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Differentiated service consumption and low cost production: Striking a balance for a sustainable competitive advantage in Malaysia

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  • Wong, Wai Peng
  • Soh, Keng Lin
  • Chong, Chu Le

Abstract

This paper addresses the challenges faced by third party logistics (3PL) with the fast dismantling of economic barriers, fierce global competition, unyielding economic uncertainties and delicate balancing of a sustainable differentiated consumption and low cost production. These challenges seek answers to strategic choices and operational directions of a firm for survival. Given these circumstances, the objective of this paper is to reveal strategic and sustainable pathways. It precisely targets two major research questions of 3PL. They are: Would market environment or firm competences affect strategic emphasis to implement sustainable consumption and production (SCP)? Would SCP also affect firm sustainable competitiveness? A composite strategic research model supported by MBV and RBV theories provides affirmative answers to these questions. The questionnaires attracted 163 valid responses and the comprehensive and rigorous data analysis show MBV has six and RBV four strategic sustainable pathways through the firm׳s SCP, 3PL firms are agile in exercising SCP, and IT is capable of directly influencing SCP performance. Theoretically, this research widens MBV and RBV simultaneously to include SCP issues in a novel way, and practically recommends survival pathways for 3PL in Malaysia.

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  • Wong, Wai Peng & Soh, Keng Lin & Chong, Chu Le, 2016. "Differentiated service consumption and low cost production: Striking a balance for a sustainable competitive advantage in Malaysia," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 450-459.
    • Handle: RePEc:eee:proeco:v:181:y:2016:i:pb:p:450-459
    DOI: 10.1016/j.ijpe.2015.09.029
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    1. Ifrah Quais & Danish Ahmed Siddiqui, 2017. "Measuring the Performance of Logistics Industry in the Context of Karachi," Information Management and Business Review, AMH International, vol. 9(5), pages 24-34.

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