Integrating green logistics and Industry 4.0 to drive sustainable performance: A circular economy and waste management perspective

Abstract

In the context of growing environmental concerns and digital transformation, small and medium-sized enterprises (SMEs) in emerging economies face increasing pressure to improve sustainable performance (SP). Green logistics management (GLM) and Industry 4.0 technologies (ID4.0) have emerged as promising solutions. However, previous studies have often examined these dynamics individually and failed to capture the mediation mechanisms particularly circular economy practices (CEP) and waste management (WM) that transform digital and green capabilities into sustainable outcomes. This study aims to develop and empirically test an integrated model that investigates the direct and indirect effects of green logistics management and ID4.0 on SP, with CEP and WM as mediating variables. The model is evaluated using Partial Least Squares Structural Equation Modeling (PLS-SEM) conducted in R. Data were collected from 144 respondents representing manufacturing and logistics SMEs in Vietnam. The findings confirm that GLM positively influences both CEP (β = 0.644) and SP (β = 0.276), while ID4.0 significantly impacts WM (β = 0.575) but has only a modest direct effect on SP (β = 0.126). CEP (β = 0.225) and WM (β = 0.388) both play significant mediating roles, reinforcing their importance in sustainable performance. This study contributes to sustainability research by validating a comprehensive framework that connects digitalization, green logistics, and environmental process integration. For practitioners, the results offer a strategic roadmap for SMEs to enhance SP through the simultaneous adoption of ID4.0 technologies, green logistics practices, and circular economy principles.