Logistics Service Providers and Value Creation Through Collaboration: A Case Study

Abstract

Logistics service provider (LSP) strategy and value creation is a cooperative endeavor. The study focuses on how LSPs create value by taking advantage of being connected and exploring the presence of various forms of interdependence. Using a single case study and a framework addressing network externalities and the concept of value logic interaction, we identify three types of collaborative value creation; distributive, functional and systemic. Whereas the fundamental logic of the LSP is mediation in terms of performing a distributive service, it is also subject to externalities in its functional and systemic value creation initiatives. LSPs are thereby portrayed as strategic entities dealing with a set of interdependencies in order to facilitate value creation in their networks. These firms need a rather advanced understanding of different types of economies and forms of collaboration to succeed. The study also associates different types of LSPs with the identified types of collaborative value creation.