Leadership and Management Commitment towards Logistics Performance Improvement in Malaysia with the Adoption of Green Logistics as the Moderating Variable

Abstract

This study is to look into the leadership and management commitment of logistics service firms in Malaysia towards improving their logistics service performance by adopting the green logistics practices. As concern for many environmental issues that arises nowadays, logistics service firms must look more seriously of the logistics associated external costs mainly with the climate change, air pollution, noise pollution, land use, vibration, accidents and wastes. Apart from reducing the logistics costs as their focus, the world is concern about the issue of climate change and the increasing of carbon dioxide (CO2) emission from the operations of various transportation modes, especially on the road freight. Several researches conducted over a decade found out that human activities are releasing huge amounts of greenhouse gases into the atmosphere which had increase the greenhouse effect and warming the climate. In facing global warming and limited amount of energy resources, initiatives on green saving and low carbon emission of road transport service are among the major policy objectives that need to be implemented in Malaysia. Considering these externalities not only help the logistics service firms to reduce their operational costs but also helps to keep the globe green. The logistics services provided must be able to satisfy customer’s demand and most importantly, to come out with better solutions and new ideas to cope with the pace evolution in the manufacturing industry. This study adds to the existing literature by explaining conceptually the linkage between leadership and management commitment towards logistics performance improvement by adopting the green logistics practices.