Research on the impacts of customer pressure and customer orientation on green competitive advantage of logistics service providers in Hanoi, Vietnam

Research on the impacts of customer pressure and customer orientation on green competitive advantage of logistics service providers in Hanoi, Vietnam

 

Dinh Thi Hao1,  Nguyen Thi Mai Anh1, Tran Phuong Anh1, Nguyen Thi Thai Ha1*

1 School of Economics - Hanoi University of Industry

 

*Corresponding author E-mail: ha.nguyen22@haui.edu.vn

 

 

DOI:

 

 


ABSTRACT

 

This study investigates the structural relationships among customer pressure, customer orientation, green innovation and green competitive advantage in logistics service providers in Hanoi, Vietnam. Grounded in stakeholder theory and the resource-based view (RBV), the research develops a mediated structural model in which green innovation functions as a dynamic capability linking external institutional pressure and internal strategic orientation to competitive advantage. Using a quantitative approach and structural equation modeling (SEM), the study validates both measurement and structural models. The empirical results confirm that customer pressure and customer orientation significantly enhance green innovation capability, which in turn exerts a strong positive effect on green competitive advantage. Mediation analysis further demonstrates that green innovation fully transmits the effects of both antecedents on competitive advantage. Managerial implications emphasize the importance of embedding customer-driven sustainability expectations into organizational innovation systems.

 

Keywords: Customer pressure, Customer orientation, Green innovation, Green competitive advantage, Logistics services.

 

INTRODUCTION

 

Sustainability has become a dominant strategic imperative in contemporary supply chain and logistics management [1]. Increasing environmental degradation, regulatory constraints and stakeholder scrutiny have forced firms to integrate environmental considerations into their core operational and strategic decision-making processes [2]. In particular, logistics service providers are under increasing pressure to adopt green practices due to their significant environmental footprint across transportation, warehousing and distribution activities [3].

From a theoretical perspective, stakeholder theory suggests that firms are influenced by the expectations and demands of external stakeholders, especially customers who increasingly require environmentally responsible products and services [4]. Customer pressure, therefore, functions as an external institutional force that drives firms toward environmental compliance and sustainable transformation [5].

In parallel, the resource-based view (RBV) argues that internal firm-specific resources and capabilities determine competitive advantage [6]. Within this framework, customer orientation is considered a strategic intangible capability that enables firms to understand, anticipate and respond effectively to customer needs, including sustainability-related expectations [7]. Firms with stronger customer orientation are more likely to translate market intelligence into innovation activities that support environmental performance improvement [8].

Despite the growing body of research on green innovation, existing studies remain fragmented in explaining how external pressure (customer pressure) and internal orientation (customer orientation) jointly contribute to green competitive advantage [9]. More importantly, the mediating mechanism through which these factors influence competitive outcomes is still insufficiently examined in logistics service contexts, particularly in emerging economies such as Vietnam [10].

Green innovation has been identified as a critical dynamic capability that enables firms to integrate environmental considerations into product, process and operational design [11]. It serves as a bridge between external institutional pressure and internal strategic orientation, allowing firms to convert sustainability demands into competitive advantage [12].

Accordingly, this study develops and tests a mediated structural model in which green innovation acts as the central mechanism linking customer pressure and customer orientation to green competitive advantage in logistics service providers in Hanoi, Vietnam.

 

LITERATURE REVIEW

 

Customer pressure reflects external environmental expectations imposed on firms regarding sustainability performance. In logistics, customers increasingly demand reduced emissions, green packaging and sustainable operations beyond traditional cost and service criteria [3, 5].

 

From stakeholder theory, customers represent a key external force shaping firm legitimacy and strategic responses [4]. Such pressure encourages firms to adjust operations toward environmental compliance and innovation-based responses [5]. Prior studies confirm that external pressure stimulates environmental restructuring and innovation adoption [1, 6].

Accordingly, customer pressure is expected to drive green innovation in logistics firms.

 

H1: Customer pressure has a positive impact on green innovation.

 

Customer orientation is a firm’s capability to understand and respond to customer needs, serving as an important intangible resource under the RBV framework [6]. It enables firms to interpret market signals and integrate customer expectations into strategic decisions [7, 16].

 

In sustainability contexts, customer-oriented firms are more likely to identify green demands such as low-carbon logistics and eco-friendly delivery, thereby accelerating innovation responses [8].

Thus, customer orientation is expected to enhance green innovation capability.

 

H2: Customer orientation has a positive impact on green innovation.

 

Green innovation refers to the implementation of environmentally friendly processes and technologies that improve both sustainability and operational efficiency [11, 19]. In logistics, it includes energy-efficient transport, waste reduction and green supply chain practices.

 

Green competitive advantage is derived from RBV and reflects superior performance achieved through non-imitable environmental capabilities [1, 10]. It enhances differentiation, reputation and long-term competitiveness in logistics markets [12].

 

Therefore, green innovation is a key driver of green competitive advantage.

 

H3: Green innovation has a positive impact on green competitive advantage.

 

The effects of customer pressure and customer orientation on competitive advantage are not direct but are transmitted through innovation capability. External pressure pushes firms toward environmental compliance, while internal orientation enables interpretation of customer needs; both require transformation through innovation mechanisms [9, 11].

 

Green innovation thus acts as a central mediating mechanism linking both drivers to competitive outcomes [10, 12].

 

Therefore, hypotheses  H4, H5 are proposed:

 

H4: Green innovation plays a mediating role in the relationship between customer pressure and green competitive advantage.

H5: Green innovation plays a mediating role in the relationship between customer orientation and green competitive advantage.

 

MATERIALS & METHODS

 

Measurement Scales

Through a comprehensive review of relevant literature in the field, the author developed the research model and adopted measurement scales from previous studies. Specifically, (1) customer pressure (AL) is measured by 5 items [9, 13]; (2) customer orientation (DH) is measured by 5 items [11]; (3) green innovation (DM) is measured by 5 items [1, 6]; and (4) green competitive advantage (LT) is measured by 5 items [14, 15].

Research Sample

Quantitative data for this study were collected through an online survey using Google Forms, combined with questionnaires sent directly via email to managers of logistics service providers in Hanoi. After two months of the official survey, the authors received a total of 200 responses, of which 162 valid responses were retained for analysis.

The collected data were coded and processed using SPSS 26 and AMOS 20 software to perform scale reliability testing, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and research hypothesis testing.

 

RESULT

 

Scale Reliability Assessment

The analysis results indicate that all Cronbach's Alpha coefficients are greater than 0,7. The Corrected Item-Total Correlation coefficients for all observed variables are above 0,3. This demonstrates that the research constructs formed by these observed variables are acceptable and will be utilized in the subsequent factor analysis.

The Kaiser-Meyer-Olkin (KMO) measure is 0,885 (> 0,5), which meets the required threshold and confirms the appropriateness of the factor analysis. Bartlett's Test of Sphericity yields a Significance (Sig.) value of 0,000 (< 0,05), indicating that the test is statistically significant and the observed variables are correlated. Consequently, the observed variables in the population are correlated, making Exploratory Factor Analysis (EFA) suitable.

 

Confirmatory Factor Analysis (CFA)

The results of the Confirmatory Factor Analysis (CFA) for the standardized measurement model indicate that the goodness-of-fit indices meet the required thresholds: Chi-square/df = 1,650 (< 3), TLI = 0,952 (> 0,9), CFI = 0,981 (> 0,9), GFI = 0,872 (> 0,8), and RMSEA = 0,052 (< 0,08). Therefore, the CFA results ensure the necessary level of statistical significance, and the measurement scales demonstrate adequate reliability.

 

Hypothesis Testing and Model Fit Assessment

Table 1. Hypothesis Testing Results

 

Hypotheses

Estimate

S.E.

C.R.

P

Decision

AL->DM

0,324

0,083

3,904

***

Accept

DH->DM

0,415

0,091

4,560

***

Accept

DM->LT

0,378

0,088

4,295

***

Accept

 

Note: * =P<0.05; ***=P<0.001 (Source: Data analysis results)

The hypothesis testing results presented in Table 1 indicate that the majority of the research hypotheses are supported with high statistical significance. Specifically, hypothesis H1, which proposes that customer pressure has a positive impact on green innovation within the enterprise, is supported (Estimate = 0,324; C.R. = 3,904; P < 0,001); thus, H1 is accepted. Similarly, hypothesis H2 is also accepted, as customer orientation exerts a positive influence on green innovation (Estimate = 0,415; C.R. = 4,560; P < 0,001). Regarding hypothesis H3, the analysis results show that green innovation has a statistically significant positive impact on green competitive advantage (Estimate = 0,378; C.R. = 4,295; P < 0,001) Mediation Effect Testing Results:

This study applied the bootstrapping method to test the mediating roles. The results are presented in Table 2.

Table 2. Mediation Testing Results

 

Hypothesis

Beta

P

Reliability

Result

Lower

Upper

H4: AL->DM->LT

0,092

0,000

0,041

0,215

Accept

H5: DH->DM->LT

0,124

0,000

0,015

0,282

 Accept

 

(Source: Data analysis results)

Synthesizing the above results indicates that green innovation plays a statistically significant mediating role in both research relationships. Although the magnitude of these indirect effects is relatively small, all impacts are positive, thereby contributing to clarifying the mechanism through which customer pressure and customer orientation influence green competitive advantage via green innovation.

 

DISCUSSION

 

This study confirms that customer pressure and customer orientation both significantly enhance green innovation in logistics firms, consistent with stakeholder theory and RBV. External customer pressure drives firms toward environmental responsiveness, while customer orientation strengthens internal capability to transform market needs into innovation [4, 6, 7].

 

Green innovation is found to have a significant positive effect on green competitive advantage, supporting the view that sustainability-based innovation is a key source of differentiation in logistics industries [11, 12].

 

Mediation results show that green innovation fully transmits the effects of customer pressure and customer orientation on green competitive advantage. This highlights green innovation as a core dynamic capability linking external pressure and internal orientation to competitive outcomes [9, 18].

 

The study contributes by integrating stakeholder theory and RBV and demonstrates the central role of green innovation in emerging market logistics contexts.

 

Declaration by Authors

Ethical Approval: Approved

Acknowledgement: None

Source of Funding: None

Conflict of Interest: No conflicts of interest declared.

 

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