The Impact of Service Satisfaction, Relational Satisfaction and Commitment on Customer Loyalty in Logistics Outsourcing Relationship

2015 ◽  
Vol 4 (1and2) ◽  
Author(s):  
Sanjit Singh H.
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Structural Model ◽  
Reliability And Validity ◽  
Service Satisfaction ◽  
Equation Modeling ◽  
Relational Satisfaction ◽  
Logistics Outsourcing ◽  
Major Predictor ◽  
The Impact

This research explores the impact of service satisfaction, relational satisfaction, price satisfaction, and commitment on customer loyalty in logistics outsourcing relationships in Indian scenario. 254 users of logistics services from India were selected for investigating the potential linkages among the aforementioned satisfaction aspects and loyalty. Structural equation modeling (SEM) was employed to test the reliability and validity of the measurement and structural model developed to study the relationship among the linkages. Findings from the study supports that logistics service satisfaction, price satisfaction, relational satisfaction and commitment do influence loyalty positively. The analysis suggests that service satisfaction is the most important antecedent having primary influence in the formation of customer loyalty. Service satisfaction also has secondary influence on loyalty by acting as a strong driver in both relational satisfaction and commitment aspects of the service dimensions. Price satisfaction though positively been driven by service satisfaction, was found to have less significant effect as a predictor of loyalty in this context. The present study suggests that relational satisfaction is the second major predictor of loyalty which also drives commitment. This research is not an end-point but an attempt to establish the linkages and the effect among the antecedents driving the building and retention of good buyer-seller relationship in logistics outsourcing.

Trust, commitment, logistics outsourcing relationship quality, relationship satisfaction, strategy alignment and logistics performance – a case of selected manufacturing firms in Uganda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matthew Kalubanga ◽  
Sheila Namagembe
Keyword(s):  
Relationship Satisfaction ◽  
Relationship Quality ◽  
Developing Country ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Future Research ◽  
Logistics Outsourcing ◽  
Content Type ◽  
Positive Effects ◽  
Strategy Alignment

PurposeThis 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/approachDrawing 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.FindingsThe 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/implicationsThe 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 implicationsThe 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/valueThis 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.

Firm‐specific characteristics and logistics outsourcing by Chinese manufacturers

2004 ◽  
Vol 16 (3) ◽  
pp. 23-36 ◽  
Author(s):  
Junjie Hong ◽  
Anthony T.H. Chin ◽  
Binglian Liu
Keyword(s):  
Logistics Outsourcing
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