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Contradictory sustainability priorities and perspectives among supply chain actors in greening transportation can be challenging. Several of these contradictions can be described as paradoxes (i.e. interests that are logical in themselves, but become irrational when perceived together). The aim of this study is to increase the understanding of paradoxical tensions hampering the greening of transportation in transport buyer–supplier dyads.

A case study method targeting greening transportation in two transport buyer–supplier dyads was applied, followed by an analysis with a point-of-departure in paradox theory.

Tensions related to performing, belonging, learning and organizing paradoxes in greening transportation were identified. These tensions arise as a consequence of actions, perspectives and other tensions, within three identified loci in individual companies and in dyads.

By identifying examples of tensions through the lens of paradoxes in a particular setting, this study provides an increased understanding of why the transition toward green transportation goes slow, despite the high ambitions of involved actors. The suggested framework provides a novel contribution to the literature that further increases the understanding of tensions, by providing additional insights into where tensions arise and how actions, perspectives and tensions in one place of a locus spectrum can disseminate along that spectrum.

This study is original because it applies paradox theory and the four categories of performing, belonging, learning and organizing within the field of greening transportation, and in particular as a lens to study interactions between different actors.

The lack of a direct link between business value and sustainability is a critical roadblock to truly embedding sustainability in business strategies. Before launching the sustainability journey, every organisation should answer the question: “What value would this strategy offer our organisation?” Conversely, when organisations are opportunistic toward quick profits, the negative consequences of one domain spill over to another. The desire to produce more may result in overproduction, overconsumption or environmental pollution.

To give a complete analysis of sustainable capabilities, this study combines current theoretical understanding from past literature, followed by exploratory interviews and a thorough case study. The case study ventured into uncharted territories, unveiling an exciting new sphere of value catalysed by the mechanisms of sustainable co-creation. Additionally, it exposed thought-provoking motives driving supply chain actors’ unwavering commitment to ethical decision-making, even amidst towering challenges.

Our empirical lens reveals the hidden mechanics of resource sharing and the genesis of newfound value, illuminating previously obscure corners of the sustainability field. Moreover, it sheds light on retailers striving to cultivate green retail supply chains. It delivers an actionable framework that bolsters business sustainability and fuels competitive edge, which is vital in the rapidly evolving landscapes of emerging economies.

This study offers insights into the sustainable value-creation mechanism in ALPHA, a Malaysian retailer, uncovering how supply chain actors’ business activities generate economic, social and environmental performance.