Network Orientation In Logistics Service Industry: Conceptualization And Operationalization Of The Theoretical Constructs

Logistics firms do not have all resources needed to carry out their activities. Resource scarcity is particularly conspicuous in the case of means of transport, and increasingly in warehouses or reloading facilities. The logistics services are therefore delivered by many interdependent firms that co-ordinate their work with subcontractors in a multi-level complex structure. Logistics service providers collaborate with direct or indirect suppliers, but also customers and in some cases competitors. A complex picture of multiple relationships emerges, forming a network of co-operating firms. Managers can use of network relationships to mobilize other organizations’ resources in order to improve performance. Their attitude directed at seizing opportunities embedded in inter-organizational networks is called network orientation.The purpose of this paper is to develop a conceptual model of network orientation. We synthesize and operationalize theoretical constructs relative to network orientation, and explain how competitive advantage of logistics enterprises can be created through networks.To our best knowledge this study is first to explain the mechanism of competitive advantage formation in logistics enterprises using network orientation. We propose a structured composition of the network orientation concept and contribute to further develop logistics industry research and practice by providing a reflective analysis, inspiration and guidance.