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While many companies outsource their logistics functions, creating a collaborative relationship with third‐party logistics service providers remains a challenge. The current study explores the effects of often overlooked human factors in this context. Data on buyer perspectives were collected in China. The analysis results suggest that buying firm's top management championship, supplier firm's designated employees, and the buyer‐seller personal relationships (i.e. Guanxi) at different levels, all have significant impacts on inter‐firm collaboration, which in turn enhances the buying firm's logistics performance.

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PurposeUsing China's burgeoning logistics industry as a backdrop, the present study focused on how to build trust between logistics users and third‐party logistics (3PL) providers, and the antecedents and consequences of trust.Design/methodology/approachA questionnaire‐based mail survey was conducted in mainland China. The conceptual model was tested using structural equation modeling.FindingsThe findings indicate that logistics users' satisfaction with prior interactions with logistics providers, 3PL provider's relationship‐specific investment, 3PL provider's information sharing, and 3PL provider's reputation are key determinants of logistics users' level of trust towards 3PL providers. Additionally, logistics users' trust may facilitate their loyalty behavior towards 3PL providers.Research limitations/implicationsThe findings were drawn from a Chinese setting in which logistics outsourcing is in a relatively early developmental stage. The uniqueness of Chinese culture may also limit the findings' generalizability. China's transitional economy was not considered in the study. Different company ownership may significantly influence relationship formulation, maintenance and consequences.Practical implicationsThe findings demonstrated how logistics providers can improve customers' trust in logistics outsourcing relationships. The study also revealed how logistics providers can improve customers' loyalty.Originality/valueThis paper was a pioneering study that investigates the logistics outsourcing relationship in China, a rapidly growing economy. The results offered valuable managerial insights regarding how to cultivate trust and loyalty in logistics outsourcing relationships.

Purpose Power is central to inter-organizational relationships. The literature distinguishes between structural power (i.e. dependence) and behavioral power (i.e. use of power), yet few studies considered them simultaneously. Opportunism is generally linked to use of power, but it remains unclear whether use of power deters or invites opportunism. In this study, the authors treat dependence as a driver of use of power and opportunism as its outcome, and empirically test relationships among dependence, power, and opportunism from both buyer and supplier perspectives. The paper aims to discuss these issues. Design/methodology/approach This study examines how buyer and supplier dependence influence the other’s and their own use of coercive and non-coercive power, which lead to opportunism of two parties, based on data from 240 companies in China on their perceived relationships with major suppliers. Findings Results show that buyer/supplier dependence is positively related to supplier’s/buyer’s use of coercive and non-coercive power. Buyer’s and supplier’s use of coercive power also positively influences their opportunism. Buyer’s use of non-coercive power is negatively related to both partners’ opportunism, whereas supplier’s use of non-coercive power is not significantly related to either partner’s opportunism. Originality/value This study contributes to literature in two ways. First, the authors distinguish the structural aspect of power from its behavioral aspect and demonstrate that dependence, which represents structural power, generates different patterns of influence on use of coercive and non-coercive power when considered from buyer’s and supplier’s perspectives. Second, the authors reexamine relationships between use of power and opportunism and show that buyers and suppliers react differently to use of different types of power.

PurposeBased on customer value theory, this paper aims to propose and test a conceptual model of the relationship between third‐party logistics (3PL) provider customer orientation and customer firm logistics improvement.Design/methodology/approachThe 3PL provider customer orientation is conceptualized as a higher, second‐order construct made up of four key logistics‐driven first‐order indicators: service variety, information availability, timeliness, and continuous improvement. A survey‐based approach is utilized to collect data from managers at 124 manufacturing customer firms in the People's Republic of China; structural equation modeling is performed to assess measures and test the hypothesized relationships.FindingsChinese 3PL provider customer orientation significantly influences customer firm logistics improvement.Research limitations/implicationsFindings are based on single source perceptual data from customer firm key respondents. Tests indicate that common method bias is not a problem.Practical implicationsAt a time when market pressure is compelling Mainland Chinese 3PL providers to upgrade and expand service offerings, 3PLs with a strong customer orientation create significant value for customers through superior execution on key elements of logistics service.Originality/valueThe paper responds to calls for additional theoretically driven assessment of market orientation in logistics service provider firms by identifying explicit behavioral manifestations of 3PL customer orientation that enhance customer firm logistics performance.

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