mayaelsawy

[mayaelsawy]

My Research Project Has Started

I have chosen to work with data from the World Bank Enterprise Surveys (WBES), which collect detailed information from firms across various countries about their business environment, performance, and practices. After reviewing the available datasets, I am particularly interested in exploring the relationship between green logistics practices and operating costs.

The motivation for this topic stems from growing interest in sustainable business practices, especially within supply chains, and how environmental initiatives such as green transportation, reduced packaging, or energy-efficient warehousing can impact financial performance. This issue is directly aligned with SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Action).

Main Research Question:

Is the adoption of green logistics practices associated with reduced operating costs?

Secondary Research Questions:

Do firms with environmental policies targeting logistics report lower transportation or utility costs?

Does the size or sector of a business moderate the relationship between green logistics adoption and cost outcomes?

Are firms that implement green practices more likely to report innovation or investment in sustainability?

Variables and Codes:

1. Green Logistics Practices

a. Environmental Management System (EMS)

Variable Definition: Whether the business has a certified environmental management system (e.g., ISO 14001).

Potential Codes:

1: Yes

0: No

b. Packaging Reduction

Variable Definition: Whether the firm reports taking action to reduce packaging waste for environmental reasons.

Potential Codes:

1: Yes

0: No

c. Energy Efficiency in Logistics

Variable Definition: Measures adoption of energy-saving strategies in logistics or warehouse operations.

Potential Codes:

1: Yes

0: No

2. Operating Costs

a. Overall Operating Costs

Variable Definition: Total operational costs as a percentage of revenue.

Potential Codes: Continuous variable (0–100)

b. Transportation Costs

Variable Definition: Proportion of costs spent on logistics and transportation.

Potential Codes: Continuous variable (0–100)

c. Utility Costs

Variable Definition: Proportion of business costs related to electricity, water, and fuel.

Potential Codes: Continuous variable (0–100)

3. Control Variables (Firm Characteristics)

a. Firm Size

Variable Definition: Number of employees.

Potential Codes:

1: Small (<20 employees)

2: Medium (20–99 employees)

3: Large (100+ employees)

b. Industry Sector

Variable Definition: Sector of business operations.

Potential Codes:

1: Manufacturing

2: Retail

3: Services

4: Other

c. Country or Region

Variable Definition: Geographic location of the firm.

Potential Codes: Country names or regions (e.g., Latin America, East Asia)

Literature Review Summary:

There is growing evidence linking sustainability practices with operational efficiency. A few key studies include:

Rao & Holt (2005) : Found that environmentally conscious supply chains can enhance performance by reducing waste and cutting costs.

Chiarini & Vagnoni (2017) : Demonstrated that firms with ISO 14001 certification observed long-term savings in energy and logistics costs.

Ahi & Searcy (2015) : Emphasized the dual benefit of environmental and financial performance from green logistics adoption.

Zhu, Geng & Sarkis (2013) : Found that firms in developing economies that implemented green supply chain practices reported improved cost control.

These studies support the idea that green practices are not just environmentally beneficial, but can also enhance cost efficiency and resilience in the supply chain.

Hypothesis:

Firms that adopt green logistics practices will report lower operating costs, particularly in transportation and utility expenses, compared to firms that do not implement such practices.

This relationship may vary by firm size or industry sector but is expected to hold generally across contexts.