Third-party logistics (3PL) provider's adoption of green transportation: a B2C customer value perspective

Purpose While logistics service providers (LSPs) implement green logistics as part of their strategic initiatives, there has been little research on B2C customer reactions to green transportation adoption in the context of third-party logistics (3PL) providers. Informed by the customer value theory, this study fills the research gap by investigating the efficacy of 3PL provider adoption of green transportation on customer value and customer loyalty, in comparison to traditional transportation. The study also examines whether the use of renewable fuel in green transportation further enhances customer value and customer loyalty. Design/methodology/approach Two scenario-based experiments were conducted with participants recruited from Prolific in the US and the UK. ANOVA and Hayes' PROCESS Macro were used to test the hypotheses. Findings A 3PL provider's adoption of green transportation (i.e. low- or zero-carbon-emission vehicles) increases customer value and customer loyalty more than traditional transportation. Renewable energy as a source of fuel in green transportation serves as a moderator, enhancing customers' perception of value as well as customer loyalty. Originality/value This study offers empirical evidence to justify the considerable investments 3PL providers make in adopting green transportation and thus adds to the literature on sustainable operations, particularly on the utilization of green transportation as a source of value creation for firms.