Understanding what, how and when green logistics practices influence carbon-neutral supply chain performance

Purpose - Integrating green (sustainable) practices in logistics management play a crucial role in accelerating the transition to a circular economy, realizing its sustainability potential and position in the net zero emission target by 2050. Over the past decade, this integration has attracted significant attention in both academic and industrial discourse. Despite the increasing recognition of the benefits of green logistics practices (GLPs), only a few firms have implemented green-oriented or sustainable logistics practices; hence, a comprehensive understanding of what could drive its implementation as well as how and when firms can benefit from GLPs is of key importance for theory, policy and practice. Drawing on dual theoretical lenses, this study investigated how supply chain ethical leadership (SCEL) could stimulate green logistics practices by building green core competencies (GCC) under varying conditions of corporate green culture (CGC). Design/methodology/approach - An integrated model motivated by social learning and contingency theories was tested using responses from 208 managers of logistics firms in Ghana. SPSS 23 and covariance-based structural equation modeling (CB-SEM) were used for data analyses. Findings - Both SCEL and GCC significantly influenced GLPs. The findings also showed that GLPs significantly enhanced carbon-neutral supply chain performance (CNSCP). The results further showed that GCC mediates the SCEL–GLPs link. We also found that the effect of SCEL on GLPs was amplified at a high level of CGC. Practical implications - This study offers fresh insight into how managers can leverage SCEL to support GLP and when they can also combine green competence and green culture to achieve enhanced benefits in the form of carbon-neutral SCP. This further implies that building ethical leadership and competencies alone may not be sufficient to drive superior emission reduction and subsequent sustainability; rather, cultivating a green-oriented culture that values sustainable logistics is crucial to fully realize the potential of ethical leadership and competencies in enabling the implementation of GLPs and subsequently enhancing carbon-neutral SCP. Originality/value - The novelty of the present study lies in the integration of social learning and contingency theories to unearth the mechanism and conditional roles of green competence and green culture in optimizing the SCEL–GLPs–GLP relationship. The study is also among the few attempts to shed light on how firms can leverage GLPs to enhance carbon-neutral supply chain performance, which is rare.