Examining sustainability engagement of logistics service providers : drivers, practices, and propositions

Abstract

Logistics service providers (LSPs), serving as intermediaries in facilitating economic transactions through cargo movements within the supply chain, support society's economic and sustainable development. Sustainability engagement is an emerging initiative for LSPs to improve sustainability performance so cargo movements can be handled efficiently with less pollution and resource consumption. This study examines the sustainability engagement of LSPs, focusing on their drivers and practices to align with the sustainable development trend. We collect industry practitioners’ opinions with case-based evidence to explain sustainability engagement by LSPs and identify its key drivers and practices with propositions. The study finds that sustainability engagement in LSPs is driven by institutional pressures and internal leadership, with larger LSPs adopting proactive, resource-intensive innovations. Unlike larger LSPs, smaller LSPs focus on incremental, resource-efficient practices, emphasising technology adoption, process innovation, and stakeholder collaboration. This research enhances the understanding of sustainability engagement for LSPs and policymakers.