Third‐party logistics provider customer orientation and customer firm logistics improvement in China

Abstract

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.

Customer satisfaction and competitiveness in the Chinese E-retailing: Structural equation modeling (SEM) approach to identify the role of quality factors

“…Therefore we had a response rate of 23.2%. The response rate is similar to the previous empirical study which has 24.8% in the Chinese context (Tian, 2010). However, due to the missing data or other errors, we had 162 valid respondents.…”

“…It is obvious through our study that the tie-up the e-retailers going to have with the best logistics firms is a serious concern for their competitiveness. Because there were few reports which suggest that Chinese logistics operational efficiency is declining due to inadequate transportation and information technology infrastructures, local protection regulations and beaurocracy, shortage of quality logistics managers and lack of awareness of logistics concept (Zhou et al, 2008;Lau and Zhang, 2006;Tian et al, 2010). Meanwhile, logistic service providers are trying to enhance their service coverage and service quality which makes e-retailers to improve their marketing skills.…”

Supply chain integration and firm financial performance: A meta-analysis of positional advantage mediation and moderating factors

“…In contrast, the effect of customer integration on firm performance did not significantly differ depending on national culture (customer integration: b ¼ 0.08, p > 0.10). The nonsignificant result may come from the considerable variability of the effects of customer integration in Asian contexts, because many firms in Asian contexts are still in the process of advancing customer integration (Tian, Ellinger, & Chen, 2010).…”

Learning orientation, integration, and supply chain risk management in Chinese manufacturing firms

“…Thus, Chinese manufacturing firms are often the points of departure for global supply chains (Jiang, Frazier, and Heiser 2007;Kam, Chen, and Wilding 2011). However, logistics and supply chain management (SCM) practice in China is frequently characterised as sub-optimal (Langley et al 2006;Zhao, Flynn, and Roth 2007;Tian, Ellinger, and Chen 2010) with researchers calling for more theoretically grounded research to better understand SCM practices in China (Jiang, Frazier, and Heiser 2007;Zhao, Flynn, and Roth 2007;Chen et al 2010;Liu 2014). A particularly important SCM practice is the management of supply chain risk since even companies renowned for their SCM competencies such as Apple (Spence 2012) and Walmart (Wohl 2012) have suffered due to deficient Supply chain risk management (SCRM) by China-based suppliers.…”