Organisation of multilateral LTL alliances

Abstract

In the less-than-truckload (LTL) market, alliances of smaller logistics service providers successfully compete with large, integrated logistics corporations. However, such alliances are often seen as an inferior governance mode in terms of establishing and operating cost-efficient production structures. Because little is known about the organisation of such multilateral LTL alliances, this paper conceptualises and explores their cooperative organisation and offers tentative explanations for their specific organisational design. Two in-depth cases have made it possible to analyse the specific organisational arrangements of two successful but contrasting German LTL alliances. The findings shed light on LTL alliance design alternatives and their effectiveness conditions and can serve as a guideline for alliance evaluation and design in the LTL business.

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