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The impact of third-party logistics providers' capabilities on exporters' performance

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  • Yeung, Kwong
  • Zhou, Honggeng
  • Yeung, Andy C.L.
  • Cheng, T.C.E.

Abstract

Third-party logistics (3PL) services have experienced unprecedented growth. However, we are not aware of any study that explores the relationships among logistics outsourcing, competitive advantage, and business performance. We study the mediating role of logistics outsourcing as a strategy to develop firms' capabilities in the strategy–performance relationship. Drawing on the resource-based view (RBV) of the firm, we develop a research model grounded in the outsourcing-competitive advantage-performance paradigm. We apply structural equation modeling to empirically test the model using data collected from 150 exporters in Hong Kong and the Pearl River Delta region of China. The results show that there are positive relationships among exporters' strategic orientation towards third-party logistics (3PL) providers, 3PL providers' basic and augmented capabilities, exporters' competitive advantage, and exporters' export performance. We also find that 3PL providers' augmented capabilities and exporters' competitive advantage are strong mediators, supporting the theorized model underpinned by RBV.

Suggested Citation

  • Yeung, Kwong & Zhou, Honggeng & Yeung, Andy C.L. & Cheng, T.C.E., 2012. "The impact of third-party logistics providers' capabilities on exporters' performance," International Journal of Production Economics, Elsevier, vol. 135(2), pages 741-753.
    • Handle: RePEc:eee:proeco:v:135:y:2012:i:2:p:741-753
    DOI: 10.1016/j.ijpe.2011.10.007
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    2. Mu-Chen Chen & Kuo-Chien Chang & Chia-Lin Hsu & German Alcibiades Vega Leon, 2018. "Investigating the impacts of guanxi and relationship marketing in port logistics: two cases," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(4), pages 603-623, December.
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    5. Vlachos, Ilias & Singh, Rajesh Kumar, 2023. "Triad structure impact on the triad resources-firm performance relationship: Theory and empirical evidence," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
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    7. Eric Owusu Darko & Ilias Vlachos, 2022. "Creating Valuable Relationships with Third-Party Logistics (3PL) Providers: A Multiple-Case Study," Logistics, MDPI, vol. 6(2), pages 1-22, June.
    8. Zhu, Wenwen & Ng, Stephen C.H. & Wang, Zhiqiang & Zhao, Xiande, 2017. "The role of outsourcing management process in improving the effectiveness of logistics outsourcing," International Journal of Production Economics, Elsevier, vol. 188(C), pages 29-40.
    9. Yeung, Kwong & Cheng, T.C.E. & Lee, Peter K.C., 2015. "Buyers’ perceptions on the impact of strategic purchasing on dyadic quality performances," International Journal of Production Economics, Elsevier, vol. 168(C), pages 321-330.
    10. Pal Singh, Satender & Adhikari, Arnab & Majumdar, Adrija & Bisi, Arnab, 2022. "Does service quality influence operational and financial performance of third party logistics service providers? A mixed multi criteria decision making -text mining-based investigation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
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