Proactive improvement of logistics service providers as driver of customer loyalty

Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG geförderten) Allianz- bzw. Nationallizenz frei zugänglich.This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively.Purpose: The purpose of this paper is to provide a differentiated view of relationship-specific proactive improvement of logistics service providers (LSPs) that distinguishes between the cost and performance and the effect that these two dimensions of innovation have on three distinct customer loyalty dimensions (retention, extension, and referrals). Design/methodology/approach: A confirmatory empirical study was conducted based on social exchange theory and customer value theory. The survey responses from 298 firms were analysed using structural equation modelling and multi-group analysis to test for direct effects and moderation. Findings: Both dimensions of relationship-specific proactive improvement by LSPs (cost and performance) are strong drivers of all three customer loyalty dimensions and, thus, are important to customer relationship management and relevant areas to be considered within innovation management. The effect on customer loyalty is moderated by the dynamism of the customer’s market. Proactive cost improvements are more important under high dynamism, while proactive performance improvements, contrary to initial assumptions, are more important when dynamism is low. Research limitations/implications: Future studies should analyse other cultural settings, differentiate between functional and relationship value provided, consider other services, investigate how LSPs can facilitate proactive improvement and improve innovation management, and explore how customers can foster proactive improvement. Practical implications: The currently low level of proactive improvement should be increased if LSPs want to enhance customer loyalty. In doing so, LSPs ought to consider the dynamism of their customers’ markets. Originality/value: The paper is the first to provide a differentiated view on the role of relationship-specific proactive innovation that distinguishes between cost and performance improvements and illustrates their effects on three distinct customer loyalty dimensions

Horizontal cooperations between logistics service providers : motives, structure, performance

Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG geförderten) Allianz- bzw. Nationallizenz frei zugänglich.This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively.Purpose – This paper aims to provide a comprehensive overview of the motives, structure and performance attributes of horizontal cooperations between logistics service providers (LSPs). Based on an analytical classification model, distinctive types of logistics cooperation that characterize the logistics landscape are identified. Design/methodology/approach – Empirical data were collected on horizontal LSP cooperations from managers of German LSPs. Different uni- and multi-variate statistical methods including ANOVA and cluster analysis were applied to the dataset of 226 cooperations for a total of 6,081 involved parties. Findings – Horizontal cooperations with other LSPs are an organizational form used by 57 percent of LSPs. Cooperation decisions are substantially driven by external market objectives. Six distinctive types of cooperation are identified. They reveal the dominance of multi-lateral and international networks that are mainly based on contractual agreements. There is a clear preference for partners with similar market competencies and for strong functional integration. Despite its inherent complexity, performance of these cooperations is high – its less than 19 percent failure rate makes these cooperations substantially more stable than cooperations within manufacturing industries. Research limitations/implications – This study is limited to an exploratory, descriptive approach in providing a sound understanding of the cooperation landscape. Practical implications – The findings contribute transparency to horizontal LSP cooperations and a common understanding of their idiosyncrasies. The conclusions help logistics managers to position themselves better within the cooperation landscape. Further, the analyses offer managers a conceptual classification of horizontal LSP cooperations and some guidance on how to structure their individual LSP cooperations more successfully. Originality/value – This paper is the first empirical study that defines the types of cooperation that comprise the logistics cooperation landscape. The analysis integrates a holistic perspective of their contractual, organizational, functional, geographical, service and resource scope and matches them with underlying motives and performance attributes

The influence of relational competencies on supply chain resilience : a relational view

Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG geförderten) Allianz- bzw. Nationallizenz frei zugänglich.This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively.Purpose – The purpose of this research is to explore the resilience domain, which is important in the field of supply chain management; it investigates the effects relational competencies have for resilience and the effect resilience, in turn, has on a supply chain’s customer value. Design/methodology/approach – The research is empirical in nature and employs a confirmatory approach that builds on the relational view as a primary theoretical foundation. It utilizes survey data collected from manufacturing firms from three countries, which is analyzed using structural equation modeling. Findings – It is found that communicative and cooperative relationships have a positive effect on resilience, while integration does not have a significant effect. It is also found that improved resilience, obtained by investing in agility and robustness, enhances a supply chain’s customer value. Practical implications – Some findings contrast the expectations derived from theory. Particularly, practitioners can learn that integration has a limited role in enhancing resilience. Originality/value – The study distinguishes between a proactive and reactive dimension of resilience: robustness and agility. The relational view serves as the theoretical basis to explain the effects between three types of relational competencies (communication, cooperation, and integration) and the above-mentioned two dimensions of resilience. Keywords Relational competencies, Supply chain management, Risk management, Supply chain resilience, Supply chain agility, Supply chain robustnes

Dealing with supply chain risks : Linking risk management practices and strategies to performance

Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG geförderten) Allianz- bzw. Nationallizenz frei zugänglich.This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively.Purpose – The effects of supply chain risk management (SCRM) on the performance of a supply chain remain unexplored. It is assumed that SCRM helps supply chains to cope with vulnerabilities both proactively by supporting robustness and reactively by supporting agility. Both dimensions are assumed to have an influence on the supply chain’s customer value and on business performance. The aim of this research is to provide clarity by empirically testing these hypotheses and scrutinizing the findings by the means of case studies. Design/methodology/approach – The research is empirical. Survey data were collected from 270 manufacturing companies for hypotheses testing via structural equation modeling. Additionally, qualitative data were collected to explore the nature of non-hypothesized findings. Findings – It is found that SCRM is important for agility and robustness of a company. Both agility and robustness show to be important in improving performance. While agility has a strong positive effect only on the supply chain’s customer value, but not directly on business performance, robustness has a strong positive effect on both performance dimensions. This important finding directs the strategic attention from agility-centered supply chains to ones that are both robust and agile. The case studies provide insights to the fact that robustness can be considered a basic prerequisite to deal with supplier-side risks, while agility is necessary to deal with customer-side risks. The amount of agility and robustness needs to fit to the competitive strategy. Practical implications – Since volatility has increasingly become a prevalent state of supply chains, companies need to consider robustness to be of primary importance to withstand everyday risks and exceptions. Originality/value – This is the first study to view the relationship between SCRM, agility/robustness, and performance

Conflict and its governance in horizontal cooperations of logistics service providers

Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG geförderten) Allianz- bzw. Nationallizenz frei zugänglich.This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively.Purpose – Horizontal cooperations of logistics service providers (LSPs) have becomeimportant for LSPs within the last decades.Owing to the high complexity of these cooperations as observed by Schmoltzi and Wallenburg, the potential for conflict is inherent. This research, therefore, aims to investigate how nature (dysfunctional vs functional) and extent of conflict impact the outcome of these cooperations. Further, the roles of formal and relational governance mechanisms in influencing conflict are analyzed. Design/methodology/approach – The research is empirical in nature and employs a theory-driven, confirmatory approach. It utilizes large-scale survey data of German LSPs, which are analyzed using multivariate statistical methods. Findings – The research shows that governance mechanisms impact the extent and functionality of conflict: relational governance lowers the extent of conflict and leads to higher functionality of conflicts, while formal governance increases the extent of conflict. Moreover, it is shown that conflicts decrease the overall cooperation performance, whereas – when functional in nature – they have a positive impact on the innovativeness of cooperations. Research limitations/implications – The impact of governance on conflicts and of conflicts on outcome may differ depending on the cultural and country-specific setting. Practical implications – The results allow mangers of LSP cooperations to adapt their set of applied governance mechanisms and conflict resolution approaches with regard to the improvement of cooperation performance and cooperation innovation. Originality/value – This is the first study that analyzes conflict and conflict resolution in horizontal LSP cooperations and shows their interrelation with both governance and performance

Governing for innovation in horizontal service cooperations

Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG geförderten) Allianz- bzw. Nationallizenz frei zugänglich.This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively.Purpose – The purpose of this study is to provide insights into the role of governance mechanisms in fostering innovativeness in horizontal service cooperations. Design/methodology/approach – Data were collected from 225 horizontal service cooperations in the logistics industry via an online survey. Structural equation modeling was used to analyze the empirical data. Findings – The choice of governance measures helps to improve the innovativeness of service cooperations. The use of formalization and balanced mutual influence, combined with cultural similarity provides the basis for the development of new or enhanced services within the cooperation. In contexts that build on equity-based contracts, innovativeness is driven by the degree of mutual influence among partners. Research limitations/implications – Empirical data were collected in a single industry (logistics) and in a single country (Germany). A confirmation of the results in different service settings is therefore encouraged. Practical implications – This research emphasizes the importance of governance in facilitating innovation in service cooperations. By applying the right governance mechanisms in possible settings of co-opetition, managers can foster coordination and the exchange of knowledge and diminish opportunistic behavior among parties. Originality/value – The research is extended by developing a model based on the knowledge of service innovation, cooperation performance and governance mechanisms and by empirically testing this model

A Relational View

Purpose: This research explores the resilience domain, which is important in the field of supply chain management; it investigates the effects relational competencies have for resilience and the effect resilience, in turn, has on a supply chain’s customer value. Design/methodology/approach: The research is empirical in nature and employs a confirmatory approach that builds on the relational view as a primary theoretical foundation. It utilizes survey data collected from manufacturing firms from three countries, which is analyzed using structural equation modeling. Findings: It is found that communicative and cooperative relationships have a positive effect on resilience, while integration does not have a significant effect. It is also found that improved resilience, obtained by investing in agility and robustness, enhances a supply chain’s customer value. Practical implications: Some findings contrast the expectations derived from theory. Particularly, practitioners can learn that integration has a limited role in enhancing resilience. Originality/value: The study distinguishes between a proactive and reactive dimension of resilience: robustness and agility. The relational view serves as the theoretical basis to explain the effects between three types of relational competencies (communication, cooperation, and integration) and the above-mentioned two dimensions of resilience

Me, myself and I:Non-collaborative customer behavior in service outsourcing – the key role of outcome orientation and outcome attributability

This research focuses on the role of customer behavior in service outsourcing relationships that are governed by outcome-oriented contracts. It aims to explain how non-collaborative customer behavior impedes the effectiveness of outcome-oriented contracts to align the goals and incentives of the customer and service provider, and leads to service provider opportunism. Nine hypotheses are developed regarding customer behavior and the reaction of the service provider to this. These are tested using structural equation modelling with data from 213 service outsourcing relationships. Outcome-orientated contracts in service outsourcing may have unintended consequences because they create value attribution ambiguity. This ambiguity induces non-collaborative customer behavior, which, in turn, results in service provider opportunism. This reveals a paradox, where customer behavior aimed at curbing service provider opportunism instead induces such opportunism. This chain of effects can be counteracted by increased outcome attributability, which reduces the ambiguity and, thus, the motivation for non-collaborative customer behavior. This research extends the existing literature by stressing that non-collaborative customer behavior is a key reason why outcome-oriented contracts fail in effectively governing outsourcing relationships, and that this can be counteracted by increased outcome attributability

Logistics outsourcing performance and loyalty behavior : Comparisons between Germany and the United States

Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG geförderten) Allianz- bzw. Nationallizenz frei zugänglich.This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively.Purpose – The purpose of this paper is to examine how goal achievement and goal exceedance influence the aspects of loyalty in logistics outsourcing relationships. Specifically, it aims to develop and test a model of customer loyalty across two cultures to determine if dedicated strategies for building loyalty are required. Design/methodology/approach – This effort develops a conceptual model that provides a better understanding of the relationship between two dimensions of logistics outsourcing performance (goal achievement and goal exceedance) to loyalty across cultures. The model is then tested using structural equation modeling along with multi-group analysis. Findings – The findings indicate that goal achievement strongly influences the loyalty aspects of retention and referrals, but not extension. Meanwhile, all three dimensions of loyalty were influenced by goal exceedance of the logistics provider. Further, goal achievement was found to have a stronger effect on retention only, with goal exceedance demonstrating a stronger influence on extension and referrals. In addition, cultural differences in the model were identified. Research limitations/implications – Future research should examinemore transactional settings as well as other potential moderators that may be consequential to the examination of loyalty formation. Practical implications – The findings suggest that logistics service providers (LSPs) need to have an appreciation for the differences between goal achievement and goal exceedance as it relates to loyalty formation. In addition, LSPs need to adapt their performance goals based on cultural differences that may exist across their markets. Originality/value – The close examination of the two dimensions of outsourcing performance on three aspects of loyalty behavior builds on the extant literature. The examination across the two national settings provides yet another contribution of the study