THE CUSTOMER IS ALWAYS RIGHT: THE MODERATING ROLE OF RELATIONSHIP MANAGEMENT IN THE SUPPLY CHAIN

Abstract

ABSTRACT This study addresses how several factors affect outsourcing performance in the supply chain through an examination of the relationship characteristics between unpaired third-party logistics (3PLs) providers and customers. While previous literature has established the importance of information sharing, supply chain position, and organizational capabilities on performance, there is limited empirical research on the impact of buyer-supplier relationships on performance. Relationship characteristics are hypothesized to moderate the relationship that information sharing has on outsourcing performance. The quantitative data is derived from surveys of logistics executives. Moderated multiple regression analysis is used to test the influence of relationship characteristics on the information sharing and outsourcing performance relationship. Results suggest that (1) more intensive relationship characteristics, such as providing long-range distribution forecasts, and advance notification of impending changes in customer service requirements, is associated with higher perceived outsourcing performance and (2) the extent to which information sharing affects operational performance varies by relationship characteristics. Keywords Outsourcing, logistics, supply chain, third-party logistics (3PLs), relationship management, performance