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Influential factors and performance of logistics outsourcing practices: an evidence of malaysian companies

Author

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  • Suhaiza Zailani

    (University Malaya)

  • Mohd Rizaimy Shaharudin

    (Universiti Teknologi MARA Kedah)

  • Khairul Razmi

    (University Science Malaysia)

  • Mohammad Iranmanesh

    (University Malaya)

Abstract

Despite the growing trend of logistics outsourcing, there are very limited sources of literature on logistics outsourcing, especially in determining the relationship between factors influencing outsourcing and the extent of logistics outsourcing practices. In this study, we tap into the field of strategic management to help clarify the mechanisms underlying the links between factors influencing, logistics outsourcing practices and outsourcing performance. A model based on the resource based view illustrates the hypothetical connections among these variables. The data gathered from the survey were analysed using SmartPLS software. A response rate of 21 % out of the 486 firms selected was achieved and fixed as the empirical data for this study. The results of this study provide support that superior performance is correlated to the resources of the firm. The analysis shows that lack of human and physical asset capabilities, as well as transaction uncertainty influence the extent of different logistics outsourcing practices. The four logistics outsourcing practices under study were found to have a positive relationship with logistics outsourcing performance, particularly strategic focus. This study shows that although theoretically firms aim at cost reduction by employing a logistics outsourcing strategy but not proven in this study because the financial benefit was only positively contributed by one of the four logistics outsourcing practices under study. Besides that, the results from this study also support that most firms outsource their non-core activities of the logistics practices to respond to the transaction uncertainty that their business experiences.

Suggested Citation

  • Suhaiza Zailani & Mohd Rizaimy Shaharudin & Khairul Razmi & Mohammad Iranmanesh, 2017. "Influential factors and performance of logistics outsourcing practices: an evidence of malaysian companies," Review of Managerial Science, Springer, vol. 11(1), pages 53-93, January.
    • Handle: RePEc:spr:rvmgts:v:11:y:2017:i:1:d:10.1007_s11846-015-0180-x
    DOI: 10.1007/s11846-015-0180-x
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    Cited by:

    1. Suhaiza Zailani & Mohammad Iranmanesh & Sunghyup Sean Hyun & Mohd Helmi Ali, 2019. "Barriers of Biodiesel Adoption by Transportation Companies: A Case of Malaysian Transportation Industry," Sustainability, MDPI, vol. 11(3), pages 1-15, February.
    2. Daniele Tumidei & Constantinos Alexiou & Michael Bourne, 2021. "A choice and inevitability framework in strategic management: empirical evidence of its real-life existence," Review of Managerial Science, Springer, vol. 15(6), pages 1729-1766, August.
    3. Mohammad Iranmanesh & Sajad Fayezi & Suhaiza Hanim & Sunghyup Sean Hyun, 2019. "Drivers and outcomes of eco-design initiatives: a cross-country study of Malaysia and Australia," Review of Managerial Science, Springer, vol. 13(5), pages 1121-1142, November.
    4. Suhaiza Zailani & Mohammad Iranmanesh & Behzad Foroughi & Kwangyong Kim & Sunghyup Sean Hyun, 2020. "Effects of supply chain practices, integration and closed-loop supply chain activities on cost-containment of biodiesel," Review of Managerial Science, Springer, vol. 14(6), pages 1299-1319, December.
    5. Ahtamad, Mujthaba & Akhsanov, Medet, 2021. "Barriers to the implementation of 4PL in developing countries," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Adapting to the Future: Maritime and City Logistics in the Context of Digitalization and Sustainability. Proceedings of the Hamburg International Conf, volume 32, pages 291-315, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    6. Mohammad Iranmanesh & Suhaiza Zailani & Sunghyup Sean Hyun & Mohd Helmi Ali & Kwangyong Kim, 2019. "Impact of Lean Manufacturing Practices on Firms’ Sustainable Performance: Lean Culture as a Moderator," Sustainability, MDPI, vol. 11(4), pages 1-20, February.

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