Unveiling the Role of Green Logistics Management in Improving SMEs’ Sustainability Performance: Do Circular Economy Practices and Supply Chain Traceability Matter?

Sustainability has been widely recognized as a pervasive phenomenon that underlies the operations and performance of businesses. Recent research has examined the effect of green logistics management on the sustainability performance of businesses. However, we contend that the relationship between gr...

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Main Authors: Bo Zhou, Abu Bakkar Siddik, Guang-Wen Zheng, Mohammad Masukujjaman
Format: Article
Language:English
Published: MDPI AG 2023-04-01
Series:Systems
Subjects:
Online Access:https://www.mdpi.com/2079-8954/11/4/198
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author Bo Zhou
Abu Bakkar Siddik
Guang-Wen Zheng
Mohammad Masukujjaman
author_facet Bo Zhou
Abu Bakkar Siddik
Guang-Wen Zheng
Mohammad Masukujjaman
author_sort Bo Zhou
collection DOAJ
description Sustainability has been widely recognized as a pervasive phenomenon that underlies the operations and performance of businesses. Recent research has examined the effect of green logistics management on the sustainability performance of businesses. However, we contend that the relationship between green logistics management and the sustainability performance of firms is not direct but mediated through circular economy practices. We analyze the direct and indirect effects of green logistics management on business sustainability performance via circular economy practices, using the natural resource-based view and resource dependence theory as our theoretical underpinnings. This study also assesses the moderating effect of supply chain traceability on the associations. Drawing upon the empirical data from 211 Bangladeshi manufacturing SMEs, we performed the PLS-SEM technique to assess the hypotheses. The findings show that green logistics management positively affects organizations’ circular economy practices and sustainability performance. Furthermore, supply chain traceability strongly affects SMEs’ circular economy practice but fails to moderate the linkage between green logistics and sustainability performance. Finally, circular economy practice mediates the linkage between SMEs’ green logistics management and sustainability performance. We also conducted the Sobel test to validate the mediation. Our findings advance the natural resource-based view and resource dependence theory while improving the understanding of green logistics management, circular economy practices, and sustainability performance. Given the dearth of literature assessing the complex interactions among these variables, our findings have pivotal implications.
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spelling doaj.art-fca47f9c99ec4ba6b85d83ac0c87fe782023-11-17T21:35:36ZengMDPI AGSystems2079-89542023-04-0111419810.3390/systems11040198Unveiling the Role of Green Logistics Management in Improving SMEs’ Sustainability Performance: Do Circular Economy Practices and Supply Chain Traceability Matter?Bo Zhou0Abu Bakkar Siddik1Guang-Wen Zheng2Mohammad Masukujjaman3School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, ChinaSchool of Management, University of Science and Technology of China, Jinzhai Road, Hefei 230026, ChinaSchool of Economics and Management, Shaanxi University of Science and Technology, Xi’an 710021, ChinaGraduate School of Business, Universiti Kebangsaan Malaysia (UKM), Bangi 43600, Selangor, MalaysiaSustainability has been widely recognized as a pervasive phenomenon that underlies the operations and performance of businesses. Recent research has examined the effect of green logistics management on the sustainability performance of businesses. However, we contend that the relationship between green logistics management and the sustainability performance of firms is not direct but mediated through circular economy practices. We analyze the direct and indirect effects of green logistics management on business sustainability performance via circular economy practices, using the natural resource-based view and resource dependence theory as our theoretical underpinnings. This study also assesses the moderating effect of supply chain traceability on the associations. Drawing upon the empirical data from 211 Bangladeshi manufacturing SMEs, we performed the PLS-SEM technique to assess the hypotheses. The findings show that green logistics management positively affects organizations’ circular economy practices and sustainability performance. Furthermore, supply chain traceability strongly affects SMEs’ circular economy practice but fails to moderate the linkage between green logistics and sustainability performance. Finally, circular economy practice mediates the linkage between SMEs’ green logistics management and sustainability performance. We also conducted the Sobel test to validate the mediation. Our findings advance the natural resource-based view and resource dependence theory while improving the understanding of green logistics management, circular economy practices, and sustainability performance. Given the dearth of literature assessing the complex interactions among these variables, our findings have pivotal implications.https://www.mdpi.com/2079-8954/11/4/198green logistics managementcircular economy practicessustainability performancesupply chain traceabilitysmall and medium enterprises
spellingShingle Bo Zhou
Abu Bakkar Siddik
Guang-Wen Zheng
Mohammad Masukujjaman
Unveiling the Role of Green Logistics Management in Improving SMEs’ Sustainability Performance: Do Circular Economy Practices and Supply Chain Traceability Matter?
Systems
green logistics management
circular economy practices
sustainability performance
supply chain traceability
small and medium enterprises
title Unveiling the Role of Green Logistics Management in Improving SMEs’ Sustainability Performance: Do Circular Economy Practices and Supply Chain Traceability Matter?
title_full Unveiling the Role of Green Logistics Management in Improving SMEs’ Sustainability Performance: Do Circular Economy Practices and Supply Chain Traceability Matter?
title_fullStr Unveiling the Role of Green Logistics Management in Improving SMEs’ Sustainability Performance: Do Circular Economy Practices and Supply Chain Traceability Matter?
title_full_unstemmed Unveiling the Role of Green Logistics Management in Improving SMEs’ Sustainability Performance: Do Circular Economy Practices and Supply Chain Traceability Matter?
title_short Unveiling the Role of Green Logistics Management in Improving SMEs’ Sustainability Performance: Do Circular Economy Practices and Supply Chain Traceability Matter?
title_sort unveiling the role of green logistics management in improving smes sustainability performance do circular economy practices and supply chain traceability matter
topic green logistics management
circular economy practices
sustainability performance
supply chain traceability
small and medium enterprises
url https://www.mdpi.com/2079-8954/11/4/198
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AT guangwenzheng unveilingtheroleofgreenlogisticsmanagementinimprovingsmessustainabilityperformancedocirculareconomypracticesandsupplychaintraceabilitymatter
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