Disentangling the driving factors of logistics outsourcing: a configurational perspective

2019 ◽  
Vol 32 (6) ◽  
pp. 964-992 ◽  
Author(s):  
Qingyao Wan ◽  
Yang Yuan ◽  
Fujun Lai

Purpose The purpose of this paper is to explore how external pressures, internal capability and transaction attributes of logistics outsourcing synergically influence the extent of asset-based and non-asset-based logistics outsourcing. Design/methodology/approach Based on the data surveyed from 250 manufacturing companies in China, this study employed fuzzy-set qualitative comparative analysis (fsQCA) to deduce multiple configurations for logistics outsourcing decisions. Findings The results suggest that asset-based logistics outsourcing is primarily driven by external imitation pressures or internal demands for logistics technologies, while non-asset-based logistics outsourcing is mainly driven by the demands for external management-based logistics services. Asset specificity plays a positive role in promoting both asset-based and non-asset-based logistics outsourcing. The requirement for third-party logistics (3PL) management capability depends on the outsourcing types and outsourcing causes. Practical implications This study provides guidance to practitioners for them to make outsourcing decisions. It suggests that asset-based logistics outsourcing is more appropriate when there are high external imitation pressures or more internal logistics demands, while non-asset-based logistics outsourcing should be used only when a firm needs management-based logistics services. Besides, 3PL users are suggested to outsource their logistics when their 3PL providers are required to make specific investments. In addition, managers should carefully evaluate firms’ capabilities in managing outsourcing relationships. Originality/value Previous studies largely ignored the interaction effects of a set of factors on logistics outsourcing decisions, and to date, little research empirically examined how outsourcing is driven in terms of different types of outsourcing. Drawing on the institutional theory, dynamic capability view, and transaction cost theory and overarching under the complexity theory, this study examines how institutional, organizational and transactional factors interplay with each other to influence different types of logistics outsourcing (i.e. asset based and non-asset based). Methodologically, the configural analysis (i.e. fsQCA) is applied to explore complex causal configurations that drive logistics outsourcing.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oskari Rintala ◽  
Tomi Solakivi ◽  
Sini Laari ◽  
Juuso Töyli ◽  
Lauri Ojala

PurposeThis study aims to investigate the extent to which psychological factors and the agency of decision-makers drive outsourcing decisions. Arguments based on transaction cost economics, the core competence approach and the theory of planned behavior are used to explain logistics outsourcing.Design/methodology/approachThe literature was reviewed to identify constructs that are antecedents of logistics outsourcing intentions, and corresponding measures were developed. The data were gathered through a survey of supply chain professionals in Finnish manufacturing companies. A measurement model was reviewed to ensure reliability and validity and converted into a structural model for analysis. The analysis was based on partial least squares (PLS) structural equation modeling.FindingsSupply chain managers objectively consider the characteristics of their organization's logistics identified in previous research as requiring assessment during the outsourcing process. However, and surprisingly, they also tend to rely on behavioral subjective factors such as positive attitudes, encouraging subjective norms and competence. Moreover, it seems that firms do not outsource logistics activities despite the high strategic importance of the function, but because of it.Research limitations/implicationsThe constructed model is limited to the constructs chosen to represent drivers of logistics outsourcing. Further application with more samples would improve its reliability.Practical implicationsThe factors proposed here with respect to assets and the capabilities of third-party partners could facilitate decision-making related to logistics outsourcing.Originality/valueThe findings emphasize the role of behavioral factors in the procurement function and therefore enhance the understanding of behavioral supply chain management.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Charles S. Areni

Purpose The purpose of this study is to show how non-random groupings of YouTube videos can be combined with automated text analysis (ATA) of user comments to conduct quasi-experiments on consumer sentiment towards different types of brands in a naturalistic setting. Design/methodology/approach NCapture extracted thousands of comments on multiple videos representing different experimental treatments and Leximancer revealed differences in the lexical patterns of user comments for different types of brands. Findings User comments consistently revealed hypothesized relationships between brand types, based on existing theory regarding motivations for nostalgia and the relationship between consumer preferences, online product ratings and purchases. These results demonstrate the viability of conducting quasi-experimental research in naturalistic settings via non-random groupings of YT videos and ATA of user comments. Research limitations/implications This research adopts a single quasi-experimental design: the non-equivalent group, after-only design. However, the same basic approach can be used with other quasi-experimental designs to examine different kinds of research questions. Originality/value Overall, this research points to the potential for ATA of comments on different categories of YT videos as a relatively straightforward approach for conducting field experiments that establish the ecological validity of laboratory findings. The method is easy to use and does not require the participation and cooperation of private, third party social media research companies.


Author(s):  
Aliona Grigorenco ◽  
Philippos Papadopoulos ◽  
Konstantinos Rotsios

The aim of this chapter is to evaluate the efficiency of third party logistics (3PL) and the importance of outsourcing logistics services from the client’s perspective. The research focuses on current practices related to the extent of use, predictive value outsourcing and performance measures system of Colgate-Palmolive Company in Greece. The study examines the efficiency of the logistics service providers, and its impact on the overall client performance, evaluated through interviews with the 3PL Coordinator, the Logistics Manager, and the Manufacturing Director. The key findings of the work are that logistics outsourcing takes responsibility for non-core business functions, brings reductions of stocks and costs as well as order-to-delivery lead-time, accelerates capital turnover and capitalizes on synergies to achieve efficiency. Overall, its contribution is evaluated by the client as satisfactory and of medium significance, with room for improvements.


2014 ◽  
Vol 25 (8) ◽  
pp. 1209-1223 ◽  
Author(s):  
Stephen Fox

Purpose – The purpose of this paper is to provide an analysis of how virtual-social-physical (VSP) convergence can affect different types of project manufacturing. In particular, VSP convergence that involves combining the read-write functionality of Web 2.0 and related social media together with digital tools for virtual design and for physical manufacturing. Design/methodology/approach – Literature review and interviews with experts in technologies covering VSP convergence: digital data capture, photogrammetry, generative computation, Web 2.0 and social media, digitally driven manufacturing. Findings – VSP convergence can enable the replacement of slow and expensive traditional project manufacturing practices with much faster and less expensive digitally driven technologies. Practical implications – There are new opportunities for expansion of some types of project manufacturing. Notably, there are opportunities in non-industrial developing countries because VSP convergence reduces reliance on industrial infrastructure for the manufacturing of goods. By contrast, opportunities may be limited for expansion of established project manufacturing companies with exclusive brands. Originality/value – The originality is that VSP convergence is related to different types of project manufacturing. Based on VSP convergence, traditional types and new types of project manufacturing are categorized together for the first time. The value of this paper is that it is explained how VSP convergence can address barriers to expansion of different types of project manufacturing.


Author(s):  
Baofeng Huo ◽  
Chen Liu ◽  
Mingu Kang ◽  
Xiande Zhao

Purpose – The purpose of this paper is to develop a theoretical framework involving dependence, relationship commitment, logistics outsourcing and service quality to exhibit the roles of the relational factors involved in logistics outsourcing and their outcomes. Design/methodology/approach – Based on data collected from 361 companies in Greater China, the authors use the structural equation model approach to examine the hypothesized relationships. Findings – Both normative and instrumental relationship commitment are necessary for third party logistics (3PL) users to cope with their goal dependence on 3PL providers. However, only normative relationship commitment is necessary when users perceive switch dependence. Normative relationship commitment also plays a more important role than instrumental relationship commitment in facilitating the adoption of 3PL logistic outsourcing. In addition, both basic and advanced outsourcing practices have a positive effect on service quality. Originality/value – This study contributes to both 3PL theories and practices by clarifying how relationships between 3PL users and providers in China are managed.


2018 ◽  
Vol 25 (5) ◽  
pp. 1548-1580 ◽  
Author(s):  
Mohammadreza Akbari

Purpose The purpose of this paper is to provide a structured literature review (SLR) and systematic insight into logistics outsourcing research, in order to identify gaps in knowledge, and provide future research direction in the logistics outsourcing discipline. Design/methodology/approach This paper identifies and synthesises information from academic journals and examines research designs and methods, data analysis techniques, geographic locations, industry engagements, year of publication, publishers, university and author affiliations. A collection of online databases from 1991 to 2016 were explored, using the keywords “third-party”, “logistics” and “outsourcing” in their title and/or abstract, to deliver an inclusive listing of journal articles in this discipline area. Based on this approach, a total of 263 articles were found and data were derived from a succession of variables. Findings There has been a significant increase and concentration by researchers over the past 25 years focussing on logistics outsourcing. A need to implement best practice has been universally identified, owing to increasing global supply chain complexity. This analysis shows that only seven literature reviews were published in the logistics outsourcing discipline. Additionally, this study revealed that 42 per cent of the work in this field was found to be survey based and this trend in research indicates the development of the structural equation modelling and multi-criterion decision-making methods. Investigations between 2010–2012 and 2015–2016 accounted for 151 of the total 263 articles published. Finally, reverse logistics is an area that requires special attention. Research limitations/implications This paper is limited to a review of academic articles obtainable from online databases, containing the words “logistics” and “outsourcing” in the title and/or abstract. Additionally, only papers from high quality, peer-reviewed journals were evaluated. Other academic sources such as books and conference papers were not included in this study. Originality/value This review will provide an increased understanding of the existing state of current research, trends and future research directions in the logistics outsourcing discipline.


2014 ◽  
Vol 29 (3) ◽  
pp. 253-267 ◽  
Author(s):  
Faizah Darus ◽  
Yussri Sawani ◽  
Mustaffa Mohamed Zain ◽  
Tamoi Janggu

Purpose – This study explores the factors that impede the growth of the voluntary adoption of independent corporate social responsibilities assurance (CSRA) practices among manufacturing companies in Malaysia. Despite the argument that independent CSRA appraisals would improve the credibility of information disclosed, the majority of CSR reports in Malaysia are still not independently assured. The aim of this study is to understand the factors that impede CSRA practices among public-listed manufacturing companies in Malaysia. The theory of reasoned action was used to underpin arguments on the reluctance of managers to undertake CSRA. Design/methodology/approach – Online questionnaire surveys were employed to obtain respondents' perceptions on the factors that hinder CSRA practices. The target respondents comprised of CSR managers, corporate communications executives and customer relations personnel. Findings – This study provides evidence that the behavioural reluctance of managers to undertake CSRA was due to their attitudes and subjective norms towards independence assurance. The subjective norms due to the risk towards corporate reputation and the exposure to public scrutiny were the main factors that impede CSRA practices among manufacturing companies in Malaysia. The managers' attitude towards cost, data management systems and the uncertainty of the merits of CSRA were also compelling factors that hinder independent CSRA. These factors seemed to override incentives to provide credible information to stakeholders. Research limitations/implications – The findings of the study are limited to the perceptions of CSR managers, corporate communications executives and customer relations personnel responsible for CSR activities of the manufacturing industries in Malaysia. The results of the study suggest that further initiatives or pressure from stakeholders or regulatory authorities may be needed to convince the companies of the benefits of undertaking third-party assurance practices as such actions would provide a platform for the companies to enhance the credibility of their CSR reporting. Practical implications – The findings gleaned from this study would be of interest to the relevant corporate bodies and regulatory authorities with a view to formulating strategies to improve CSRA practices among organisations in Malaysia. Originality/value – The findings from the study offer initial insights into the impediments to CSRA practices in an emerging economy. It adds substantially to the existing literature that focuses mainly on CSRA practices in developed countries.


2020 ◽  
Vol 24 (1) ◽  
pp. 189-193
Author(s):  
K. Sokoliuk ◽  
◽  
A. Lyashenko ◽  

Annotation. Introduction. The article examines the services of logistic outsourcing from the point of view of Ukrainian manufacturing companies, analyzes the results of the survey, compares them with global trends. It was determined that Ukrainian companies use logistic outsourcing less often than companies in other regions of the world. Also, the most often outsourced fields were identified. Purpose. Analysis of logistics outsourcing services from the viewpoint of Ukrainian manufacturing companies and comparison of survey results based on the survey with global trends. Results. It was found that from the list of enterprise groups classification (micro, small, medium, large) all categories use the services of freight forwarding companies. The following types of logistic processes are most often outsourced: transportation, lease and maintenance of equipment, warehousing, logistic chain optimization. It was found that among other countries in the study of third-party logistics, Ukraine occupies the lowest position in the usage of outsourcing services in logistics. The reasons for outsourcing logistic processes in logistics are significant: lack of own resources and capacity, cost reduction. The relationship between causes and logistic processes has shown that in order to reduce logistic costs in the enterprise it is necessary to outsource transportation. Conclusions. Statistical research has shown a small relationship between the areas of logistic outsourcing and the main causes of outsourcing of logistic activities. Therefore, it is not appropriate to say that some logistical measures should be outsourced and others should not. The mixed system, which combines the usage of own and third-party production facilities, is the most suitable for most Ukrainian manufacturing companies Keywords: logistics, outsourcing, third-party logistics, transport, warehousing, supply chain management, optimization, respondent, survey.


2017 ◽  
Vol 1 (1) ◽  
pp. 86-106
Author(s):  
Anne Wanjiru Njoroge ◽  
Mr. Onserio Nyamwange

Purpose: The purpose of this study was to investigate challenges of import logistics outsourcing by manufacturing firms in Nairobi CountyMethodology: The research design of this study was a sample survey of the importers in the manufacturing industry as per the Kenya Association of Manufacturers. The total population of the companies in the manufacturing industry in Nairobi was 455 manufacturing firms. Primary data was collected via self-administered questionnaires with both open ended and closed questions that were designed to elicit specific responses for qualitative and quantitative analysis respectively. The data was analyzed by use of descriptive statistics.Results: The results indicated that the important reasons of outsourcing were satisfactory in explaining the decision by manufacturing companies to outsource. The reasons of outsourcing are a key determinant in deciding to outsource import logistics. The extent of challenges the importers face when importing services also determined the decision to outsource in the firms.Unique contribution to theory, practice and policy: The study recommends that the manufacturing firms should put more focus on core business functions and ensure reduction of overhead costs. They should take advantage of external expertise and experience and put measures to improve internal capabilities and expertise. The firms should reduce the total overall costs and where third party logistics providers provide a better service contract them. They should also emphasize on improved customer focus put measures to enable them compete effectively in the market.


Author(s):  
Kostas Selviaridis

This chapter seeks to critically revisit existing third party logistics (3PL) purchasing literature with the aim of bridging the gap between academic research and industry practice regarding logistics outsourcing. This is achieved by focusing on hitherto under-emphasized issues (in the academic literature) relating to the role of the service provider, as opposed to that of the buyer, in 3PL exchange design and management, and the dynamics of the outsourcing process. Drawing on recent developments and practices in the 3PL industry and two in-depth case studies of logistics outsourcing, the study suggests that, under increasing complexity and uncertainty levels, the service provider in interaction with the buying firm significantly influences service definition, design, and evaluation throughout the outsourcing process. The exchanged service is not determined from the outset of the outsourcing process but it is (re)shaped in an iterative and ongoing fashion. Based on such findings, the chapter calls for increased emphasis on a dynamic and inter-organizational (buyer-service provider) perspective into the study of logistics outsourcing processes.


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