The impact of operating environment on the formation of cooperative logistics relationships

Abstract

Increased outsourcing of logistical services by manufacturers has prompted reconsideration of traditional relationships between manufacturers and third party logistics firms. Firms are moving away from single transaction business arrangements and forming cooperative relationships with third party providers characterized by cooperative transactions occurring over time. Analysis of data collected from a random sample of manufacturing executives identifies operating conditions in the manufacturers' operating and strategic environment that are best suited for cooperative relationship formation in an international logistics setting.