Comprehensive Research on the Logistics Sector by BAUN Academics: Board Structures Shape Sustainability
Comprehensive Research on the Logistics Sector by BAUN Academics: Board Structures Shape Sustainability
Balikesir University (BAUN) Faculty of Economics and Administrative Sciences, Department of International Trade and Logistics research assistant Mert Demir, Business Administration faculty member Prof. Dr. Pelin Vardarlier, and Prof. Dr. Bahaudin G. Mujtaba from Nova Southeastern University
co-authored a study revealing how corporate governance structures influence sustainability performance in the logistics sector.
The study titled “Strategic Governance for Sustainable Performance: ESG Impacts of Board and Financial Structures in International Logistics” was conducted by BAUN academics Research Assistant Mert Demir, Prof. Dr. Pelin Vardarlier, and Prof. Dr. Bahaudin G. Mujtaba from Nova Southeastern University, and published in the Organization Development Journal. Indexed in Scopus within the Q4 category, the journal is recognized as one of the notable academic platforms in the field of organization development.
The findings showed a strong positive relationship between board independence and ESG scores; a 10% increase in the proportion of independent directors corresponded to an improvement of approximately 2 ESG points. The presence of a CSR committee produced the largest effect, generating a 10.2-point increase under a firm fixed-effects model. While board gender diversity was significant in pooled OLS, it lost statistical significance once firm fixed effects were controlled. CEO duality had a negative effect on both ESG performance and ROA (a 2.9-point decrease). Although gender diversity was positively associated with ROA, board independence and the CSR committee did not demonstrate a direct financial impact. The short-run negative relationship between ESG scores and ROA reflected the balance between short-term costs and long-term returns of sustainability investments.
Overall, the results indicate that governance quality in the logistics sector should be taken into account within the development agenda. The study emphasizes that separating the roles of CEO and board chair, institutionalizing CSR committees, and promoting gender-diverse boards can strengthen both ESG performance and long-term financial value creation.
