starting from the stage of preparing the purchase request which is based on the sale and stock of goods in storage. Required goods submitted through the system have followed the green corridor. The market list is compiled by checking existing stock in storage until the stage of receiving goods needed in operational activities will be checked before use.
Green commitment is shown by receiving staff in ensuring that goods that arrive based on purchase orders are of good quality and quantity. Receiving staff can reject incoming items if there are differences with articles in the system. Hotels samples are very concerned about the management of green material sources and the choice of green materials as anticipatory measures to minimize the impact of damage to the natural environment. Implications related to the reuse of the value of goods that have been used, the hotel sample did upcycle pillowcases that are not feasible, reused as trash bags to reduce linen waste, minimize wasteful use of clean water and turn salt water into freshwater using the Sea Water Reverse Osmosis system (SWRO). Awareness of the existence of quality products at good prices and environmentally friendly is more driving the performance of green supply chains. After the goods are received, there is a need for control especially food and beverage products to guarantee and ensure the quality and quantity as well as the feasibility of the incoming goods. So that the production process can produce optimal output. This action has implications in reducing plastic waste when guests check out.
Melia Bali responds to green by digitizing the check-in process in line with technological developments, to reduce the use of paper. Administrative work can be done with high technology to achieve performance that is: faster, paperless, accuracy, security, and safety. The sample hotel explores product innovation by utilizing local products and local expertise.
Going green is important to attract the new segment of conscious consumers and to stay competitively relevant to the targeted market, but is also financially beneficial for the related tourism industry. The implications of selecting green suppliers create new market opportunities. The sample hotel market is experiences travellers with a dominant demand in the cleanliness, safety, and environmental comfort categories.
In response to the consumer's change of preference towards green products and services, the hotel industry is adopting sustainable practices and advertised towards potential customers (Martínez, Leaniz, Crespo, & Gómez, 2017). An environmentally friendly hotel can be categorized as the one that offers sustainable services and focuses on minimizing its negative impacts on the environment through reusing, reducing, and recycling. It is used by an eco-friendly use of water and energy (Dalton, Lockington, & Baldock, 2008). According to Saharye and Marendi (2017), Green procurement has impacted not only the performance of organizations but also on brand reputation. It has become increasingly significant for organizations facing competitive, regulatory, and community pressures to balance economic and environmental performance (Sarhaye & Marendi, 2017).
Hotel cooperation with suppliers is getting closer and mutually committed to operational purchasing activities. Cooperation commitment is presented in Table 5.  Table 5 shows that more than 79% of respondents stated conduct regular meetings between hotel management and environmentally friendly suppliers. The meeting activities further implicated the commitment in the form of suppliers understands hotel needs. The real action is that more than 93% of respondents said deliveries from suppliers always arrive on time. Enhancing cooperation between hotel management and suppliers is an action to maintain a brand reputation in environmentally friendly business practices and the company's profits achievement.

CONCLUSION
The study revealed that the selection of environmentally friendly suppliers had a positive and significant effect on the implementation of environmentally friendly purchases. The indication was that green supplier selection is a major factor that influences the implementation of green purchasing at 5 stars hotel in Bali. Besides, management must utilize financial support to implement green purchasing practices. It was also noted that the suppliers are committed to the hotel, and with the category of selecting suppliers based on environmentally friendly criteria, it is possible to build long-term cooperation that will later be expected to bring benefits primarily related to costs. Hotel cooperation with suppliers is getting closer and mutually committed in operational purchasing activities for the company's profits achievement. Future researchers must focus on the challenges of implementing green purchases by companies incorporated into the hotel, bar, and restaurant business.