The impact of environmental regulation on environmental performance: a focus on third party logistics service providers in an emerging country

Abstract

The literature addresses the link between command and control environmental regulation and environmental performance. However, there is a lack of attention paid to how environmental strategy plays a mediating role in this relationship. In addition, the environmental research in the context of third-party logistics service providers seems to be underexplored. Thus, through the theoretical lens of institutional theory and contingency theory, this study examines the mediating role of environmental strategy on the relationship command and control environmental regulation and environmental performance. Data were collected from small and medium enterprises operating in the logistics industry of Vietnam and partial least square structural equation modeling was employed to examine the proposed hypotheses. The result indicates the full mediating effects of environmental strategy on the link between command and control environmental regulation and environmental performance. In this regard, this study contributes to growing empirical evidence showing that the link between environmental regulation and environmental performance is indirect through mediators. Besides, this study also extends the current knowledge of environmental strategy pursued by third-party logistics providers.