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1 – 10 of over 8000Baofeng 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 roles of…
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.
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Matthew Kalubanga and Sheila Namagembe
This study examines the relationships among trust, commitment, logistics outsourcing relationship quality (LORQ), relationship satisfaction, strategy alignment and logistics…
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.
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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 market. The…
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.
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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…
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.
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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…
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
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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…
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.
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Tomi Solakivi, Juuso Töyli, Janne Engblom and Lauri Ojala
The purpose of this paper is to explore the current state of and future expectations concerning the usage of the outsourcing of logistics operations in small‐ and medium‐sized…
Abstract
Purpose
The purpose of this paper is to explore the current state of and future expectations concerning the usage of the outsourcing of logistics operations in small‐ and medium‐sized enterprises (SMEs), and to analyse and quantify the relationships between logistics outsourcing, costs and performance, financial performance, and the company context.
Design/methodology/approach
The data were 223 manufacturing and trading SMEs from the Finnish logistics survey combined with detailed financial report‐based data, both referring to the year 2008. Statistical analyses including ANOVA and factor analysis were applied.
Findings
Transport activities are excessively outsourced. Most companies report no outsourcing of order processing and invoicing, and half of them have not outsourced logistics IT systems. Outsourcing is expected to grow in all areas with strongest expectations in materials management, value‐added services, and in IT. The logistics costs for companies engaging in the medium level of outsourcing could be higher than those of other companies. Further research is needed to confirm this finding. No loss or gain in logistics performance due to outsourcing was observed. The more the companies are engaged in outsourcing, the more they monitor as well as collaborate internally and externally, or vice versa. In general, the results imply that management should not expect automatic gains from logistics outsourcing, and should rather analyse the company‐specific characteristics that support or in some cases suffer from the outsourcing decision.
Originality/value
The article explores logistics outsourcing in SMEs combining financial report data with self‐reported measures. It analyses and quantifies the relationship of logistics outsourcing to logistics costs, financial performance, logistics performance, and company context.
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Per Hilletofth and Olli‐Pekka Hilmola
The purpose of this paper is to investigate the effects of logistics outsourcing in Northern Europe through survey research. Research work intends to shed more light on logistics…
Abstract
Purpose
The purpose of this paper is to investigate the effects of logistics outsourcing in Northern Europe through survey research. Research work intends to shed more light on logistics outsourcing with other than case‐based company examples.
Design/methodology/approach
Survey was completed during late 2007 and early 2008 in Finland and Sweden for the largest companies in industrial and service sectors. Altogether 34 answers were received, and they were gained mostly from industrial and trading companies.
Findings
The research results show that warehousing, IT, and customs brokerage outsourcing could have impact on some managerial and strategic aspects of supply chains (SC). Thus, none of the identified difference areas was found to be statistically significant. Potential impact areas of SC strategy and management are integrated IT systems of manufacturing and logistics, reverse logistics procedures, and re‐engineering of logistics processes. However, research shows that in‐house produced IT function, and potentially outsourced warehousing, have important roles in more international purchasing.
Research limitations/implications
Altogether, the amount of responses in the survey was relatively low, but treating Finnish and Swedish companies as one group gives us some opportunity for statistical analysis. This grouping might be one limiting factors of our study, and especially in its generalization power; however, our earlier analysis with the data shows that these countries operate in a rather similar interest area. Another limiting factor of our research findings is the difference in respondent profiles – operating principles of logistics and trade companies are different as compared to manufacturing.
Practical implications
Research shows that IT is potentially having an important role in both, international purchasing emphasis as well as on warehousing outsourcing activities. Contrary to the common view, this research gives some indication that in‐house IT is valuable, and more integrated applications are needed for example, when warehousing is being outsourced.
Originality/value
This is one of the seminal research works regarding North European outsourcing practices, and their affects on SC strategies and management. Both of the countries have an advanced industrial sector, which gives perspective for the readers world wide.
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Elliot Rabinovich, Robert Windle, Martin Dresner and Thomas Corsi
A survey of 372 logistics managers in different industries revealed multiple outsourcing linkages among logistics activities. These results are consistent with previous findings…
Abstract
A survey of 372 logistics managers in different industries revealed multiple outsourcing linkages among logistics activities. These results are consistent with previous findings that suggest that firms can improve customer service and reduce costs by outsourcing multiple logistics functions. The results are also consistent with previous research on the role that improved coordination of information and material flows have in the achievement of economies of scale and economies of scope. Future research developments in the field of logistics outsourcing are also proposed.
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The purpose of this paper is to provide a structured literature review (SLR) and systematic insight into logistics outsourcing research, in order to identify gaps in knowledge…
Abstract
Purpose
The purpose of this paper is to provide a structured literature review (SLR) and systematic insight into logistics outsourcing research, in order to identify gaps in knowledge, and provide future research direction in the logistics outsourcing discipline.
Design/methodology/approach
This paper identifies and synthesises information from academic journals and examines research designs and methods, data analysis techniques, geographic locations, industry engagements, year of publication, publishers, university and author affiliations. A collection of online databases from 1991 to 2016 were explored, using the keywords “third-party”, “logistics” and “outsourcing” in their title and/or abstract, to deliver an inclusive listing of journal articles in this discipline area. Based on this approach, a total of 263 articles were found and data were derived from a succession of variables.
Findings
There has been a significant increase and concentration by researchers over the past 25 years focussing on logistics outsourcing. A need to implement best practice has been universally identified, owing to increasing global supply chain complexity. This analysis shows that only seven literature reviews were published in the logistics outsourcing discipline. Additionally, this study revealed that 42 per cent of the work in this field was found to be survey based and this trend in research indicates the development of the structural equation modelling and multi-criterion decision-making methods. Investigations between 2010–2012 and 2015–2016 accounted for 151 of the total 263 articles published. Finally, reverse logistics is an area that requires special attention.
Research limitations/implications
This paper is limited to a review of academic articles obtainable from online databases, containing the words “logistics” and “outsourcing” in the title and/or abstract. Additionally, only papers from high quality, peer-reviewed journals were evaluated. Other academic sources such as books and conference papers were not included in this study.
Originality/value
This review will provide an increased understanding of the existing state of current research, trends and future research directions in the logistics outsourcing discipline.
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