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The Impact of Integrated Logistics Relationships on Third-Party Logistics Service Quality and Performance

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Maritime Economics & Logistics Aims and scope

Abstract

Third-party logistics has been an efficient organisational adjustment to the needs of clients for logistics solutions and improvement in supply chain performance. Examination of logistics performance has mainly been focused on operational measures. There has been less attention placed on the influence of organisational factors, despite the advocated need for greater inter-organisational integration among supply chain partners. This study examines empirically the influence of relationship orientation in third-party logistics and its impact on logistics service quality and performance. Data were collected via a large-scale industrial survey and structural equation modelling was used to examine the causal hypotheses. The findings suggest that relational exchange can have a positive effect on logistics service quality and performance in third-party logistics. Research and managerial implications are discussed.

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Authors and Affiliations

  1. Cyprus International Institute of Management, 21 Akademias Ave., Aglandjia, Nicosia, CY-2151, Cyprus

    Photis M Panayides

  2. Department of Mathematics, The University of Hong Kong, Pokfulam Road, Hong Kong

    Meko So

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  1. Photis M Panayides
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  2. Meko So
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Appendix A: Formulae for composite reliability and average variance extracted

Appendix A: Formulae for composite reliability and average variance extracted

The composite reliability was calculated using the formula:

where ρc is the composite reliability, λ is the indicator loadings, θ is the indicator error variances.

A complementary measure to composite reliability is the average variance extracted, ρv. The measure was calculated using the formula:

where ρv is the average variance extracted and θ and λ are as defined above.

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Panayides, P., So, M. The Impact of Integrated Logistics Relationships on Third-Party Logistics Service Quality and Performance. Marit Econ Logist 7, 36–55 (2005). https://doi.org/10.1057/palgrave.mel.9100123

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