Suppliers Logistics Service Quality Performance and its Effect on Retailers’ Behavioral Intentions

Abstract

Physical distribution service quality is considered as a source of competitive advantage for manufacturers, since it can be viewed as a differentiation factor in the way they are perceived by retailers. Nevertheless, there is neither consensus about its dimensions, nor on how they are related to retailers’ behavioral intentions. The aim of this paper is to propose and empirically test a conceptual framework of Logistics Service Quality (LSQ) that combines both process and outcome quality dimensions and to investigate how these dimensions are related to retailers’ behavioral intentions comprised of their engagements in word-of-mouth communication and intentions to retain their suppliers. Contrary to previous studies, formative instead of reflective indicators are used to conceptualize logistics service quality dimensions. Partial least squares path modeling was used to analyze the responses of 202 retailers in the construction materials industry, which were collected via personal interviews using a properly designed questionnaire. The results showed empirical support for 1) the two-dimensional approach to conceptualize LSQ and the formative approach for their measurement and 2) the hypothesized effects of proposed LSQ dimensions on retailer's behavioral responses. Implications for practice and directions for future research are then discussed.

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