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Article
Publication date: 29 March 2022

Kaique Doratiotto, Jose Geraldo Vidal Vieira, Lucas Eric da Silva and Luiz Paulo Fávero

This research aims to evaluate the factors that influence logistics outsourcing, including the impact of logistics outsourcing on measuring companies' logistics

Abstract

Purpose

This research aims to evaluate the factors that influence logistics outsourcing, including the impact of logistics outsourcing on measuring companies' logistics performance. This research provides interactions among the various factors (constructs) such as “financial”, “collaboration and process characteristics”, “external influencer”, and “logistics performance”.

Design/methodology/approach

To investigate the interaction between the constructs, structural equation modelling is proposed to understand what the relevant criteria are while outsourcing logistics. Data were acquired from surveys conducted with 129 managers from Brazilian companies in the industry sector.

Findings

The factor “collaboration and process characteristics” is what most influences the “logistics performance” of companies, highlighting the importance of managing contractors; and the “financial” factor also contributes to the logistic outsourcing decision.

Research limitations/implications

Some limitations of this study need to be clarified. First, the model could test the moderate and mediate aspects by using variables inspired on RBV and TCE. Second, the sample is relatively small and restricted to the Brazilian industries' case, although the results may be useful for other countries in the world. Third, the responses represent viewpoints of the people who work in the companies. To address this issue, the authors asked respondents to fill out the questionnaire from the perspective of the organisation.

Practical implications

Most 3PL come from developed countries and find different requirements in Brazil. Then, this new knowledge may help 3L providers better understand the needs of the local or foreign companies that operate in the local market. The measurement model may also help to construct a new organisational process, as it sheds light on the main elements necessary for gathering logistics performance outcomes.

Originality/value

To the best of the authors' knowledge, the literature lacks studies on the interaction among these logistics outsourcing constructs, mainly in emerging markets where significant growth opportunities have led to logistics activities being outsourced. The literature that examines the impact of these constructs on logistics performance is also limited. Therefore, this research contributes to providing a model that measures these impacts according to the company's point of view.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 22 December 2021

Matthew Kalubanga and Sheila Namagembe

This study examines the relationships among trust, commitment, logistics outsourcing relationship quality (LORQ), relationship satisfaction, strategy alignment and…

Abstract

Purpose

This study examines the relationships among trust, commitment, logistics outsourcing relationship quality (LORQ), relationship satisfaction, strategy alignment and logistics performance considering selected manufacturing firms in a developing country, Uganda.

Design/methodology/approach

Drawing on insights from the commitment-trust theory and strategy alignment literature, and using a cross-sectional survey design with a self-administered questionnaire, and applying the partial least squares structural equation modeling (PLS-SEM) approach to analyze quantifiable data obtained from managers of 103 manufacturing firms in Uganda outsourcing logistics operations, the study examined the logistics performance effects of trust, through commitment, LORQ and relationship satisfaction.

Findings

The study findings reveal that trust influences logistics performance, indirectly through its effects on commitment, LORQ and relationship satisfaction, sequentially, and that the positive effects of relationship satisfaction on logistics performance strengthen with improvements in LORQ. Strategy alignment exerted a strong positive influence on LORQ.

Research limitations/implications

The study findings have important implications for theory development and literature. The study applies the commitment-trust view to both theoretically and empirically examine logistics outsourcing as a competitive strategy to enhance logistics performance, and thereby providing a theoretical base for future research. However, this research is confined to manufacturing firms in Uganda, and the results are not necessarily generalizable to other contexts.

Practical implications

The study findings provide insights for logistics managers regarding the role of trust, commitment, LORQ, relationship satisfaction and strategy alignment in enabling successful logistics outsourcing relationships, and how drawing on these, managers can improve firm logistics performance.

Originality/value

This study contributes to logistics management literature by empirically examining the relationship of trust, commitment, LORQ, relationship satisfaction and strategy alignment with logistics performance, considering manufacturing firms in a developing country, where these aspects have not been largely explored before. It highlights the need to build trust, promote greater commitment of logistics user firms in logistics outsourcing relationships as well as aligning logistics outsourcing strategies to improve LORQ and enhance logistics performance. Additionally, the study provides for the first-time new evidence for the moderation effect of LORQ on the influence of relationship satisfaction on logistics performance. The study findings suggest advancing further scholarly discussions on logistics outsourcing as a critical strategy to enhance firm logistics performance within a developing country context. Due to limitations in logistics infrastructure, and existing low-level technologies, logistics in developing countries still revolves around conventional materials handling, packaging, inventory and transportation operations, and logistics outsourcing is new, thereby presenting an interesting research context for empirical investigations on logistics in general, and logistics outsourcing in particular.

Details

The International Journal of Logistics Management, vol. 33 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Open Access
Article
Publication date: 20 October 2021

Tomi Solakivi, Ain Kiisler and Olli-Pekka Hilmola

This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European…

Abstract

Purpose

This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The purpose of this paper is to examine whether the two markets have become more similar or whether their logistics costs and logistics markets have developed differently over time.

Design/methodology/approach

The development of the logistics market is addressed through two survey-based variables. Logistics costs are used to measure the size of the logistics market, whereas logistics outsourcing is analyzed to measure the development phase as well as the market potential for logistics service provision.

Findings

Estonian logistics outsourcing market was found to be underdeveloped and small compared to the Finnish market. At the same time, the logistics costs of Finnish companies are high and rising, whereas the costs of Estonian firms are declining.

Research limitations/implications

The results imply that the level of outsourcing might explain the visibility of logistics costs, which should be taken into account when making estimates on logistics costs both at the firm as well as on country level.

Social implications

Logistics sector is an important source of national competitiveness and employment. This research identifies subareas for the two countries on how to develop competitiveness through the logistics market.

Originality/value

This research provides a unique method to estimate the size of logistics outsourcing market in these two countries. It also represents as one of the rare works to provide multiyear comparison between countries in logistics costs.

Details

Journal of Global Operations and Strategic Sourcing, vol. 15 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 15 February 2022

Dhanavanth Reddy Maditati, Sebastian Kummer, Ziaul Haque Munim and Hans-Joachim Schramm

According to the logistics performance index, emerging countries such as India are lagging behind developed countries such as Germany, Austria and Switzerland (DACH…

Abstract

Purpose

According to the logistics performance index, emerging countries such as India are lagging behind developed countries such as Germany, Austria and Switzerland (DACH region). The purpose of this study is to compare and understand the differences in logistics outsourcing outlook in the two regions by considering both manufacturing firms (M-firms) and logistics service providers’ (LSPs) perspectives.

Design/methodology/approach

A survey targeting both LSPs and M-firms in DACH and India is conducted. A total of 96 responses were analyzed by using the chi-square test to investigate the differences and alignments in outsourcing motivation, relationship and governance between firms within and across regions.

Findings

M-firms in India bear strategic motivations behind outsourcing and those in DACH incline towards costs. LSPs in both regions align with the motivations of M-firms. M-firms in India rely more on LSPs by transferring the ownership of outsourced tasks, as compared to DACH. Both M-firms and LSPs in DACH claim a high level of ownership. However, firms in DACH and India do not differ significantly in terms of outsourcing engagements they seek.

Research limitations/implications

The findings may only be generalized to large firms in India and DACH.

Practical implications

The findings of this study help managers enhance their understanding of the differences between M-firms and LSPs, and also across countries. LSPs in DACH, if they wish to operate successfully in India, will have to adapt to the M-firms strategic motivations and offer higher dependency.

Originality/value

This study is novel, as it investigates differences between India and DACH countries while also including both manufacturers’ and logistics service providers’ perspectives.

Details

Journal of Global Operations and Strategic Sourcing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 2 January 2021

Oskari Rintala, Tomi Solakivi, Sini Laari, Juuso Töyli and Lauri Ojala

This study aims to investigate the extent to which psychological factors and the agency of decision-makers drive outsourcing decisions. Arguments based on transaction cost…

1148

Abstract

Purpose

This study aims to investigate the extent to which psychological factors and the agency of decision-makers drive outsourcing decisions. Arguments based on transaction cost economics, the core competence approach and the theory of planned behavior are used to explain logistics outsourcing.

Design/methodology/approach

The literature was reviewed to identify constructs that are antecedents of logistics outsourcing intentions, and corresponding measures were developed. The data were gathered through a survey of supply chain professionals in Finnish manufacturing companies. A measurement model was reviewed to ensure reliability and validity and converted into a structural model for analysis. The analysis was based on partial least squares (PLS) structural equation modeling.

Findings

Supply chain managers objectively consider the characteristics of their organization's logistics identified in previous research as requiring assessment during the outsourcing process. However, and surprisingly, they also tend to rely on behavioral subjective factors such as positive attitudes, encouraging subjective norms and competence. Moreover, it seems that firms do not outsource logistics activities despite the high strategic importance of the function, but because of it.

Research limitations/implications

The constructed model is limited to the constructs chosen to represent drivers of logistics outsourcing. Further application with more samples would improve its reliability.

Practical implications

The factors proposed here with respect to assets and the capabilities of third-party partners could facilitate decision-making related to logistics outsourcing.

Originality/value

The findings emphasize the role of behavioral factors in the procurement function and therefore enhance the understanding of behavioral supply chain management.

Details

International Journal of Physical Distribution & Logistics Management, vol. 51 no. 3
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 2 August 2021

Vinh Van Thai, Shams Rahman and Dong Mai Tran

This paper aims to examine critical factors of successful logistics outsourcing relationship from the perspectives of both LSPs and shippers employing case studies in…

Abstract

Purpose

This paper aims to examine critical factors of successful logistics outsourcing relationship from the perspectives of both LSPs and shippers employing case studies in Singapore and Vietnam as examples of well-established and growing logistics outsourcing markets.

Design/methodology/approach

The case study design is adopted to empirically examine logistics outsourcing practices. Data were collected through in-depth interviews with senior managers from four cases in Singapore and seven cases in Vietnam. These case organisations are engaged comprehensively in logistics outsourcing activities and encompass both international firms that have their local operations and those local firms whose operations expand internationally.

Findings

Results suggest that the success of logistics outsourcing may depend on five strategic factors and five operational factors, with some of them being the same between LSPs and shippers in both countries and in line with the literature. There also seemed to be a difference between logistics outsourcing practitioners in a developed country (Singapore), and those in a developing country (Vietnam), in which factors, i.e. having the right people and management support, business processes integration and cultural intelligence, tend to be emphasised and practised more in the former. A strategy matrix of logistics outsourcing was mapped accordingly.

Research limitations/implications

The generalisation of this study would require further empirical examination from more quantitative research, for example, the use of surveys with shippers who engage with LSPs.

Practical implications

Findings from this research can assist managers in charge of outsourcing to reflect on their practices and devise and implement appropriate strategies for successful logistics outsourcing. Especially for growing logistics outsourcing markets and not-yet-standardised practices like Vietnam, the findings of this research are significant as they provide policy and managerial insights into how logistics outsourcing can be performed successfully. Specifically, adequate guidelines and resources including training relating to strategic factors of logistics outsourcing must be provided.

Originality/value

This research is one of the first studies that categorise success factors of logistics outsourcing into strategic and operational factors and postulates their conceptualisation in a strategy matrix that can be applied in future research.

Details

The International Journal of Logistics Management, vol. 33 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 14 May 2021

Ebenezer Afum, Yaw Agyabeng-Mensah, Innocent Senyo Kwasi Acquah, Charles Baah, Essel Dacosta, Clifford Sekyere Owusu and Joseph Amponsah Owusu

This study examines the mediation effects of time-based competitiveness, cost-based competitiveness and customer performance between logistics outsourcing and financial…

Abstract

Purpose

This study examines the mediation effects of time-based competitiveness, cost-based competitiveness and customer performance between logistics outsourcing and financial performance.

Design/methodology/approach

The study relied on a questionnaire as the primary data collection instrument and further employed partial least squares structural equation modelling technique to test all formulated hypotheses.

Findings

The results demonstrate that logistics outsourcing has a significant positive impact on time-based competitiveness, cost-based competitiveness, customer performance and financial performance. Time-based competitiveness and cost-based competitiveness were both found to have a significant positive impact on financial performance; however, customer performance had no significant impact on financial performance. The mediation analysis further indicates that while both time-based competitiveness and cost-based competitiveness play mediation effects between logistics outsourcing and financial performance, customer performance plays no mediation effect between logistics outsourcing and financial performance.

Research limitations/implications

The sampled firms for this study came from a single emerging country; hence, the results cannot be generalized or imported to reflect the results that may be obtained from other emerging geographical settings.

Practical implications

The results provide sufficient evidence for managers to turn their attention to logistics outsourcing, as a transformative business initiative, to gain time-based and cost-based competitiveness so as to improve financial performance.

Originality/value

The study provides significant insight and makes an additional contribution to literature in the area of logistics outsourcing, especially by collecting data from an emerging country. Modelling time-based competitiveness, cost-based competitiveness and customer performance as mediating variables between logistics outsourcing and financial performance make this work relatively different from other studies.

Details

The International Journal of Logistics Management, vol. 32 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 5 October 2015

Baofeng Huo, Chen Liu, Mingu Kang and Xiande Zhao

The purpose of this paper is to develop a theoretical framework involving dependence, relationship commitment, logistics outsourcing and service quality to exhibit the…

2478

Abstract

Purpose

The purpose of this paper is to develop a theoretical framework involving dependence, relationship commitment, logistics outsourcing and service quality to exhibit the roles of the relational factors involved in logistics outsourcing and their outcomes.

Design/methodology/approach

Based on data collected from 361 companies in Greater China, the authors use the structural equation model approach to examine the hypothesized relationships.

Findings

Both normative and instrumental relationship commitment are necessary for third party logistics (3PL) users to cope with their goal dependence on 3PL providers. However, only normative relationship commitment is necessary when users perceive switch dependence. Normative relationship commitment also plays a more important role than instrumental relationship commitment in facilitating the adoption of 3PL logistic outsourcing. In addition, both basic and advanced outsourcing practices have a positive effect on service quality.

Originality/value

This study contributes to both 3PL theories and practices by clarifying how relationships between 3PL users and providers in China are managed.

Details

International Journal of Physical Distribution & Logistics Management, vol. 45 no. 9/10
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 20 November 2017

Saleh Fahed Alkhatib

The purpose of this paper is to develop a new integrated approach for the strategic logistics outsourcing process through identifying the logistics independent success…

1459

Abstract

Purpose

The purpose of this paper is to develop a new integrated approach for the strategic logistics outsourcing process through identifying the logistics independent success factors (ISFs) and linking them with the firm’s strategic objectives and logistics requirements. Then, the new integrated approach will be used to compare the outsourcing processes for the upstream and downstream supply chain members. Studies of logistics outsourcing reveal the strategic importance of this process and the increasing need for new strategic approach.

Design/methodology/approach

The design is based on mixed methodology and integrated approach. The fuzzy decision-making trial and evaluation laboratory technique has contributed to the construction of interdependent relationships, development of impact-relationship maps (IRMs) and identifying ISFs. The fuzzy quality function deployment technique was used to link the strategic objectives, logistics requirements and the ISFs to evaluate and select logistics service providers (LSPs) strategically. Finally, two case studies (upstream and downstream supply chains) are used to demonstrate the new approach effectiveness and to highlight the differences/similarities between the two streams.

Findings

In addition to the new strategic logistics outsourcing approach, this study analysed the impact relationships of the LSPs’ framework factors and constructed their maps. In all, 21 ISFs have been identified: 8 logistics key performance indicators, 7 logistics services and activities and 6 logistics resources and capabilities. The two streams’ comparison relived several differences in terms of strategic objectives, logistics requirements and ISFs.

Research limitations/implications

The new approach for strategic logistics outsourcing can help firms to perform a better multi-stakeholder multi-criteria strategic outsourcing process. In addition, the upstream–downstream supply chain comparison increases our understanding how different supply chain members perform different outsourcing processes.

Originality/value

This is one of the pioneering studies that compares the supply chain upstream–downstream perspectives to highlight logistics outsourcing similarities and differences. To the best of author’s knowledge, this is one of the first logistics outsourcing studies that identifies ISFs for strategic logistics outsourcing, provides the first IRMs for the strategic logistics factors and develops a new integrated approach for strategic logistics outsourcing

Details

Journal of Global Operations and Strategic Sourcing, vol. 10 no. 3
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 2 February 2015

Chen Liu, Baofeng Huo, Shulin Liu and Xiande Zhao

The purpose of this paper is to test how integrative mechanisms, including information sharing and process coordination, influence logistics outsourcing, and how logistics

3452

Abstract

Purpose

The purpose of this paper is to test how integrative mechanisms, including information sharing and process coordination, influence logistics outsourcing, and how logistics outsourcing influence performance from an extended RBV perspective.

Design/methodology/approach

The structural equation modeling (SEM) method is used to examine the proposed model, based on data collected from 361 companies in greater China.

Findings

Integrative mechanisms are helpful for logistics outsourcing (basic, customized, and advanced outsourcing). Specially, information sharing contributes to customized and advanced outsourcing, but has no significant effect on basic outsourcing. In contrast, process coordination improves basic and advanced outsourcing, but insignificantly influences customized outsourcing. Besides, each type of logistics outsourcing has differently effects on 3PL users’ performance. This study contributes to 3PL theories and practices.

Originality/value

This study empirically examines the antecedents and the outcomes of logistics outsourcing, contributing to 3PL literature and practices.

Details

Industrial Management & Data Systems, vol. 115 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

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