Customer Integration in the Era of Digital Transformation: Evidence from Third-Party Logistics Firms in China

Abstract

AbstractIntegration with client firms is the most important external relationship for third-party logistics (3PL) firms. Based on information processing theory, a conceptual model was developed to explore the mechanism of how customer integration contributes to 3PL firms’ performance via differentiation and low-cost advantages, and the moderating effects of information technologies were examined in relation to the trend of digital transformation. Survey data were collected from 235 3PL firms in China and analyzed using structural equation modeling. The results show that customer integration is positively related to the performance of 3PL firms, which is mediated by differentiation and low-cost advantages. In addition, information acquisition technologies and information processing technologies significantly moderate the effect of customer integration on differentiation advantages. These findings help to address the challenges faced by 3PL firms in the context of digital transformation and add to the literature on customer integration and logistics information technologies.KeywordsCustomer integrationInformation acquisition technologiesInformation processing technologiesDifferentiation advantagesLow-cost advantages