When do 3PLs initiate low-carbon supply chain integration?

Abstract

PurposeThis paper draws on the perspective of social networks to examine when 3PLs initiate low-carbon supply chain integration (LCSCI) in decarbonising supply chains.Design/methodology/approachA questionnaire survey was conducted on a sample of 348 Chinese 3PLs. Stepwise regression was adopted to analyse the data.FindingsIt is found that LCSCI has a positive effect on firm performance. From the social network perspective, a larger scope of outsourcing increases 3PLs' embeddedness, which increases their chance of success in initiating LCSCI, especially for 3PLs with higher decarbonisation capabilities. Interestingly, although the pressure from government regulation can also motivate LCSCI, it is less effective for 3PLs with higher decarbonisation capabilities because they can be too embedded in the network to freely adapt to regulations.Research limitations/implicationsThis study has investigated 3PL-initiated LCSCI only from the view of 3PLs. A dyadic approach which includes the perception of customers would be desirable.Practical implicationsThe results highlight the critical role of 3PLs as supply chain orchestrators in decarbonising supply chains, and the effectiveness of LCSCI as a competitive strategy of 3PLs. Coercive pressures from government regulations are not constraints but resources for 3PLs in initiating LCSCI, especially in markets where the 3PLs have insufficient decarbonisation capabilities.Originality/valueThis study contributes to theories on 3PLs' interorganizational low-carbon initiatives, LCSCI, and the paradox of social networks in supply chains.