Adaptive Sustainable Supply Chain Management in Public Procurement: A Case Study of SMEs in the Water Infrastructure Sector

This study aims to examine how small and medium-sized enterprises (SMEs) implement Sustainable Supply Chain Management (SSCM) principles within the context of government procurement (Business-to-Government/B2G), particularly in the water infrastructure sector. Using a qualitative approach with a case study design, this research focuses on PT Bagaskara Tirta Sejahtera (BTS), a local SME undergoing market reactivation and supply chain restructuring following a period of operational inactivity. Data were collected through in-depth interviews, limited observations, and analysis of internal and external documents. The findings indicate that the development of an adaptive SSCM model occurs incrementally, beginning with supply chain remapping, followed by logistics system improvements, basic digitalization, and culminating in the integration of sustainability values into both operational and communication strategies. The results demonstrate that SSCM implementation in SMEs operating within public procurement systems is non-linear and highly contextual, shaped by internal capabilities and external pressures from government stakeholders. This study contributes by proposing an adaptive SSCM model applicable to SMEs and enriching the literature on sustainable supply chains in developing countries.