A comparison of the effect of logistic strategy and logistics integration on firm competitiveness in the USA and China

Abstract

PurposeThe purpose of this manuscript is to empirically compare logistics strategies in Chinese and US manufacturing firms and the outcomes of these strategies to test the underlying factor structure and measurement equivalences of Bowersox/Daugherty model and its relationship with critical success factors.Design/methodology/approachA structured questionnaire was used to gather data from Chinese and American logistics managers. Using confirmatory factor analysis (CFA), the authors compared the three dimensions of the overall logistics strategy (OLS) – process strategy, market strategy, and information strategy – in two countries. A structural equation model (SEM) was then used to assess the impact of OLS on perceived competitiveness in two countries.FindingsAlthough the economic, political, and cultural dimensions of the two countries differed substantially, the findings were similar. Data from both countries provided strong support for the three dimensions of overall logistic strategy (OLS). In addition, it was found that OLS, when combined with logistics coordination effectiveness (LCE) and customer service effectiveness (CSE), contributes to organizational effectiveness (COMP).Practical implicationsThis research provides insights into comparative logistics in two large disparate economies and provides support for the Bowersox/Daugherty logistics/supply chain management typology.Originality/valueThis manuscript provides insights into comparative logistics/supply chain management that have not been previously reported through empirical research.