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Service provider boundaries in competitive markets: the case of the logistics industry

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  • Christian König
  • Nigel D. Caldwell
  • Abhijeet Ghadge

Abstract

This study empirically investigates service provider firms’ attempts to move to higher value-added market segments in competitive and fragmented markets, using logistics services as a context. Novelty is added by taking the provider not the customer or outsourcing actor perspective, common to current third-party logistics perspectives. Data were collected in the form of semi-structured interviews with management at various provider firms. The interview guide was based on theoretical constructs regarding tangible and intangible capabilities (RBV) as well as constructs related to governance and integration (TCE). Unlike customer focused studies, this study is able to identify what distinguishes the rare successful boundary crossing attempts that lead to a more profitable market position. The key finding which contradicts studies based on the customer/outsourcing actor perspective is that a switch from a highly commoditised market position to a higher margin position is only possible, if relationships and network capabilities are leveraged, regardless of the assets and physical resources available to the firm. The presentation of service boundaries as both dynamic and fluid and the use of RBV are contributions, building on existing theory, illustrating why providers of commoditised services cannot escape from low-margin, competitive market positions simply by acquiring tangible assets.

Suggested Citation

  • Christian König & Nigel D. Caldwell & Abhijeet Ghadge, 2019. "Service provider boundaries in competitive markets: the case of the logistics industry," International Journal of Production Research, Taylor & Francis Journals, vol. 57(18), pages 5624-5639, September.
    • Handle: RePEc:taf:tprsxx:v:57:y:2019:i:18:p:5624-5639
    DOI: 10.1080/00207543.2018.1535203
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    Cited by:

    1. Philipp Wetzel & Erik Hofmann, 2020. "Toward a Multi-Sided Model of Service Quality for Logistics Service Providers," Administrative Sciences, MDPI, vol. 10(4), pages 1-24, October.
    2. Abdalla, Sara Siddig Ali, 2021. "Logistics innovation and integration: Impact on supply chain adaptability," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Ringle, Christian M. & Blecker, Thorsten (ed.), Adapting to the Future: How Digitalization Shapes Sustainable Logistics and Resilient Supply Chain Management. Proceedings of the Hamburg Internationa, volume 31, pages 639-661, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    3. Orji, Ifeyinwa Juliet & Kusi-Sarpong, Simonov & Huang, Shuangfa & Vazquez-Brust, Diego, 2020. "Evaluating the factors that influence blockchain adoption in the freight logistics industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    4. Wang, Qianwen & Liu, Xu & Huo, Baofeng & Zhao, Xiande, 2023. "Economic or relational first? Establishing the competitiveness of third-party logistics information sharing by devoting specific assets and mutual trust," International Journal of Production Economics, Elsevier, vol. 261(C).

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