Abstract
Firms have strategically used cooperative linkages to establish competitiveness. In this study, we incorporated the resource dependency theory view to assess how trust, satisfaction, and commitment affect firms’ decisions on logistics integration. Also, we examined the link between logistics integration and supply chain performance. The study collected data from 250 South Korean manufacturers for analysis. The results revealed positive impacts of trust, satisfaction, and commitment on logistics integration between manufacturing firms and logistics service providers that enhances logistics service capabilities of the firms. Furthermore, our study showed that building a strategic relationship for logistics services helps the manufacturing firms improve their business and operations performances in their supply chain. Implications and suggestions for future research are discussed.
Highlights
Globalization has brought fundamental changes to the business environment
Logistics trust Drawing from resource dependence theory (RDT), this study identifies three antecedents of logistics integration, namely, trust, commitment, and satisfaction
This study argues that a client firm perceiving a strong commitment to the logistics service providers (LSPs) relationship is more likely to integrate the LSP’s service offerings into its logistics processes
Summary
Globalization has brought fundamental changes to the business environment. In response to this change, an increasing number of firms have been seeking to develop strong relationships with their business partners because it is often difficult for a single firm to obtain all the resources required to tackle rapidly changing business environments [1]. Hyundai Motors, a multinational automobile company, is a good example of a firm which established a successful supply chain partnership It has the world’s largest integrated automobile manufacturing facility in Ulsan, South Korea. One of the challenges of supply chain management (SCM) is to develop efficient and effective supply networks for local suppliers so that they can utilize advanced infrastructure and logistics services Another challenge is to obtain a competitive logistics because the company needs to send a substantial amount of parts and components to global plants for reassembly in locations widely spread throughout the world such as Europe, South and North America, China, and India. We conclude the paper by discussing the implications of the study results, including limitations of the study and future research needs
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