Challenges and Factors Influencing the Implementation of Green Logistics: A Case Study of Saudi Arabia

Abstract

Logistics operations significantly depend on fossil fuels and non-renewable energy sources, posing challenges to environmental sustainability. Achieving a balance between environmental protection and economic efficiency is vital in logistics decision-making. The concept of green logistics aims to reduce environmental externalities by adopting sustainable practices. This research explores the adoption and utilization of green logistics technologies and information systems through a structural equation model, focusing on key factors such as environmental awareness, organizational culture, and financial considerations. The research methodology involved using a specially designed questionnaire to collect data, which was subsequently analyzed through various stages. The study selected Saudi Arabia as a case study due to its rapid development in the logistics sector and its significant CO2 emissions. Initially, a general quantitative descriptive analysis was performed on the collected responses. This was followed by more detailed analyses to uncover the finer nuances in stakeholders’ perspectives. Additionally, correlation analysis was conducted to identify significant associations between variables and to understand their potential interactions. The findings reveal high environmental awareness among stakeholders, a positive organizational culture conducive to sustainability practices, and a strong recognition of the benefits of green logistics technologies. However, there is room for improvement in technological readiness and a need for clearer government regulations and more robust policy support. Financial considerations are complex, with significant initial investments required and long-term financial benefits recognized.