The Effects of IoT on Sustainable Logistics Management Practices and Sustainability Performance in the Manufacturing Sector: A Comparative Study of Ghana and Indonesi

Article Sidebar

PDF
Published: Dec 30, 2024
DOI: https://doi.org/10.15575/ks.v6i3.38197
Keywords:
Sustainable logistics, IoT, sustainability performance, manufacturing sector, cross-country analysis.

Main Article Content

Gilbert Korku Akubia
UNIVERSITAS PENDIDIKAN INDONESIA
http://orcid.org/0009-0000-9208-080X
Vanessa Gaffar
UNIVERSITAS PENDIDIKAN INDONESIA
http://orcid.org/0000-0003-3304-8679
Mokh Adib Sultan
UNIVERSITAS PENDIDIKAN INDONESIA
https://orcid.org/0000-0002-5379-9050
Denny Andriana
UNIVERSITAS PENDIDIKAN INDONESIA
https://orcid.org/0000-0003-3167-0261

Abstract

This study examines the impact of sustainable logistics practices—green transportation, waste management, energy efficiency, and sustainable packaging—on sustainability performance in the manufacturing sectors of Ghana and Indonesia, with a focus on the moderating role of Internet of Things (IoT) development. The research highlights the importance of both internal resources and external factors in achieving sustainability goals. Using a quantitative approach and a descriptive survey design, data were collected from 374 manufacturing firms in Ghana and 379 in Indonesia. The study employed a structured questionnaire and applied Ordinary Least Squares (OLS) regression to analyze the relationship between sustainable logistics practices, IoT growth, and sustainability performance. Sustainable logistics practices positively influence sustainability performance, with IoT moderating this relationship. Firms in Indonesia demonstrated higher performance due to advanced IoT infrastructure, while Ghana showed limitations due to less developed technological infrastructure. The findings emphasize the need for investment in IoT infrastructure to enhance the effectiveness of sustainable logistics practices, particularly in developing countries. The study contributes new insights into the moderating role of IoT in sustainability and offers practical guidance for policymakers and businesses. This study provides a novel cross-country perspective on how IoT development influences the effectiveness of sustainable logistics practices in emerging economies, bridging gaps in the existing literature on technology-driven sustainability strategies.

Article Details

Issue
Vol. 6 No. 3 (2024): Khazanah Sosial
Section
Articles

Copyright and License

Authors who publish with Khazanah Sosial agree to the following terms:

  1. Authors retain the copyright of their work and grant Khazanah Sosial the right of first publication. The work is simultaneously licensed under the Creative Commons Attribution-ShareAlike 4.0 International License (CC BY-SA 4.0), which permits others to share the work, provided that appropriate credit is given to the authors and the original publication in Khazanah Sosial is acknowledged.

  2. Authors may enter into separate, additional contractual arrangements for the non-exclusive distribution of the published version of their work, such as depositing it in an institutional repository or including it in a book, provided that its initial publication in Khazanah Sosial is acknowledged.

  3. Authors are permitted and encouraged to share their work online, including through institutional repositories and personal websites, before and during the submission process. Such sharing may facilitate scholarly exchange and increase the visibility and citation of published work. For further information, see The Effect of Open Access.

References

Akram, R., Chen, F., Khalid, F., Ye, Z., & Majeed, M. T. (2020). Heterogeneous effects of energy efficiency and renewable energy on carbon emissions: Evidence from developing countries. Journal of Cleaner Production, 247, 119122.

Antoni, D., Jie, F., & Abareshi, A. (2020). Critical factors in information technology capability for enhancing firm’s environmental performance: case of Indonesian ICT sector. International Journal of Agile Systems and Management, 13(2), 159–181.

Azevedo, S. G., Carvalho, H., & Machado, V. C. (2011). The influence of green practices on supply chain performance: A case study approach. Transportation Research Part E: Logistics and Transportation Review, 47(6), 850–871.

Bachim, T., Martens, M. L., Gonçalves, R. F., Bizarrias, F. S., & Machado, M. C. (2023). An IoT system for managing machine tool spindles in operation. The International Journal of Advanced Manufacturing Technology, 128(3–4), 1689–1707.

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Boiral, O., Baron, C., & Gunnlaugson, O. (2014). Environmental leadership and consciousness development: A case study among Canadian SMEs. Journal of Business Ethics, 123, 363–383.

Borgert, T., Donovan, J. D., Topple, C., & Masli, E. K. (2020). Impact analysis in the assessment of corporate sustainability by foreign multinationals operating in emerging markets: Evidence from manufacturing in Indonesia. Journal of Cleaner Production, 260, 120714.

Bruce, E., Shurong, Z., Ying, D., Yaqi, M., Amoah, J., & Egala, S. B. (2023). The effect of digital marketing adoption on SMEs sustainable growth: Empirical evidence from Ghana. Sustainability, 15(6), 4760.

Comi, A., Schiraldi, M. M., & Buttarazzi, B. (2018). Smart urban freight transport: tools for planning and optimising delivery operations. Simulation Modelling Practice and Theory, 88, 48–61.

Creswell, J. W., & Creswell, J. D. (2020). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. London: SAGE Publications.

Crook, T. R., Ketchen Jr, D. J., Combs, J. G., & Todd, S. Y. (2008). Strategic resources and performance: a metaâ€analysis. Strategic Management Journal, 29(11), 1141–1154.

De Souza, L. L. P., Lora, E. E. S., Palacio, J. C. E., Rocha, M. H., Renó, M. L. G., & Venturini, O. J. (2018). Comparative environmental life cycle assessment of conventional vehicles with different fuel options, plug-in hybrid and electric vehicles for a sustainable transportation system in Brazil. Journal of Cleaner Production, 203, 444–468.

Deng, P., & Yang, M. (2015). Cross-border mergers and acquisitions by emerging market firms: A comparative investigation. International Business Review, 24(1), 157–172.

Dharmayanti, N., Ismail, T., Hanifah, I. A., & Taqi, M. (2023). t and digital adaptability in indonesian context. Journal of Open Innovation: Technology, Market, and Complexity, 9(3), 100119.

DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147. https://doi.org/10.2307/2095101

Ehie, I. C., & Chilton, M. A. (2020). Understanding the influence of IT/OT Convergence on the adoption of Internet of Things (IoT) in manufacturing organizations: An empirical investigation. Computers in Industry, 115, 103166.

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10â€11), 1105–1121.

El-Aziz, R., El-Gamal, S., & Ismail, M. (2020). Mediating and moderating factors affecting readiness to IoT applications: The banking sector context. International Journal of Managing Information Technology (IJMIT) Vol, 12.

Fercoq, A., Lamouri, S., & Carbone, V. (2016). Lean/Green integration focused on waste reduction techniques. Journal of Cleaner Production, 137, 567–578.

Gupta, A. K., & Gupta, N. (2020). Effect of corporate environmental sustainability on dimensions of firm performance–Towards sustainable development: Evidence from India. Journal of Cleaner Production, 253, 119948.

Hegab, H., Khanna, N., Monib, N., & Salem, A. (2023). Design for sustainable additive manufacturing: A review. Sustainable Materials and Technologies, 35, e00576.

Kilay, A. L., Simamora, B. H., & Putra, D. P. (2022). The influence of e-payment and e-commerce services on supply chain performance: Implications of open innovation and solutions for the digitalization of micro, small, and medium enterprises (MSMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 119.

Kshetri, N. (2017). The evolution of the internet of things industry and market in China: An interplay of institutions, demands and supply. Telecommunications Policy, 41(1), 49–67.

Lai, K., & Wong, C. W. Y. (2012). Green logistics management and performance: Some empirical evidence from Chinese manufacturing exporters. Omega, 40(3), 267–282.

Lee, M. (2019). An empirical study of home IoT services in South Korea: the moderating effect of the usage experience. International Journal of Human–Computer Interaction, 35(7), 535–547.

Lieder, M., & Rashid, A. (2016). Towards circular economy implementation: a comprehensive review in context of manufacturing industry. Journal of Cleaner Production, 115, 36–51.

Marrucci, L., Marchi, M., & Daddi, T. (2020). Improving the carbon footprint of food and packaging waste management in a supermarket of the Italian retail sector. Waste Management, 105, 594–603.

McKinnon, A., Browne, M., Whiteing, A., & Piecyk, M. (2015). Green logistics: Improving the environmental sustainability of logistics. Kogan Page Publishers.

Messerli, P., Murniningtyas, E., Eloundou-Enyegue, P., Foli, E. G., Furman, E., Glassman, A., … Moatti, J.-P. (2019). Global sustainable development report 2019: the future is now–science for achieving sustainable development.

Moore, S. B., & Manring, S. L. (2009). Strategy development in small and medium sized enterprises for sustainability and increased value creation. Journal of Cleaner Production, 17(2), 276–282.

Nižetić, S., Šolić, P., Gonzalez-De, D. L.-I., & Patrono, L. (2020). Internet of Things (IoT): Opportunities, issues and challenges towards a smart and sustainable future. Journal of Cleaner Production, 274, 122877.

Searcy, C., & Buslovich, R. (2014). Corporate perspectives on the development and use of sustainability reports. Journal of Business Ethics, 121, 149–169.

Setyaningsih, I., Indarti, N., & Jie, F. (2018). Bibliometric analysis of the term’green manufacturing’. International Journal of Management Concepts and Philosophy, 11(3), 315–339.

Srivastava, R. K., Fahey, L., & Christensen, H. K. (2001). The resource-based view and marketing: The role of market-based assets in gaining competitive advantage. Journal of Management, 27(6), 777–802.

Tan, H., Yan, Y., & Wu, Z. Z. (2024). Determinants of the transition towards circular economy in SMEs: a sustainable supply chain management perspective. Environmental Science and Pollution Research, 31(11), 16865–16883. https://doi.org/10.1007/s11356-024-31855-8

Trianni, A., Cagno, E., & Worrell, E. (2013). Innovation and adoption of energy efficient technologies: An exploratory analysis of Italian primary metal manufacturing SMEs. Energy Policy, 61, 430–440.

Trivellas, P., Malindretos, G., & Reklitis, P. (2020). Implications of green logistics management on sustainable business and supply chain performance: evidence from a survey in the greek agri-food sector. Sustainability, 12(24), 10515.

Umar, M., Khan, S. A. R., Zia-ul-haq, H. M., Yusliza, M. Y., & Farooq, K. (2022). The role of emerging technologies in implementing green practices to achieve sustainable operations. TQM Journal, 34(2), 232–249. https://doi.org/10.1108/TQM-06-2021-0172

Verbeke, A., & Tung, V. (2013). The future of stakeholder management theory: A temporal perspective. Journal of Business Ethics, 112, 529–543.

Verma, A. (2024). Green Logistics Practices Toward a Circular Economy: A Way to Sustainable Development. Management and Production Engineering Review, 15(2), 124–135. https://doi.org/10.24425/mper.2024.151136

Woon, K. S., Phuang, Z. X., Taler, J., Varbanov, P. S., Chong, C. T., Klemeš, J. J., & Lee, C. T. (2023). Recent advances in urban green energy development towards carbon emissions neutrality. Energy, 267, 126502.

Yildiz Çankaya, S., & Sezen, B. (2019). Effects of green supply chain management practices on sustainability performance. Journal of Manufacturing Technology Management, 30(1), 98–121.

Zhou, B., Siddik, A. B., Zheng, G.-W., & Masukujjaman, M. (2023). Unveiling the Role of Green Logistics Management in Improving SMEs’ Sustainability Performance: Do Circular Economy Practices and Supply Chain Traceability Matter? Systems, 11(4). https://doi.org/10.3390/systems11040198