Competitiveness through sustainability : drivers for logistics industry transformation

Abstract

Sustainability has emerged as a central concern in business. Across all sectors, companies are looking for ways to reduce their negative environmental impact. Globally, transportation accounts for approximately a quarter of all produced carbon dioxide emissions. At the same time, companies are reliant on logistics and supply chains to function. Amid these concerns, companies are also recognizing opportunities to improve their competitiveness through embracing sustainability. Therefore, logistics operations can be seen as a major component of business operations that require radical changes in order to improve environmental sustainability. This doctoral thesis aims to explore ways for logistics industries to benefit from ongoing sustainability transitions.

The main research strategy for this thesis is to carry out qualitative case studies, which are mixed with quantitative survey method, and supported by analytical and bibliometric studies. This mixed approach strengthens the exploratory nature of this research work. As exploration seldom has a clear or defined expected result, these approaches on their part structure the detailed results. Data triangulation with these methods allows close examination of novel phenomena in logistics industries as they unfold. These phenomena are often complex, and singular approaches give a narrow view on them. As the topics of this research are still developing, the exploratory nature offers a way to make necessary appendments to the existing theories in logistics and sustainability.

The results of this thesis have been published in seven scientific articles, of which six are published in peer-reviewed scientific journals, and one is published in conference proceedings. Publication I explores business models in changing regulative and business environment. Publication II studies the case of environmental sustainability in a setting of a port and companies operating in that port. Publication III examines the development of road transport emissions development in Finnish setting. Publications IV and V study how logistics and manufacturing companies are surviving amid the Covid-19 pandemic and its implications. Publication VI is bibliometric research aimed at studying the development of scientific literature on the interplay of sustainability and innovation. Lastly, Publication VII examines logistics companies’ environmental performance and ability to self-assess in this regard.

This research work showcases the emergence of sustainability as an important factor for competitiveness in the logistics industries. While some have been adapting to this change already, most are lagging. Most of the studied companies can comply with baseline regulation for now but lack the proactivity to appeal to stakeholder demands and struggle with stricter future regulations. Smaller companies especially are left in an uncomfortable situation with tightening regulations, while other events (e.g., Covid-19 and economic sanctions) are increasing the uncertainty in the studied industries. As modern societies are dependent on smaller companies acting as sub-contractors for larger enterprises, commonly beneficial solutions and policies must be found to ensure sustainability in these societies.

This research work studies companies with a close case study lens with an aim to better understand the larger networks these companies form. As both logistics and sustainability are complex topics, this type of study is needed to understand the nuances and inner workings of logistics networks in relation to sustainability efforts.