Third-party purchase: an empirical study of Chinese third-party logistics users

2016 ◽  
Vol 36 (3) ◽  
pp. 286-307 ◽  
Author(s):  
Yangyan Shi ◽  
Abraham Zhang ◽  
Tiru Arthanari ◽  
Yanping Liu

Purpose – Third-party purchase (3PP) is a new value-added service offered by third-party logistics (3PL) providers. The purpose of this paper is to examine the perception of 3PP service from the perspective of 3PL users. Design/methodology/approach – The authors conducted a survey of Chinese 3PL users and received 242 usable responses. The authors then employed structural equation modeling to test the conceptual model. Findings – The authors found that the likelihood of 3PL users using a 3PP service is significantly associated with uncertainty, but not with asset specificity or frequency or transaction size. 3PP usage is significantly associated with value-to-client. Originality/value – This research is the first survey study of 3PP as a value-added service offered by 3PL providers, from the perspective of 3PL users. The findings suggest that 3PL users are very positive about the value of 3PP service. The 3PP market is still in its infancy but it has great potential, especially for commodity items that have less demand uncertainty.

2017 ◽  
Vol 22 (1) ◽  
pp. 40-57 ◽  
Author(s):  
Yangyan Shi ◽  
Tiru Arthanari ◽  
Lincoln Wood

Purpose This paper aims to examine the opportunity for third-party logistics providers (3PLs) to develop further value-added services for their clients, focused on purchasing. The provider perspectives on third-party purchase (3PP) services are examined in conjunction with their business environment, with a survey informed by transaction cost economics. Design/methodology/approach New Zealand 3PL providers were surveyed, and 166 responses were received. Structural equation modeling was used to test the conceptual model. Findings From the perspective of 3PL providers, uncertainty, frequency and transaction size, but not asset specificity, are significantly associated with client value from a 3PP service. While asset specificity in investments is not required by 3PLs, they need a high frequency of orders, sufficient order size and low levels of uncertainty as supporting conditions for the development of 3PP services. Research limitations/implications The sample focuses on 3PL providers and therefore does not address the behavioral characteristics of users or customers of the services. Originality/value This study shows that 3PP services may be further developed by 3PL providers to improve the value offered to their clients.


Author(s):  
Yongyi Shou ◽  
Jinan Shao ◽  
Anlan Chen

Purpose Drawing upon the theory of the resource-based view, the purpose of this paper is to examine the relationships among relational resources, innovation capability and firm performance in the third-party logistics (3PL) industry. Design/methodology/approach Based on data collected from 203 3PL providers in China, this study adopts the approach of structural equation modeling to examine the hypothesized relationships among relational resources, innovation capability and firm performance. Findings The results of this research confirm that relational resources have a positive effect on firm performance. However, the effect is not direct, but realized through the mediation of innovation capability. This study indicates that relational resources are important for 3PL providers to achieve superior performance, and innovation capability plays a mediating role between relational resources and firm performance. Originality/value The main contributions of this paper to the literature are twofold. First, it extends the extant research by highlighting the mediating mechanism of innovation capability in relational resources’ influence on firm performance. Second, it advances the existing perspectives on 3PL firms in the Chinese context and this sheds light on logistics research on emerging markets.


2016 ◽  
Vol 27 (2) ◽  
pp. 263-283 ◽  
Author(s):  
Chiung-Lin Liu ◽  
Pei-Yu Lai

Purpose – Outsourcing by corporations is increasing the demand for complex services (such as customization) from third-party logistics providers (3PLs). Effective integration between 3PLs and their customers, known as the external integration of 3PLs, not only allows 3PLs to respond rapidly to shippers’ needs but also to increase customer satisfaction and the effective allocation of resources while increasing operational efficiency (such as by proposing comprehensive plans for future logistics services to meet shippers’ demands). The purpose of this paper is to investigate the causal relationships among the external integration capabilities, cost advantages, and the financial performance of 3PLs. Design/methodology/approach – A survey of 3PLs in Taiwan and China was performed. The research model was tested using a structural equation modeling technique along with the partial least square (PLS-SEM/PLS) approach. Findings – The results herein demonstrated a positive relationship between 3PLs’ external integration capabilities and resource efficiency. The results also suggested that cost competitiveness positively affected the financial performance of 3PLs. Although the external integration capabilities of 3PLs were not found to directly affect their financial performance, the results in this study indicated that external integration capabilities enable a firm to improve financial performance by capturing cost advantages. Originality/value – This study provides useful information about the effects of external integration capabilities on the financial performance of 3PLs in a bi-regional context. The sample in this study was drawn from the 3PL industry in Taiwan and China, enabling a comparative analysis of these two countries of similar cultural backgrounds but different degrees of development of their logistics industry and different related demands.


2017 ◽  
Vol 117 (8) ◽  
pp. 1738-1760 ◽  
Author(s):  
Baofeng Huo ◽  
Qianwen Wang ◽  
Xiande Zhao ◽  
Zhongsheng Hua

Purpose The purpose of this paper is to investigate effects of two integrative mechanisms of third-party logistics (3PL) integration (i.e. information sharing and process coordination) between users and providers on relationship satisfaction, and further explores how partnership-surrounding (e.g. legal unprotectability) and partnership-specific barriers (e.g. measurement difficulty and cooperation difficulty) influence 3PL integration in the context of Chinese 3PL practices. Design/methodology/approach Using data collected from 247 3PL users in China, this study uses the structural equation modeling method to empirically examine the relationship among partnership-surrounding/specific barriers, 3PL integration and relationship satisfaction. Findings The results show that information sharing has no significant effect on relationship satisfaction, while process coordination has a positive effect on relationship satisfaction and partially mediates the relationship between information sharing and relationship satisfaction. Furthermore, as partnership-specific barrier, measurement difficulty and cooperation difficulty are negatively related to information sharing and process coordination. Surprisingly, as partnership-surrounding barrier, legal unprotectability is not significantly related to information sharing but is positively related to process coordination. Originality/value As a comprehensive study on 3PL user-provider relationship in China, this study extends existing 3PL literature by providing evidence about the importance of 3PL integration and different types of barriers to 3PL integration, also providing managerial implications for 3PL users, providers, law and regulation makers about how to better implement 3PL integration in China.


2018 ◽  
Vol 56 (1) ◽  
pp. 143-159 ◽  
Author(s):  
Rameshwar Dubey ◽  
Angappa Gunasekaran ◽  
Stephen J. Childe ◽  
Thanos Papadopoulos

Purpose A shortage of skills is recognized as a major source of risk in supply chain networks. This study uses two independent organizational theories to explain how to build applicable skills for continuous availability of appropriate supply chain talents. The purpose of this paper is to propose an integrated framework that links human agency theory, social capital theory and supply chain skill. Design/methodology/approach This framework is analyzed in third party logistics (3PL) organizations by confirmatory factor analysis and tested using a survey. After pre-testing by six academics and six practitioners, and following the total design method, the data were collected from 183 3PL organizations in India. Data were checked to ensure no non-response bias. Research hypotheses were tested using WarpPLS-structural equation modeling. Findings A primary finding offers guidance to 3PL managers. Their driving role and mediating role of access to information and access to resources facilitate building supply chain skill. Leaders who invest in library, acquiring e-resources, offer financial support and create trust among employees are enablers of building supply chain skill. Originality/value This study classified 14 supply chain skills into three categories as: managerial skill, quantitative skill and supply chain core skill. The study could be extended to similar companies in other developing countries.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi ◽  
Ready Wicaksono ◽  
Hamka Hamka

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.


2019 ◽  
Vol 41 (5) ◽  
pp. 830-850 ◽  
Author(s):  
François L'Écuyer ◽  
Louis Raymond ◽  
Bruno Fabi ◽  
Sylvestre Uwizeyemungu

Purpose Within the manufacturing sector, small- and medium-sized enterprises (SMEs) face specific challenges with regard to their strategic HRM capabilities. In this context, an emerging issue for both researchers and practitioners regards HR information systems (HRIS), i.e. the deployment of strategic IT capabilities to enable the firm’s high-performance work system (HPWS) capabilities and thus improve the performance of its HR function. The purpose of this paper is to address this issue by using a capability-based mediation perspective to study the strategic alignment of HR and IT. Design/methodology/approach A survey study of 206 manufacturing SMEs was realized and the data thus obtained was analyzed through structural equation modeling. Findings Results confirm that the HRIS capabilities of SMEs influence the performance of the HR function through their strategic alignment with the HPWS capabilities of these enterprises. Practical implications The results suggest that the manufacturing SMEs most active in developing their HRIS capabilities while developing their HPWS capabilities are most likely to develop a competitive advantage through the improved performance of their HR function. This is especially important in a time when firms of all sizes across the globe are waging a “war for talent,” and are enabled to do so by their strategic use of IT. Originality/value The results of the study constitute a valid basis for prediction and prescription with regards to the strategic alignment of human and IT resources.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ling Jiang ◽  
Wenkai Zhou ◽  
Zhuoyi Ren ◽  
Zhilin Yang

PurposeFrom an environmental psychology perspective, we aim to uncover the role that app discoverability facilitators play in enabling the various perceived values (e.g. social, information and hedonic) necessary for app adoption.Design/methodology/approachA survey study was conducted and data was analyzed using partial least squares structural equation modeling (PLS-SEM).FindingsResults show that certain consumer review elements (i.e. review quality, review quantity and app ranking), peer influence and app developers' reputation — to varying degrees — influence the three perceived values, which subsequently affect users' app adoption intention. The three perceived values mediate the relationship between app discoverability facilitators and users' app adoption intention.Practical implicationsApp store managers and developers should make a greater effort to effectively optimize discoverability and product differentiation.Originality/valueGuided by environmental psychology, we confirm the importance of app discoverability facilitators regarding their influence on users' general perceptions of an app (e.g. the three perceived values). We also uncover the differentiated effect of the three perceived values on app adoption intention.


2020 ◽  
Vol 3 (3) ◽  
pp. 371-393 ◽  
Author(s):  
Sajjida Reza ◽  
Muhammad Shujaat Mubarik ◽  
Navaz Naghavi ◽  
Raja Rub Nawaz

PurposeThis study examines the outsourcing criteria prevalent in the Hotel industry of Pakistan. In doing so, the study investigates the role of trust in the association between relationship marketing dimensions—communication, opportunistic behavior, reputation, satisfactory prior outcomes and specific investment—and third-party logistics provider’s (3PL) selection.Design/methodology/approachUsing a close-ended questionnaire, data were collected from 97 hotels of various categories operating in Pakistan and involved in 3PL outsourcing. Partial Least Square–Structural Equation Modeling was employed to estimate the modeled relationships.FindingsWith a high predictive relevance of the model, communication, satisfactory prior outcome and reputation were found to have a significant effect on the trust, whereas the results showed a significant mediating role of trust in the association between communication, reputation and 3PL provider’s selection.Research limitations/implicationsThe study uses static data from selected firms and cannot be used to analyze behavior over a period of time. Hence, a generalization of results should be made carefully.Practical implicationsFindings imply that for fully capitalizing on the benefits by virtue of their prospective relationship, the managers must streamline their processes and activities according to path directions that endorse a higher degree of trust in their service providers and establish an effective system of communications interconnecting their mutual goals and objectives.Originality/valueThe outcome of the research study illustrated the perceptions of the local businesses with regards to the 3PL service provider(s) selection via the establishment of trust.


2019 ◽  
Vol 119 (5) ◽  
pp. 1046-1071 ◽  
Author(s):  
Siyu Li ◽  
Xiling Cui ◽  
Baofeng Huo ◽  
Xiande Zhao

PurposeThe purpose of this paper is to explore the effects that customer structured and unstructured information sharing (IS) can have on customer operational and strategic coordination and on supply chain performance (SCP). In addition, the study examines how customer IS influences customer coordination under various levels of demand uncertainty (DU).Design/methodology/approachThe conceptual model for this study is designed on the basis of information-processing theory (IPT). Using data collected from 622 manufacturers in mainland China and Taiwan, the theoretical model is tested using the structural equation modeling method.FindingsThe authors find that both customer structured IS and unstructured IS are positively associated with customer strategic coordination. Customer structured IS increases customer operational coordination, but customer unstructured IS does not. DU positively moderates the relations between customer unstructured IS and strategic coordination, and between customer structured IS and operational coordination. Also, DU negatively moderates the relationship between customer structured IS and strategic coordination. Customer strategic coordination is positively related to SCP and to operational coordination. Customer operational coordination has no significant impact on SCP.Originality/valueThis study deepens our understanding of customer IS by distinguishing between customer structured and unstructured IS. The study also provides a greater understanding of customer coordination by making a distinction between the customer strategic and the operational coordination. The findings extend the empirical application of IPT. In addition, this study’s findings direct SC managers to apply varied customer IS practices that can enhance specific kinds of customer coordination activities, thereby enabling improved SCP.


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