Research Article
Vision
Examining the Interconnections  25(1) 47–64, 2021© 2021 MDI 
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Between Sustainable Logistics Practices,  in.sagepub.com/journals-permissions-indiaDOI: 10.1177/0972262920988805 
Environmental Reputation and Financial  journals.sagepub.com/home/vis
Performance: A Mediation Approach
Charles Baah1 , Kate T. Amponsah2, Kassimu Issau3,  
Daniel Ofori3 , Innocent Senyo Kwasi Acquah3  and  
Douglas Opoku Agyeman4
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 opera-
tions to ensure environmental preservation.
Key Words
Sustainable Logistics Practices, Environmental Reputation, Financial Performance
Introduction distribution, etc., and as such contribute enormously to eco-
nomic growth. According to Agyabeng-Mensah et al. (2020) 
Logistics practices over the years have come under scrutiny the impacts of green logistics management practices have 
mainly due to their enormous impact on the environment. become crucial and an interesting issue globally. The rapid 
These impacts significantly affect the environment as well rise of sustainability issues has resulted in diverse stakehold-
as human existence, thereby making environmental aware- ers raising critical concerns in relation to firm practices, 
ness creation very vital to economic growth and reform especially those in manufacturing and logistics sectors. 
(Baah et al., 2020). Logistics companies perform functions Stakeholder pressures and scrutiny in these sectors are criti-
such as reverse logistics, packaging, inventory manage- cal due to the enormous negative impacts of these sectors on 
ment, transportation, warehousing, waste management, the environment. Specifically, Ghana as a country has seen 
1 Transportation Engineering College, Dalian Maritime University, Dalian, China.
2 Shipping Management and Economics, Dalian Maritime University, Dalian, China.
3 Department of Marketing and Supply Chain Management, University of Cape Coast, Cape Coast, Ghana.
4 Department of Marketing and Entrepreneurship, University of Ghana, Legon, Accra, Ghana.
Corresponding author:
Charles Baah, Transportation Engineering College, Dalian Maritime University, Dalian 116000, Liaoning, China. 
E-mail: charlieba3@gmail.com
48 Vision 25(1)
an increase in logistics and manufacturing activities mainly likely to significantly influence the financial capacity of 
due to the rise in trade, new distribution centres, warehouses, firms that implement green initiatives. According to 
logistics facilities, etc. According to the Organisation for Agyabeng-Mensah et al. (2020), accepting sustainable 
Economic Co-operation and Development (OECD, 2010), logistics management practices to some researchers ini-
Ghana ranks 70th when it comes to largest export economies tially limits the financial capacity of an organization, but 
in the world, and in 2017, Ghana’s total exports and imports improves environmental reputation, which eventually 
were US$17.1 billion and US$13.2 billion, respectively. translates into market share and increased sales. Shashi 
These figures are expected to increase, and therefore, the et al. (2019) further explained that although green practices 
many negative environmental impacts associated with logis- drain finances mostly in the implementation stage, it sig-
tics practices such as air pollution, greenhouse effect, nificantly boosts financial performance in the long run. 
resource and energy issues and ozone layer depletion, among Thus, the study seeks to assess the influence of sustainable 
others, have strengthened the scrutiny of logistics practices logistics practices on environmental reputation and finan-
by various stakeholder groups (Baah & Jin, 2019). These cial performance, as well as how environmental reputation 
scrutinies and pressures from stakeholders have to a larger mediates the relationships between the adopted sustainable 
extent motivated both logistics and manufacturing firms to logistics practices and financial performance. Additionally, 
adopt practices that are considered sustainable and ensure the study aims to contribute to existing literature from the 
cleaner production practices (Baah et al., 2020; Chhabra perspective of a developing country seeing that majority of 
et al., 2017; Gupta et al., 2018). past studies were conducted in developed countries. Again, 
Importantly, sustainability needs to be understood as extant literature on sustainability focused on manufactur-
well as integrated in business operations because as inter- ing sectors; hence, this study is among the few that centres 
national trade continues to increase, there is the need to on the logistics sector, which is also known for its negative 
assess the environmental aspects of transport and logistics, impacts on the environment.
seeing that goods are and will continue to be moved over This article is organized as follows: The first section of 
greater distances. According to Baah et al. (2020) and this article captures introduction. The second section 
Agyabeng-Mensah et al. (2020), several studies have captures empirical review and hypothesis development, 
focused on the manufacturing sector, leaving out the logis- while the third section discusses the study methodology. 
tics sector. This study is based on the rising nature of logis- The fourth section discusses results, while the fifth section 
tics activities and operations and focuses on the logistics captures conclusion, implications and, finally, the sixth 
sector in an effort to provide awareness and empirical evi- section discusses limitations and further research.
dence on sustainable logistics practices. Although green 
initiatives have been promoted by several stakeholders 
(Bag, 2017; González-Benito & González-Benito, 2006), Empirical Review and Hypothesis 
less studies have sought to elaborate on how adopting Development
green practices or initiatives boost a firm’s environmental Theoretical Background
reputation and its financial performance in the context of 
an emerging economy and from the perspectives of logis- The growing demand for sustainable business practices 
tics firms. This study specifically seeks to contribute to lit- that lead to a protected and preserved environment have 
erature by exposing how sustainable logistics practices motivated the wide adoption of environmental or green 
such as sustainable transportation, reverse logistics, waste practices in both developed and developing countries. 
management, sustainable packaging and distribution, green Specifically, the main question that diverse scholars seem 
monitoring and evaluation, and sustainable information to be interested in is ‘what motivates the adoption of sus-
sharing affect a logistics company’s environmental reputa- tainable practices?’ (Baah et al., 2020; Tsinopoulos et al., 
tion and financial performance. In addition, the introduc- 2018). To respond to this question, the institutional theory 
tion of sustainable standards such as ISO 14001 in 1996 has gained attention over the past decade, especially in 
have promoted the formulation of corporate sustainability relation to institutional isomorphism and organizational 
strategies that seek to preserve the environment (Fernando, legitimacy. According to Deephouse et al. (2017), the insti-
2017). Such standards coupled with other legislations from tutional theory explains that firms based in the industry in 
regulatory bodies have coerced companies to comply with which they exist and conduct business adopt business prac-
environmental standards if they expect to operate smoothly tices, strategies and structures that are homogenous. 
without legal sanctions from diverse stakeholders (Baah Particularly, the authors highlighted that institutional 
et al., 2020). theory presents institutional isomorphism and organiza-
Sustainable logistics practices capture the ability to con- tional legitimacy dimensions. While institutional isomor-
serve resources, minimize waste and enhance operational phism focuses on the adoption of similar industry structures, 
efficiency through eliminating wasteful processes in carry- practices and strategies in order to show conformance to 
ing out operations (Chhabra et al., 2017). These sustainable acceptable norms and behaviour, organizational legitimacy 
practices are very costly to implement and, as such, are bases on external stakeholders perceiving that firms adhere 
Baah et al. 49
to acceptable industry practices and norms, leading to good theory motivate firms on the adoption and implementation 
reputation, stakeholder endorsement, and social and moral of sustainable business practices (sustainable logistics 
capitals (Deephouse et al., 2017). In line with Tsinopoulos practices as captured in this study).
et al. (2018), a business’s behaviour is motivated by the 
desire to imitate established rules and norms and, as such, 
specifies that the institutional theory explores the role of Sustainable Logistics Practices
social influence in business practices. According to The synergistic connection among sustainable supply 
Ashworth et al. (2013), institutional isomorphism has chain practices, green manufacturing and sustainable logis-
become predominant across institutions because institu- tics practices has gained significant attention, especially in 
tional practices and patterns are mostly driven by using the global fight for sustainability. As such, logistics and 
rationality to achieve greater efficiency and effectiveness. manufacturing industries have integrated sustainable initi-
Lodge and Wegrich (2005) further clarified that the pre- atives into business operations in an effort to preserve the 
dominance of industrial practice is mainly based on legiti- environment, attract environmentally conscious stakehold-
macy and the appropriateness of the practice in that specific ers and avoid litigations and sanctions (Baah et al., (2020). 
business environment. Additionally, the competitive nature According to Baah et al. (2020), logistics companies must 
of today’s business environments has businesses aiming to persistently adopt green practices that will stand the test of 
gain competitive advantage, and stakeholder endorsements time; therefore, embodying the triple bottom line concept 
in addition to organizational legitimacy. As such, firms into logistics and supply chain operations may not fully 
have embraced environmental practices and have been solve the current global environmental crisis, although it is 
more oriented towards external norms, hence, reflecting a step in the right direction. Moreover, according to Shashi 
institutional isomorphism. These orientations affect firms’ et al. (2019), the coercive force of several political, social 
strategies, decisions and practices, and thus, the integration and economic pressures pertaining to environmental issues 
of institutional isomorphism and organizational legitimacy leaves no choice for logistics firms to operate outside the 
can aid in explaining the factors that promote adoption of scope of being environmentally friendly. Some scholars, 
some environmental practices (in this study, sustainable over the years, have studied environmental practices, espe-
logistics practices). For instance, the adoption of sustaina- cially with a manufacturing and logistics focus. Hence, this 
ble logistics practices in developed countries has been out- study in line with past studies elaborates sustainable logis-
standing due to the early presence and adoption of tics practices to include sustainable transportation, reverse 
sustainable technologies, green investors, practices and logistics, waste management, sustainable packaging and 
strategies. Therefore, many companies in such industries, distribution, green monitoring and evaluation, and sustain-
on the basis of isomorphism, have shifted towards green able information sharing (Baah et al., 2020; Beske et al., 
practices. On the other hand, developing countries, due to 2014). The above-mentioned sustainable logistics practices 
late availability of sustainable technologies among others, were adopted in this study because these practices have 
are now picking up the pace in terms of sustainable prac- been coined to have a logistics focus, which suit the indus-
tices, because of the motivation to attain legitimacy from try under study. The adopted logistics practices are 
stakeholder groups, improve performance and preserve the explained as follows:
environment. Hence, firms operational in developing coun- Sustainable transportation is crucial for every econ-
tries are operating in resemblance to recognized sustaina- omy, especially the logistics sector in the effort to 
ble firms in their industries on the basis of institutional reduce carbon footprints. This is because this sector 
isomorphism and achieving organizational legitimacy. has been known as a robust contributor to global 
Thus, these few recognized sustainable logistics firms have warming through noise pollution, air pollution and 
shaped logistics practices in the logistics sector. congestion. Transportation is vital for economic 
Additionally, the enormous benefits that the natural growth and movement of goods and services; thus, 
resource-based view present to firms, as explained by legislations and relations have been put in place to 
McDougall et al. (2019), have also gained attention as reduce negative environmental impacts and ensure 
motivational factors for some firms in the adoption of envi- strict compliance to sustainable practices in trans-
ronmental practices. A firm’s quest to achieve competitive portation (Baah et al., 2020).
advantage together with superior performance will moti- Reverse logistics is very essential for managing waste in 
vate engagement in practices that will yield benefits like the business environment (Dias & Bragger, 2016). 
the development of capabilities and resources that are Reverse logistics emphasizes the reuse of materials 
deemed rare, valuable, non-substitutable and imitable, as and production components which lead to effective 
well as attract environmentally conscious customers, and efficient waste management. Dias and Bragger 
investors and suppliers among others. To conclude this (2016) further explained that engaging in reverse 
section, benefits reflected by McDougall et al. (2019) logistics shows adherence to ecological guidelines, 
under the natural resource–based view in addition to those while significantly and efficiently greening logistics 
reflected by Deephouse et al. (2017) under the institutional operations and refining cleaner productions.
50 Vision 25(1)
Waste management is very critical in current business attracted a lot of stakeholder pressure concerning their 
environments (Baah et al., 2020; Pujara et al., 2019). operations. These pressures in a way coerce logistics com-
Waste management, in recent business settings, panies to implement green initiatives because they fear, if 
emphasizes the use or orientation towards renewa- they do not, their firms may be legally sanctioned (Zhu & 
ble energies rather than the use of non-renewable Sarkis, 2007). Sustainable transportation captures any 
energies in traditional manufacture. Eliminating and means of transportation that embraces the green concept 
managing waste in the production process, as and, thus, has minimal impact on the environment (OECD, 
explained by Baah et al. (2020), leads to better and 2010). According to Baah et al. (2020), studies show that 
faster production practices, which ensure cleaner due to the depleting nature of the environment, more needs 
production practices and processes, which, in turn, to be done to be able to sustain the environment for future 
preserve the environment. generations. The transport sector is known as a significant 
Sustainable packaging and distribution is the very core contributor to environmental pollution, which negatively 
of logistics firms and operations. According to affects the environment. Carter and Rodgers (2008) noted 
Meherishi et al. (2019), the need for ecological pack- that, to protect the environment for current and future gen-
aging and distribution practices in logistics processes erations, accepting sustainable practices must not be cate-
needs to be emphasized; thus, eco-friendly materials gorized as optional but compulsory for all. This view by 
should be used as primary packaging materials to some scholars has actually seen some improvement due to 
decrease plastic usage and carbon footprints. The stakeholder awareness. Stakeholders are now making 
obligation to eradicate plastic patronage in the pro- several decisions based on a firm’s sustainability orienta-
duction and distribution process is crucial due to the tion, and as such, firms are being coerced to embody the 
substantial health risks it poses. Sustainable packag- triple bottom line into their business processes (Carter & 
ing and distribution were combined in this study due Rodgers, 2008). Organizations that have been able to fully 
to how connected these practices are as indicated by accept green initiatives and voluntarily do more to better 
Colicchia et al. (2013) and also due to the fact that society in this regard, according to Sarkis et al. (2010), have 
most of the logistics firms and service providers adopted a proactive approach to environmental orientation, 
seemed to collectively undertake these practices. and firms that also only undertake environmental initiatives 
Green monitoring and evaluation in recent years have to avoid sanctions are adopting a reactive approach. 
motivated diverse checks on logistics and manufac- According to Toms (2002), environmental reputation comes 
turing sectors as highlighted by Baah et al. (2020). as a result of engaging in environment-friendly practices, 
Furthermore, logistics firms are now seeking out for and since stakeholders are shifting towards environmental 
environmentally conscious manufacturing and preservation, firms that disclose their environmental strate-
logistics service providers in addition to supply gies to stakeholders are likely to enhance environmental 
chain partners that adhere to environmental prac- reputation and eventually financial performance through 
tices by critically examining their environmental widening market share and diversification (Friedman, 
and social contributions to society (Agyabeng- 1970). Zailani et al. (2012) further highlighted that financial 
Mensah et al., 2020). investments in sustainable initiatives, which include green 
Sustainable information sharing is core to maintaining transportation, may significantly drain a firm financially at 
environmental awareness in logistics operations. the initial stages but may also yield profitable returns if 
This is because through sharing of sustainable infor- managed well. Thus, the first hypothesis:
mation, business and supply chain partners are 
updated on sustainable policies, strategies and initi- H1: S ustainable transportation positively relates to 
atives. As a result, dissemination of sustainable environmental performance (H1a) and financial 
information among partners of an organization, to a performance (H1b).
large extent, generates value for all partners (Huang 
& Wang, 2017). Having described the sustainable 
logistics practices adopted, we proceed to espouse The Relationships Among Reverse Logistics, 
the relationships and develop hypotheses between Environmental Reputation and Financial 
these sustainable logistics practices and environ- Performance
mental and financial performances, respectively. Several studies have sought to fully understand the concept 
of reverse logistics, especially in the manufacturing and 
The Relationships Among Sustainable logistics sectors (Dias & Braga, 2016; Nagurney & 
Transportation, Environmental Reputation Toyasaki, 2005). According to Dias and Braga (2016), 
and Financial Performance reverse logistics and waste management function hand in hand in the sense that reverse logistics has been explained 
According to OECD (2010), the logistics sector has been a to involve the procedure through which organizations 
significant contributor to CO2 emissions and, as such, has promote environmental friendliness by recycling, 
Baah et al. 51
decreasing material usage and reusing. Reverse logistics critically promote environmental reputation and the 
aims at reducing negative environmental impacts through competitive position of a firm. This is because engaging in 
management of disposable waste. In recent business set- waste management practices allow sourcing of ecological 
tings, reverse logistics as a concept has been very beneficial raw materials and reduce waste during production process. 
to manufacturers and logistics service providers in manag- These ensure cleaner production, which has been identified 
ing electronic waste (Nagurney & Toyasaki, 2005). Reverse as a key factor in achieving environmental reputation, as 
logistics over the years has been seen as environmentally well as improved sales, market and customer base (Dias & 
healthy and thus attract stakeholders who are environmen- Braga, 2016). Pujara et al. (2019) further indicated that the 
tally conscious to firms that undertake such practices, focus on extended product responsibilities (EPR) also 
hence, forming collaborative networks, gaining organiza- critically promotes environmental preservation because 
tional legitimacy, and attaining social and moral capitals EPR shifts responsibilities (physical or financial) related to 
(Baah et al., 2020; Darnell et al., 2008). Such collaborations product disposal at the end of its life cycle to producers. 
can be lucrative and improve environmental reputation and Walls (2006) indicated that this approach aims to provide 
financial performance. From the above-mentioned discus- incentives for producers to deliberate environmental 
sion, we propose the second hypothesis, which states: considerations in designing their products. Engaging in 
such practices according to Walls (2006) and Pujara et al. 
H2: R everse logistics is positively related to environ- (2019) influences green reputation and the financial 
mental performance (H2a) and financial perfor- standing of a firm as graphically illustrated in Figure 1. 
mance (H2b). From the above-mentioned discussion, we propose the 
third hypothesis as follows:
The Relationships Among Waste 
Management, Environmental Reputation H3:  Waste management is positively related to envi-
and Financial Performance ronmental performance (H3a) and financial per-formance (H3b).
The persistent rise in waste, especially solid waste, has 
resulted in global concerns to manage these wastes in 
sustainable manners (Pujara et al., 2019). Over the years, The Relationships Among Sustainable 
the logistics sector has emerged as very vital for engaging Packaging and Distribution, Environmental 
in waste management practices like reverse logistics (Baah Reputation and Financial Performance
et al., 2020). According to Pujara et al. (2019), waste According to Zheng and Dai (2012), sustainable packaging 
management captures the collection and treatment of waste and distribution has gained attention as one of the core 
products, which are not recyclable or reusable. The authors components of logistics and manufacturing operations. 
further explained that in recent orientation towards circular The focus on using ecological material in packaging 
economy, waste management presents benefits that products and the use of transportation means to end users 
Figure 1. Structural Relationships 
Source: The authors.
52 Vision 25(1)
with lowest impact on ecological and social environment impact a firm’s environmental reputation, which influences 
has been the basics of sustainable packaging and financial performance and hence the fifth hypothesis:
distribution debates (Sarkis, 2003). It can therefore be 
deduced that sustainable packaging and distribution is very H5:  Green monitoring and evaluation positively influ-
vital to any firm that seeks to embody environmental ence environmental performance (H5a) and finan-
strategies. In this current business environment, with high cial performance (H5b).
levels of stakeholder awareness regarding environmental 
initiatives, most purchase decisions depend on how well 
and safe a product’s packaging is as well as what transport The Relationships Among Sustainable 
means will be used for shipment before purchase decisions Information Sharing, Environmental 
are made. González-Benito and González-Benito (2006) Reputation and Financial Performance
supported this view by indicating that companies that use 
ecological packaging and distribution means are likely to Information sharing is very essential in supply chain 
attract green-minded customers, investors and other operations; thus, to survive in the current business world, 
stakeholders, which may lead to improved environmental there is the need to share up-to-date information with every 
reputation and financial performance. Again, such investors unit in a firm’s supply chain (Huang & Wang, 2017). This 
will further push for enhanced and more efficient green is because for supply chain processes and performance to 
initiatives, which will exert more pressure on financial function efficiently, managers need vital information to 
capabilities of firms but can also earn more profit if such make key supply chain decisions. According to Baah and 
strategies are properly managed. This supports the assertion Jin (2019), the relevance of green information sharing 
by Zailani et al. (2012) that initial green investments will cannot be downplayed, and therefore, sharing sustainable 
drain finances but can also greatly improve finances if information across the supply chain allows supply chain 
managed well. Thus, the fourth hypothesis is as follows: stakeholders’ access to data regarding green practices and 
strategies. From the above, stakeholders and organizations 
H4:  Sustainable packaging and distribution positively further consider environmental management systems and 
relates to environmental performance (H4a) and certifications when dealing with other partners so as to 
financial performance (H4b). promote environmental orientation and avoid loopholes for 
sanctions. Furthermore, Toms’ (2002) study of UK firms 
The Relationships Among Green Monitoring indicated that disclosure and sharing of sustainable 
and Evaluation, Environmental Reputation information with stakeholders really improved stakeholder 
and Financial Performance acceptance of such firms and influenced environmental reputation. This connotes that sharing information with 
Scholars and practitioners, over the years, have seen a rise stakeholders allows a more open collaboration, thereby 
in green initiatives and environmental policies in diverse enhancing trust as supported by Hassan and Nasereddin 
industries, mostly due to pressures from several bodies (2018). According to Hassan and Nasereddin (2018), 
both local and foreign (Eesley & Lenox, 2006). These information sharing with stakeholders or across a supply 
bodies mostly referred to as stakeholders according to chain helps in achieving accurate management and 
Baah et al. (2020) are affected by activities of companies efficiency between stakeholders and supply chain partners. 
whether internally or externally, and as such, most of these Thus, the sixth hypothesis is as follows:
stakeholders perform monitoring and evaluation functions 
on activities of companies in the logistics sector to ensure H6:  Sustainable information sharing positively influ-
compliance to green standards. In as much as stakeholders ences environmental performance (H6a) and 
are performing these functions, Darnell et al. (2008) financial performance (H6b).
suggested that companies should go beyond just meeting 
green standards to being more proactive since it will boost 
collaboration and reputation with stakeholders. This The Relationships Between Environmental 
suggests that firms that adopt proactive approaches to Performance and Financial Performance
environmental friendliness should also adopt monitoring Despite the increasing pressures to adopt green practices, 
and evaluation strategies to keep them in check and some shareholders are motivated not to accept such initia-
improve upon their current practices. Darnell et al. (2008) tives because adoption of environmental practices mean 
supported this view by indicating that adopting monitoring increase in financial obligations, which may not be favour-
and evaluation practices promote environmental learning able for shareholders (Walley & Whitehead, 1994). 
capacity building and trust. Hoffman (2000) also asserted Although, the earlier assertion by Walley & Whitehead 
similar views by signifying that proactive environmental (1994) is true to some extent that adopting green initiatives 
practices breed good trust relations between a firm and its will come with great financial demands, it can also be a 
stakeholders. This suggests green monitoring and evaluation source of great returns if managed well (Friedman, 1970). 
Baah et al. 53
Bansal and Roth (2000) asserted that to fully embrace Additionally, the questionnaires were developed, fol-
green initiatives requires technology, human expertise and lowing the guidelines stipulated by Podsakoff et al. (2003), 
other resources, which are expensive to acquire and thus to curb issues of common method bias (CMB). Particularly, 
deter some firms from adopting environmental practices. the questionnaires assured privacy to respondents, acquired 
Toms (2002) supported Bansal and Roth’s (2000) view but measures from diverse sources and had well-separated sec-
went further to indicate that more gains can be derived tions of measured items. To further deal with issues of CMB 
from environmental reputation, which originates from associated with survey design, we assessed CMB using 
undertaking environmental initiatives. This assertion by Harman’s one-factor test. Analysis using exploratory factor 
Toms (2002) motivates firms to consider improving envi- analysis (EFA) and the principal component analysis extrac-
ronmental reputation through disclosing environmental tion method procedure specified that this study is free from 
practices to their stakeholders since that boosts financial CMB since the single factor explained 38.4% of the cumu-
performance. From the above, it can be inferred that sus- lative variance which is below the threshold of 50%.
tainable logistics practices influence environmental reputa-
tion and financial performance. Therefore, it is important 
to assess the mediating role of environmental reputation in Measurement Items’ Description
the relationships between sustainable transportation, The developed questionnaire contained 35 questions for 
reverse logistics, waste management, sustainable packag- reflecting sustainable logistics practices, environmental 
ing and distribution, green monitoring and evaluation, and reputation and financial performance. These measuring 
sustainable information sharing and financial performance items were adapted from the works of Sarkis et al. (2010), 
as well. Thus, the seventh hypothesis states: De Souza et al. (2018), Lai and Wong (2012), Pujara et al. 
(2019) and Colicchia et al. (2013) for sustainable logistics 
H7: E nvironmental reputation positively influences practices, Yusoff et al. (2018) and Kim and Lee (2012) for 
financial performance (H7a) and mediates sustain- environmental performance and Li et al. (2017) and Santis 
able transportation–financial performance (H7b), et al. (2016) for financial performance. Although there 
reverse logistics–financial performance (H7c), were 35 items under study, those items that loaded below 
waste management–financial performance (H7d), 0.70 were removed from their assigned constructs to 
sustainable packaging and distribution–financial enhance model strength (Hair et al., 2013). The constructs 
performance, green monitoring and evaluation– in this study were modelled reflectively, and thus, the 
financial performance (H7e) and sustainable infor- deletion of items that loaded <0.70 should pose no issues 
mation sharing–financial performance (H7f) for the structural model. The items deleted from the model 
relationships. have been marked with * in Appendix 1.
Analysing results in SEM requires the appraisal of the 
model’s strength, which is mostly undertaken by examining 
Methodology the model’s reliability (using Cronbach’s alpha and 
Data Collection and Common Method Bias composite reliability) and convergent and discriminant 
validities (using average variance extracted [AVE] and 
The quantitative approach was adopted because the study Fornell–Lacker criterion). According to Henseler et al. 
sought to establish the effect of sustainable logistics prac- (2015), Cronbach’s alpha and composite reliability should 
tices on environmental reputation and financial perfor- be ≥0.70, while the AVE should be >0.50. In assessing 
mance, while also studying the mediating role of validity of the constructs, AVEs were first considered 
environmental reputation between these sustainable logis- followed by Fornell–Lacker criterion.
tics practices and financial performance. The study focused 
on logistics firms operational in the Ghanaian setting; most 
of these firms were small and medium-sized enterprises. Assessment of Structural Model
The data used in the study were from information solicited The study employed the partial least square structural 
using questionnaires that were formed based on review of equation modelling (PLS-SEM) method in estimating our 
literature, which also focused on similar or related con- structural model, thus demanding the scrutiny of the 
structs adopted in this study. A total of 130 questionnaires measurement model through constructs’ validity and 
were sent out to be answered by managers who had first- reliability checks (Hair et al., 2013). Table 1 shows that the 
hand information regarding strategies involving sustaina- model achieves reliability since the Cronbach’s alpha and 
ble or green initiatives being implemented by their composite reliability ranged between 0.720–0.814 and 
respective firms. Out of the 130 questionnaires sent out, we 0.813–0.890, respectively, hence, connoting high reliability 
received 115 questionnaires back, and as such, these ques- of constructs. Convergent validity indicates how a set of 
tionnaires were used in the data analysis procedure using indicators portraying unidimensionality is supposed to 
structural equation modelling (SEM) technique and represent their underlying construct (Henseler et al., 2015). 
SmartPLS software to be specific. According to past studies that used PLS-SEM technique 
54 Vision 25(1)
Table 1. Construct Validity and Reliability
Factor Collinearity Statistics Cronbach Composite Average Variance 
Construct Loadings (VIF) Alpha Reliability Extracted (AVE)
Environmental reputation 0.814 0.890 0.729
ER1 0.838 1.831
ER2 0.875 2.024
ER4 0.848 1.657
Financial performance 0.782 0.860 0.607
FP1 0.827 2.761
FP2 0.710 1.407
FP4 0.749 1.530
FP5 0.823 2.801
Green monitoring and evaluation 0.778 0.813 0.594
GME1 0.703 1.234
GME4 0.867 1.409
GME5 0.733 1.296
RL 0.720 0.813 0.687
RL1 0.846 1.353
RL2 0.876 1.834
RL3 0.759 2.028
Sustainable information sharing 0.741 0.852 0.658
SIS2 0.788 1.350
SIS3 0.816 1.656
SIS4 0.828 1.544
Sustainable packaging and distribution 0.721 0.843 0.644
SPD1 0.857 1.632
SPD2 0.830 1.640
SPD3 0.712 1.242
Sustainable transportation 0.757 0.842 0.571
ST2 0.777 1.847
ST3 0.759 1.633
ST4 0.709 1.457
ST5 0.776 1.264
Waste management 0.783 0.874 0.699
WM2 0.729 1.415
WM3 0.873 1.977
WM4 0.896 2.363
Source: The authors.
(Hair et al., 2013), items or indicators with low factor latent variables in the study. The Fornell–Lacker criterion 
loadings below the recommended threshold should be asserts that the square roots of the AVEs on a construct 
removed since it enhances the model’s direct path strengths, should be higher than its correlations with other constructs 
upgrades AVE and enhances the model’s constructs’ in the model. Thus, Table 2 implies the attainment of 
interactions. Table 1 signifies that the AVEs of the discriminant validity.
constructs ranged between 0.571 and 0.729, depicting the 
convergent validity of the constructs, since all AVEs were 
higher than the threshold of 0.5. Additionally, to ensure the Results and Discussions
model is free from issues of multicollinearity, outer and Table 3 shows R2, the adjusted R2, Q2 and direct path beta 
inner variance inflation factors (VIFs) were scrutinized and (β) coefficients in the structural model. The R2 illustrates 
reported in Tables 1 and 4, respectively. The examination the variation of the dependent variable predicted by the 
of collinearity statistics indicated that the model has no independent variables, and Q2 measures predictive 
issues of multicollinearity, and all items had both outer and relevance by analysing each construct’s predictive 
inner VIFs < 3, thus posing no multicollinearity threats. relevance through the omission of selected inner model 
interactions and then calculates changes in the criteria 
Assessing Discriminant Validity estimates (Hair et al., 2013). From Table 3 and Figure 2, 
the structural model explains 0.743 of the variance of 
Furthermore, we assessed discriminant validity using financial performance and 0.828 of the variance of 
Fornell–Lacker criterion presented in Table 2. Tables 2 environmental reputation. Moreover, the adjusted R2 values 
shows the square roots of AVEs and its correlations with were 0.726 and 0.819, respectively, and the blindfolding 
Baah et al. 55
Table 2. Fornell–Lacker Criterion
Construct 1 2 3 4 5 6 7 8
1. Environmental reputation 0.874
2. Financial performance 0.738 0.779
3. Green monitoring and evaluation 0.524 0.461 0.771
4. Reverse logistics 0.852 0.759 0.481 0.829
5. Sustainable information sharing 0.728 0.564 0.625 0.643 0.811
6. Sustainable Packaging and distribution 0.616 0.467 0.744 0.542 0.611 0.802
7. Sustainable transportation 0.663 0.658 0.539 0.580 0.635 0.396 0.756
8. Waste management 0.603 0.663 0.501 0.609 0.678 0.442 0.561 0.836
Source: The authors.
procedure indicated that environmental reputation and impacts. Reverse logistics promises better handling of 
financial performance have predictive relevance since their outdated products as well as the efficient reuse and 
Q2 values were 0.463 and 0.376, respectively. From Table patronage of waste management practices. These reverse 
3, it can be ascertained that sustainable transportation, logistics practices promote corporate environmental 
reverse logistics, waste management, sustainable packaging reputation, which also eventually translates into increased 
and distribution, green monitoring and evaluation, and financial performance.
sustainable information sharing collectively explained Additionally, Hypothesis 3a, which aimed at establishing 
74.3% and 82.8% of the variances of financial performance the positive influence of waste management on 
and environmental reputation, respectively. environmental reputation (β = 0.033, T = 0.577, p = 0.564), 
The analysis and interpretation of the data as presented and Hypothesis 3b, which also emphasized the positive 
in Table 3 and Figure 2 show that Hypothesis 1a, which influence of waste management on financial performance 
connotes that sustainable transportation positively relates (β = 0.279, T = 3.487, p = 0.000) were both supported. The 
to environmental reputation (β = 0.238, T = 3.728, p = relevance of waste management practices in current 
0.000), and 1b, which states sustainable transportation pos- production practices, especially in manufacturing and 
itively relates to financial performance (β = 0.173, T = logistics sectors, have become paramount. As explained by 
2.175, p = 0.030), were both supported. These findings are Baah et al. (2020), encouraging cleaner production 
supported, in that sustainable transport practices critically practices, which reduces waste and promotes the use of 
boost a firm’s environmental reputation and financial per- renewable energy sources as well as raw materials, improve 
formance. In line with the findings of Baah et al. (2020), sustainability of firms and, thus, ensure preservation of the 
green logistics practices, which reflect sustainable trans- environment. Cleaner productions also critically improve 
portation, are very critical for reducing carbon footprints as environmental reputation and attract key stakeholders, 
well as other negative environmental impacts. These sus- which enlarge market share, eventually resulting in higher 
tainable transportation practices project conformance to sales and financial performance.
current industry stakeholder demands, hence, leading to Furthermore, Hypothesis 4a, which connotes that sus-
good reputation and among other stakeholder endorse- tainable packaging and distribution positively influences 
ment. Financial performance is also improved because environmental reputation (β = 0.197, T = 2.880, p = 0.004), 
green initiatives, as explained by Colicchia et al. (2013), was supported, while Hypothesis 4b, which aimed at the 
attract environmentally conscious investors, customers and impact of sustainable packaging and distribution on finan-
suppliers, among others, which boost market share, sales cial performance (β = –0.013, T = 0.142, p = 0.887), was 
and profit margins. not supported. As indicated by Meherishi et al. (2019), sus-
Again, Hypothesis 2a, which establishes that reverse tainable packaging and distribution is very vital for both 
logistics positively influences environmental reputation (β manufacturing and logistics firms. Importantly, stake-
= 0.550, T = 6.020, p = 0.000), and 2b, which states reverse holder groups’ demand on firms to be eco-friendlier and 
logistics positively relates to financial performance (β = ecological with regard to packaging and distribution prac-
0.161, T = 1.339, p = 0.181), were both supported as well. tices indicates that firms will achieve environmental repu-
These findings are in line with the assertion by Lai and tation, which will also lead to improved financial 
Wong (2012) that the adoption of green or environmental performance if properly managed. According to Baah et al. 
practices significantly affects environmental reputation (2020), initial investment in green practices, including sus-
and financial performance if the right strategies and tainable packaging and distribution, may pose negative 
policies are implemented. Specifically, reverse logistics in impacts on financial performance due to the costly nature 
addition to waste management has gained serious attention, of investments, thus supporting the negative influence on 
especially in the logistics and manufacturing sectors due to financial performance (Hypothesis 4b). In addition, engag-
their crucial nature in reducing negative environmental ing in sustainable packaging and distribution will 
56 Vision 25(1)
eventually begin to generate gains which may not be sig- Analysis and study of data, as presented in Table 3, 
nificant but will in the long run be very beneficial for firms. show that Hypothesis 6a, which sought to establish the 
Hypothesis 5a, which sought to establish that green positive influence of sustainable information sharing on 
monitoring and evaluation positively related to environmental reputation (β = 0.192, T = 2.584, p = 0.010), 
environmental reputation (β = −0.168, T = 2.702, p = was supported, while 6b, which also sought to establish 
0.007), was not supported, while Hypothesis 5b, which positive relationship between sustainable information 
aimed at establishing the positive effect of green monitoring sharing and financial performance (β = −0.257, T = 2.450, 
and evaluation on financial performance (β = 0.035, T = p = 0.014), was not supported. As explained by Huang and 
0.354, p = 0.724), was supported. These findings indicate Wang (2017), sustainable information sharing is very vital, 
that green monitoring and evaluation strategies may since it allows the dissemination of information in relation 
initially yield no gain for environmental reputation but, in to environmental initiatives, policies and strategies. Firms 
long run, may yield great financial returns, as suggested by that engage in sustainable information sharing with diverse 
Zailani et al. (2012). This may be so because stakeholders 
have already performed this particular function of stakeholders will robustly and significantly boost environ-
monitoring and evaluation; thus, stakeholders may not mental reputation. Although boosting environmental repu-
notice such initiatives undertaken by logistics companies. tation will lead to enhanced financial performance, 
Additionally, green monitoring and evaluation practices in sustainable information sharing does not promise improved 
the adoption stages will present investments that will financial performance on its own but, through environmen-
project some financial strains on the firm, but if green tal reputation, can boost financial performance.
monitoring and evaluation practices are well managed, it Finally, Hypothesis 7a, which states environmental 
will become a source of competitive advantage. Green reputation positively influences financial performance (β = 
monitoring and evaluation are negatively related to 0.562, T = 4.433, p = 0.000), was supported. Toms (2002) 
environmental reputation because, in the Ghanaian logistics supported this finding by suggesting that firms can improve 
sector, few logistics firms are involved in disclosing environmental reputation by making disclosures about the 
environmental monitoring and evaluation practices. adoption and enforcement of sustainable practices. Thus, 
According to Toms (2002), the inability to disclose these adopting sustainable logistics practices will likely improve 
vital green monitoring and evaluation practices indicates to environmental reputation and financial performance as 
stakeholders that such practices may not exist, and that suggested by Lin and Ho (2011). The authors supported the 
they are likely the ones to engage in such practices, and above-mentioned claim by showing that the adoption of 
hence negatively affecting environmental reputation of green practices enormously influences environmental 
firms that do not engage in disclosure of green monitoring reputation and financial performance in the initial adoption 
and evaluation practices. stages and specifically improves financial performance 
Table 3. Structural Model
Construct R2 Adjusted R2 Q2
ER 0.828 0.819 0.463
FP 0.743 0.726 0.376
Path Beta Coefficient (b) Standard Deviation T-statistics p-Values Hypotheses Inner VIF
ST → ER 0.238 0.064 3.728 0.000 1a: Supported 2.047
ST → FP 0.173 0.080 2.175 0.030 1b: Supported 2.378
RL → ER 0.550 0.091 6.020 0.000 2a: Supported 2.165
RL → FP 0.161 0.120 1.339 0.181 2b: Supported 2.929
WM → ER 0.033 0.058 0.577 0.564 3a: Supported 2.129
WM → FP 0.279 0.080 3.487 0.000 3b: Supported 2.135
SPD → ER 0.197 0.068 2.880 0.004 4a: Supported 2.709
SPD → FP −0.013 0.089 0.142 0.887 4b: Not supported 2.934
GME → ER −0.168 0.062 2.702 0.007 5a: Not supported 2.775
GME → FP 0.035 0.098 0.354 0.724 5b: Supported 2.938
SIS → ER 0.192 0.074 2.584 0.010 6a: Supported 2.909
SIS → FP −0.257 0.105 2.450 0.014 6b: Not supported 2.892
ER → FP 0.562 0.127 4.433 0.000 7a: Supported 2.944
Source: The authors.
Note: ER—Environmental reputation; FP—financial performance; ST—sustainable transportation; RL—reverse logistics; WM—waste management; 
SPD—sustainable packaging and distribution; GME—green monitoring and evaluation; and SIS—sustainable information sharing.
Baah et al. 57
Figure 2. Structural Model Showing Path Coefficients (b) and R2
Source: The authors.
through attracting customers, suppliers, investors and other 7d, which posited that environmental reputation mediated 
environmentally conscious stakeholders. the relationship between waste management and financial 
performance, was not supported. The results presented no 
Mediation Effect mediation because the direct effect (β = 0.279, T = 3.487, p = 0.000) was significant, while the indirect effect through 
As presented in Table 4, analysis of the data concerning environmental reputation (β = 0.019, T = 0.0597, p = 0.551) 
mediation showed that environmental reputation had a was found to be insignificant. Furthermore, environmental 
complementary partial mediation effect on the relationship reputation had a full mediation effect on sustainable 
between sustainable transportation and financial performance packaging and distribution and financial performance 
because both direct effects (β = 0.173, T = 2.175, p = 0.030) relationship because the analysis indicated that the direct 
and indirect effects of environmental reputation (β = 0.134, effect was insignificant (β = −0.013, T = 0.142, p = 0.887), 
T = 2.653, p = 0.008) are significant with both path but the indirect effect of environmental reputation was 
coefficients being positive. Thus, Hypothesis 7b was significant (β = 0.110, T = 2.549, p = 0.011), thus, 
supported. Again, Hypothesis 7c was supported since the establishing the case of a full mediation and supporting 
relationship between reverse logistics and financial Hypothesis 7e. Hypothesis 7f was also supported by the 
performance indicated a full mediation as the direct effect study, indicating an indirect only mediation, which signifies 
of reverse logistics on financial performance was a full mediation, because the direct effect of green 
insignificant (β = 0.161, T = 1.339, p = 0.181), and the monitoring and evaluation on financial performance (β = 
indirect effect through environmental reputation (β = 0.031, T = 0.354, p = 0.724) was insignificant but that of 
0.309, T = 3.086, p = 0.002) was significant. This means the indirect effect through environmental reputation (β = 
that environmental reputation is key to logistics firms that −0.094, T = 2.219, p = 0.027) was significant. Finally, 
undertake reverse logistics in the sense that such practices environmental reputation’s indirect effect on the sustainable 
will enhance financial performance. Moreover, Hypothesis information sharing and financial performance relationship 
58 Vision 25(1)
Table 4. Specific Indirect Mediation
Path Beta Coefficient (b) Standard Deviation T-statistics (|O/STDEV|) p-Values Hypotheses
ST → ER → FP** 0.134 0.050 2.653 0.008 7b: Supported
RL → ER → FP*** 0.309 0.100 3.086 0.002 7c: Supported
WM → ER → FP* 0.019 0.031 0.597 0.551 7d: Not supported
SPD → ER → FP*** 0.110 0.043 2.549 0.011 7e: Supported
GME → ER → FP*** −0.094 0.042 2.219 0.027 7f: Supported
SIS → ER → FP**** 0.108 0.044 2.421 0.016 7g: Supported
Source: The authors.
Note: *: No mediation; **: complementary mediation; ***: full mediation; and ****: competitive mediation.
showed a competitive partial mediation effect because the performance. Again, environmental reputation had a full 
direct and indirect effects through environmental reputation mediation on the relationships among reverse logistics, 
between sustainable information sharing and financial sustainable packaging and distribution, green monitoring 
performance (β = −0.257, T = 2.450, p = 0.014) were both and evaluation, and financial performance, while having 
significant, but β coefficients moved in opposite directions, no mediation between waste management and financial 
thus supporting Hypothesis 7g. performance. Environmental reputation had a partial com-
petitive mediation on the relationship between sustainable 
information sharing and financial performance. This sug-
Conclusion and Implications gests that managers should encourage those practices, 
Concerns about preserving the environment are vital issues which boost the acquisition of environmental reputation, 
for industries worldwide. This study concentrated on logis- since it has an indirect influence on the relationships among 
tics firms due to less research focus on the service sector; sustainable transportation, reverse logistics, sustainable 
thus, the study focused on how sustainable logistics prac- packaging and distribution, green monitoring and evalua-
tices, specifically sustainable transportation, reverse logis- tion, and sustainable information sharing and financial 
tics, waste management, sustainable packaging and performance.
distribution, green monitoring and evaluation, and sustain- Also, this study seeks to contribute to the current 
able information sharing, influence an organization’s envi- literature by helping to understand sustainable logistics 
ronmental reputation and financial performance. The study practices in a global perspective since several studies on 
revealed key findings that may be crucial to logistics man- the subject have been conducted in developed countries 
agers in their task to preserve the environment as well as with less emphasis on developing countries. From the 
achieve organizational objectives. The study results indi- above-mentioned findings and conclusions, adopting and 
cated that sustainable logistics practices are key to attain- implementing sustainable logistics practices as an 
ing environmental reputation, improving financial organization is very necessary for smooth operations. 
performance, and help shape operations towards environ- Regardless of the nature of business operation or objectives, 
mental friendliness. Moreover, analysis and scrutiny of the there are always opportunities to strengthen and enhance 
data showed that sustainable transportation, reverse logis- sustainable practices in the organization, and as such, it is 
tics, waste management, sustainable packaging and distri- recommended that managers should collaboratively work 
bution, green monitoring and evaluation, and sustainable with stakeholders to better achieve sustainable objectives.
information sharing largely promoted and significantly 
contributed to achieving environmental reputation, which 
largely and significantly improves financial performance. Theoretical Implications
This shows that logistics managers should positively align The study assessed the relationships among sustainable 
to accepting sustainable practices, since they contribute to logistics practices, environmental reputation and financial 
environmental reputation, which also significantly affect performance. Basing on the study goals, we first explored 
financial performance of an organization. Furthermore, the the need to be environmentally sustainable. Specifically, 
results indicated that environmental reputation played an the study espoused the motivations for the adoption of 
indirect role by portraying that the influence of sustainable sustainable logistics practices from an institutional 
transportation, reverse logistics, waste management, sus- theory and natural resource–based view perspectives. The 
tainable packaging and distribution, green monitoring and institutional theory was explained from the perspectives of 
evaluation, and sustainable information sharing on finan- institutional isomorphism and organizational legitimacy. 
cial performance is not only direct but also influenced From both perspectives, the study results show that firms 
through their environmental reputation. The results showed in the logistics sector have shifted towards the adoption 
that environmental reputation had a partial complementary and implementation of sustainable logistics practices due 
mediation between sustainable transportation and financial to the fact that sustainable operational practices are 
Baah et al. 59
currently seen as the right and acceptable behaviour or sustainable transportation, reverse logistics, waste man-
norms. Hence, firms in their quest to promote stakeholder agement, sustainable packaging and distribution, green 
endorsement leading to organizational legitimacy align monitoring and evaluation, and sustainable information 
themselves with such practices, which reflect institutional sharing and financial performance, there are some short-
isomorphism. Additionally, based on the benefits that also falls of the study. The study modelled environmental repu-
arrive from the natural resource–based view, several firms tation as the only mediating variable; further, researches 
in their quest to promote superior competitive advantage can consider other variables since there may be others that 
and performance have engaged in practices that protect the mediate these relationships. Moreover, the single-country 
natural environment, enhance good stakeholder perception limitation establishes that the results of the study can only 
and endorsement. be explained in the Ghanaian setting, and thus the study 
results cannot be generalized. In addition, the procedure 
and findings of this study can be restructured and imple-
Practical Implications mented in other industries because green initiatives are 
The study provides relevant knowledge on sustainable now required of most firms. The study randomly selected 
logistics practices that can further improve current logistics firms that were operational and, as such, could not 
environmental practices and initiatives. The increasing consider all logistics companies operating in the country, 
need to reduce carbon footprints and reduce waste to based on reachability and other constraints. Finally, this 
portray environmental values and awareness, especially in study relied on five key sustainable logistics practices, 
the logistics sector, is highly important today where namely sustainable transportation, reverse logistics, waste 
logistics is integrated into business activities. Seeing the management, sustainable packaging and distribution, green 
spreading nature of logistics operations, policymakers monitoring and evaluation, and sustainable information 
through policies and subsidies can aid companies to adopt sharing, which were selected to suit the sector under study 
and implement sustainable logistics practices. These steps and establish their influence on environmental reputation 
boost cleaner production practices, promote environmental and financial performance; thus, further studies can then 
innovations, ensure sustainable packaging and product consider more sustainable practices to provide a much more 
recycling, among other, which will eventually lead to safer comprehensive view on sustainable logistics practices.
consumer products and healthier environments. Again, 
leaders of logistics firms can seek joint collaborations and Declaration of Conflict of Interest
support from green-sensitive stakeholders in the firm’s The authors declared no potential conflicts of interest with respect 
quest to improve sustainable logistics practices. Finally, to the research, authorship and/or publication of this article.
understanding and executing best sustainable logistics 
practices will enable firms to increase delivery efficiency, Funding
reduce cost, minimize raw material wastage and augment The authors received no financial support for the research, 
cleaner production practices, eventually, resulting in authorship and/or publication of this article.
increased productivity and better adherence to legislations.
ORCID iDs
Limitations and Further Research Charles Baah  https://orcid.org/0000-0002-4959-7851
Daniel Ofori  https://orcid.org/0000-0002-7546-6716
Despite the fact that the study results indicated environ- Innocent Senyo Kwasi Acquah  https://orcid.org/0000-0002- 
mental reputation as a key mediating variable among 6332-3005
Appendix 1. Measurement Items
Construct Item Measurement Item Mean Standard Deviation Source
Sustainable transport ST1* Adopting and implementing new energy sources to replace the use of fossil fuels
(ST) ST2 Promotes the reduction of driving time to minimize congestion, oil usage 4.200 0.760 De Souza et al. (2018) and Dubey 
and pollution et al. (2015)
ST3 Regularly engages in vehicle maintenance to reduce carbon footprints 4.017 0.832
ST4 Improves travel routes and schedules to reduce transport distance and 4.357 0.826
time
ST5 Encourages sharing of traffic information to ensure transparency with 4.113 0.842
stakeholders
Reverse logistics (RL) RL1 Collects unwanted or used products for remanufacturing, thus ensuring 4.316 0.892
quality
RL2 Retrieves used packaging for reuse or recycling 4.088 0.879 Lai and Wong (2012), Khan et 
al. (2017) and Govindan and 
Soleimani (2017)
RL3 Improves ecological material usage to reduce waste 4.035 0.837
RL4* Retrieves used or unwanted products for waste management purposes
RL5* Improves quality and timeliness of e-work and repair
Waste management WM1* Source reusable production materials Pujara et al. (2019), Walls (2006) 
(WM) WM2 Engages in reverse logistics to increase waste reuse 3.789 0.869 and Guerrero et al. (2013)
WM3 Engages in waste reduction campaigns 4.149 0.957
WM4 Available facilities for solid waste collection and processing 3.886 0.925
WM5* Suitability of infrastructure to manage waste
Sustainable packaging SPD1 Reduces product waste 3.748 0.912
and distribution (SPD) SPD2 Improves distribution and logistics efficiency 3.591 0.941
SPD3 Increases the use of ecological materials 3.174 0.932 Atmaca and Çalgüner (2018) and 
SPD4* Reduces toxicity and litter impacts of packaging materials Gustavo et al. (2017)
SPD5* Minimizes distribution time through efficient routing systems
Green monitoring and GME1 Promotes monitoring and the dissemination of information related to 3.130 0.985 Lai and Wong (2012) and 
evaluation (GME) sustainable  Colicchia et al. (2013)
practices
GME2* Green performance is periodically captured
GME3* Ensures visibility in annual reports on green monitoring
GME4 Measures are in place to track sustainable logistics practices and improve 3.774 0.933
such practices from time to time
GME5 Sustainable logistics practices are periodically reported and assessed 3.304 0.934
Sustainable information SIS1* Promotes disclosure of relevant information with all stakeholders
sharing (SIS) SIS2 Ensures sharing of valuable knowledge with partners 3.965 0.884
SIS3 Promotes joint sharing and usage of green obtained from environmental 3.765 0.873 Kaipia et al. (2017) and de 
assessment Camargo Fiorini and Jabbour 
SIS4 Encourages the exchange timely green information with supply chain 3.896 0.888 (2017)
partners and other stakeholders
SIS5* Ensures sharing of green know-how and expertise information with key 
stakeholders
Environmental ER1 Research and disclosure of environmental issues 4.261 0.803
reputation (ER) ER2 Encourages stakeholders involvement in planning and executing 4.357 0.826 Kim and Lee (2012) and Shashi et 
environmental practices al. (2019)
ER3 Allows environmental audits 4.079 0.956
ER4 Adoption of cleaner production methods 4.130 0.928
ER5* Responsive to environmental guidelines from all stakeholder groups
Financial performance FP1 Return on equity 3.988 0.978
(FP) FP2 Return on sales 4.139 0.959 Li et al. (2017) and Santis et al. 
(2016)
FP3* Return on investment
FP4 Profit margin 4.191 0.874
FP5 Net profit 3.835 0.977
Note: Items marked with * were deleted from the model due to low factor loadings.
62 Vision 25(1)
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Research Part E: Logistics and Transportation Review, About the Authors
41(1), 1–28. Charles Baah (charlieba3@gmail.com) received his BSc 
Organisation for Economic Co-operation and Development degree in Management Studies and Master degree in 
(OECD). (2010). Education at a glance 2010: OECD indica- Engineering from the University of Cape Coast and Dalian 
tors. OECD. Maritime University in 2015 and 2020, respectively. His 
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. research interests include green manufacturing, green 
P. (2003). Common method biases in behavioral research: A logistics, sustainable leaderships, green entrepreneurship 
critical review of the literature and recommended remedies. 
Journal of Applied Psychology, 88(5), 879. and innovation. He has served as a reviewer for reputable 
Pujara, Y., Pathak, P., Sharma, A., & Govani, J. (2019). Review journals, engaged in several research initiatives and has 
on Indian municipal solid waste management practices for published in Q1 journals such as Journal of Cleaner 
reduction of environmental impacts to achieve sustainable Production, Sustainable Production and Consumption and 
development goals. Journal of Environmental Management, Journal of Manufacturing Technology Management among 
248, 109238. https://doi.org/10.1016/j.jenvman.2019.07.009 others.
64 Vision 25(1)
Kate T. Amponsah (ewurak8@gmail.com) received her Institute of Procurement and Supply, CIPS, UK. His 
BSc degree in Ports and Shipping Administration and research interests include green consumerism, waste 
Master degree in Business Administration and Management management in the supply chain, sustainable consumption 
from Regional Maritime University and Dalian Maritime and production. Daniel has published about six articles in 
University, respectively. Being exposed to the complexities international referred Journals.
of the global transport trade, day-to-day operation of ships 
and ports, the intricate web of law, regulations and Innocent Senyo Kwasi  Acquah (iacquah@ucc.edu.gh) 
economic interests that govern maritime business and holds a PhD in Supply Chain Management (University of 
industry, she consults for and has research interests on KwaZulu-Natal), an MSc in Supply Chain Management 
sustainable port performance management, customer and (Coventry University), an M.com in Marketing (University 
supplier relations management, and business and human of Cape Coast) and an LLM in Public Procurement Law 
resource management. and Policy (University of Nottingham). He is a lecturer and 
coordinates the CIPS accredited MSc and MCom 
Kassimu Issau (kissau@ucc.edu.gh) is a lecturer at School (Procurement and Supply Chain Management) programmes 
of Business, University of Cape Coast (Ghana). He holds a at the University of Cape Coast. Dr Acquah is a Fellow of 
PhD in Marketing from the University of KwaZulu-Natal, the Chartered Institute of Procurement and Supply, UK.
South Africa. He received his undergraduate and postgrad-
uate certificates from the University of Cape Coast, Ghana, Douglas Opoku Agyeman (odouglasagyeman@yahoo.
in Management and Marketing, respectively. He received com) holds a Master of Philosophy in Marketing from the 
his certificate in Agri-Entrepreneurship and Supply University of Ghana and a first-class bachelor’s degree in 
Chain Management from Entrepreneurship Development Management Studies from the University of Cape Coast. 
Institute, India. His research interests include market, inno- He has held teaching and research positions at the 
vation, learning and entrepreneurial orientations. He has University of Ghana Business School, University of Cape 
published in reputable journals. Coast Distance Education and Knutsford University 
College, Accra. Douglas consults for and has research 
Daniel Ofori (dofori@ucc.edu.gh) is an assistant lecturer interests in branding, electronic business, digital and social 
in the Department of Marketing and Supply Chain media marketing and general consumer/firm-level studies. 
Management, School of Business, University of Cape He has published six papers in internationally peer-
Coast. He is a full professional member of the Chartered reviewed journals.