Examining the Interconnections Between Sustainable Logistics Practices, Environmental Reputation and Financial Performance: A Mediation Approach
Date
2021
Journal Title
Journal ISSN
Volume Title
Publisher
Sage
Abstract
As environmental awareness and the patronage of logistics services grow, there is a growing demand for the logistics sector to provide
more sustainable environmental services, and although the logistics sector performs functions such as reverse logistics, packaging,
inventory management, transportation, warehousing, waste management, distribution, etc., which are very core to economic growth,
they also significantly contribute to greenhouse effect and consume huge amounts of resources. This study, drawing on the institutional
theory and the natural resource-based view, explores the framework through which sustainable logistics practices such as sustainable
transportation, reverse logistics and management of waste, sustainable packaging and distribution, green monitoring and evaluation,
and sustainable information sharing influence environmental reputation and financial performance. The study adopted partial least
square structural equation modelling technique in analysing data due to it having more statistical power. The findings of the study
showed that sustainable logistics practices had enormous influence on environmental reputation and financial performance. In terms
of mediation, environmental reputation had no mediation effect between waste management and financial performance but partially
mediated the relationships between sustainable transportation, sustainable information sharing and financial performance, while fully
mediating the relationships between reverse logistics, sustainable packaging and distribution, green monitoring and evaluation, and
financial performance. This study concentrated on the logistics sector; thus, this study results will provide vital data to both scholars
and practitioners in comprehending the call and need to integrate sustainable policies and strategies into business and industrial operations
to ensure environmental preservation.
Description
Research Article
Keywords
Sustainable Logistics Practices, Environmental Reputation, Financial Performance