Information technology in its various forms is one key component in the effort to increase efficiency in the transport industry. Electronic data interchange (EDI), especially, in its various forms, promises to be one of the key techniques in mastering the growing volume of information. Considers whether remotely (from the markets) situated countries will benefit after the introduction of EDI, with specific discussion of the Nordic countries. No specific data collection phase was conducted for this study, which is conceptual. However, during the last five years both researchers have conducted extensive empirical research in the field, which is covered here.
PurposeThis 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/approachThe 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.FindingsSupply 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/implicationsThe constructed model is limited to the constructs chosen to represent drivers of logistics outsourcing. Further application with more samples would improve its reliability.Practical implicationsThe factors proposed here with respect to assets and the capabilities of third-party partners could facilitate decision-making related to logistics outsourcing.Originality/valueThe findings emphasize the role of behavioral factors in the procurement function and therefore enhance the understanding of behavioral supply chain management.
PurposeThe size of the logistics market is typically estimated from the national accounting and market data. However, this data does not take certain in-house logistics services into account and most likely underestimates the true size of the market. The purpose of this paper is to develop a method for estimating the potential size of the logistics market in terms of overall logistics expenditure and to also account for in-house services.Design/methodology/approachThe research approach involves combining longitudinal industry- and firm-level turnover data, incorporating survey data from Finland on logistics outsourcing and costs, and calculating yearly logistics expenditure and the market demand for logistics services. Descriptive statistics, weighted arithmetic means and analyses of variance are employed in the estimations.FindingsThe research suggests and demonstrates a rigorous method for estimating the size of the logistics market, including both market-based demand and in-house services.Research limitations/implicationsThe empirical data used to illustrate the result are limited to a single country. The methodology should be further validated with data from other countries. The quality of the survey data could be improved by targeting multiple informants from a single firm.Social implicationsOne outcome of the research is that policymakers will be better able to estimate the size of the logistics market on a national level. For service providers, the results provide additional information on the market potential of logistics services.Originality/valueThe novelty of the research lies in combining multiple data sources and expanding the estimation of the logistics market to include services provided in-house.
PurposeTo explore the present logistics performance of Finnish small and medium‐sized enterprises (SMEs) and to analyse the relationship between logistics performance and financial performance in these firms.Design/methodology/approachThe dataset comprises 424 SMEs that participated in a nationwide Finnish logistics survey in 2006. Logistics performance measures were derived from the survey data, and based on these values logistically top‐performing firms were identified within different industry groups. The financial performance of these firms was then examined vis‐à‐vis their industry peers using financial reports‐based data.FindingsThe results imply that the overall level of logistics performance among the examined companies might be at such an elementary level that no statistically observable positive linkage between logistics performance and financial performance exists. The group of firms for whom logistics is a key source of competitive advantage in this sample is small and therefore statistical analysis at an industry level might be too aggregate to reveal this linkage. It is also surprising that service level and logistics cost efficiency are positively related; thus, companies who have a relatively high‐service level tend to have relative low‐logistics costs. These findings might imply that logistics is just starting to gain more attention among SMEs in Finland and at least in the short‐term, it might be relatively easy for SMEs to gain competitive advantage by focusing more on logistics performance.Originality/valueThis study is the first large‐scale attempt to focus on the logistics performance of SMEs and analyse the linkages between financial and logistics performance among the companies using both self‐reported data and financial reports‐based data. In addition, a theoretical framework of the linkages between logistics performance and financial performance is suggested and revised based on the findings of the study. The revised framework requires testing as a part of future research.