Abstract
This research develops and tests a model of the effects of resources bundling on third-party logistics (3PL) providers' performance. Based on data from a survey of Malaysian 3PLs, basic and advanced technology and equipment resources, knowledge and relational resources, and demand management interfaces are identified. The bundling of advanced technology, knowledge resources, and demand management interface capability are found to enhance 3PLs' customer service innovation. Similar resource bundling (excluding advanced technology) is required to achieve cost leadership. The effects of other resources on performance are mediated mainly by the demand management interface capability and knowledge resources. This is a novel attempt to justify the interaction and mediation effects of resources and capabilities on performance. The research highlights the needs for 3PL managers to focus on developing and bundling their demand management interface capability and knowledge resources in order to achieve cost leadership, and further combine advanced technology into such bundling of resources and capabilities to achieve innovation in customer service. It advances the application of resource-based view (RBV) theory in logistics research by identifying resources that play supporting roles and examining the capabilities for enhancing 3PLs' competitive performance.
Highlights
The recent global halal market has increased demand in the halal industry, which has brought new challenges to thirdparty logistics (3PLs) providers in Malaysia. 3PLs’ clients expect new services called halal services whenever they need them, and which sometimes extend beyond 3PLs’ capabilities
The main contribution of this research is that it enhances the understanding of the bundling effects of 3PL logistics firms’ logistics resources on customer service innovation and cost leadership
The results suggest that the 3PL logistics firms’ superior competitive performance is derived especially from demand management interface capability, knowledge resources, and advanced technology
Summary
The recent global halal market has increased demand in the halal industry, which has brought new challenges to thirdparty logistics (3PLs) providers in Malaysia. 3PLs’ clients expect new services called halal services whenever they need them, and which sometimes extend beyond 3PLs’ capabilities. This creates strategic challenges for 3PLs to exploit logistics resources more productively as a compet‐ itive resource in such a complex and unpredictable envi‐ ronment. It is essential for 3PLs to not just gain access to the right resources and capabilities but to innovate and improve their resource position by practicing proactive innovation in bundling resource and capability so that their resources are better than those of their competitors.
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