Purpose
Supply chain resilience (SCR) is essential to the success of firms. However, very few studies have focused on the relationships between different types of integration, SCR and service performance from the perspective of third-party logistics providers (3PLs). The purpose of this paper is to develop and assesses a conceptual model for these relationships.
Design/methodology/approach
A total of 161 3PLs in Taiwan were surveyed and their responses were analyzed using partial least squares structural equation modeling (PLS-SEM/PLS).
Findings
The responses of respondents demonstrated that, of the three types of integration (internal integration, customer integration and logistics collaborator integration) used by 3PLs, internal integration had the greatest effect on SCR. Customer integration was found to have three fully mediating effects on the relationships between internal integration and service performance, between logistics collaborator integration and SCR, and between logistics collaborator integration and service performance.
Originality/value
This study provides useful information on how different types of integration manifest in the SCR and service performance of 3PLs.
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.
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