Logistic outsourcing risks management and performance under the mediation of customer service in agribusiness

Abstract

This research analyses the influence of logistic outsourcing risks management on trade performance in agribusiness distribution chain. The paper scrutinises the relationship between Manufacturer – Logistic provider – Customers (distributors). We assume that outsourcing risks management can enhance trade performance. After a pre-survey on supply chain managers using individual interviews, quantitative data were collected on a sample of agribusiness managers. We performed data analysis by structural equation modelling methods. We found that the logistic outsourcing risks management is not significantly related to trade performance. However, this relation is positive and significant through the mediation of customer service, in the presence of the logistic capabilities of provider. Hence, managers in developing country consider logistic as a resource with distinctive capability, valuable, scarce and both difficult and costly to imitate. They prefer to manage it internally in order to avoid outsourcing risks. But in France, managers prefer to outsource because their internalisation does not provide a competitive advantage.

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