Managerial competencies of 3PL providers: A comparative analysis of Indonesian firms and multinational companies

Abstract

Purpose

The purpose of this paper is to identify and prioritise competencies of Indonesian third-party logistics (3PL) managers from the perspective of multinational corporations (MNCs) and local firms.

Design/methodology/approach

Underlined by the theory of action and job performance (competency model), the study proposes a framework that consists of management, logistics, business and information and communication technology competency categories, with 15 competencies. Data are collected from five MNCs and five local 3PL firms operating in Indonesia. The analytic hierarchy process method is used to calculate the priority weights and to prioritise the competencies.

Findings

Results indicate that both the local and MNC 3PL providers emphasise logistics as the “most important” competency category. In the “moderately important” competency group, MNCs prioritise competencies in the management competency category while local firms prioritise competencies in the business competency category.

Research limitations/implications

Results obtained in this study focus on 3PL firms in Indonesian businesses, which may not be applicable to other nations and other industries.

Practical implications

3PL firms, industry peak bodies (e.g. Indonesian Logistics Association) and education providers can benefit from incorporating the findings of this study in developing curricula for higher education and training programmes for certification designed to improve managerial competencies.

Originality/value

By including the perceptions of the MNCs and local 3PL providers, this study advances the literature on 3PL managerial competencies by extending such knowledge to the global environment.

Citation

Sangka, B.K., Rahman, S., Yadlapalli, A. and Jie, F. (2019), "Managerial competencies of 3PL providers: A comparative analysis of Indonesian firms and multinational companies", The International Journal of Logistics Management, Vol. 30 No. 4, pp. 1054-1077. https://doi.org/10.1108/IJLM-04-2019-0098