Logistics Integration with Third Party Logistics providers

Abstract

With increasing competition and globalization, it is supply chain to compete rather than single firm. Integration in supply chain has been conceptualized and documented in literature from multiple perspectives. In this study, we conceptualize logistics integration with third party logistics providers (3PLs) from supply chin integration perspective, and then empirically explore its relational antecedents and its impact on performance. Structural equation model analyses of data collected from 134 logistics users in mainland China support that trust, commitment, and dependence are positively related to logistics integration with 3PLs. The study also provides evidence supporting the contributive effect of logistics integration on performance, especially, the contributive effect is moderated by legal contract.