Are We in This Together? The Dynamics and Performance Implications of Dependence Asymmetry and Joint Dependence in Logistics Outsourcing Relationships

Abstract

AbstractThis study investigates the mechanisms through which two dimensions of interorganizational interdependence—dependence asymmetry and joint dependence—impact a customer's key attitudinal and behavioral dimensions in the relationship with a third-party logistics provider (3PL), as well as associated performance outcomes. Results of a survey with customers of a large 3PL in Brazil indicate that customers embedded in relationships with high levels of joint dependence exhibit higher levels of long-term orientation toward and operational information exchange with the 3PL, which positively impact their logistics outsourcing performance. In addition, it is found that the direction of the customer's dependence asymmetry—advantage or disadvantage—in the relationship with the 3PL enhances or hinders the effects of joint dependence. Specifically, while a customer's dependence disadvantage positively impacts its long-term orientation, a customer's dependence advantage negatively impacts its long-term orientation, which can be detrimental to its logistics outsourcing performance.