ASSESSING THE IMPACT OF SUSTAINABLE LOGISTICS INNOVATION ON FIRM PERFORMANCE

Abstract

In this article, the long-term effect of Sustainable Logistics Innovation (SLI) on multinational corporations’ (MNCs) performance with respect to financial, operational, and environmental dimensions is investigated. With globalization and worldwide sustainability concerns, those businesses that need to adapt eco-friendly logistics solutions, but there is little empirical research in the long-term impact. This article uses longitudinal research methodology with the analysis of the secondary data of Corporate Sustainability Reports, financial statements, and industry benchmark to test the on-going trend. In a nutshell, firms are able to realize significant savings in cost despite the increase in cost associated with the adoption of sustainable logistics solutions, enjoy better brand reputation and increase in revenue with the majority of consumers now a lot more keen on purchasing sustainable products. With that said though, the high initial costs for investment are a main issue and technological adoption barriers are present too. At the same time, the study finds that SLI is much more than an environmental necessity; it is a business imperative for economic growth and business advantage over those competitors that have yet to comply with environmental regulations. The findings are useful for corporate decision makers as well policymakers in promoting sustainable logistics innovation.