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The purpose of this paper is to explore key challenges of adopting, designing and managing performance-based contracts (PBC) for advanced logistics services, as seen by providers. The shift toward performance-based solutions has proved challenging since providers often struggle to link performance to their payment. Despite such managerial challenges, empirical research in this area has been limited.

A multi-case design was adopted. Three cases of logistics service providers were selected based on purposive sampling. Data were collected through 38 semi-structured interviews and review of 43 documents such as contracts and customer target letters.

Key PBC adoption challenges include customer and provider intention to align their goals and incentives as well as their views on risk and reward sharing. Contract design challenges center around performance metric definition and weighting, designing performance monitoring systems that consider service co-production effects and help improve customer relationship and designing incentives with appropriate intensity levels. Contract management challenges include fostering provider pro-activity, provider changes in terms of processes and resource investments, perceived fairness of designed incentives and contract re-design to allow for win-win relationship outcomes.

The study empirically contributes to extant logistics service provider literature by identifying specific challenges that extend also beyond PBC adoption and design and cover contract management (and potential contract re-design). It also unpacks the notion of performance attributability by analyzing its role also in terms of contract and performance management as well as its potential effects on customer relationship management.

The study presents implications for logistics provider managers regarding how the observed PBC challenges can be overcome.

The study unearths several challenges of PBC for advanced logistics services, particularly in connection to contract management and re-design.

The purpose of this paper is to investigate how service-oriented high-performance work systems (HPWSs) contribute to logistics performance and the mediation mechanisms underlying this relationship.

Employees and their managers from logistics departments and/or business departments of manufacturing firms in the Vietnamese business setting were recruited as participants in the data collection. Structural equation modeling was employed for the data analysis.

Service-oriented HPWSs demonstrated the positive effects on logistics performance via serving culture. Serving culture was found to have the positive link with logistics performance via the mediating roles of collective role breadth self-efficacy and collective customer knowledge.

The current research extends the logistics management research by identifying service-oriented HPWSs as an antecedent of logistics performance as well as the mediation mechanisms underlying this effect.

Aims to investigates the relationship of strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy on a composite measure of financial performance for third‐party logistics (3PL) providers in Hong Kong. In addition, it seeks to identify the importance of operations priorities underlying the respective adopted strategy, as well as the importance given to future competitive challenges for each strategy.

Uses cluster analysis, ANOVA.

Logistics service providers classified to follow different strategies report different financial performance, with companies adhering to the combined strategy of cost and differentiation performing best, followed by pure differentiation companies, which in turn outperform pure cost‐, commodity driven‐companies.

Future research may be widened to include customer, and not solely competitor, perceptions. Further studies could elaborate on technology adoption, information sharing, strategy formulation, operations practices, and benchmarking. Other studies could focus on the differences between high and low performers in terms of business performance, and the processes that enable low performers to become high performers; as well as comparing logistics strategies and practices between different countries.

Third‐party logistics providers, solely competing on cost and offering basic services only, need to differentiate to gain improved financial performance. Logistics companies can improve along multiple operational dimensions to achieve competitive advantage in the marketplace. Research identifies operational areas to be emphasized to drive strategy according to strategic orientation, as well as generic factors that will drive future logistics management in Hong Kong.

Linking perceived financial performance to strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy for 3PL providers in Hong Kong.

The purpose of this paper is to empirically assess the impacts of logistics learning capability on logistics service capability and organizational performance in the context of international distribution center operators (IDCOs) in Taiwan.

Data for this study were collected by questionnaire survey. A two-steps structural equation modeling (SEM) approach was performed in this study to test the research hypotheses. The first step is performing confirmatory factor analysis (CFA) to assess the validity of the measurement model. The second step proceeds to estimate the structural model between latent variables.

A five-dimension scale including open-mindedness (O), commitment to learning (C), system perspective (E), partner learning (A), and shared vision (N) was proposed in this study and was supported by CFA analysis to measure IDCOs’ logistics learning capability in this study. Results of SEM indicated that logistics learning capability is positively related to logistics service capability, whereas logistics service capability is also positively related to organizational performance. Although logistics learning capability has no direct relationship to organizational performance, we found it indirectly affects organizational performance via logistics service capability.

This study primarily focusses on the effect of logistics learning on organizational performance. Future research could incorporate environmental uncertainty as a moderator to assess its impact on the relationship between logistics learning capability and organizational performance.

IDCOs can enhance customer service and financial performance by developing logistics learning capability and specifically focussing efforts on supply chain partner learning.

This study presents the first to examine the effects of logistics learning capability on logistics service capability and organizational performance in the context of IDCOs. Particularly, this study proposes a five-dimension logistics learning capability scale from a supply chain perspective.

The purpose of this study is to explore what is synergistic innovation in the logistics service outsourcing context and how this strategy can potentially benefit an organization by improving performance outcomes.

A total of 21 in-depth interviews were conducted to conceptualize the construct of synergistic innovation. In addition, a theory-based model is tested using data collected from 282 Chinese manufacturing firms that are currently engaged in logistics service outsourcing.

The results from the in-depth interviews reveal that synergistic innovation goes beyond just interactions on innovation but requires both parties to achieve synergies that otherwise cannot be achieved by individual party alone. In addition, the empirical analysis suggests that synergistic innovation can help firms improve both logistics service performance and market performance. This process is dynamic as knowledge integration capability influences the outcomes of synergistic innovation.

This study is among the first to conceptualize synergistic innovation. It also offers a practical scale that helps future studies effectively measure this construct. Moreover, the results of this study provide compelling insights into how managers can use logistics service outsourcing as an important source for improving innovation outcomes.

Supply chain resilience (SCR) is essential to the success of firms. However, very few studies have focused on the relationships between different types of integration, SCR and service performance from the perspective of third-party logistics providers (3PLs). The purpose of this paper is to develop and assesses a conceptual model for these relationships.

A total of 161 3PLs in Taiwan were surveyed and their responses were analyzed using partial least squares structural equation modeling (PLS-SEM/PLS).

The responses of respondents demonstrated that, of the three types of integration (internal integration, customer integration and logistics collaborator integration) used by 3PLs, internal integration had the greatest effect on SCR. Customer integration was found to have three fully mediating effects on the relationships between internal integration and service performance, between logistics collaborator integration and SCR, and between logistics collaborator integration and service performance.

This study provides useful information on how different types of integration manifest in the SCR and service performance of 3PLs.

This paper aims to determine how the level of logistics service quality facilitates logistics performance in emerging markets. The authors chose Ecuador because it is an emerging economy with relatively stable economic development, making it an attractive research platform in a challenging environment for logistics services. The authors empirically test the influence on performance and one another of five dimensions of service quality: reliability, responsiveness, empathy, assurance and tangibility.

SERVQUAL and partial least squares structural equation modeling was undertaken to test the proposed relationships empirically.

The performance was positively related to assurance, tangibility and reliability but negatively related to the responsiveness and empathy dimensions. The findings suggest the order of priority for improvement actions. The findings highlight that the existing relationships in developed markets do not apply in the same manner in emerging markets.

Although representative, data were only collected in one specific market.

The results reveal a mix of activities that managers should develop to improve the services they provide, relationships with customers and performance.

Few other works have explored logistics service quality in South America's emerging markets. According to contingency theory, various combinations of service quality dimensions can influence performance, suggesting that managers should aim for optimal fit between dimensions according to internal and external situations. An efficient and effective combination in one case may be unsuccessful in another. The approaches presented can improve relationships within global supply chains, especially regarding logistics management.

Logistics has become an essential service for synchronous companies. Many companies have recognized the potential benefits gained through a high quality system of logistics services, which are provided either internally or externally by a third party logistics company (3PL). The 3PL is positioned between the company and its customers, in a new‐shaped logistics triad, having a crucial role in handling end‐customer information and feedback. Thus, service quality becomes one of the most important criteria for a decision to outsource logistics services and further to select a provider. This paper aims to evaluate the dilemma to outsource logistics services and the decision to select a provider based on quality management and financial performances criteria.

A survey instrument was provided to a sample of 66 manufacturing and 3PL companies. This instrument explored quality management issues and achievements in logistics services. Statistical inference tests and cluster analysis were employed in order to test the research hypotheses which were built and reflected the basic purpose of the paper.

3PL providers are ahead of manufacturing companies that operate logistics departments on quality implementation and improvement issues in logistics services. Furthermore, the research proved a positive relationship between quality performance and financial performance for 3PL providers.

The research is based on a single country data. Further multi‐country studies will enable the generalization and validation of the findings.

The paper helps managers evaluate the logistics outsourcing dilemma in terms of quality management and quality service. Also the paper proves the strong relationship between effective quality management and sound financial performance for 3PL providers.

The paper presents substantive evidence supporting: the logistics services outsourcing decision based on quality management and performance criteria, and the importance of quality as a criterion to choose a 3PL provider, based on the positive relationship between effective quality management and financial performance for 3PL providers.

The purpose of this paper is to examine how goal achievement and goal exceedance influence the aspects of loyalty in logistics outsourcing relationships. Specifically, it aims to develop and test a model of customer loyalty across two cultures to determine if dedicated strategies for building loyalty are required.

This effort develops a conceptual model that provides a better understanding of the relationship between two dimensions of logistics outsourcing performance (goal achievement and goal exceedance) to loyalty across cultures. The model is then tested using structural equation modeling along with multi‐group analysis.

The findings indicate that goal achievement strongly influences the loyalty aspects of retention and referrals, but not extension. Meanwhile, all three dimensions of loyalty were influenced by goal exceedance of the logistics provider. Further, goal achievement was found to have a stronger effect on retention only, with goal exceedance demonstrating a stronger influence on extension and referrals. In addition, cultural differences in the model were identified.

Future research should examine more transactional settings as well as other potential moderators that may be consequential to the examination of loyalty formation.

The findings suggest that logistics service providers (LSPs) need to have an appreciation for the differences between goal achievement and goal exceedance as it relates to loyalty formation. In addition, LSPs need to adapt their performance goals based on cultural differences that may exist across their markets.

The close examination of the two dimensions of outsourcing performance on three aspects of loyalty behavior builds on the extant literature. The examination across the two national settings provides yet another contribution of the study.

The increasing demand for high-quality logistics services has forced container shipping firms to decrease logistics service failure to retain the customers. This study thus aims to apply organizational information processing theory (OIPT) to construct a maritime supply chain collaborative decision-making model and examine its impact on logistics service performance.

In total, 142 usable questionnaires were collected from questionnaire survey. A two-step structural equation modeling approach including confirmatory factor analysis was subsequently performed to test the hypotheses.

The results show that internal information integration positively impacts external information integration, that external information integration positively impacts collaborative decision-making, and that collaborative decision-making positively impacts logistics service performance for container shipping firms. However, a relationship between internal information integration and collaborative decision-making was not found in this study.

This study primarily examines collaborative decision-making from the view of container shipping firms. Future research including other supply chain members is needed to generalize the results and could also incorporate other factors such as relationship quality and culture, into the model to address this issue.

To decrease the occurrence of logistics failures and improve service quality in the maritime logistics process, it is suggested that container shipping firms apply information technology for acquiring and assimilating logistics information internally and externally across the supply chain to facilitate decision-making.

This study contributes to the knowledge about the antecedents and impacts of collaborative decision-making for container shipping firms in Taiwan. Particularly, in line with OITP, the findings indicate that container shipping firms can facilitate logistics decision-making and strategy formulation through information integration, which in turn enhances logistics service performance.