Environmental, social and economic growth indicators spur logistics performance: From the perspective of South Asian Association for Regional Cooperation countries

Abstract

This article examines the association between green logistics operations, social, environmental and economic indicators of SAARC (South Asian Association for Regional Cooperation) countries. The research used GMM (Generalized Method of Moments) and FGLS (Feasible Generalized Least Squares) two methods to tackle the problems of heterogeneity, serial correlation and heteroskedasticity. The findings show that fossil fuel consumption is at the heart of logistics operations; the more fossil fuel and non-green energy resources that are used, the more negative effects on society and environmental sustainability result from this. A lower quality of transport-related infrastructure and logistics services is negatively correlated with fossil fuel usage, carbon emissions, health expenditure, greenhouse gas emissions and political instability of SAARC countries. Conversely, efficient customs procedures and greater information sharing among supply chain partners increase trade opportunities and also improve environmental sustainability in terms of minimum carbon emissions due to the shorter waiting and queue times involved. Further, the application of green energy resources and green practices can mitigate negative effects on social and environmental sustainability due to better logistics operations while improving financial performance in terms of higher GDP per capita, trade openness and greater export opportunities around the globe. As there is very limited research using green practices relationship with macro-level indicators in current literature, this research will assist both practitioners and policymakers to understand the roles of green supply chain and green logistics in enhancing environmental sustainability, social improvement and economic growth for a better future.

A green ideology in Asian emerging economies: From environmental policy and sustainable development

“…The ecological modernization theory has become one of the leading perspectives of decarbonization and the role of green practices in business operations (Khan et al, ; Spaargaren, ). The theory argues that modern green technology and innovations (green practices in businesses) enhance environmental performance in terms of reducing the harmful effect on environmental sustainability (Jänicke, ; Spaargaren, ; Zhu, Sarkis, & Lai, ).…”

“…Stakeholder theory suggests that firms produce externalities, which can cause stakeholders to put pressure on firms to reduce negative effects, and thus influence on organizational practices (Freeman, ; Lange & Bundy, ). Burrell, Hewlett, Luce, and Frohman () highlighted that most businesses and logistics operations have harmful effects on our society, resulting in environmental degradation and human diseases including ischaemic heart disease, lung cancer, stroke, cholera, amoebiasis, giardiasis, and hepatitis (Acquaye, Yamoah, & Feng, ; Khan et al, ; Khan et al, ). For a couple of decades, companies have been mainly emphasizing on corporate social responsibility so as to significantly mitigate their logistics and manufacturing operations' negative effects on society (Rodríguez, Montiel, & Ozuna, ).…”

A Systematic Literature Review of Green and Sustainable Logistics: Bibliometric Analysis, Research Trend and Knowledge Taxonomy

“…A questionnaire survey conducted by Makan and Heyns [55] found that the pressures from consumer, brand protection, top management, and cost-saving and revenue are the major drivers for freight organizations to implement the sustainable initiatives. Khan et al [56] modeled the impact of G&SL performance on the countries' economic development and macro-level social and environmental indicators. Papoutsis et al [57] and Solomon et al [58] both maintained that logistics sustainability is closely related to operational efficiency and social acceptance from an economic and environmental perspective.…”

Sustainability Reporting for Inland Port Managing Bodies: A Stakeholder-Based View on Materiality

“…Sustainability is foremost regarded as a global concept, which implies a certain degree of complexity when applied at the organizational level [24]. More specifically, sustainability issues related to social or environmental performance transcend the boundaries of the organization [26]. Unlike financial reporting boundaries, which rely on the principle of financial control, boundaries concerning sustainability performance explicitly need to consider impacts beyond full organizational control [15].…”

“…In total, 105 responses were received, of which 31 needed to be deleted because of respondents that dropped out at the beginning of the survey. The division is as follows: clients (12), personnel (26), and broader society (36).…”