Enabling sustainable logistics through workplace and social factors: Evidence from freight forwarding

Employee performance is crucial for aligning innovation and sustainability in operationally intensive sectors like freight forwarding and logistics, which directly contribute to Sustainable Development Goals (SDGs) such as SDG 8 (Decent Work), SDG 9 (Industry, Innovation), and SDG 12 (Responsible Consumption). This study examines the influence of workplace environment, social norms, and task interruptions on employee performance in a freight forwarding company in a developing economy. A quantitative, cross-sectional research design was employed, using a web- based survey administered to all 40 employees of the company. The workplace environment was conceptualized to include physical and psychosocial conditions, social norms as informal behavioral expectations, and task interruptions as workflow disruptions. Data were analyzed using Partial Least Squares Structural Equation Modeling to assess both measurement and structural models. Results show that both workplace environment (β=0.30, p=0.02) and social norms (β=0.46, p<0.01) significantly improve employee performance, while task interruptions (β=0.06, p=0.36) do not have a significant negative impact. These findings highlight the value of improving ergonomic conditions, reducing noise, and fostering a supportive organizational culture to enhance sustainable and innovative performance. This study advances literature by offering empirical evidence from an underexplored industry and cultural setting, emphasizing the role of human and organizational factors in driving eco-innovation and sustainable practices in high-demand service contexts.