Purpose This study explores how medium-sized logistics service providers (LSPs) can respond to increasing institutional pressures for sustainability, especially through the reporting of carbon footprint data (CFD). While most previous research concentrates on large firms, this study offers new empirical insights into how resource-limited firms strategically comply with sustainability demands to stay competitive. Design/methodology/approach The study adopts a qualitative single-case approach centred on ABC Logistics, a medium-sized LSP. Data were gathered through a survey, collection of operational data, semi-structured interviews with the project manager and client feedback. A qualitative method is employed to analyse the data, while the findings are interpreted using Institutional Theory, the Strategic Response Framework and the Theory of Dynamic Capabilities. Findings ABC Logistics responded to coercive, mimetic, and normative pressures by investing in a credible emissions reporting tool, despite financial limitations. The company strategically complied with client and regulatory expectations without disrupting core operations. Findings reveal that compliance, when aligned with long-term business interests, can support client retention, enhance a company’s reputation and reinforce its market positioning. The study also confirms the cascading nature of sustainability pressures within supply chains, where larger clients influence the adoption of sustainability among smaller providers. Originality/value This study contributes to logistics and sustainability by reframing compliance not as a reactive obligation but as a proactive, strategic choice for medium-sized firms. It offers a new insight into how medium-sized, resource-constrained firms can respond effectively to institutional pressures by aligning sustainability initiatives with core business goals. By demonstrating how sustainability demands are transmitted through supply chain relationships, the study extends current theories on institutional pressure and dynamic capabilities.
Ervik et al. (Tue,) studied this question.