scholarly journals Relational resources and performance of Chinese third-party logistics providers

2017 ◽  
Vol 47 (9) ◽  
pp. 864-883 ◽  
Author(s):  
Yongyi Shou ◽  
Jinan Shao ◽  
Anlan Chen
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Third Party ◽  
Superior Performance ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Innovation Capability ◽  
Content Type ◽  
The Third Party Logistics ◽  
Relational Resources

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.

Impact of external integration capabilities of third-party logistics providers on their financial performance

2016 ◽  
Vol 27 (2) ◽  
pp. 263-283 ◽  
Author(s):  
Chiung-Lin Liu ◽  
Pei-Yu Lai
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Third Party ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Logistics Industry ◽  
Content Type ◽  
Comprehensive Plans

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.

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
Keyword(s):  
Structural Equation ◽  
Demand Uncertainty ◽  
Value Added ◽  
Third Party ◽  
Survey Study ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Content Type ◽  
A Value ◽  
Value Added Service

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.

Barriers to third-party logistics integration: empirical evidence from China

2017 ◽  
Vol 117 (8) ◽  
pp. 1738-1760 ◽  
Author(s):  
Baofeng Huo ◽  
Qianwen Wang ◽  
Xiande Zhao ◽  
Zhongsheng Hua
Keyword(s):  
Relationship Satisfaction ◽  
Information Sharing ◽  
Structural Equation ◽  
Third Party ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Content Type ◽  
Process Coordination ◽  
The Relationship ◽  
Specific Barriers

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.

scholarly journals Skills needed in supply chain-human agency and social capital analysis in third party logistics

2018 ◽  
Vol 56 (1) ◽  
pp. 143-159 ◽  
Author(s):  
Rameshwar Dubey ◽  
Angappa Gunasekaran ◽  
Stephen J. Childe ◽  
Thanos Papadopoulos
Keyword(s):  
Social Capital ◽  
Supply Chain ◽  
Structural Equation ◽  
Design Method ◽  
Human Agency ◽  
Social Capital Theory ◽  
Third Party ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Content Type

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.

Interactivity innovations, competitive intensity, customer demand and performance

2016 ◽  
Vol 8 (4) ◽  
pp. 536-554 ◽  
Author(s):  
Thomas Anning-Dorson
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Superior Performance ◽  
Equation Modeling ◽  
Service Firms ◽  
Customer Demand ◽  
Competitive Intensity ◽  
Content Type ◽  
Service Firm ◽  
The Relationship

Purpose The purpose of this study is to identify dimensions of interactivity service innovations and examine the moderating effect of external factors, i.e. customer demand and competitive intensity, on the relationship between such service innovations and service firm performance. Design/methodology/approach Data were collected at two levels; the first for validation; and the second for confirmatory and relationship analyses. Structural equation modeling was used in analyzing the relationship between interactivity innovation and service firm performance and environmental moderating effects. Findings The study found that high levels of interactivity innovations, in combination, drive superior performance. It was also found that deployment of high levels of interactivity innovations in high-demand periods is significantly related to high performance. The paper also found that the relationship between high interactivity innovation and financial performance is dampened by intense competition. Originality/value Unlike previous studies, this study found that it is rather high levels of service innovations that maximize performance in service firms operating in emerging economies and not just the implementation of such innovations, and that the implementation must be aligned to the prevailing environmental conditions.

scholarly journals Examining the link between service modularity and firm performance

2016 ◽  
Vol 26 (5) ◽  
pp. 696-720 ◽  
Author(s):  
Colin C.J. Cheng ◽  
Eric Shiu
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Radical Innovation ◽  
Equation Modeling ◽  
Service Firms ◽  
Actual Process ◽  
Innovation Capability ◽  
Content Type ◽  
Negative Effect

Purpose While service scholars have generally supported the idea that service modularity enhances firm performance, the literature offers very little evidence of the actual process through which service modularity continuously contributes to firm performance. The purpose of this paper is to examine the link from a capability perspective: service modularity capabilities-service modularity-new service advantage-firm performance, as well as the moderating role of radical innovation capability in the effect of service modularity on new service advantage. Design/methodology/approach To examine this link, data were collected from a cross-industry survey of 231 leading service firms. Structural equation modeling and hierarchical moderated regression analyses were employed to test the model. Findings Analyses reveal that new service advantage mediates the service modularity-firm performance relationship. Moreover, service modularity capabilities act in an important antecedent role to configure service modularity. Among the findings, it is worth emphasizing that radical innovation capability not only strengthens the positive effect of, but also alleviates the negative effect of, service modularity on new service advantage. Originality/value This study provides a more complete understanding of how service modularity enhances firm performance by discovering the hidden role of new service advantage that bridges service modularity and firm performance, clarifying the role of service modularity capabilities in configuring service modularity, and confirming the important role of radical innovation capability in sustaining the effectiveness of service modularity.

When do customer orientation and innovation capabilities matter? An investigation of contextual impacts

2019 ◽  
Vol 32 (2) ◽  
pp. 445-472 ◽  
Author(s):  
Olimpia C. Racela ◽  
Amonrat Thoumrungroje
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Customer Value ◽  
Structural Equation ◽  
Customer Orientation ◽  
Idea Generation ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Organizational Creativity

Purpose Grounded on resource-advantage (R-A) theory, the purpose of this paper is to investigate how customer orientation, as a higher-order or interconnected operant resource, enhances firm performance through creativity capability (i.e. idea generation and problem solving) and innovation capability (i.e. the implementation of creative ideas) – among firms of different sizes and within different market contexts. The authors conceptualize customer orientation as a firm’s capacity to create and deliver superior customer value through the processing of market intelligence, as demonstrated by the firm’s composite operant resources of market-sensing, customer-relating and customer-response capabilities. Design/methodology/approach Data were collected via qualitative in-depth interviews for scale development followed by a mail questionnaire survey for quantitative responses. A final sample size of 190 firms based in Thailand participated and the data were analyzed using structural equation modeling and bootstrapping multi-group comparisons to investigate the hypothesized mediation and moderation effects. Findings Customer orientation enhances organizational creativity and innovation capabilities, which improve firm revenue and financial performance. The relationships among customer orientation, creativity capability, innovation capability and firm performance vary depending on firm size, market dynamism and customer type. Practical implications Managers need to consider contextual factors, particularly firm size, market dynamism and the nature of their buyer markets as key contingencies in their resource deployment decisions intended to develop customer orientation and innovation capabilities. Originality/value This study advocates R-A theory by empirically revealing how different hierarchical resources within a firm are intertwined to provide firms with competitive R-A. The findings further highlight a contingent nature of customer orientation–innovation–performance relationships among firms in an emerging economy.

scholarly journals Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives

2017 ◽  
Vol 22 (1) ◽  
pp. 40-57 ◽  
Author(s):  
Yangyan Shi ◽  
Tiru Arthanari ◽  
Lincoln Wood
Keyword(s):  
New Zealand ◽  
Structural Equation ◽  
Value Added ◽  
Business Environment ◽  
Asset Specificity ◽  
Third Party ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Content Type ◽  
Provider Perspectives

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.

Bifurcating the dynamic dominant logic: technical and evolutionary patterns of action

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chandra Dwipayana ◽  
Ruslan Prijadi ◽  
Mohammad Hamsal
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Digital Transformation ◽  
Superior Performance ◽  
Integrative Model ◽  
Equation Modeling ◽  
Content Type ◽  
Dominant Logic ◽  
Term Performance ◽  
Evolutionary Fitness

PurposeThis study proposed the integrative model of dynamic dominant logic (DL) with exploitation (EP) and exploration (ER) as a pattern of actions in endeavoring firm performance (FP). This study also intended to explain the multiple patterns of DL in creating technical and evolutionary fitness simultaneously.Design/methodology/approachThis study used a cross-sectional quantitative analysis of the Indonesian commercial banking population facing digital transformation and was analyzed using covariance-based structural equation modeling through parceling.FindingsThe model confirmed that DL positively affects EP and ER. It also revealed that DL indirectly impacts FP through EP, indicating changes in the traditional banking business through the strong acceptance of “new realities” in adapting to the rapid growth of technology. Hence, this study discovered that during the recent banking digital transformation, the beneficial inertia of the technical pattern of action might lose effectiveness in creating superior performance.Practical implicationsDL is vital in locking short-term performance while maintaining long-term performance opportunities through EP and ER to promote digital transformation. Accordingly, it induced banks to adopt new technology for value creation and fortifying competitive advantage.Originality/valueThis study provided a theory about how DL links the firm's decision-making process by promoting multiple patterns of action in achieving technical and evolutionary fitness. It highlighted the DL as a resource conceptualization that promotes resource development through EP and ER as microfoundation of dynamic capabilities during the tension of institutionalization and digital transformation.

Complementarity effect of supply chain competencies on innovation capability

2019 ◽  
Vol 25 (6) ◽  
pp. 1251-1272 ◽  
Author(s):  
Ying Liao ◽  
Yulong Li
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Equation Modeling ◽  
Supply Network ◽  
Innovation Capability ◽  
Exploration And Exploitation ◽  
Complementarity Effect ◽  
Content Type ◽  
Essential Components ◽  
Network Flexibility

Purpose From the perspective of the economic theory of complementarity, the purpose of this paper is to examine how internal collaboration and external competencies would provoke and strengthen each other, and subsequently enhance organizational innovation capability. Design/methodology/approach The survey data were collected from 201 manufacturing firms and checked for common method variance, validity and reliability. Structural equation modeling was then used to test the hypothetical complementarity effect. Findings The results suggest that internal collaboration (as a manifestation of exploitative learning) and external competencies, which include supply network flexibility and supplier operational capabilities (as manifestation of exploratory learning), do in fact compensate for each other’s deficiencies. Complementary deployment of internal collaboration and external competencies enhances each other’s contribution to innovation capability. Practically, the study indicates that organizations should consider making concerted efforts to develop internal collaboration, supply network flexibility and supplier operational capability as a bundle. Originality/value Extensive discussions exist in the literature on exploration and exploitation being essential components of innovation and their conflicting impact on innovation efficiency and effectiveness. But how an organization should operationally develop supply chain competencies in order to maximize overall innovation capability still remains largely an unanswered question. The current study advances the research on the inter-relationships between exploration and exploitation by empirically demonstrating the complementary nature of internal collaboration and external competencies in developing sustainable innovation capabilities.

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