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Journal cover: International Journal of Physical Distribution & Logistics Management

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Online from: 1971

Subject Area: Operations and Logistics Management

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


Document Information:
Title:Logistics outsourcing performance and loyalty behavior: Comparisons between Germany and the United States
Author(s):Carl Marcus Wallenburg, (School of Economics and Management, Technische Universität Berlin, Berlin, Germany), David L. Cahill, (Fisher College of Business, The Ohio State University, Columbus, Ohio, USA Picjay.com Europe GMBH & Co. KG, Hamburg, Germany), Thomas J. Goldsby, (Gatton College of Business and Economics, University of Kentucky, Lexington, Kentucky, USA), A. Michael Knemeyer, (Fisher College of Business, The Ohio State University, Columbus, Ohio, USA)
Citation:Carl Marcus Wallenburg, David L. Cahill, Thomas J. Goldsby, A. Michael Knemeyer, (2010) "Logistics outsourcing performance and loyalty behavior: Comparisons between Germany and the United States", International Journal of Physical Distribution & Logistics Management, Vol. 40 Iss: 7, pp.579 - 602
Keywords:Customer loyalty, Germany, Outsourcing, Supply chain management, Targets, United States of America
Article type:Research paper
DOI:10.1108/09600031011072019 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Abstract:

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 examine more 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.



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