International Journal of Business and Economic Affairs
Globalization plays a major role in this era. It encourages global trade due to the free trade ag... more Globalization plays a major role in this era. It encourages global trade due to the free trade agreement between countries and technology advancement. These factors boost the global supply chain demand and freight transport in the logistics industry. In turn, the more frequent freight transport is, the more impact it has on the environment because of the emission and pollution it generated. To stabilize the environment and supply chain activities, sustainability should be implemented to reduce the negative impacts it has on the environment. Some research has shown that sustainable actions improve consumer's trust and the company's reputation that will help companies to sustain their competitive advantage. Unfortunately, sustainability research in sustaining competitive advantage only received limited attention. The authors hope that this paper could fill the gap in that matter. Thus, the research question of this paper would be how does sustainability matter in the logistics industry to sustain competitive advantage? Two theories will be used to discuss this matter, which are Research-Based View (RBV) and Dynamic Capabilities (DC) theory. The result showed that companies who adopt sustainable practices within its operations could sustain their competitive advantage due to the improvement of its customer's satisfaction and the company's Environmental, Social, and Governance (ESG) factors ratings. Also, the use of DC theory complements the RBV in a sense that resources should be maintained and developed rather than taken as granted. It is relevant to discuss this issue since the demand for logistics is increasing over time, and the activities will impact the environment to a greater extent.
International Journal of Business and Economic Affairs
Globalization plays a major role in this era. It encourages global trade due to the free trade ag... more Globalization plays a major role in this era. It encourages global trade due to the free trade agreement between countries and technology advancement. These factors boost the global supply chain demand and freight transport in the logistics industry. In turn, the more frequent freight transport is, the more impact it has on the environment because of the emission and pollution it generated. To stabilize the environment and supply chain activities, sustainability should be implemented to reduce the negative impacts it has on the environment. Some research has shown that sustainable actions improve consumer's trust and the company's reputation that will help companies to sustain their competitive advantage. Unfortunately, sustainability research in sustaining competitive advantage only received limited attention. The authors hope that this paper could fill the gap in that matter. Thus, the research question of this paper would be how does sustainability matter in the logistics industry to sustain competitive advantage? Two theories will be used to discuss this matter, which are Research-Based View (RBV) and Dynamic Capabilities (DC) theory. The result showed that companies who adopt sustainable practices within its operations could sustain their competitive advantage due to the improvement of its customer's satisfaction and the company's Environmental, Social, and Governance (ESG) factors ratings. Also, the use of DC theory complements the RBV in a sense that resources should be maintained and developed rather than taken as granted. It is relevant to discuss this issue since the demand for logistics is increasing over time, and the activities will impact the environment to a greater extent.
Uploads
Papers by Bima Setiawan