Operational efficiency as a feasibility mechanism linking green logistics practices to sustainability performance: Evidence from emerging-economy 3PL firms

Sustainability pressures are increasingly reshaping logistics and supply chain operations, particularly as firms are expected to reduce environmental impacts while maintaining operational competitiveness. However, the operational mechanisms through which green logistics practices translate into sustainability performance remain underexplored, especially in resource-constrained emerging economies. Drawing on Dynamic Capabilities Theory, this study conceptualizes operational efficiency as a feasibility mechanism through which green logistics practices are translated into logistics sustainability performance. Using survey data from 300 third-party logistics firms in Vietnam and applying covariance-based structural equation modelling, the study examines both the direct and indirect effects of green logistics practices on logistics sustainability performance. The results indicate that green logistics practices have a positive and significant impact on logistics sustainability performance, both directly and indirectly through operational efficiency, with evidence of partial mediation. The indirect effect accounts for a substantial proportion of the total effect. These findings suggest that the effectiveness of green logistics practices depends on their ability to generate operational efficiency gains, particularly in resource-constrained contexts. This study advances the literature by theorizing and empirically validating a mechanism-based explanation of how sustainability practices are operationalized into performance outcomes, extending the application of Dynamic Capabilities Theory in sustainable logistics. It also offers practical insights by highlighting efficiency-oriented green practices as a more feasible pathway for 3PL firms in emerging economies.