International Journal of Physical Distribution & Logistics Management

Kristin J. Lieb; Robert C. Lieb

2010 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031011071984

Purpose – The purpose of this paper is to document the extent to which large third‐party logistics (3PL) companies have committed themselves to environmental sustainability goals. It also aims to examine the sustainability initiatives undertaken by those companies and the impact of those initiatives on the 3PL and their customers. Finally, the research seeks to examine the impact of the global recession of 2008‐2009 not only on the commitment of the 3PL to their sustainability goals but also on how the recession impacted 3PL customer interest in such goals. Design/methodology/approach – The data upon which this paper is based was generated in two annual surveys of the chief executive officers of 40 large 3PL companies operating in North America, Europe, and the Asia‐Pacific region. These surveys were conducted in 2008 and 2009 and were part of a long‐term series of annual surveys that began in 1994. Findings – The findings indicate that nearly all of the companies involved in the surveys have made substantial commitments to environmental sustainability goals during the past several years and that they have launched a broad range of related projects that have had quite positive impacts on those companies. Despite the recession, none of the 3PL scaled back their commitment to those goals; in fact, many launched new sustainability projects during that period. 3PL customers have also shown increasing interest in the environmental sustainability capabilities of the 3PL. Originality/value – The paper effort represents the first large‐scale effort to document the commitment of large 3PL to environmental sustainability goals.

Bobby J. Martens; Frank J. Dooley

2010 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031011071993

Purpose – The paper aims to reappraise efficient consumer response (ECR) in the grocery and food industry to determine whether financial and operating performance improves with ECR adoption. Design/methodology/approach – The paper uses a time‐series multiple regression model. The methodology overcomes historical shortcomings in ECR and supply chain management research related to small sample size, one‐tier investigation, and short‐longitudinal focus. Findings – ECR adoption has beneficial impacts for both financial and operational performance. Research limitations/implications – Two limitations exist. First, determining the actual time of implementation for supply chain management strategies by firms in the food industry is extremely difficult. The method used to classify firms as ECR adopters in this paper is believed to be sound and unbiased, but errors may exist. Second, this analysis does not account for differences in the implementation level for ECR. For simplicity, a binary variable is used to distinguish firms adopting or not adopting supply chain management strategies (ECR). Further study is needed to determine how differences in the level of ECR implementation impacts firm performance. Practical implications – The paper overcomes historical shortcomings in ECR performance research. The paper provides academics and practitioners in the food and grocery industry definitive evidence that ECR has beneficial impacts for both financial and operational performance in the food and grocery industry. Originality/value – By placing greater attention on overcoming historical shortcomings in supply chain management research related to small sample size, one‐tier investigation, and longitudinal study, the paper improves upon previous evaluations of ECR.

Ogan M. Yigitbasioglu

2010 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031011072000

Purpose – The purpose of this paper is to explain variations in discretionary information shared between buyers and key suppliers. The paper also aims to examine how the extent of information shared affects buyers' performance in terms of resource usage, output, and flexibility. Design/methodology/approach – The data for the paper comprise 221 Finnish and Swedish non‐service companies obtained through a mail survey. The hypothesized relationships were tested using partial least squares modelling with reflective and formative constructs. Findings – The results of the study suggest that (environmental and demand) uncertainty and interdependency can to some degree explain the extent of information shared between a buyer and key supplier. Furthermore, information sharing improves buyers' performance with respect to resource usage, output, and flexibility. Research limitations/implications – A limitation to the paper relates to the data, which only included buyers. A better approach would have been to collect data from both, buyers and key suppliers. Practical implications – Companies face a wide range of supply chain solutions that enable and encourage collaboration across organizations. This paper suggests a more selective and balanced approach toward adopting the solutions offered as the benefits are contingent on a number of factors such as uncertainty. Also, the risks of information sharing are far too high for a one size fits all approach. Originality/value – The paper illustrates the applicability of transaction cost theory to the contemporary era of e‐commerce. With this finding, transaction cost economics can provide a valuable lens with which to view and interpret interorganizational information sharing, a topic that has received much attention in the recent years.

Carl Marcus Wallenburg; David L. Cahill; Thomas J. Goldsby; A. Michael Knemeyer

2010 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031011072019

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.