The AEO status as a source of competitive advantage

Abstract

PurposeFaced with increasing competition, the ability to secure and optimise global logistics operations should be regarded as a competitive advantage. In the context of the hitherto little explored field of security and safety programmes, the purpose of this paper is to examine how an Authorised Economic Operator (AEO) certificate may affect the creation of a competitive edge for a freight forwarder.Design/methodology/approachBy using the resource-based view as a theoretical background and a qualitative analysis using an interview grid inspired by the balanced scorecard, this research identifies resources and capabilities linked to the AEO certification.FindingsThe findings show two specific groups of resources that contribute to the creation of a competitive advantage. The first category is a process-type resource obtained through the AEO certification, which leads to more formalised and better-executed processes. The second relates to the freight forwarder’s knowledge, know-how and relational skills.Research limitations/implicationsThis research is developed in a logistics service provider context. It should be equally applied in other contexts and with other methods to provide generalisability.Practical implicationsConsidering its contribution to an area of study currently under research, the findings may be useful to practitioners as a decision support tool to assess the value of the AEO certification.Originality/valueThis paper comes in the context of a yet little explored field, despite practitioners’ questions about custom certifications.