Environmental alignment between logistics service providers and shippers – a supply chain perspective

• Pages: 575-605
• Published date: 18 August 2020
• Date: 18 August 2020
• DOI: https://doi.org/10.1108/IJLM-04-2019-0101
• Author: Maria Huge-Brodin,Edward Sweeney,Pietro Evangelista
• Subject Matter: Management science & operations,Logistics

Environmental alignment between

logistics service providers and

shippers –a supply

chain perspective

Maria Huge-Brodin

Linkopings Universitet, Linkoping, Sweden

Edward Sweeney

Engineering Systems and Management Group, Aston University,

Birmingham, UK, and

Pietro Evangelista

Institute for Research on Innovation and Services for Development - IRISS-CNR,

Naples, Italy

Abstract

Purpose –Various suggested paths for greening logistics and supply chains often address the specific

perspectives of single supply chain actors. Drawing on stakeholder theory, the purpose of this paper is to

develop a deeperunderstanding of the alignment between logistics service providers (LSPs) and shippers in the

context of adopting more environmentally sustainable logistics practices.

Design/methodology/approach –With a case study approach, a dual perspective is taken in which both

LSPs and shippers were researched. The cases comprise eight LSPs and six shipper companies in Sweden, Italy

and Ireland. Information was first analysed in relation to levels of environmental awareness, customer

requirements and provider offerings and critical success factors (CSFs) and inhibitors. In a second step, the

findings were analysed using stakeholder theory.

Findings –LSPs demonstrate higher ambition levels and more concrete offerings compared to shippers’

requirements for green logistics services. Paradoxically, customers are an important CSF and alsoan inhibitor

for both LSPs and shippers. Both LSPs and shippers perceive financial factors and senior management

priorities as important CSFs. The application of stakeholder theory helps to illuminate the importance of the

many secondary stakeholders vs that of one or a relatively small number of primary stakeholders.

Originality/value –The three-dimensional analysis of environmental alignment between LSPs and shippers

reinforces existing knowledge and provides new insights. A novel use of stakeholder theory in a supply chain

context underlines its usefulness in research of this kind.

Keywords LSPs, Shippers, Buyers, Environmental alignment, Green logistics, Stakeholder theory, Case study

analysis

Paper type Research paper

1. Introduction

The anthropogenic impact of logistics activities is now widely understood (see e.g.: McKinnon,

2018). In this context, the development of more environmentally sustainable logistics practices

has a key role to play in meeting the demanding targets to which governments around the world

are now committed. It is not surprising, therefore, that recent years have seen a strong focus

amongst policy makers, supply chain practitioners and researchers on the factors that influence

the adoption of greener logistics practices. Nevertheless, many factors and initiatives are studied

in quite nar row contexts –this ar ticle adopts a more integrated approach.

Environmental

alignment

between LSPs

and shippers

575

The authors wish to express their sincere gratitude to the anonymous reviewers for their constructive

and challenging comments. They also wish to thank the Editor for the wise advise offered throughout

the review process.

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/0957-4093.htm

Received 5 April 2019

Revised 11 October 2019

11 March 2020

26 May 2020

Accepted 28 June 2020

The International Journal of

Logistics Management

Vol. 31 No. 3, 2020

pp. 575-605

© Emerald Publishing Limited

0957-4093

DOI 10.1108/IJLM-04-2019-0101

Research in green logistics has identified several ways for companies to reduce the

environmental impact of transport and logistics activities. These include modal shift and

intermodal solutions (McKinnon, 2018;Woodburn and Whiteing, 2010), effective adoption of

advanced technology solutions (Johannes et al., 2018;Wang et al., 2016;McKinnon, 2010), use

of tools for assessing the carbon footprint of activities (Eglese and Black, 2010;Lieb and Lieb,

2010;Piecyk, 2010), environmentally oriented transport management (Bajec et al., 2015;Lieb

and Lieb, 2010) and green logistics system design (Colicchia et al., 2013;Harris et al., 2010;

Kohn and Huge-Brodin, 2008;Aronsson and Huge-Brodin, 2006). However, it appears that the

actual adoption of these practices is taking place at a relatively slow pace (see, e.g.:

Evangelista et al., 2017;Perotti et al., 2012).

Logistics systems include a variety of actors, each of which has its own strategic goals and

priorities. Two of the core actors are logistics service providers (LSPs) and shippers (typically

retailers and manufacturers, i.e. the customers of LSPs). In the context of green logistics, LSPs

are crucial players as they manage the systems and actually perform the operations that

ultimately produce emissions (Evangelista, 2014;Tacken et al., 2014;Aronsson and

Huge-Brodin, 2006;McKinnon, 2003).

One important impediment to the greening of logistics activities that has been suggested

is the tension between LSPs and shippers (see, e.g.: Wolf and Seuring, 2010). This tension

manifests itself in various ways including lack of trust and poor levels of environmental

knowledge sharing (Wolf and Seuring, 2010). Previous research in this area is somewhat

fragmented in the sense that, with few exceptions, it deals with either the LSP or the shipper

side in isolation. Furthermore, much of the relevant extant scholarship deals with relatively

narrow, single subject topics that represent just part of the overall picture. This is a serious

gap in our understanding of the subject, one which this paper seeks to address squarely, by

addressing a combination of related questions.

Among the relatively few studies that consider both sides, a number of key themes arise.

Studies point to a mismatch between shippers’offerings and LSPs requirements (Martinsen

and Bj€

orklund, 2012;Martinsen and Huge-Brodin, 2014), where shippers’environmental

demands tend to be weaker and less specific than the offerings from LSPs (Kudla and Klaas-

Wissing, 2012;Martinsen and Bj€

orklund, 2012). Shippers’lack of green awareness could be

one explanation for the imbalance (Martinsen, 2014). It has also been suggested that cross-

functional and cross-organizational activities through various coordination mechanisms may

improve alignment between shippers and LSPs with respect to environmental endeavours

(Jørsfeldt et al., 2016;Salln€

as, 2016). In response to the various findings that have been

presented in relation to shipper–LSP alignment, there is a need for an integrated approach

which offers explanations aiming to improve understanding of shipper–LSP alignment.

In order to understand how LSPs and shippers manage their green logistics initiatives, with

the aim of collaborating more effectively and effi ciently,it is importantto considertheir different

perspectives and roles. As a consequence a dual perspective on green logistics initiatives among

LSPsandshippersisapplied.ThebasicassumptionisthatthemoreLSPsandshippersare

aligned,the greener the supplychain is likely to be. The overall purpose of the research described

in this article is to develop a better understandingofthenatureofthisalignmentbetweenLSPsand

shippers in the context of adopting more environmentally sustainable logistics practices.

Apart from each other, both LSPs and shippers are affected by many supply chain actors,

with other stakeholders potentially playing important but different roles for LSPs and

shippers. Our primary focus is on the greening of logistics practices with a particular

emphasis on how LSP/shipper alignment can support this process. In previous research

relating to green supply chain management (GSCM), stakeholder theory has been suggested

(Sarkis et al., 2011) and used (Ferguson, 2011) to capture and analyse the wider context where

multiple actors are involved. Stakeholder theory is based on the recognition that many actors

affect a firm’s decision-making processes. By adopting stakeholder theory as a prism through

IJLM

31,3

576