Title: Firm performance and environmental collaboration in manufacturing

Authors: Tomi Solakivi; Sini Laari; Juuso Töyli; Lauri Ojala

Addresses: Operations and Supply Chain Management, Turku School of Economics, University of Turku, FI-20014, Finland ' Operations and Supply Chain Management, Turku School of Economics, University of Turku, FI-20014, Finland ' Operations and Supply Chain Management, Turku School of Economics, University of Turku, FI-20014, Finland ' Operations and Supply Chain Management, Turku School of Economics, University of Turku, FI-20014, Finland

Abstract: We identify empirically the effects of environmental collaboration in the supply chain on operational and financial performance of manufacturing firms. Self-reported survey data is combined with financial reporting data on 135 manufacturing firms operating in Finland. Environmental collaboration within the firm and externally with customers and suppliers is studied against measures of firm performance by applying descriptive analysis, confirmatory factor analysis and generalised linear modelling. The novelty in this research is the combination of self-reported survey data with financial reports-based data in analysing the effects of three dimensions of environmental collaboration on firm performance. The findings suggest that while external collaboration had mostly positive effects, internal collaboration seems to be more problematic. The results highlight the need for supply chain focus in environmental issues. Manufacturing firms should not consider environmental efforts merely as an extra burden; there seem to be ways of putting in more effort without jeopardising performance.

Keywords: environmental collaboration; firm performance; manufacturing; financial performance.

DOI: 10.1504/IJBSR.2017.087101

International Journal of Business and Systems Research, 2017 Vol.11 No.4, pp.365 - 392

Received: 04 May 2015
Accepted: 29 Feb 2016

Published online: 23 Aug 2017 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article