Abstract
Sustainability is a subject of growing interest in business and environmental management. Many previous studies have emphasized the trade-off between economic activities such as manufacturing and its effect on the environment. Moreover, previous studies have mainly focused on manufacturing enterprises; however, no study has yet to cover the logistics sector. This study fills these gaps by testing the causal relationship between proactive green management and the sustainable performance of logistics enterprise in China. In addition, when compared with previous literature that discusses the partial relationship between environmental variables and firm performance, this study synthesizes the factors of green awareness and green strategy that may influence green logistics management in a total systematic structural equation model (SEM). SEM has an advantage in examining the causal relationship between green logistics practice and its business performance. The result shows that green logistics practice has a positive impact on sustainable business performance. This impact is composed of both a positive financial and environmental performance, while the relationship between green awareness and business performance and the influence of green strategy on business performance is not significant. Keywords: Green logistics management, structural equation model (SEM), business performance, Chinese logistics enterprises.
Highlights
As the global economy integrates countries across the world, the paradigm shift from manufacturing to assembling has emphasized the importance of logistics
The results show that the green strategy has a significant positive effect on green management (p < 0.01), accepting H3a, but it has no significant impact on business performance, rejecting H3b
This study aims to contribute to current literature by introducing a synthetic model that is based on structural equation modeling to test the causal relationship between green logistics management and business performance of the logistics sector in China
Summary
As the global economy integrates countries across the world, the paradigm shift from manufacturing to assembling has emphasized the importance of logistics. Logistics has been widely used to describe integrated practice among the networks of transportation, storage, and handling of products as they move from material source through the supply chain system to the final point of sale or consumption, which is the key determinant of business performance (Choi, 2011). Public concern began to increase over environmental issues, and new international standards were introduced, including ISO 14001 and ISO 26000, in order to accredit enterprises’ green practices (Lee, 2009). If the enterprises plan to extract more value by adopting green management, they must make environmental management a strategic element of their business performance
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