Sources of competitiveness for logistics service providers: a UK industry perspective

Abstract

This paper empirically examines perceptions on the sources of competitiveness for logistics service providers (LSPs) drawing on two influential theories of strategic management, Porter’s competitive advantage theory and the resource-based view (RBV). In contrast to most previous studies of third-party logistics which have viewed the subject from the user’s perspective, this study investigates the perceptions of competitiveness primarily from the LSP’s point of view. It is based on questionnaire data which was collected from UK LSP managers. Standard statistical techniques were applied for the analysis. The empirical results reveal that capabilities are considered most important among the factors of competitiveness suggested by theory. The most critical aspect of an LSP’s capabilities was found to be the service quality capability. At a more theoretical level, the study adds new evidence on the relative explanatory power of the two theories of strategic management used: it indicates that the RBV is the more appropriate in the context given, suggesting that capabilities (i.e., endogenous factor) inside companies are more important in leading to an LSP’s competitiveness and need greater attention than the environmental factors.

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