Abstract
The use of logistics outsourcing and the degree of competition in the logistics service industry have significantly increased over the past decade. In order to reach and maintain an important role in such a business environment, logistics service providers (LSPs) have to find ways to achieve competitive advantage. In this regard, the role of flexibility as a potential source of competitive advantage for an LSP is unclear, as empirical research on flexibility in an industrial services context and specifically in logistics outsourcing relationships is lacking. Therefore, using the resource-based view (RBV) theory as the theoretical foundation, this study develops a conceptual model of flexibility as a capability of an LSP and its impact on customer loyalty, a central outcome for LSPs in a competitive business environment. Further, taking a relational as well as a knowledge perspective with respect to the antecedents of flexibility, the relational capability collaboration and the knowledge resources supply chain partner insight and communication are integrated into the model. Finally, the relationships of collaboration as a capability with knowledge resources as well as with customer loyalty are considered. This study analyzes 155 logistics outsourcing relationships using a survey method and partial least squares (PLS) structural equation modeling to empirically assess the proposed relationships. The results reveal that LSP flexibility is a strong driver of all core dimensions of customer loyalty (i.e., retention, extension, and referrals) and thus a source of competitive advantage for LSPs. Further, collaboration positively influences LSP flexibility and also the loyalty dimensions, supporting its significant role in a supply chain relationship. Finally, knowledge resources have a positive effect on LSP flexibility as well as on collaboration, indicating the importance of such resources in facilitating crucial capabilities.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Amit, R. and P.J.H. Schoemaker. “Strategic Assets and Organizational Rent,” Strategic Management Journal, (14:1), 1993, pp. 33–46.
Anderson, J.C. and J.A. Narus. “A Model of Distributor Firm and Manufacturer Firm Working Partnerships,” Journal of Marketing, (54:1), 1990, pp. 42–58.
Armstrong, J. S. and T. S. Overton. “Estimating Nonresponse Bias in Mail Surveys,” Journal of Marketing Research, (14:3), 1977, pp. 396–402.
Artz, K.W. “Buyer–Supplier Performance: The Role of Asset Specificity, Reciprocal Investments and Relational Exchange,” British Journal of Management, (10:2), 1999, pp. 113–126.
Ashenbaum, B., A. Maltz, and E. Rabinovich. “Studies of Trends in Third-Party Logistics Usage: What Can We Conclude?,” Transportation Journal, (44:3), 2005, pp. 39–50.
Barclay, D., C. Higgins, and R. Thompson. “The partial least squares (PLS) approach to causal modeling: Personal computer adoption and use as an illustration,” Technology Studies, (2:2), 1995, pp. 285–309.
Barney, J. “Firm Resources and Sustained Competitive Advantage,” Journal of Management, (17:1), 1991, pp. 99–120.
Barney, J. “Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view,” Journal of Management, (27:6), 2001, pp. 643–650.
Bello, D.C. and D.I. Gilliland. “The Effect of Output Controls, Process Controls, and Flexibility on Export Channel Performance,” Journal of Marketing, (61:1), 1997, pp. 22–38.
Berglund, M., P. van Laarhoven, G. Sharman, and S. Wandel. “Third-Party Logistics: Is There a Future?,” The International Journal of Logistics Management, (10:1), 1999, pp. 59–70.
Bharadwaj, S.G., P.R. Varadarajan, and J. Fahy. “Sustainable Competitive Advantage in Service Industries: A Conceptual Model and Research Propositions,” Journal of Marketing, (57:4), 1993, pp. 83–99.
Bliemel, F., A. Eggert, G. Fassott, and J. Henseler. “PLS und Kovarianzstrukturanalyse im Vergleich.” In F. Bliemel, A. Eggert, G. Fassott and J. Henseler (Ed.), Handbuch PLS-Pfadmodellierung – Methoden, Anwendungen, Praxisbeispiele, Schäffer-Poeschel Verlag, Stuttgart, 2005, pp. 9–16.
Bowersox, D.J., P.J. Daugherty, C.L. Dröge, D.S. Rogers, and D.L. Wardlow. Leading Edge Logistics: Competitive Positioning for t h e 1990’s, Council of Logistics Management, Oak Brook, IL, 1989.
Boyle, B., F.R. Dwyer, R.A. Robicheaux, and J.T. Simpson. “Influence Strategies in Marketing Channels: Measures and Use in Different Relationship Structures,” Journal of Marketing Research, (29:4), 1992, pp. 462–473.
Boyson, S., T. Corsi, M. Dresner, and E. Rabinovich. “Managing Effective Third Party Logistics Partnerships: What Does it Take?,” Journal of Business Logistics, (20:1), 1999, pp. 73–100.
Brewer, P.C. and T.W. Speh. “Using the Balanced Scorecard to Measure Supply Chain Performance,” Journal of Business Logistics, (21:1), 2000, pp. 75–93.
Bustinza, O.F., L.M. Molina, and L.J. Gutierrez-Gutierrez. “Outsourcing as Seen from the Perspective of Knowledge Management,” Journal of Supply Chain Management, (46:3), 2010, pp. 23–39.
Cannon, J.P., R.S. Achrol, and G.T. Gundlach. “Contracts, Norms, and Plural Form Governance,” Journal of Academy of Marketing Science, (28:2), 2000, pp. 180–194.
Cannon J.P. and C. Homburg. “Buyer-Supplier Relationships and Customer Firm Costs,” Journal of Marketing, (65:1), 2001, pp. 29–43.
Carbone, V. and M.A. Stone. “Growth and relational strategies used by the European logistics service providers: Rationale and outcomes,” Transportation Research Part E, (41:6), 2005, pp. 495–510.
Chin, W.W. “The partial least squares approach to structural equation modeling.” In: G.A. Marcoulides (Ed.), Modern Methods for Business Research, Lawrence Erlbaum Associates, Mahwah, NJ, 1998, pp. 295–336.
Chin, W.W. and P.R. Newsted. “Structural Equation Modeling Analysis With Small Samples Using Partial Least Squares.” In R.H. Hyle (Ed.), Statistical Strategies For Small Sample Research, SAGE Publications, Inc., Thousand Oaks, CA, 1999, pp. 307–341.
Closs, D.J., T.J. Goldsby, and S.R. Clinton. “Information technology influences on world class logistics capability,” International Journal of Physical Distribution & Logistics Management, (27:1), 1997, pp. 4–17.
Conner, K.R. “A Historical Comparison of the Resource-Based Theory and Five Schools of Thought Within Industrial Organization Economics: Do We Have a New Theory of the Firm?, “ Journal of Management, (17:1), 1991, pp. 121–154.
Conner, K.R. and C.K. Prahalad. “A Resource-based Theory of the Firm: Knowledge Versus Opportunism,” Organization Science, (7:5), 1996, pp. 477–501.
Cross, R. and J. Smith. “Toward a responsible, customer-focused marketing framework,” Direct Marketing, (57:11), 1995, pp. 26–28.
Dahlstrom, R., K.M. McNeilly, and T.W. Speh. “Buyer-Seller Relationships in the Procurement of Logistical Services,” Journal of Academy of Marketing Science, (24:2), 1996, pp. 110–124.
Daugherty, P.J., T.P. Stank, and D.S. Rogers. “Third-Party Logistics Service Providers: Purchasers’ Perspective,” International Journal of Purchasing and Materials Management, (32:2), 1996, pp. 23–29.
Daugherty, P.J., T.P. Stank, and A.E. Ellinger. “Leveraging Logistics/Distribution Capabilities: The Effect of Logistics Service on Market Share,” Journal of Business Logistics, (19:2), 1998, pp. 35–51.
Deepen, J.M., T.J. Goldsby, A.M. Knemeyer, and C.M. Wallenburg. “Beyond Expectations: an Examination of Logistics Outsourcing Goal Achievement and Goal Exceedance,” Journal of Business Logistics, (29:2), 2008, pp. 75–105.
Douglas, S.P. and C.S. Craig. International Marketing Research, Prentice-Hall, Englewood Cliffs, NJ, 1983.
Emerson, C.J. and C.M. Grimm. “The Relative Importance of Logistics and Marketing Customer Service: A Strategic Perspective,” Journal of Business Logistics, (19:1), 1998, pp. 17–32.
Fawcett, S.E., R. Calantone, and S.R. Smith. “An Investigation of the Impact of Flexibility on Global Reach and Firm Performance,” Journal of Business Logistics, (17:2), 1996, pp. 167–196.
Fawcett, S.E., L.L. Stanley, and S.R. Smith. “Developing a Logistics Capability to Improve the Performance of International Operations,” Journal of Business Logistics, (18:2), 1997, pp. 101–127.
Flint, D.J., R.B. Woodruff, and S. Fisher Gardial. “Exploring the Phenomenon of Customers’ Desired Value Change in a Business-to-Business Context,” Journal of Marketing, (66:4), 2002, pp. 102–117.
Fornell, C. and F.L. Bookstein. “Two Structural Equation Models: LISREL and PLS Applied to Consumer Exit-Voice Theory,” Journal of Marketing Research, (19:4), 1982, pp. 440–452.
Fornell, C. and D.F. Larcker. “Evaluating Structural Equation Models with Unobservable Variables and Measurement Error,” Journal of Marketing Research, (18:1), 1981, pp. 39–50.
Gençtürk, E.F. and P.S. Aulakh. “Norms- and Control-Based Governance of International Manufacturer–Distributor Relational Exchanges,” Journal of International Marketing, (15:1), 2007, pp. 92–126.
Grant, R.M. “The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation,” California Management Review, (33:3), 1991, pp. 114–135.
Grant, R.M. “Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal, (Winter Special Issue), 1996a, pp. 109–122.
Grant, R.M. “Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration,” Organization Science, (7:4), 1996b, pp. 375–387.
Götz, O., K. Liehr-Gobbers, and M. Krafft. „Evaluation of Structural Equation Models Using the Partial least Squares (PLS) Approach.” In V.E. Vinzi, W.W. Chin, J. Henseler, and H. Wang (Ed.), Handbook of Partial Least Squares, Springer Verlag, Berlin Heidelberg, 2010, pp. 691–711.
Greer, T.V., N. Chuchinprakarn, and S. Seshadri. “Likelihood of Participating in Mail Survey Research,” Industrial Marketing Management, (29:2), 2000, pp. 97–109.
Gundlach, G.T., R.S. Achrol, and J.T. Mentzer. “The Structure of Commitment in Exchange,” Journal of Marketing, (59:1), 1995, pp. 78–92.
Gwinner, K.P., M.J. Bitner, S.W. Brown, and A. Kumar. “Service Customization Through Employee Adaptiveness,” Journal of Service Research, (8:2), 2005, pp. 131–148.
Hallen, J. and J. Johanson. “Industrial Marketing Strategies and Different National Environments,” Journal of Business Research, (13:6), 1985, pp. 495–509.
Hardy, C., N. Phillips, and T.B. Lawrence. “Resources, Knowledge and Influence: The Organizational Effects of Interorganizational Collaboration,” Journal of Management Studies, (40:2), 2003, pp. 321–347.
Heide, J.B. and A.S. Miner. “The Shadow of the Future: Effects of Anticipated Interaction and Frequency of Contact on Buyer-Seller Cooperation,” Academy of Management Journal, (35:2), 1992, pp. 265–291.
Heide, J.B. and G. John. “Do Norms Matter in Marketing Relationships?,” Journal of Marketing, (56:2), 1992, pp. 32–44.
Heide, J.B. “Interorganizational Governance in Marketing Channels,” Journal of Marketing, (58:1), 1994, pp. 71–85.
Henseler, J., C.M. Ringle, and R.R. Sinkovics. “The Use of Partial Least Squares Path Modeling in International Marketing,” In R.R. Sinkovicsja and P.N. Ghauri (Ed.): Advances in International Marketing (AIM), Volume 20, Bingley, 2009, pp. 277–320.
Homburg, C., H. Krohmer, J.P. Cannon, and I. Kiedaisch. “Customer Satisfaction in Transnational Buyer-Supplier Relationships,” Journal of International Marketing, (10:4), 2002, pp. 1- 29.
Homburg. C., A. Giering, and A. Menon. “Relationship Characteristics as Moderators of the Satisfaction-Loyalty Link: Findings in a Business-to-Business Context,” Journal of Business-to-Business Marketing, (10:3), 2003, pp. 35–62.
Homburg, C., S. Kuester, N. Beutin, and A. Menon. “Determinants of Customer Benefits in Business-to-Business Markets: A Cross-Cultural Comparison,” Journal of International Marketing, (13:3), 2005, pp. 1–31.
Huber, F., A. Herrmann, F. Meyer, J. Vogel, and K. Vollhardt. Kausalmodellierung mit Partial Least Squares – Ei n e anwendungsorientierte Einführung, Gabler, Wiesbaden, 2007.
Hulland, J. “Use of Partial Least Squares (PLS) in Strategic Management Research: A Review of Four Recent Studies,” Strategic Management Journal, (20:2), 1999, pp. 195–204.
Ivens, B.S. “Flexibility in industrial service relationships: The construct, antecedents, and performance outcomes,” Industrial Marketing Management, (34:6), 2005, pp. 566–576.
Jap, S.D. “Pie-Expansion Efforts: Collaboration Processes in Buyer-Supplier Relationships,” Journal of Marketing Research, (36:4), 1999, pp. 461–475.
Johnson, J.L. “Strategic Integration in Industrial Distribution Channels: Managing the Interfirm Relationship as a Strategic Asset,” Journal of Academy of Marketing Science, (27:1), 1999, pp. 4–18.
Johnston, D.A., D.M. McCutcheon, F.I. Stuart, and H. Kerwood. “Effects of supplier trust on performance of cooperative supplier relationships,” Journal of Operations Management, (22:1), 2004, pp. 23–38.
Joshi, A.W. “Continuous Supplier Performance Improvement: Effects of Collaborative Communication and Control,” Journal of Marketing, (73:1), 2009, pp. 133–150.
Kalwani, M.U. and N. Narayandas. “Long-Term Manufacturer-Supplier Relationships: Do They Pay Off for Supplier Firms?,” Journal of Marketing, (59:1), 1995, pp. 1–16.
Kaufmann, P.J. and R.P. Dant. “The Dimensions of Commercial Exchange,” Marketing Letters, (3:2), 1992, pp. 171–185.
Knemeyer, A.M. and P.R. Murphy. “Evaluating the Performance of Third-Party Logistics Arrangements: A Relationship Marketing Perspective,” Journal of Supply Chain Management, (40:1), 2004, pp. 35–51.
Knemeyer, A.M. and P.R. Murphy. “Is the glass half full or half empty? An examination of user and provider perspectives towards third-party logistics relationships,” International Journal of Physical Distribution & Logistics Management, (35:10), 2005a, pp. 708–727.
Knemeyer, A.M. and P.R. Murphy. “Exploring the Potential Impact of Relationship Characteristics and Customer Attributes on the Outcomes of Third-party Logistics Arrangements,” Transportation Journal, (44:1), 2005b, pp. 5–19.
Krafft, M., O. Götz, and K. Liehr-Gobbers. “ Die Validierung von trukturgleichungsmodellen mit Hilfe des Partial-Least-Squares (PLS)-Ansatz.” In F. Bliemel, A. Eggert, G. Fassott, and J. Henseler (Ed.): Handbuch PLSPfadmodellierung – Methoden, Anwendungen, Praxisbeispiele, Schäffer-Poeschel Verlag, Stuttgart, 2005, pp. 71–116.
Kumar, N., L. W. Stern, and J. C. Anderson. “Conducting Interorganizational Research Using Key Informants,” Academy of Management Journal, (36:6), 1993, pp. 1633–1651.
Lai, K. “Service capability and performance of logistics service providers,” Transportation Research Part E, (40:5), 2004, pp. 385–399.
Lai, F., D. Li, Q. Wang, and X. Zhao. “The Information Technology Capability of Third-Party Logistics Providers: A Resource-Based View and Empirical Evidence From China,” Journal of Supply Chain Management, (44:3), 2008, pp. 22–38.
Langley Jr., C.J., E. van Dort, J. Morton, S. Hoemmken, A. Goh, M. Zabawa, R. Strata, and M. Riegler. “The State of Logistics Outsourcing: 2007 Third-Party Logistics – Results and Findings of the 12th Annual Study,” Atlanta, 2007.
Langley Jr., C.J., D. Albright, J. Morton, D. Wereldsma, M. Alf, S. Swaminathan, G. Smith, J. Murphy, T.A. Deakins, S. Hoemmken, and K. Peters. “The State of Logistics Outsourcing: 2009 Third-Party Logistics – Results and Findings of the 14th Annual Study,” Atlanta, 2009.
Lavie, D. “The Competitive Advantage of Interconnected Firms: An Extension of the Resource-Based View,” Academy of Management Review, (31:3), 2006, pp. 638–658.
Liao, Y., P. Hong, and S.S. Rao. “Supply Management, Supply Flexibility and Performance Outcomes: An Empirical Investigation of Manufacturing Firms,” Journal of Supply Chain Management, (46:3), 2010, pp. 6–22.
Lieb, R. and K. Butner. “The North American Third-Party Logistics Industry in 2006: The Provider CEO Perspective,” Transportation Journal, (46:3), 2007, pp. 40–52.
Lusch, R.F. and J.R. Brown. “Interdependency, Contracting, and Relational Behavior in Marketing Channels,” Journal of Marketing, (60:4), 1996, pp. 19–38.
Lynch, D.F., S.B. Keller, and J. Ozment. “The Effects of Logistics Capabilities and Strategy on Firm Performance,” Journal of Business Logistics, (21:2), 2000, pp. 47–67.
Macneil, I.R. The New Social Contract, An Inquiry into Modern Contractual Relations, Yale University Press, New Haven, CT, 1980.
Maloni, M.J. and C.R. Carter. “Opportunities for Research in Third Party Logistics,” Transportation Journal, (45:2), 2006, pp. 23–38.
Marsh, H.W., K. Hau, J.R. Balla, and D. Grayson. “Is More Ever Too Much? The Number of Indicators per Factor in Confirmatory Factor Analysis,” Multivariate Behavioral Research, (33:2), 1998, pp. 181–220.
Menon, A., C. Homburg and, N. Beutin. “Understanding Customer Value in Businessto- Business Relationships,” Journal of Business-to-Business Marketing, (12:2), 2005, pp. 1–35.
Metcalf, L.E., C.R. Frear, and R. Krishnan. “Buyer-Seller Relationships: An Application of the IMP Interaction Model,” European Journal of Marketing, (26:2), 1992, pp. 27–46.
Min, S., A.S. Roath, P.J. Daugherty, S.E. Genchev, H. Chen, A.D. Arndt, and R.G. Richey. “Supply chain collaboration: what’s happening?,” The International Journal of Logistics Management, (16:2), 2005, pp. 237–265.
Moore, K.R. and W.A. Cunningham .III “Social exchange behavior in logistics relationships: a shipper perspective,” International Journal of Physical Distribution & Logistics Management, (29:2), 1999, pp. 103–121.
Morgan, R.M. and D. Hunt. “The Commitment-Trust Theory of Relationship Marketing,” Journal of Marketing, (58:3), 1994, pp. 20–38.
Noordewier, T.G., G. John, and J.R. Nevin. “Performance Outcomes of Purchasing Arrangements in Industrial Buyer-Vendor Relationships,” Journal of Marketing, (54:4), 1990, pp. 80–93.
Nunnally, J.C. and I.H. Bernstein. Psychometric theory (3rd ed.), McGraw-Hill, NewYork, NY, 1994.
Olavarrieta, S. and A.E. Ellinger. “Resource-based theory and strategic logistics research,” International Journal of Physical Distribution & Logistics Management, (27:9/10), 1997, pp. 559–587.
Palmatier, R.W., L.K. Scheer, and J-B.E.M. Steenkamp. “Customer Loyalty to Whom? Managing the Benefits and Risks of Salesperson-Owned Loyalty,” Journal of Marketing Research, (44:2), 2007, pp. 185–199.
Ringle, C., S. Wende, and A. Will. 2005. SmartPLS version 2.0 M3. www.smartpls.de.
Sabath, R.E. and J. Fontanella. “The Unfullfilled Promise of Supply Chain Collaboration,” Supply Chain Management Review, July/August 2002, pp. 24–29.
Shang, K and P.B. Marlow. “Logistics capability and performance in Taiwan’s major manufacturing firms,” Transportation Research Part E, (41:3), 2005, pp. 217–234.
Sink, H.L., C.J. Langley Jr., and B.J. Gibson. “Buyer observations of the US thirdparty logistics market,” International Journal of Physical Distribution & Logistics Management, (26:3), 1996, pp. 38–46.
Sinkovics, R.R. and A.S. Roath. “Strategic Orientation, Capabilities, And Performance in Manufacturer - 3PL Relationships”, Journal of Business Logistics, (25:2), 2004, pp. 43–64.
Stank, T.P., T.J. Goldsby, S.K. Vickery and K. Savitskie. “Logistics Service Performance: Estimating its Influence on Market Share”, Journal of Business Logistics, (24:1), 2003, pp. 27–55.
Teece, D.J. “Capturing Value from Knowledge Assets: The New Economy, Markets for Know-How, and Intangible Assets,” California Management Review, (40:3), 1998, pp. 55–79.
van Laarhoven, P., M. Berglund and M. Peters. “Third-party logistics in Europe – five years later,” International Journal of Physical Distribution & Logistics Management, (30:5), 2000, pp. 425–442.
Wallenburg, C.M. “Innovation in Logistics Outsourcing Relationships: Proactive Improvements by Logistics Service Providers as a Driver of Customer Loyalty,” Journal of Supply Chain Management, (45:2), 2009, pp. 75–93.
Wernerfelt, B. “A Resource-based View of the Firm,” Strategic Management Journal, (5:2), 1984, pp. 171–180.
Weigelt, C. “The Impact of Outsourcing New Technologies on Integrative Capabilities and Performance,” Strategic Management Journal, (30:6), 2009, pp. 595–616.
Wong, C.Y. and N. Karia. “Explaining the competitive advantage of logistics service providers: A resource-based view approach,” Int. Journal of Production Economics, (128:1), 2010, pp. 51–67.
Yao, Y., M. Dresner, and J.W. Palmer. “Impact of Boundary-Spanning Technology and Position in Chain on Firm Performance,” Journal of Supply Chain Management, (45:4), 2009, pp. 3–16.
Zacharia, Z.G., N.W. Nix, and R.F. Lusch. “An Analysis of Supply Chain Collaborations and their Effect on Performance Outcomes,” Journal of Business Logistics, (30:2), 2009, pp. 101–123
Zhao, M., C. Dröge, and T.P. Stank. “The Effects of Logistics Capabilities on Firm Performance: Customer-Focused Versus Information-Focused Capabilities,” Journal of Business Logistics, (22:2), 2001, pp. 91–107.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2011 Gabler Verlag | Springer Fachmedien Wiesbaden GmbH
About this chapter
Cite this chapter
Hartmann, E., de Grahl, A. (2011). The Flexibility of Logistics Service Providers and its Impact on Customer Loyalty – An Empirical Study. In: Success Factors in Logistics Outsourcing. Gabler Verlag. https://doi.org/10.1007/978-3-8349-7084-8_2
Download citation
DOI: https://doi.org/10.1007/978-3-8349-7084-8_2
Publisher Name: Gabler Verlag
Print ISBN: 978-3-8349-3355-3
Online ISBN: 978-3-8349-7084-8
eBook Packages: Business and EconomicsBusiness and Management (R0)