The influence of Green Logistics on Operational Performance in the KSA

Abstract

Advances in technology have substantially affected businesses across the globe, in particular enhancing the value chain process. This paper explores the integration of sustainable operations management in corporate organizations, specifically in the context of the Kingdom of Saudi Arabia (KSA). Hereby, we aim to open a new field of study, namely green logistics and the sustainable integration of green logistics practices with the environment. Furthermore, we examine the increasing gap emerging in green logistics in the KSA and identify potential reasons; subsequently, we offer solutions to use innovation in enhancing the performance of green logistics in the KSA. The qualitative inductive approach is used, and primary and secondary data are gathered to arrive at conclusions and develop these recommendations. Based on semi-structured interviews with employees at firms located in the KSA, this study examines the operations management practices of these firms and determines their performance in relation to green logistics and to what extent these have contributed to environmental sustainability. We show that the principal driver of these organizations in adopting green logistics management (GLM) practices has been enhancing performance. However, organizations should also take part in developing green programs to ensure effective political change and receive support from the government to derive administrative guidelines that assure enhanced environmental sustainability. We conclude that GLM can positively affect an organization’s financial performance by reducing costs and maximizing resource availability. Furthermore, GLM practices reduce business risks and speed up development, reduce production costs by lowering the costs of operations, and enhance worker satisfaction, thereby ensuring improved performance. It is also shown how GLM can impact not just a firm’s overall performance but also the environment and society as a whole, thereby offering a highly competitive edge for firms in the market that use green practices compared to those that don’t across industries.