Purpose Firms that need to address growing concerns about the environmental impact of their
activities could benefit from collaborating internally and externally. This paper develops and
empirically tests a theoretical model of the effects of internal and external environmental
collaboration with customers on the firm performance of logistics service providers.
Design/methodology/approach Hierarchical multiple regression and generalised linear modelling
are utilised to analyse 311 logistics service providers offering road transport services in Finland.
The dataset was collected from a Finnish nationwide logistics survey in 2012 and financial reportsbased
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 logistics service providers. The research provides
quantified insights using both self-reported and financial reports-based data.
Keywords Environmental collaboration, Operational performance, Financial performance,
Logistics service provider, Finland
Paper type Research paper