Performance outcomes of environmental collaboration: evidence from Finnish logistics service providers

Abstract

<p><b>Purpose </b>Firms that need to address growing concerns about the environmental impact of their<br />activities could benefit from collaborating internally and externally. This paper develops and<br />empirically tests a theoretical model of the effects of internal and external environmental<br />collaboration with customers on the firm performance of logistics service providers.<br /><b>Design/methodology/approach</b> Hierarchical multiple regression and generalised linear modelling<br />are utilised to analyse 311 logistics service providers offering road transport services in Finland.<br />The dataset was collected from a Finnish nationwide logistics survey in 2012 and financial reportsbased<br />data.<br /><b>Findings</b> External environmental collaboration with customers seems to be the most effective way<br />to improve operational and financial performance, while internal environmental collaboration does<br />not yield similar benefits.<br /><b>Research limitations/implications</b> Research limitations include the concentrated geographic origin<br />of the respondents and the exclusion of potential indirect effects of environmental collaboration on<br />operational and financial performance through environmental performance.<br /><b>Practical implications</b> Managers planning to implement environmental initiatives should extend<br />their focus from internal operations to external partners in the supply chain.<br /><b>Originality/value</b> This research is one of the first attempts to focus on performance outcomes with<br />regard to the environmental activities of logistics service providers. The research provides<br />quantified insights using both self-reported and financial reports-based data.<br /><b>Keywords</b> Environmental collaboration, Operational performance, Financial performance,<br />Logistics service provider, Finland<br /><b>Paper type</b> Research paper<br /></p>