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

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  • Sini Laari
  • Juuso Töyli
  • Lauri Ojala

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.

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  • Sini Laari & Juuso Töyli & Lauri Ojala, 2018. "The effect of a competitive strategy and green supply chain management on the financial and environmental performance of logistics service providers," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 872-883, November.
    • Handle: RePEc:bla:bstrat:v:27:y:2018:i:7:p:872-883
    DOI: 10.1002/bse.2038
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    18. Panagiotis Reklitis & Damianos P. Sakas & Panagiotis Trivellas & Giannis T. Tsoulfas, 2021. "Performance Implications of Aligning Supply Chain Practices with Competitive Advantage: Empirical Evidence from the Agri-Food Sector," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
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    20. Muhammad Anwar & Shuangjie Li, 2021. "Spurring competitiveness, financial and environmental performance of SMEs through government financial and non-financial support," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 7860-7882, May.

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