Factors determining logistics service providers’ sustainability performance: corporate spirituality as a moderator

Logistics Service Providers (LSPs) play a key role in attaining the Sustainable Development Goals (SDGs) of the United Nations. The operations and services of LSPs have long-term and immediate effects on environmental, social, and economic sectors. Numerous logistics operations have polluted the environment, particularly logistics transportation that release large amounts of carbon dioxide and nitrogen dioxide into the atmosphere. These gases contribute to greenhouse gas emissions, which are the primary cause of climate change and endanger the health of humans and other living creatures. Additionally, it was claimed that LSPs violated the welfare of their workers by overburdening them with excessive workload, long working hours, and underpaying them. These also have an impact on LSPs' economic performance in the long run. All of these transgressions are, in some way, the result of irresponsible leadership. However, research on logistics sustainability is currently inadequate, suggesting more in-depth research which investigates elements that empirically influence LSPs’ sustainability performance (SLP) to be carried out. The primary goal of this research is to determine the factors that influence the SLP. Current research findings indicate that logistics capabilities, strategic human resource management (SHRM), stakeholders' relationship quality (SRQ), government roles, and corporate spirituality are the five main factors that have potentially contributed to SLP. Furthermore, research suggests that in order to improve an organization's sustainability performance, it should be moderated by leaders with corporate spirituality principles. Hence, this study uses a hypothetico-deductive method to obtain data from LSPs in Peninsular Malaysia, registered with the Selangor Freight Forwarding and Logistics Association, Johor Freight Forwarding Association, and Penang Freight Forwarding Association under the Federation of Malaysian Freight Forwarders. This study gathered 134 data through a stratified sampling strategy, and the data was analysed using the IBM SPSS 25 statistical software for prerequisite analyses such as reliability, descriptive, normality, exploratory factor analysis, and the common variance method. To answer the research questions, this study used SmartPLS 3.0 statistical software for the Partial Least Square (PLS-SEM) techniques, via a repeated indicator approach. SHRM, government roles, and corporate spirituality were all found to be substantially and positively connected to SLP. While the logistics capabilities construct was found negatively related to SLP, SRQ showed an insignificant relationship with SLP. Furthermore, corporate spirituality had a moderating effect on the connection between logistics capabilities and SLP, as well as between the association of SRQ and SLP. The findings of this study are commensurate with the Resource-Based View, institutional and spiritual leadership theories, in which SHRM as organisational resources and capabilities, government roles as coercive pressure, and corporate spirituality in leaders, respectively, contribute significantly and positively to the SLP in Malaysia. The findings of this study contribute to the body of knowledge related to organizational sustainability and practically contribute to LSPs and the government by providing them some insights into the importance of internal resources, external coerce, and spiritual intelligence toward the sustainability performance of LSPs, thus leading to achieving the SDGs both at national and international levels.