Performance outcomes of environmental collaboration Evidence from Finnish logistics service providers

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