۱- Introduction

۲- Theoretical background

۳- Conceptual model and hypotheses

۴- Methodology

۵- Data analysis and results

۶- Discussion and conclusions

References

Abstract

While an increasing number of firms outsource their logistics activities, the failure rate of logistics outsourcing is still high. To address such issue, this study draws upon transaction cost theory (TCT) and extended resource-based view (ERBV) to examine the mechanism through which transaction attributes (i.e., 3 PL providers’ asset specificity and logistics technological uncertainty) affect logistics outsourcing success. We argue that top management plays an essential role in mediating transaction attributes to exercise their influences on logistics outsourcing success. However, such a mediating mechanism is effective only when trustworthy alternative 3 PL providers are available in the market. The data from 250 manufacturing subsidiaries in China are used to test our model. Important implications for research and practices are discussed.

Introduction

With the globalization, more manufacturers outsource their logistics activities to third-party logistics (3 PL) providers, so that improve their logistics performance (Lai et al., 2008). By doing so, 3 Pl user firms expect to focus on core competencies, save logistics costs, improve customer services, and thus enhance competitiveness (Chu and Wang, 2012; Lai et al., 2008; Zhu et al., 2017). However, along with such advantages, such outsourcing risks as losing control of logistics activities, information leakage, and additional efforts and costs on outsourcing management also exist (Gadde and Hulthén, 2009; Lau and Zhang, 2006; Yang et al., 2016). Logistics outsourcing does not always succeed; rather, the failure rate of logistics outsourcing is relatively high (Yang et al., 2016). Due to the high risk of failure, some large firms in China (e.g., JD.com and Alibaba) even abandoned logistics outsourcing but internalized logistics activities by building their own logistics systems (Zhu et al., 2017). Therefore, how to achieve logistics outsourcing success is an important issue for both 3 PL users and providers. Previous studies suggested that building quality logistics outsourcing relationship can mitigate outsourcing dependence and risks, as well as help firms improve operational and financial performance (Chu and Wang, 2012; Huo et al., 2015; Lai et al., 2013a; Qureshi et al., 2017). However, operational and financial performances are not the direct outcome of logistics outsourcing. Those two measures are distant from logistics outsourcing and thus could not accurately capture the outcome of logistics outsourcing. Rather, as Han et al. (2008) suggested, logistics outsourcing success, referring to the overall advantage attained from logistics outsourcing, should be assessed. Logistics outsourcing success could be assessed from a broader perspective, including strategic, technological, and economic benefits. While most previous studies only focused on a sole and isolated aspect (see Appendix A), further studies are needed to examine logistics outsourcing success from a broader perspective. Therefore, the present study aims to examine how to leverage transaction attributes in logistics outsourcing for overall outsourcing success.