Green Logistics, Green Human Capital, and Circular Economy: The Mediating Role of Sustainable Production

Abstract

Many countries worldwide have adopted a sustainable development model to strike a balance between economic progress, environmental preservation, and social protection, and one of the most effective solutions for promoting sustainable development has been the circular economy (CE). Given each country’s resource restrictions, businesses must implement green manufacturing practices to establish a circular economy. Therefore, this study intends to assess the role of green logistics (GL) and green human capital (GHC) in promoting a circular economy. Additionally, the mediating role of sustainable production (SP) in the interplays between the constructs was examined. Data for this research was collected from 211 garment manufacturing firms in Bangladesh, using a standardized questionnaire. The partial least square structural equation modeling (PLS-SEM) technique was employed for inferential statistical analysis. The findings revealed that GL and GHC are significant drivers of CE. Additionally, GL and GHC were observed to have a positive linkage with the SP of firms. The findings uncovered that SP positively impacts circular economy implementation. Furthermore, SP was found to significantly mediate the linkages between GL and CE, as well as between GHC and CE. Ours is one of a limited number of research projects that address the role of GL and GHC in implementing CE through SP. Hence, this study added critical insights to the extant theory and practice while reporting several theoretical and managerial implications.