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Effective and efficient supply chain management is critical to the success of firms engaging in e‐commerce. The purpose of this paper is to examine the impact of logistics capability and logistics outsourcing on firm performance in an e‐commerce market environment.

This research examines the relationship between firm's logistics capability, logistics outsourcing and its performance. Multiple‐item constructs are used to measure the strength of logistics capability and firm performance. The use of logistics outsourcing is represented by a dichotomous variable. Data obtained via a survey were analyzed to investigate relationships among constructs and various hypotheses were tested.

Study results revealed logistics capability to be positively related to firm performance in the e‐commerce market. However, counter‐intuitively, logistics outsourcing and firm performance were not found to be positively linked. Further, the association between logistics capability and outsourcing was not supported. Finally, the interactive effect of logistics outsourcing on the relationship between logistics capability and firm performance was not sustained.

Research findings are constrained, as the study was limited to the computer and consumer electronics retailing industry. However, the importance of logistics capability was confirmed in the e‐commerce supply chain for this segment. And the benefit of using third‐party logistics (3PL) to enhance firm performance was not fully established.

Logistics capability is critical for superior firm performance in e‐commerce. However, study findings lead to the presumption that firms should avoid logistics outsourcing if performance is predicated on competitive advantage due to internally strong logistics capability and competencies.

This research contributes to the study of logistics capability and 3PL in e‐commerce. The development of a logistics capability measurement construct in e‐commerce originated with this research. Also the impact of logistics outsourcing on firm performance is tested for the first time in an e‐commerce market environment.

Theory is needed for a discipline to mature. This research aims to provide a summary analysis of the theories being used in contemporary logistics and supply chain management (SCM) studies.

A comprehensive literature review of articles appearing in five top tier logistics and SCM journals is conducted in order to identify how often theory is used and to classify the specific theories used. An analysis of the theoretical categories is presented to explain the type and frequency of theory usage.

Over 180 specific theories were found within the sampled articles. Theories grouped under the competitive and microeconomics categories made up over 40 per cent of the theoretical incidences. This does not imply all articles utilize theory. The research found that theory was explicitly used in approximately 53 per cent of the sampled articles.

Two implications are central. First, in the minds of editors, reviewers and authors is approximately 53 per cent theory use enough? Literature suggests there continues to be a need for theory‐based research in the discipline. A first step may be to increase our theory use, and to clearly describe the theory being used. Second, the vast majority of theories used in recent logistics and SCM research originated in other disciplines. Growth in the discipline dictates the need for greater internal theory development.

Despite multiple calls for the use of theory in logistics and SCM, little formal research has been produced examining the actual theories being used. This research provides an in‐depth review and analysis of the use of theory in logistics and SCM research during the period 2004‐2009.