The effect of a competitive strategy and green supply chain management on the financial and environmental performance of logistics service providers

Research output: Contribution to journalArticleScientificpeer-review

Researchers

Research units

  • University of Turku

Abstract

Despite the critical role of logistics service providers (LSPs) in improving the environmental sustainability of supply chains, there is still uncertainty about how LSPs can turn environmental management into competitive advantage. Based on a Finnish national logistics survey and financial reporting data from 266 LSPs, this article examines their competitive strategies and green supply chain management (GSCM), and tests their respective relationships with environmental and financial performance. Financial data are used to measure financial performance in a novel way. The findings indicate that leading LSPs with operational excellence and strong brands are more advanced in terms of GSCM than LSPs that do not excel in any competitive priority. GSCM practices are positively related to environmental performance, but not to financial performance. However, managers should not be discouraged by the apparent absence of short-term financial benefits of GSCM practices, which in any case could enhance future differentiation opportunities.

Details

Original languageEnglish
Pages (from-to)872-883
Number of pages12
JournalBusiness Strategy and the Environment
Volume27
Issue number7
Early online date2018
Publication statusPublished - Nov 2018
MoE publication typeA1 Journal article-refereed

    Research areas

  • Competitive strategy, Environmental performance, Financial performance, Green supply chain management, Logistics service providers, Sustainability

ID: 18044849