The Impact of Environmental Issues to Global Logistics Strategies and Business Performance

DOI: 10.5176/2251-1938_ORS30

Authors: Yi Chun Kuo and Chiao Yu Li

Abstract:

Since early 1990s, environmental regulations and consumer pressures have encouraged many companies to add the environmental component to supply chain management. Facing the continuing challenge, global corporations have to constantly evaluate and configure their production and distribution systems to provide the desired customer service at the lowest possible cost.However, the logistics activities are regarded as significant sources of environmental pollution and greenhouse emissions,which have harmful impacts on human health and ecosystem quality. In this paper, we apply a structural equation modeling(SEM) to examine the impact of environmental issues to the global logistics strategies and business performance. Three research hypotheses were proposed. 1. Whether environmental regulations,cost and risk have a significant influence on global logistics strategies.2.Whether global logistics strategies have significant influence on logistics cost, logistics quality, logistic flexibility and customer satisfaction. 3. Under the environmental issues, the global logistics strategies have a significant influence on financial performance.

Keywords: Environmental issues; global logistics strategy; structural equation modeling; logistics performance; financial performance