Examining freight performance of third-party logistics providers within the automotive industry in India: an environmental sustainability perspective

Abstract

The purpose of this study is to examine relationships between measures of sustainable freight transport performance (in the context of mid-sized third-party auto components’ logistics players) with the associated externalities and firms’ intrinsic characteristics when information exchange occurs between logistics firms and the auto manufacturer. Employing a survey-based research methodology, appropriate data were collected for a number of third-party logistics players, thus yielding a total of 708 responses from the operational managers of these firms. The research construct was validated through a rigorous procedure involving measurement and structural equation model. From a theoretical perspective, the results of this study provide evidences supporting systemic relationships between internal enablers of the logistics firms and externalities in the backdrop of environmental sustainability. Major findings indicate that transportation planning and distribution network and, commodity considerations backed by top management support can further environmental performance. Further, we also find evidence that effective transport planning and distribution network design used in conjunction with commodity considerations can be a source of sustainable supply chain performance. By bridging the literature pertaining to environmental sustainability, information exchange, and pertinent external/internal nuances of logistics firms, this study reveals novel findings that can help logistics players streamline operations focused at achieving environmental sustainability performance.

KEYWORDS:

• Sustainability
• logistics industry
• environment
• freight transportation
• empirical study

Disclosure statement

No potential conflict of interest was reported by the author(s).