Logistics capability, logistics outsourcing and firm performance in an e‐commerce market
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 13 June 2008
Abstract
Purpose
Effective and efficient supply chain management is critical to the success of firms engaging in e‐commerce. The purpose of this paper is to examine the impact of logistics capability and logistics outsourcing on firm performance in an e‐commerce market environment.
Design/methodology/approach
This research examines the relationship between firm's logistics capability, logistics outsourcing and its performance. Multiple‐item constructs are used to measure the strength of logistics capability and firm performance. The use of logistics outsourcing is represented by a dichotomous variable. Data obtained via a survey were analyzed to investigate relationships among constructs and various hypotheses were tested.
Findings
Study results revealed logistics capability to be positively related to firm performance in the e‐commerce market. However, counter‐intuitively, logistics outsourcing and firm performance were not found to be positively linked. Further, the association between logistics capability and outsourcing was not supported. Finally, the interactive effect of logistics outsourcing on the relationship between logistics capability and firm performance was not sustained.
Research limitations/implications
Research findings are constrained, as the study was limited to the computer and consumer electronics retailing industry. However, the importance of logistics capability was confirmed in the e‐commerce supply chain for this segment. And the benefit of using third‐party logistics (3PL) to enhance firm performance was not fully established.
Practical implications
Logistics capability is critical for superior firm performance in e‐commerce. However, study findings lead to the presumption that firms should avoid logistics outsourcing if performance is predicated on competitive advantage due to internally strong logistics capability and competencies.
Originality/value
This research contributes to the study of logistics capability and 3PL in e‐commerce. The development of a logistics capability measurement construct in e‐commerce originated with this research. Also the impact of logistics outsourcing on firm performance is tested for the first time in an e‐commerce market environment.
Keywords
Citation
Joong‐Kun Cho, J., Ozment, J. and Sink, H. (2008), "Logistics capability, logistics outsourcing and firm performance in an e‐commerce market", International Journal of Physical Distribution & Logistics Management, Vol. 38 No. 5, pp. 336-359. https://doi.org/10.1108/09600030810882825
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited