An Investigation of the Antecedents and Impacts of Logistics Management Capabilities and Logistics Outsourcing PDF Download
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Author: Soomin Park
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Author: Soomin Park
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Author: Lorena D. Mathien
Publisher:
ISBN:
Category :
Languages : en
Pages : 405
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The outsourcing of logistics and the procurement of logistics services have risen significantly in industry in recent years, as firms seek to focus on core competencies and outsource noncore functions to reduce cost and gain a competitive advantage. Core competencies, or core capabilities, are "the bundle of a firm's resources and capabilities that are strategically important to its competitive advantage at a certain point in time" (Wang & Ahmed, 2007). One of the objectives of this research is to more clearly define and delineate the differences among the strategic and operations management constructs of resources, capabilities, competencies, and practices. This research focuses on logistics capabilities, and proposes that the contribution of logistics outsourcing towards firm performance is dependent upon the degree of fit between logistics capabilities and the firm and logistics functional strategies. The relationships among these theoretical constructs, their empirical validation, as well as an empirical investigation of the antecedents of logistics outsourcing are pursued in this dissertation research. Outsourcing is the practice of utilizing external resources to perform activities that previously were performed in-house. In the case of logistics outsourcing, academic and industry research has indicated that shippers are becoming increasingly sophisticated in their outsourcing requirements and, with the proliferation of third party and fourth party logistics providers, shippers can demand increasing value at lower costs. Thus, logistics providers will benefit from the knowledge of the factors that drive shippers' outsourcing decisions. Such information may enable logistics service providers to differentiate themselves in the market. This dissertation investigates the factors that induce shippers to outsource logistics functions. Based on a theoretical framework rooted in the social sciences and strategic management, this study proposes an integrative model to develop and understand the critical factors in the outsourcing relationships. The motivation behind this study is threefold: (1) to use the strategic management and social sciences theory bases, in addition to drawing from the research findings on information technology (IT) outsourcing, to examine the theoretical foundations for outsourcing; (2) to apply the theoretical foundations to explain why organizations outsource logistics; and (3) to explain why the benefits are more than just cost-based or resource-based, but may also be strategic in nature. Specifically, this study starts with the research stream on production competence theory of Vickery (1991), and its recent extension to the Purchasing domain by studies such as Gonzalez-Benito (2007). We extend this framework to the logistics management domain, specifically to the emerging area of logistics outsourcing decisions, wherein such research, dealing with the development of capabilities, competences, logistics performance, etc. is very much in an incipient stage. This framework of competence hierarchy is tested empirically for the Logistics context, in addition to testing the validity of five different theory bases. The five theory bases tested are: 1) Resource-based view, 2) Dynamic capabilities view, 3) Competence-based view, 4) Relational factors view, and 5) Transaction cost economics (TCE). To better understand the relationship between outsourcing factors, and logistics and firm performance, theoretical models are developed linking these constructs, and controlling for several firm and business environment characteristics.^The theoretical constructs are defined as comprising strategic-level initiatives such as establishment of competencies, resources, relationship management practices, organizational structure, and governance structure. The dependent variables include positional advantage, defined as a comparative advantage in resources, enabling a firm to occupy positions of competitive advantage, and performance outcomes, measured by financial performance relative to competition. The structural model developed suggests several testable hypotheses and relationships. The major hypotheses are that, first, increased adoption of the proposed theoretical elements may be positively related to competitive advantage. Second, logistics performance, or the alignment of strategy and capabilities, is also positively related to competitive advantage. Finally, increased competitive advantage, or positional advantage, may be positively related to firm performance. The research methods employed involve a systematic development of a survey instrument to measure various constructs of interest. Measurement items were drawn from the literature, along with newly developed scales (e. g. the measure for cost difference for transaction cost view). The survey was pilot tested with senior logistics executives, followed by a full-scale implementation among a random sample of North American shippers. The survey methodology included both web-based and printed surveys. Analysis was conducted in two phases: the first phase being factor analysis (CFA) followed by covariance-based structural equation modeling (SEM) using partial least squares (PLS) approach, validated by ordinary least squares (OLS) regression and SEM. This research demonstrates that discrete resources do play a large role in determining positional (relative) advantage and financial performance in regards to logistics outsourcing. The unique resources developed within an outsourcing relationship account for a large variance of positional advantage; however, financial performance increases when these resources evolve based on market dynamics. Unlike resources, competences are activity-based. When viewed in isolation, top management support, logistics capabilities, and alignment of logistics strategic objectives all increase logistics performance, positional advantage, and, in turn, financial performance. However, when viewed in conjunction with other factors (integrative model), all of these factors become insignificant when determining positional advantage, suggesting that there are more important elements in logistics outsourcing success. Relational factors also play a large role in logistics outsourcing, with communication, trust, and relationship commitment all significant determinants of cooperation, and with cooperation among outsourcing partners leading to both positional advantage and positive financial performance. Among all the factors leading to cooperation, trust plays the largest role. This is not surprising given that many logistics outsourcing relationships are not long-term in nature, and that logistics is such a large spend in any firm. In both the individual models and in the integrative models, resources, the dynamic development of these resources over time, and cooperation all prove to have the most impact on firm positional and financial performance. In addition, although the initial decision to outsource may stem from a shipper's need to reduce costs, transactions costs play a very minor role in logistics outsourcing, and nothing can be claimed on the centralized or decentralized logistics structure on outsourcing success. Finally, when the individual models are combined, they explain significantly more variance in positional advantage, and slightly more variance in financial performance than the individual models. Thus, this dissertation research makes both theoretical and managerial contributions. First, a theoretical model of logistics competence was developed, describing comprehensively, the antecedents and interrelationships among constructs of relevance to logistics outsourcing, and this framework was tested empirically. This framework separates logistics practices from logistics capabilities/competencies, and redefines logistics competence to align with the definitions provided by literature. Second, this dissertation enhances the understanding of the antecedents of logistics outsourcing, and identifies the conditions for optimal performance of shippers and providers in outsourcing relationships. Whereas logistics capabilities and outsourcing competence are determinants in individual models, they are insignificant when included in an integrative model including other factors. Resources, the renewal of these resources, and relational factors play a much more significant role in determining logistics outsourcing success or failure. In addition, transaction costs and the centralization or decentralization of the logistics function within a firm have little to no impact on outsourcing performance. Thus, this research offers practical insights for both shippers and logistics providers for improving firm and supply chain performance. Shippers and providers should focus their efforts on obtaining and renewing resources, as well as building strong relationships centered on trust and cooperation. Third, this research empirically validates (refutes) the five theoretical models of Competence, Resources, Dynamic Capabilities, Relational, and Transaction Cost Economics, specifically in the logistics outsourcing context. The first four theoretical bases are supported in relation to logistics outsourcing; however, the last, TCE, which is the most widely applied theory in logistics outsourcing literature, is found to be an insignificant contributor to success.
Author: Jan M. Deepen
Publisher: Springer Science & Business Media
ISBN: 3790819387
Category : Business & Economics
Languages : en
Pages : 359
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Book Description
This book uses state-of-the-art scientific methods to reveal that most firms currently do not realize the full potential of logistics outsourcing. It shows the complexity of outsourcing performance and that its true drivers lie in the relationship between service providers and their customers. Through the results of a large-scale empirical survey, the book also emphasizes the importance of a firm's approach towards outsourcing.
Author: Alexander de Grahl
Publisher: Springer Science & Business Media
ISBN: 3834970840
Category : Business & Economics
Languages : de
Pages : 120
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Book Description
Alexander de Grahl provides with his three papers on success factors in logistics outsourcing relevant insights regarding this important research question. In detail, adopting different perspectives in the three papers, the work shows how logistics service providers, customer firms and the two parties together can contribute to successful logistics outsourcing relationships.
Author: Folinas, Dimitris
Publisher: IGI Global
ISBN: 1466620099
Category : Business & Economics
Languages : en
Pages : 596
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Book Description
Logistics and Supply Chain Management has been a vital part of every economy and every business entity. Both sciences have become prestigious research fields focusing on best practices, concepts, and methods. Outsourcing Management for Supply Chain Operations and Logistics Services is concentrated on the key players of the outsourcing paradigm; the organizations that provide logistics services, the Third Party Logistics (3PLs), as well as their clients, presenting and promoting the lessons learned by their cooperation. Specifically, this publication presents studies which are relevant to practitioners, researchers, students, and clients of the application of the Outsourcing practice on the Logistics and Supply Chain Management services giving emphasis to 3PLs.
Author: Wang, John
Publisher: IGI Global
ISBN: 1466645075
Category : Business & Economics
Languages : en
Pages : 481
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Book Description
"This book examines related research in decision, management, and other behavioral sciences in order to exchange and collaborate on information among business, industry, and government, providing innovative theories and practices in operations research"--Provided by publisher.
Author: Kulwant S. Pawar
Publisher: Springer
ISBN: 1137541253
Category : Business & Economics
Languages : en
Pages : 482
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Book Description
Containing the most influential papers from the International Symposium on Logistics, Developments in Logistics and Supply Chain Management demonstrates the evolution in logistics and supply chain management since the 1990s.
Author: Dirk Mattfeld
Publisher: Springer
ISBN: 3319208632
Category : Technology & Engineering
Languages : en
Pages : 278
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Book Description
This contributed volume contains the selected and thoroughly reviewed research papers presented at the conference on logistics management LM2015 in Braunschweig, Germany. The conference of the special interest group in logistics of the German Academic Association for Business Research (VHB) was held in conjunction with the special interest group on production of the VHB. Thus, the papers reflect the current state-of-the-art in logistics and supply chain management while focusing especially on aspects of production logistics, i.e., facility layout, inventory management, line configuration, or flexible production.
Author: Tim Gruchmann
Publisher: kassel university press GmbH
ISBN: 3737605742
Category :
Languages : en
Pages : 190
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Book Description
Logistics Social Responsibility (LSR) emerged as a concept to integrate sustainability throughout logistics-oriented processes in the supply chain. Hence, logistics services are linked to sustainability requirements. To meet these requirements, logistics service providers can respond to their responsibility by reducing the ecological and social impact in the supply chain. Moreover, it has been recognized that consumers also need to adapt to sustainability requirements: e.g., by supporting sustainable logistics strategies with their monetary “votes” or by changing their own consumption behavior. This “shared responsibility” requires mutual support and cooperation. Therefore, the core of this dissertation is that logistics service providers can further support sustainable development by facilitating more sustainable consumer choices. To enhance LSR activities, the link to the dynamic capabilities theory is investigated. Here, several capabilities have been identified through which managers can pool their knowledge and skills to generate new knowledge, solutions or resource configurations. Using these capabilities in a strategic manner, logistics service providers can purposefully change their business environment by forming new partnerships or changing existing relationships to gain from developing new business practices stressing sustainable purposes.
Author: David Simchi-Levi
Publisher: Springer Science & Business Media
ISBN: 0387226192
Category : Mathematics
Languages : en
Pages : 355
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Book Description
Fierce competition in today's global market provides a powerful motivation for developing ever more sophisticated logistics systems. This book, written for the logistics manager and researcher, presents a survey of the modern theory and application of logistics. The goal of the book is to present the state-of-the-art in the science of logistics management. As a result, the authors have written a timely and authoritative survey of this field that many practitioners and researchers will find makes an invaluable companion to their work.
