International Journal of Physical Distribution & Logistics Management

James R. Stock

1997 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039710188576

Proposes that the discipline of logistics can benefit from borrowing theories from other areas of study. Presents examples of theories from other disciplines that have already been applied to logistics issues. Offers potential applications from a variety of non‐logistics disciplines, including accounting, anthropology and sociology, computing, economics, marketing, philosophy, political science, and psychology. Discusses examples from various disciplines in some detail and identifies some possible applications of the theory. Concludes with a discussion of the benefits of “borrowing” non‐logistics theories to logistics research, practice and theory development.

James H. Bookbinder; Maureen E. Lynch

1997 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039710188585

Decision analysis in management science employs concepts from economics such as utility functions and indifference curves. A utility function U models the “satisfaction” that a customer obtains from logistics service. Here U depends on two attributes (lead time, fill rate) whose values more directly represent customer service. The shipper can, at additional cost, improve either or both of these attributes. Constructs and maximizes various utility functions U given a total budget B for distribution service. Finds that without increasing the budget overall logistics service can often be improved from the customer’s point of view. Whether U is additive or multiplicative, a customer’s utility resulting from the optimal lead time and fill rate is typically 20 per cent higher than when those attribute levels are set intuitively (without reference to customer preferences and tradeoffs expressed by U ). Gives some introduction to decision analysis (certainty equivalent, risk aversion, …) to aid in understanding the functional forms employed for U and methods of solution, rendering the paper more self‐contained.

Sergio Olavarrieta; Alexander E. Ellinger

1997 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039710188594

Despite calls for more theoretical and strategically oriented work in logistics, the resource‐based theory of the firm (RBT), and the related capabilities approach ‐ which represent a dominant stream of research in strategic management over the last decade ‐ have not been prominent in the logistics literature. Provides a critical review of the large literature on the RBT and suggests areas where it can be applied to strategically‐oriented logistics research. Describes the resource‐based theory of the firm, its major assumptions, and its implications for strategic actions. Also discusses other areas of research where the RBT have been applied. Illustrates how the RBT represents the underlying theoretical support for one of the central propositions of strategic logistics: that a distinctive logistics capability is a source of sustainable competitive advantage and superior performance. Suggests that strategic logistics research may benefit from combining the RBT with organizational learning theory and evolutionary approaches to competition.

Paul H. Zinszer

1997 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039710188648

Presents the buygrid model, taken from industrial marketing, and extends it to include logistical service operations. Applies the model to selected logistical research literature. The effect of this perspective is to recognize multiple sets or segments of service offerings and performance levels. This approach allows for, and provides explanation for, categories of customer service packages in order to meet the diverse needs of firms’ customers. The extended model provides for three categories of customer service needs. Each category may expect different levels of performance and may require different service attributes from the firm. Concludes that there does appear to be a consistent and appealing relationship between the buygrid model and the elements of customer service associated with logistics.

James A. Eckert; Thomas J. Goldsby

1997 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039710188657

Conceptualizes a model of customer service‐based segmentation derived from the elaboration likelihood model (ELM). Logistics organizations are utilizing improved customer service to achieve competitive advantage. However, these firms must segment customers to avoid escalating their service platform to those unlikely to provide adequate return. Based on ELM‐established relationships, proposes the following model: buying firms that demonstrate a high level of involvement with a product offering and show high organizational visioning are more likely to give ample consideration to the service improvements in their purchase decisions. In turn, these customers’ commitment to that product offering will be persistent and resistant to change ‐ leading to improved buyer loyalty.

Donna Blancero; Lisa Ellram

1997 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039710188684

Psychological contract and organizational justice theories are used in the management literature to describe the relationship between employees and employers. Provides an exploratory study that applies these theories to strategic partnerships between buyers and suppliers, drawing on logistics examples. Uses empirical data from a survey to illustrate where such relationships are working well, and where potential problems lie. Uses psychological contract and organizational justice theories to explain the implications of problem areas in partnerships, as well as to suggest possible solutions.

John T. Mentzer; Stephen M. Rutner; Ken Matsuno

1997 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039710188693

In the behavioural science areas of psychology and consumer behaviour, the means‐end value hierarchy model has often been applied to understand individuals’ values structures ‐ in particular, the value of a company’s product/ service offering to its customers. Applying the means‐end value hierarchy model in a logistics context, logistics customer value can be thought of as a higher‐order evaluative standard for customers’ satisfaction and service quality evaluation processes. As such, it is important for a firm to know what its customers value when seeking to build a competitive advantage. Attempts to advance our understanding of logistics customer value through the application of the means‐end value hierarchy model to logistics. More specifically, investigates the customer value of logistics service in a business‐to‐business setting using the means‐end value hierarchy model. Uses focus group interview data for developing the customer value hierarchy.