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Understanding drivers of performance in the 3PL industry in Hong Kong

Baofeng Huo (School of Management, Xi'an Jiaotong University, Xi'an, People's Republic of China Centre for Supply Chain Management & Logistics, Li & Fung Institute of Supply Chain Management & Logistics, The Chinese University of Hong Kong, Shatin, Hong Kong)
Willem Selen (Department of Business, Middle East Technical University – Northern Cyprus Campus, Mersin, Turkey)
Jeff Hoi Yan Yeung (Supply Chain Management Research Center; MSc Program in Information Technology Management; DSE Department, Faculty of Business Administration, The Chinese University of Hong Kong, Shatin, Hong Kong)
Xiande Zhao (Department of Decision Sciences and Managerial Economics, Faculty of Business Administration, The Chinese University of Hong Kong, Shatin, Hong Kong)

International Journal of Operations & Production Management

ISSN: 0144-3577

Publication date: 18 July 2008

Abstract

Purpose

The aim of this paper is to develop an overarching framework to better understand drivers of performance in third‐party logistics (3PL) linked to the operations strategy literature.

Design/methodology/approach

A path model is specified and estimated based on constructs and relationships grounded in the literature, as well as self‐developed constructs, using empirical data from 159 3PL providers in Hong Kong.

Findings

Some dimensions of internal and external environments have positive influences on differing operations emphases. Furthermore, operational performance is positively affected by corresponding operations emphases and functional involvement. Finally, good operational performance can bring about better financial performance. However, strict adherence to the low cost operations emphasis will lead to worse financial performance.

Originality/value

This research provides a novel overarching framework to link competition in the market place, challenges in the operations and functional involvement through operations emphases to operational and financial performance.

Keywords

Citation

Huo, B., Selen, W., Hoi Yan Yeung, J. and Zhao, X. (2008), "Understanding drivers of performance in the 3PL industry in Hong Kong", International Journal of Operations & Production Management, Vol. 28 No. 8, pp. 772-800. https://doi.org/10.1108/01443570810888607

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited