Management and Production Engineering Review

Volume 15 • Number 2 • June 2024 • pp. 124–135

DOI: 10.24425/mper.2024.151136

Green Logistics Practices Toward a Circular Economy:

A Way to Sustainable Development
Amitabh Verma
Sohar University, Faculty of Business, Oman

Received: 6 February 2024 Abstract

Accepted: 09 May 2024 This research investigates the effects of green logistics practices on the sustainability perfor-
mance of manufacturing enterprises in Oman, with a particular focus on the mediating role of
circular economy practices. Analyzing data from 220 manufacturing companies through the
PLS-SEM method, the findings reveal that green logistics management significantly enhances
an organization’s sustainability and adherence to circular economy principles. Notably, while
supply chain trackability greatly impacts circular economy practices, it does not moderate the
relationship between sustainable performance and green logistics. This study enhances the
understanding of how green logistics can support sustainable development and the implemen-
tation of circular economy practices in the manufacturing sector.

Keywords
Green Manufacturing; Green Logistics; Circular Economy; Sustainable development; Manufac-
turing companies.

Introduction and infrastructural constraints (Geng et al., 2017).

These gaps hinder the transition to a circular economy,
where waste is minimized, and resources are reused,
This study explores the integration of environmen- threatening the broader objective of sustainable de-
tally friendly logistics operations within the framework velopment (Hung Lau, 2011). This underscores the
of a circular economy in Oman to promote sustainable urgent need for innovative, scalable solutions to bal-
development. It highlights the importance of adopting ance economic growth with environmental stewardship
sustainable logistics practices that reduce environmen- and social responsibility (Seroka-Stolka, 2014).
tal impact, improve resource efficiency, and support The purpose of this study is to examine the imple-
economic sustainability (de Souza et al., 2022). This mentation of green logistics practices in Oman within
approach involves rethinking traditional logistics and a circular economy framework (El-Kassar & Singh,
supply chain management to prioritize waste reduc- 2019) and to assess their impact on sustainable devel-
tion, recycling, and resource reuse, aiming to establish opment. It aims to identify barriers and facilitators
a closed-loop system (Kirchherr et al., 2017) that min- to adopting these practices, evaluate their effective-
imizes resource consumption and environmental degra- ness in reducing environmental impact, and propose
dation, thereby advancing sustainable development actionable strategies for businesses and policymak-
goals (Younis et al., 2016). ers (Abdel-Basset et al., 2021). This study seeks to
contribute to the body of knowledge on sustainable
Despite the recognized importance of green logis-
logistics and provide insights that can drive the transi-
tics in achieving a circular economy and sustainable
tion to more sustainable, circular economy practices in
development, significant implementation gaps persist
the logistics sector (Rogers & Tibben-Lembke, 2001).
(Korhonen et al., 2018a). Many industries face chal-
This study identifies several key areas requiring fur-
lenges in effectively integrating green logistics practices
ther investigation, leading to the development of spe-
(Cheng et al., 2023) due to economic, technological,
cific research questions and hypotheses. The surveyed
entities, as detailed in Table 1, primarily consist of var-
Corresponding author: Amitabh Verma – Amitabh VERMA, ious companies across Oman. The research questions
Sohar University, 3111 Al Jamiah Street Sohar 311, Oman, for this study are as follows:
phone: +981 26850100, e-mail: [email protected] RQ1: What are the main barriers to implementing
c 2024 The Author(s). This is an open access article under the green logistics practices in the context of a circular
CC BY license (http://creativecommons.org/licenses/by/4.0/) economy?

124 Volume 15 • Number 2 • June 2024

 Management and Production Engineering Review

RQ2: How do green logistics practices contribute to The European Green Deal aims for carbon neutral-
sustainable development goals? ity in Europe by 2050, suggesting that broad adop-
RQ3: What role does technology play in facilitating tion of a circular economy could reduce greenhouse
the transition to green logistics and a circular economy? gas emissions by 50%. Since supply chains account
RQ4: How do regulatory frameworks influence the for four-fifths of these emissions, practitioners, poli-
adoption of green logistics practices? cymakers, and academics must focus on transitioning
This study’s significance lies in its potential to from linear to circular systems (Vrchota et al., 2020)
promote environmental sustainability by integrating and effectively implementing these circular systems
green logistics practices within a circular economy (Montag et al., 2023). Scientists are increasingly con-
framework. It aims to address critical gaps in cerned about natural resource depletion due to high
existing logistics and supply chain management consumption levels over the past decades. Pandemics
strategies, offering insights into overcoming barriers like COVID-19 highlight the global impact of local
to sustainable development (Schroeder et al., 2021). actions, emphasizing the urgent need to rethink pro-
By identifying effective practices and recommending duction, marketing, distribution, usage, and recovery
actionable strategies (Kalmykova et al., 2018), methods (Cerqueira-Streit et al., 2021).
the research could influence policy-making, guide Circular processes fall into eight categories: Re-
corporate decision-making towards sustainability, and design, Reduce, Use and Reuse, Resale, Refurbish,
foster broader adoption of circular economy principles, Remanufacture, Recycling, Recovery, and Recirculate.
benefiting the environment, society, and the economy Research has identified considerable confusion and
(Cerqueira-Streit et al., 2021). overlap between circular process indicators and circular
effect indicators. Clarifying these categories can signifi-
cantly improve circular economy (CE) assessment tools
Literature review
and processes (Garcia-Saravia Ortiz-de-Montellano &
van der Meer, 2022). The relatively new concept of the
Logistics is traditionally described as efforts to min- circular economy (CE) aims to maximize economic,
imize costs and increase revenues, typically referenced environmental, and social aspects of enterprises to cre-
in professional settings such as business and finan- ate a more sustainable society with the participation
cial reports. However, over time, the term “logistics” of all relevant stakeholders. The cornerstone of the
has been paired with “green”, creating “green logistics”, CE idea is “the regenerative cycle, which facilitates
which refers to costs not shown on financial statements the efficient reuse of products, parts, and materials,
but impact society and the environment. According to thereby increasing profitability and reducing environ-
(Rodrigue, 2012), green logistics involves environmen- mental impact.” Numerous studies have discussed the
tally friendly materials handling, waste management, benefits and challenges of implementing the circular
packaging, and transportation-focused supply chain economy in businesses (Abdul-Rashid et al., 2017).
management strategies aimed at minimizing the envi- Researchers predict that adopting a circular econ-
ronmental and energy impacts of freight distribution omy significantly influences a company’s sustainability
(Dornfeld, 2014).
(Asif et al., 2016). Studies have shown that adopting
Traditional industries are rapidly evolving, leading
a circular economy enhances sustainability-focused in-
to social and environmental issues like the depletion of
novation and leads to sustainable development. Recent
natural resources and environmental pollution (Mishrif
research suggests that green logistics can be viewed as
& Khan, 2023). Balancing economic growth with en-
an organizational element that supports the circular
vironmental preservation has become a serious global
challenge (Jayaraman et al., 2012). In a highly com- economy (Choi & Hwang, 2015). A growing body of
petitive global marketplace (Awan et al., 2021), eco- research highlights the importance of green logistics
nomic factors directly influence a firm’s growth and in enhancing a company’s sustainable development
future business prospects. Consequently, many firms (Setyadi, 2019). While some academics report a con-
face substantial challenges in identifying ideal long- nection between green logistics and overall sustain-
term partners to enhance corporate performance while ability development, others confirm the relationship
reducing carbon dioxide (CO2) emissions (Wang et between green logistics and various sustainability as-
al., 2017). The adverse effects of logistics operations pects (Ansari et al., 2019). Conflicting results in the
create interconnected economic, environmental, and so- literature show that some studies argue there isn’t
cial difficulties, necessitating more sustainable logistics always a direct correlation between sustainable devel-
practices (Jayarathna et al., 2022). opment and green logistics (Graczyk-Kucharska, 2023).

Volume 15 • Number 2 • June 2024 125

A. Verma: Green Logistics Practices Toward a Circular Economy: A Way to Sustainable Development

While some research has found a negligible correlation, Green Logistics (GL)
others have revealed a significant relationship between
green logistics and sustainable development. Thus, Green logistics plays a crucial role in the develop-
the role of the circular economy in the relationship ment of the circular economy (CE). The term “circular
between sustainable development and green logistics economy” refers to a system where all material flows
must be investigated. Since the implementation of the within an economy are completely closed. “Green lo-
circular economy depends on green logistics, which in gistics” connects resources to commodities and subse-
turn promotes enterprises’ sustainability development quently to consumers’ needs through products. Accord-
(Nasir et al., 2016), the researcher hypothesizes that ing to Seroka-Stolka (2014), green logistics is essential
the circular economy successfully mediates the effects for completing the cycle of the circular economy. Za-
of green logistics on sustainability development (Calzo- man & Shamsuddin, (2017) note that supply chain
lari et al., 2021). Additionally, researchers suggest that logistics operations significantly deplete resources and
supply chain monitoring moderates the green logistics- contribute to environmental pollution. Jayarathna et
circular economy connection and positively impacts al. (2022) highlight that the negative impacts of lo-
organizations’ circular economies. gistics operations create interconnected economic, en-
vironmental, and social issues, necessitating stronger
sustainability initiatives from the logistics industry.
Green Manufacturing (GM) Accordingly, the following hypotheses are proposed:
Businesses are under increasing pressure to adopt H3: Green Logistics (GL) positively and significantly
“greener” practices and become more environmentally affects the Circular Economy (CE).
friendly. Concepts such as green management, green H4: Green Logistics (GL) has a positive and signifi-
marketing, green manufacturing, and green innovation cant effect on Sustainable Development (SD).
are being developed to address environmental pollu-
tion. To achieve sustainable development, businesses Sustainable Development (SD)
must reinvent their products and integrate new tech-
nologies into their operations (Sezen & Çankaya, 2013). The issue of sustainable development (SD) has be-
Many companies are now developing the next genera- come a top priority due to the global shortage of
tion of clean technologies to support future economic resources, climate change, and rising resource con-
growth. In recent years, there has been a shift towards sumption. The circular economy (CE) has garnered
more environmentally conscious behaviors to meet con- significant interest for its potential to contribute to
sumer demand for compliant and eco-friendly service sustainable development Knäble et al. (2022). Policy-
items (Ford & Despeisse, 2016). This can be achieved makers, businesses, and governments are focusing on
by promoting green innovation, which Jayaraman et al. the CE to achieve the Sustainable Development Goals
(2012) defined as the development of environmentally (SDGs) established by the United Nations (UN) in
beneficial green products. According to estimates of 2015 (Stahel, 2016), particularly in Europe and China
the current market share for eco-friendly items, green (McDowall et al., 2017).
products can increase environmental awareness and The context of European nations provides an op-
enhance demand (Ritter et al., 2015). portunity to examine the impact of the CE on SD.
The industrial supply chain and manufacturing pro- These countries have started implementing CE prac-
cesses are among the most harmful issues, necessitat- tices earlier than others, aiming to enhance resource
ing prompt legislative change and industrial action. availability, and the effects of these policies can be as-
Emphasizing green practices in business operations sessed. Furthermore, various European nations are at
is crucial for building organizational capabilities for different stages of implementing CE programs (Knäble
sustainable manufacturing, which goes beyond merely et al., 2022). Therefore, the following research hypoth-
producing goods with minimal energy and natural re- esis are proposed:
source use and maximizing profit to include economic H5: The Circular Economy (CE) has a positive and
and social dimensions (Kazakova & Lee, 2022). significant effect on Sustainable Development (SD).
As a result, the following hypotheses are proposed:
H1: Green Manufacturing (GM) has a positive and
Supply chain tracking (SCT)
significant effect on Sustainable Development (SD).
H2: Green Manufacturing (GM) positively and sig- Supply chain track and trace is used to monitor the
nificantly affects the Circular Economy (CE). movement of products along the supply chain (Del

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Giudice et al., 2021). This capability allows enter- ship between Green Logistics (GL) and the Circular
prises to track and trace items from their origin to Economy (CE), rather than assessing a direct effect
their destination through a combination of software, or influence like the other hypotheses.
hardware, and procedures (Dietrich et al., 2022). This
approach enables companies to monitor the movement
of goods in real-time, allowing them to identify and Materials & Methods
address any delays or issues promptly, thereby enhanc-
ing their efforts to promote environmental, social, and
business sustainability. Technological advancements This article investigates the adoption of sustainable
facilitate the acquisition of precise and reliable data, practices within the logistics industry, particularly in
enabling firms to save significant amounts of money the context of a circular economy, focusing on com-
and resources (Addo-Tenkorang et al., 2012). panies in Oman. Many of these companies have been
significantly impacted by the COVID-19 pandemic.
Trackability significantly increases product mobil-
Data for this study were provided by companies that
ity, streamlining logistics processes overall. Reducing
have implemented green measures to improve sustain-
a company’s harmful environmental impacts within
ability performance. These entities were selected due
the supply chain is essential for improving green sup-
to their operation in a volatile environment where the
ply chain processes and procedures, as well as its sus-
adoption of green practices is critical for ecological
tainable performance (Nandi et al., 2021). Thus, the
stability.
proposed hypotheses are:
The methodology involved a self-administered ques-
H6: Supply chain tracking (SCT) positively and
tionnaire, allowing respondents to fill it out inde-
significantly affects the Circular Economy (CE).
pendently without the interviewer’s direct involve-
H7: Supply chain tracking (SCT) mediates the re- ment (Yu et al., 2013) within these Omani companies
lationship between Green Logistics and the Circular (https://yellowpages.om/). This method can reduce
Economy. potential bias that might occur with interviewer-led
Based on the literature review, the following con- approaches. Initially, a pilot survey was conducted
ceptual framework was developed (Fig. 1). with 25 participants, including 19 business owners and
Hypothesis H7 is labeled differently from the other six academics. Based on their feedback, slight modifi-
hypotheses (Fig. 1) because it explores a distinct re- cations were made to the survey questions.
lationship. Specifically, H7 examines the moderating The main survey was distributed to 220 companies,
effect of Supply Chain Tracking (SCT) on the relation- accompanied by a cover letter outlining the study’s

H1

H2 H5

H3
H7

H4
Fig. 1. Conceptual Framework

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A. Verma: Green Logistics Practices Toward a Circular Economy: A Way to Sustainable Development

objectives and assuring voluntary participation. The Around 56.8 percent of the businesses were typi-
confidentiality of the data was emphasized, with as- cal brick-and-mortar store-based walk-in merchants,
surances that the information would be used solely 38.8 percent were multimodal (or omnichannel), and
for academic purposes. A remarkable 97% response just 4.4 percent were e-commerce. Table 1 depicts
rate was achieved, with 215 complete questionnaires the retail sector sample distribution. A whopping
collected. The researchers attained this high level of 96 percent of respondents had more than two years of
engagement through transparent and effective commu- managing experience in their respective organizations.
nication methods when approaching these companies. CEOs, Chairmen, MDs, General Managers, Opera-
They detailed the study’s importance, demonstrated tions/Supply Chain/Logistics Managers, Middle Man-
how the results could benefit the companies, and ex- agement, IT Managers, and Others were among those
plained how the outcomes would support broader en- who answered (5.8%). With 14 percent identifying
vironmental and economic objectives aligned with the them as the key decision makers and 48 percent having
companies’ goals. Additionally, follow-up reminders a considerable engagement, almost 62 percent of re-
via emails or phone calls effectively maintained the spondents claimed to be involved in high-level strategic
survey’s visibility among respondents and motivated decision-making in supply chain operations. 36 percent
timely participation before the deadline. said their level of participation was moderate.
The sample included random selections from vari-
Table 1
ous companies across Oman engaged in manufacturing,
Sectors represented in the sample. Source: Author created.
service provision, and retail sectors, all dependent on Source: Author developed
imported materials. The questionnaire (Table 2), de-
signed for top executives and business managers with Sectors (n=215) Frequency Percent(%)
deep knowledge of their operations and performance,
Takeaway, restaurant,
comprised two parts. Data collected through the ques- 25 11.63
and café
tionnaire were analyzed using both exploratory and
descriptive statistical tools, and hypotheses were tested Grocery and
47 21.86
supermarkets
using inferential statistics and Partial Least Squares
Structural Equation Modeling (PLS-SEM). Domestic items (e.g.
20 9.30
hardware, furniture)
To ensure a representative sample and minimize
duplication, retail enterprises were randomly selected Personal items,
30 13.95
clothing, and footwear
and listed alphabetically from the Yellow Pages of the
Oman business directory, following a method validated Electrical, electronic,
20 9.30
in similar research. After initial contacts, additional and computer terms
potential respondents were identified through snowball Medicinal, cosmetic,
15 6.98
sampling. All responses were coded after reminders and toiletry products
and follow-up calls, and the analysis was conducted Automobiles and parts 10 4.65
using Smart-PLS version 3.3.4 and SPSS version 20.0
Gas stations and
to evaluate the study framework. This structured ap- 8 3.72
convenience stores
proach ensures that the findings provide a valuable
Department stores 30 13.95
snapshot of the current situation, despite the inherent
limitations of a cross-sectional study design. Other 10 4.65
Respondent companies were 49.8 percent big com-
panies (workers > 200), 49.8 percent medium-sized Following data collection, the constructs’ reliabil-
companies (employees 20 to 200), and just 4.4 percent ity and validity were verified using several statistical
small-sized companies (employees 20). The distribu- tools. The exploratory and confirmatory investigations
tion within the survey sample appears to be heav- aimed to examine the impact of green logistics (GL)
ily weighted towards larger firms, with almost equal on sustainable development (SD) through the circular
representation of large and medium-sized companies economy (CE). To test the dataset, the research frame-
and very few small companies. Around 55.8 percent work for PLS path modeling was evaluated. Initially,
of the sample claimed that their supply networks the data was filtered using SPSS to identify missing
stretched globally, with regional and local supply values and anomalies, perform descriptive analysis, and
chains accounting for 30 and 14 percent, respectively. assess the demographic distribution of the sample. The

128 Volume 15 • Number 2 • June 2024

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connections between latent variables in the conceptual were more than 0.8 for all constructions. The range
framework were then assessed using PLS-SEM. of the composite dependability values was 0.75 to 1.
PLS-SEM was chosen for its applicability in both ex- According to Hair et al. (2014), the constructs did not
ploratory and confirmatory research and its ability to have issues with multicollinearity because the largest
analyze complex topics. This study framework was de- correlation between components was 0.69.
veloped using several pre-existing theories and aimed The greatest likelihood technique was used by CFA
to increase the variance of endogenous constructs as to assess each measuring scale’s convergent validity
explained by exogenous variables, reflecting the exper- (O’Leary-Kelly & J. Vokurka, 1998) Factor loadings for
imental covariance matrix. Therefore, PLS-SEM was each indicator for the related constructs are all statisti-
essential for predicting the model’s latent variables. cally significant (p 0.001) and more than 0.50 (Table 2),
The data were evaluated twice after running PLS- demonstrating the convergence of the theoretical con-
SEM. First, using a total of 215 valid samples, the structs (Anderson & Gerbing, 1988). As a result, mea-
reliability and validity of the measurement model (the suring items are strongly related to their underlying
outer model) were assessed using composite reliability theoretical ideas. Furthermore, each construct’s aver-
(CR), average variance extracted (AVE), and Cron- age variance extracted (AVE) surpasses the minimal
bach’s alpha (CA). In the second step, researcher iden- value of 0.50 (Fornell & Larcker, 1981), indicating that
tified any potential associations between these factors. the constructs have significant convergent validity. By
Finally, researcher conducted a mediation analysis. analyzing the correlation between the construct and
The structural model was assessed using the relevant the square root of AVE, discriminant validity was de-
measurement results from this study, examining the termined. Table 3 shows discriminant validity since the
importance and effects of the path parameters. square root of AVE for each construct shown along the
diagonal is greater than the correlation between any
Results two constructs (Fornell & Larcker, 1981). Included are
the averages, standard deviations, and the coefficient
of inter-construct correlation in Table 2.
Following data collection, the constructs’ reliability Table 3 and Figure 2 display the results of the
and validity were verified using several studies. All con- structural route model using AMOS 23 Hair et al.
structions’ Cronbach’s alpha and composite reliability (2011). The p-statistic was calculated via bootstrap-
surpass the stipulated value of 0.7, indicating construct ping with 215 instances (Qrunfleh & Tarafdar, 2014).
reliability (Hair et al., 2011) Cronbach’s alpha values Using 2(936)=1224.574, Bollen–Stine (B–S) method

H1***0.32

H2***0.65 H5=0.52

H3=***0.36

H7=***0.48

H4=***0.46

A significant path at p=0.001***

Fig. 2. A Value Creation Model for Sustainable Development. Source: Author developed

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A. Verma: Green Logistics Practices Toward a Circular Economy: A Way to Sustainable Development

Table 2
Survey items. Source: Author created

Construct Item number Measurement items References

My company consistently uses materials that
GM1 are sustainably sourced or recycled in our
manufacturing processes
Green My company actively implements
(Abdul-Rashid et al., 2017);
Manufacturing GM2 technologies and practices to reduce energy
(Cheng et al., 2023)
(GM) consumption during production
My company’s manufacturing processes are
GM3 optimized to minimize waste production and
emissions
My company exceeds legal compliance in
GM4 terms of environmental regulations related to
manufacturing."
My company prioritizes the use of
eco-friendly transportation methods (e.g.,
GL1
electric or hybrid vehicles, optimized delivery
routes) to minimize environmental impact
We regularly evaluate and improve our
Green logistics packaging processes to increase the use of (Del Giudice et al., 2021);
GL2
(GL) recyclable or biodegradable materials and (Kazakova & Lee, 2022)
reduce overall material usage
My company’s logistics operations are
structured to actively reduce our carbon
GL3
footprint through various initiatives such as
carbon offsetting and improved load planning
My company actively designs products to be
CE1 repairable, upgradeable, or modular to
extend their life cycle
We have established systems in place for the
Circular (Awan et al., 2021);
CE2 recovery and recycling of materials from
economy (CE) Cerqueira-Streit et al., 2021)
end-of-life products
My company’s business practices are oriented
towards significantly reducing resource
CE3
consumption and waste generation through
the entire production process
My company has comprehensive visibility
SCT1 into our supply chain operations from raw
material sourcing to final delivery
We have real-time access to data across our
Supply chain SCT2 entire supply chain, allowing for immediate (Qrunfleh & Tarafdar, 2014);
tracking (SCT) response to logistics challenges (Cheng et al., 2023)
My company supply chain utilizes advanced
tracking technologies (e.g., GPS, RFID) to
SCT3
monitor the movement and condition of
goods throughout the supply chain
The tracking systems we use ensure high
SCT4 accuracy in inventory management, reducing
losses and inefficiencies.
Table 2 continued on the next page

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Table 2 continued from the previous page

Construct Item number Measurement items References
My company actively pursues practices that
SD1 ensure economic viability while promoting
social equity
Sustainable My organization is committed to reducing our (Younis et al., 2016);
development SD2 environmental impact across all areas of (Knäble et al., 2022);
(SD) operation (Choi & Hwang, 2015)
We engage with local communities to ensure
SD3 our business practices have a positive impact on
their well-being

Table 3
Validity of the constructs

Cr.
No. of
Construct GM GL SCT CE SD Mean SD Alpha CR AVE
items
(α)
Green manufacturing
7 0.77 4.83 1.26 0.92 0.86 0.56
(GM)
Green logistics (GL) 8 0.65 0.76 4.73 1.33 0.91 0.88 0.57
Supply chain
8 0.63 0.71 0.77 4.51 1.36 0.94 0.87 0.62
trackability (SCT)
Circular economy (CE) 7 0.58 0.65 0.68 0.76 4.73 1.34 0.88 0.84 0.58
Sustainable
8 0.67 0.62 0.62 0.62 0.71 4.64 1.44 0.76 0.77 0.53
development (SD)
The diagonal values for each construct represent the retrieved AVE squared. Alpha stands for Cronbach’s alpha,
whereas SD stands for standard deviation. CR stands for composite reliability. Every correlation coefficient
below the diagonal is significant at p < 0.001

p = 0.093, 2/df = 1.324, SRMR = 0.0771, RM- efficiency and innovation like de Souza et al., (2022),
SEA = 0.037, CFI = 0.943, and TLI = 0.957, the who found similar reductions in logistics-related car-
structural model provided an overall satisfactory fit. bon emissions and cost savings through green practices.
The goodness-of-fit indices are all above or near the The research highlights the critical role of technology,
acceptable cut-off marks, indicating that the provided policy support, and stakeholder collaboration in over-
model properly represents the hypothesized link be- coming barriers to green logistics adoption, suggesting
tween all components. As a result, the data support that a holistic approach is essential for transitioning
the suggested theoretical model. towards more sustainable logistics and supply chain
Tables 3 and 4 shows how the five hypotheses are models like those by Cerqueira-Streit et al. (2021),
supported. The path’s standardized beta coefficients who discuss the importance of legislative frameworks.
and t-statistics are also shown. The empirical results showed that GM and GL pro-
moted environmentally friendly and sustainable pro-
duction and encouraged businesses to employ CE like
Discussion the work by Younis et al. (2016) who suggested that
medium-sized firms possess unique agility that facili-
tates more effective implementation of these practices.
This study reveals that implementing green logistics Results showed that GM strongly influenced CE and
practices within a circular economy framework signif- SD (= 0.32 and = 0.65, respectively), supporting H1
icantly enhances sustainable development. It demon- and H2. As the green manufacturing source has a con-
strates that such practices not only contribute to envi- siderable impact on green raw material procurement,
ronmental sustainability by reducing waste and emis- this increases the impact of SD and CE. Additionally,
sions but also offer economic benefits through resource

Volume 15 • Number 2 • June 2024 131

A. Verma: Green Logistics Practices Toward a Circular Economy: A Way to Sustainable Development

Table 4
Results of the structural path analysis. Source: Author developed

Hypotheses Path Std. β t-values Results

H1 GM → SD 0.32** 4.287 Supported
H2 GM→ CE 0.65** 6.284 Supported
H3 GL→ CE 0.36** 3.452 Supported
H4 GL→ SD 0.46** 6.287 Supported
H5 CE → SD 0.52** 6.376 Supported
Not
H6 GL* SCT→CE –0.032 0.612
Supported
H7 SCT→CE 0.45** 4.983 Supported
** < 0.001, * p < 0.05. Source: Author developed

GL produced CE and SD in a way that supported H3 the manufacturing sector in Oman. Through rigor-
and H4, respectively (= 0.36 and = 0.46). The inte- ous analysis and evaluation, the research highlights
gration of SD and CE is greatly aided by green opera- the integral role of green logistics in enhancing orga-
tional resources and logistical operations. A business nizational sustainability and supporting the broader
must genuinely use best green practices, which com- implementation of circular economy principles.
plement SD and CE, to develop ecologically friendly The implementation of green logistics practices was
products without jeopardizing the supply side inter- shown to significantly improve sustainable develop-
est. Additionally, SD strongly influenced CE (= 0.52), ment outcomes, demonstrating that environmental
corroborating our findings with H5. Furthermore, the sustainability and economic benefits can be achieved
researcher found a positive effect of firms’ SCT on simultaneously through resource efficiency and inno-
their CE (β = 0.45, t = 4.983, p = 0.000), validating vation. The study’s results support the notion that
hypothesis H6. However, the findings depicted that the green manufacturing and green logistics are pivotal
SCT had no substantial moderating effect on the rela- in promoting circular economy practices. Specifically,
tion between the GL and CE (β = −0.032, t = 0.612, p green manufacturing strongly influenced both circu-
>0.05), invalidating H6. These results emphasized the lar economy initiatives and sustainable development,
unusual phenomenon that SD affects CE implemen- underscoring the critical impact of sustainable opera-
tation both directly and indirectly. The adoption of tional practices in the manufacturing sector.
CE might be greatly accelerated by a change in corpo- Theoretically, this research enriches existing litera-
rate green policies for SD. Competitive environmental ture by providing empirical evidence on how integrat-
initiatives supported by GM and GL can minimize en- ing green logistics within a circular economy framework
vironmental problems while also increasing stakeholder can lead to substantial environmental, economic, and
satisfaction and goodwill. It contributes to existing social benefits. It offers a refined understanding of
theories like Seuring & Müller (2008) who discuss the the dynamics between these practices and sustainable
importance of human resource strategies in sustain- development. Practically, the study offers actionable
ability by providing empirical evidence on how such strategies for businesses and policymakers, emphasiz-
integration can lead to environmental, economic, and ing the importance of technological innovation, regu-
social benefits contrary to the constraints highlighted latory support, and cross-sector collaboration. It ad-
by (Korhonen et al., 2018b). vocates for a shift towards more sustainable business
models, presenting a clear roadmap for companies to
Conclusions align with circular economy goals.
While this study provides foundational insights,
it acknowledges limitations such as reliance on self-
This study has significantly advanced the under- reported data, which may introduce biases. Future
standing of the intersection between green logistics research could enhance generalizability by incorporat-
practices and the circular economy, providing valuable ing objective data sources or broader sectoral studies.
insights for achieving sustainable development within Further exploration is needed to assess the long-term

132 Volume 15 • Number 2 • June 2024

 Management and Production Engineering Review

impacts of these practices on sustainability metrics Ansari, Z.N., Kant, R., & Shankar, R. (2019). Prioritizing
and to explore the role of emerging technologies in fa- the performance outcomes due to adoption of criti-
cilitating the transition to green logistics and circular cal success factors of supply chain remanufacturing.
economies. Journal of Cleaner Production, 212, 779–799. DOI:
10.1016/j.jclepro.2018.12.038.
The study benefited greatly from the contributions
of colleagues at Sohar University, Oman, whose feed- Asif, F.M.A., Lieder, M., & Rashid, A. (2016). Multi-
back was instrumental in refining the research and en- method simulation based tool to evaluate economic
hancing its quality. Their dedication and support have and environmental performance of circular product
been invaluable in bringing this project to fruition. systems. Journal of Cleaner Production, 139, 1261–
1281. DOI: 10.1016/j.jclepro.2016.08.122.
This research has laid a robust foundation for un-
derstanding how targeted green logistics practices can Awan, F.H., Dunnan, L., Jamil, K., Mustafa, S., Atif, M.,
enhance the circular economy and foster sustainable Gul, R.F., & Guangyu, Q. (2021). Mediating Role of
development. It opens several avenues for future re- Green Supply Chain Management Between Lean Man-
search to build upon these findings, potentially leading ufacturing Practices and Sustainable Performance.
Frontiers in Psychology, 12, 810504. DOI: 10.3389/fp-
to more nuanced strategies that can be adopted glob-
syg.2021.810504.
ally to achieve sustainability and economic growth
simultaneously. Calzolari, T., Genovese, A., & Brint, A. (2021). The adop-
tion of circular economy practices in supply chains
– An assessment of European Multi-National Enter-
Acknowledgments prises. Journal of Cleaner Production, 312, 127616.
DOI: 10.1016/j.jclepro.2021.127616.
Cerqueira-Streit, J.A., Endo, G.Y., Guarnieri, P., &
The author would like to extend warm gratitude to Batista, L. (2021). Sustainable Supply Chain Man-
all colleagues at Sohar University, Oman, for the time agement in the Route for a Circular Economy: An
and effort spent reviewing and providing feedback on Integrative Literature Review. Logistics, 5(4). DOI:
this article. This feedback contributed a lot to finalizing 10.3390/logistics5040081.
the quality of the manuscript. Cheng, Y., Masukujjaman, M., Sobhani, F.A., Hama-
yun, M., & Alam, S.S. (2023). Green Logistics, Green
Human Capital, and Circular Economy: The Medi-
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