Determinants of success in transport services outsourcing: empirical study in Europe

Abstract

Purpose This research proposes ideal interaction patterns for structural dimensions (buyer and supplier representatives involved in the interaction and buyer and supplier critical capabilities) for transport service outsourcing. The purpose of this paper is to establish whether those ideal interaction patterns are determinants of success of the interaction. In this paper, the latter is measured against the corresponding process success and outcome success. Design/methodology/approach This paper proposes a conceptual model based on the prior literature and adapted to this specific case of transport services. The proposed model is approached using the partial least squares simultaneous equation models. For this, the result of a survey to senior management at European machinery, electronics and automotive sector manufacturing plants has been used. Findings When companies possess the proposed ideal patterns for the structural dimensions, this brings with it positive effects on both the process success and the outcome success obtained by the outsourcing plant. Therefore, buyer-supplier relationships have been recognized to play a key role in the outcomes of this interaction and that the design and management of interfaces between companies and their logistics providers are critical. Practical implications Managers can use the present research findings to produce an appropriate interaction design that includes the representatives and capabilities required to make transport service outsourcing a success. Originality/value This paper contributes to the literature on transport research by specifically establishing ideal interaction patterns for the structural dimensions that buyer and supplier’s companies need to consider for achieving successful transport services outsourcing. Besides, the present research proposes a multidimensional measure of outcome success that combines major strategic, operational and financial outputs. Finally, this research represents the first survey-based empirical evidence on the topic, having used a sample of 93 plants belonging to many different companies in five European countries.

Revisiting critical factors of logistics outsourcing relationship: a multiple-case study approach

“…Hence, while the outsourcing firm should allow flexibility and change as their relationship with the supplier mature over time, the supplier must also take the customised approach to the relationship with their client to become their consultant and trusted advisor. This closer, longer-term relationship or “partnership” has since been acknowledged in various studies (for example, see Hodosi and Rusu, 2019; Sanchis-Pedregosa et al ., 2018; De Carvalho et al ., 2018; Golicic and Mentzer, 2006; Hofer et al ., 2009). Interestingly, this was different in research that found that “relationship interaction” (communication, cooperation, coordination, collaboration, conflict resolution and integration activities) has a greater impact on customer perceived value than “relationship quality” (loyalty and trust) in services outsourcing (Rhodes et al ., 2016).…”

Picture Fuzzy ARAS Method for Freight Distribution Concept Selection

“…Arif and Jawab [31] considered the impact of the outsourcing strategy on logistics performances. Pedregosa et al [32] investigated the determinants of success in transport services outsourcing in Europe by applying the partial least squares simultaneous equation models (PLS-SEM).…”

What Drives the Usage of Management Tools Supporting Industry 4.0 in Organizations?

“…A final driver of management tool usage considered in this paper is the industry of the organization, which, again, is often considered in research dealing with management tools. In those studies, researchers consider the industry as an important factor and often include organizations and participants from various industries in a study [ 35 , 37 , 39 , 71 , 72 , 74 , 82 ], distinguishing between manufacturing and the service industry [ 82 , 88 ], or focus on a specific industry, such as service [ 1 , 85 , 86 ] or manufacturing [ 33 , 78 , 83 , 87 ]. However, the organization’s industry is frequently considered as a control variable when studying select phenomena in business research; one of the few studies of management tools emphasized the organization’s industry as a driver of management tool usage [ 42 , 43 ].…”