Influential factors and performance of logistics outsourcing practices: an evidence of malaysian companies

Evidence-based evaluation of safety management in port labor outsourcing

Port enterprises resort to external resources, e.g. outsourcing of labor services during loading and unloading operations. The low safety management ability of labor service enterprises causes frequent hazards and unsafe incidents. This study sets out to identify safety system deficiencies that are likely to occur when port enterprises outsource operations, as well as the causes of system hazards and impact on safety management. A quantitative research design was implemented in this study, where the data was collected through evidence-based practice techniques with the participation of safety management experts selected by purposive sampling. The study reveals six themes that may potentially affect safety. Compared with the extensive supervision and management method, the evidence-based evaluation of the safety management mode brings about a striking optimization effect which results in classification accuracy and targeted control. This finding triggered a management requirement for establishing sustainable, direct, legal measures in association with outsourcing safety improvement.

Evaluating logistics outsourcing: a survey conducted with Brazilian industries

Purpose

This research aims to evaluate the factors that influence logistics outsourcing, including the impact of logistics outsourcing on measuring companies' logistics performance. This research provides interactions among the various factors (constructs) such as “financial”, “collaboration and process characteristics”, “external influencer”, and “logistics performance”.

Design/methodology/approach

To investigate the interaction between the constructs, structural equation modelling is proposed to understand what the relevant criteria are while outsourcing logistics. Data were acquired from surveys conducted with 129 managers from Brazilian companies in the industry sector.

Findings

The factor “collaboration and process characteristics” is what most influences the “logistics performance” of companies, highlighting the importance of managing contractors; and the “financial” factor also contributes to the logistic outsourcing decision.

Research limitations/implications

Some limitations of this study need to be clarified. First, the model could test the moderate and mediate aspects by using variables inspired on RBV and TCE. Second, the sample is relatively small and restricted to the Brazilian industries' case, although the results may be useful for other countries in the world. Third, the responses represent viewpoints of the people who work in the companies. To address this issue, the authors asked respondents to fill out the questionnaire from the perspective of the organisation.

Practical implications

Most 3PL come from developed countries and find different requirements in Brazil. Then, this new knowledge may help 3L providers better understand the needs of the local or foreign companies that operate in the local market. The measurement model may also help to construct a new organisational process, as it sheds light on the main elements necessary for gathering logistics performance outcomes.

Originality/value

To the best of the authors' knowledge, the literature lacks studies on the interaction among these logistics outsourcing constructs, mainly in emerging markets where significant growth opportunities have led to logistics activities being outsourced. The literature that examines the impact of these constructs on logistics performance is also limited. Therefore, this research contributes to providing a model that measures these impacts according to the company's point of view.

Examining the links between logistics outsourcing, company competitiveness and selected performances: the evidence from an emerging country

Purpose

This study examines the mediation effects of time-based competitiveness, cost-based competitiveness and customer performance between logistics outsourcing and financial performance.

Design/methodology/approach

The study relied on a questionnaire as the primary data collection instrument and further employed partial least squares structural equation modelling technique to test all formulated hypotheses.

Findings

The results demonstrate that logistics outsourcing has a significant positive impact on time-based competitiveness, cost-based competitiveness, customer performance and financial performance. Time-based competitiveness and cost-based competitiveness were both found to have a significant positive impact on financial performance; however, customer performance had no significant impact on financial performance. The mediation analysis further indicates that while both time-based competitiveness and cost-based competitiveness play mediation effects between logistics outsourcing and financial performance, customer performance plays no mediation effect between logistics outsourcing and financial performance.

Research limitations/implications

The sampled firms for this study came from a single emerging country; hence, the results cannot be generalized or imported to reflect the results that may be obtained from other emerging geographical settings.

Practical implications

The results provide sufficient evidence for managers to turn their attention to logistics outsourcing, as a transformative business initiative, to gain time-based and cost-based competitiveness so as to improve financial performance.

Originality/value

The study provides significant insight and makes an additional contribution to literature in the area of logistics outsourcing, especially by collecting data from an emerging country. Modelling time-based competitiveness, cost-based competitiveness and customer performance as mediating variables between logistics outsourcing and financial performance make this work relatively different from other studies.

Drivers of logistics outsourcing: examining transaction costs, core competences and planned behavior

Purpose

This study aims to investigate the extent to which psychological factors and the agency of decision-makers drive outsourcing decisions. Arguments based on transaction cost economics, the core competence approach and the theory of planned behavior are used to explain logistics outsourcing.

Design/methodology/approach

The literature was reviewed to identify constructs that are antecedents of logistics outsourcing intentions, and corresponding measures were developed. The data were gathered through a survey of supply chain professionals in Finnish manufacturing companies. A measurement model was reviewed to ensure reliability and validity and converted into a structural model for analysis. The analysis was based on partial least squares (PLS) structural equation modeling.

Findings

Supply chain managers objectively consider the characteristics of their organization's logistics identified in previous research as requiring assessment during the outsourcing process. However, and surprisingly, they also tend to rely on behavioral subjective factors such as positive attitudes, encouraging subjective norms and competence. Moreover, it seems that firms do not outsource logistics activities despite the high strategic importance of the function, but because of it.

Research limitations/implications

The constructed model is limited to the constructs chosen to represent drivers of logistics outsourcing. Further application with more samples would improve its reliability.

Practical implications

The factors proposed here with respect to assets and the capabilities of third-party partners could facilitate decision-making related to logistics outsourcing.

Originality/value

The findings emphasize the role of behavioral factors in the procurement function and therefore enhance the understanding of behavioral supply chain management.

Disentangling the driving factors of logistics outsourcing: a configurational perspective

Purpose

The purpose of this paper is to explore how external pressures, internal capability and transaction attributes of logistics outsourcing synergically influence the extent of asset-based and non-asset-based logistics outsourcing.

Design/methodology/approach

Based on the data surveyed from 250 manufacturing companies in China, this study employed fuzzy-set qualitative comparative analysis (fsQCA) to deduce multiple configurations for logistics outsourcing decisions.

Findings

The results suggest that asset-based logistics outsourcing is primarily driven by external imitation pressures or internal demands for logistics technologies, while non-asset-based logistics outsourcing is mainly driven by the demands for external management-based logistics services. Asset specificity plays a positive role in promoting both asset-based and non-asset-based logistics outsourcing. The requirement for third-party logistics (3PL) management capability depends on the outsourcing types and outsourcing causes.

Practical implications

This study provides guidance to practitioners for them to make outsourcing decisions. It suggests that asset-based logistics outsourcing is more appropriate when there are high external imitation pressures or more internal logistics demands, while non-asset-based logistics outsourcing should be used only when a firm needs management-based logistics services. Besides, 3PL users are suggested to outsource their logistics when their 3PL providers are required to make specific investments. In addition, managers should carefully evaluate firms’ capabilities in managing outsourcing relationships.

Originality/value

Previous studies largely ignored the interaction effects of a set of factors on logistics outsourcing decisions, and to date, little research empirically examined how outsourcing is driven in terms of different types of outsourcing. Drawing on the institutional theory, dynamic capability view, and transaction cost theory and overarching under the complexity theory, this study examines how institutional, organizational and transactional factors interplay with each other to influence different types of logistics outsourcing (i.e. asset based and non-asset based). Methodologically, the configural analysis (i.e. fsQCA) is applied to explore complex causal configurations that drive logistics outsourcing.

Impact of Lean Manufacturing Practices on Firms’ Sustainable Performance: Lean Culture as a Moderator

Nowadays, manufacturing firms are pressured by governments, non-governmental organizations and customers to operate in a sustainable manner. Although lean practices may provide environmental, social, and financial benefits to firms, their effect on sustainable performance is ambiguous. The aim of this study is to examine the effect of lean manufacturing practices on firms’ environmental performance by considering lean culture as a moderator. Data were gathered through a survey of 187 manufacturing firms in Malaysia and were analyzed using the partial least squares technique. The results indicate that process and equipment, product design, supplier relationships, and customer relationships have a positive and significant effect on sustainable performance. It is also interesting to observe that lean culture positively moderated the effects of process and equipment and supplier relationships on sustainable performance. These results have important implications for enhancing the sustainable performance of manufacturing firms through lean manufacturing practices.

Barriers of Biodiesel Adoption by Transportation Companies: A Case of Malaysian Transportation Industry

The need to develop an alternative fuel to fossil fuel is growing day by day, especially for the transportation industry, as the supply of fossil fuels is limited and is depleting at a rapid rate. One available resource that has emerged recently is biodiesel. However, the usage of biodiesel is very low among transportation companies. An investigation into the barriers of adopting biodiesel by transportation companies is the focus of the present study. A survey of 147 transportation companies in Malaysia was undertaken, and the data gathered were analyzed using partial least squares technique. Lack of government support, lack of environmental–commercial benefits, and lack of competitive pressure were found to be the barriers to biodiesel adoption. The results also indicated that differentiation strategy moderates the impact of lack of government support, lack of customer demand, lack of environmental-commercial benefits and lack of competitive pressure on biodiesel adoption. The results of this study could benefit policy makers by providing them key focus areas in which they can modify their strategies to actively and successfully promote the use of biodiesel among transportation companies in developing countries.