Spillover effects of a firm's relationship marketing orientation in the logistics triad

Abstract

Purpose– The central tenet of this paper is that a firm's efforts to nurture a long-term relationship with a third-party logistics (3PLs) will be influenced by its strategic orientation toward its own customers. The purpose of this paper is to propose that there will be a spillover effect of a firm's relationship marketing orientation (RMO) toward its customers on the nature of a firm's relationship with its 3PL, positively impacting its logistics performance.Design/methodology/approach– A survey was administered to logistics managers in Brazilian firms that employ the services of a large 3PL. The model was tested via structural equation modeling.Findings– Results of this research suggest that a firm's RMO toward its customers has a positive impact on the long-term orientation (LTO) toward the relationship with its 3PL, ultimately improving the firm's operations performance. Additionally, the findings reveal that the positive effect of RMO on LTO is stronger for higher levels of a firm's dependence on its 3PL.Research limitations/implications– The results provide initial evidence that when a RMO is embedded in a firm's strategies toward its customers, there will be spillover effects on both the nature and outcomes of relationships with other partners, such as 3PLs. Research limitations include the survey implementation in an emerging market, and surveying clients of a single 3PL.Practical implications– From the perspective of the 3PL, when selecting new clients, it is important to investigate how these potential clients relate to their own customers. In other words, 3PLs should investigate whether these potential clients embrace RMO toward their downstream customers. If that is the case, the client will be more likely to have LTO with the 3PLs with which it works.Originality/value– While most studies in logistics outsourcing demonstrate that interorganizational conditions are key determinants of long-term and collaborative relationships with 3PLs, this study provides initial evidence that when a strategic orientation – RMO – is embedded in a firm's strategies and operations toward its customers, there will be spillover effects on both the nature and outcomes of relationships with 3PLs as well.