Shipping design for compliance and the performance contingencies for shipping firms

Increasing number of shipping firms adopt green shipping practices that emphasize environmental management throughout their operations. To balance productivity with the environment, the design of shipping activities in compliance with energy saving and resources conversation is an important part of greening efforts by many shipping firms. This study investigates how the green practices on shipping design for compliance (SDC) adopted by shipping firms is related to their financial and service performance with the role of company policy and procedures and shipper cooperation examined. We find that SDC is beneficial for the financial and service performance of shipping firms. Based on the contingency theory, we argue further that company policy and procedure as well as shipper cooperation differentiates the performance outcomes of shipping firms in their SDC for environmental management. Our empirical findings show a positive relationship of SDC with service performance particularly when their company policy and procedure and shipper cooperation are characterized at high than low levels in the process. However, such strengthening effects are not found for the relationship between SDC and the financial performance of shipping firms.