Triad structure impact on the triad resources-firm performance relationship: Theory and empirical evidence

Abstract

Logistics triads are an emerging research setting, yet there is little theoretical and empirical understanding of how triad structure impacts triad resources and buying firm performance relationship. This study first develops a typology of triad structure (asymmetric, balanced, symmetric triads). Based on the theories of the resource-based view of the firm, balance theory, and equity theory, this study empirically investigates how each triad structure impacts the triad resources-firm performance relationship. It uses three firm performance metrics: financial, operational, and market. It also tests whether environmental complexity and uncertainty affect the triad structure.The study collected empirical data via a survey of 267 matched supplier-3PL pairs for the same buying firms in three countries: the UK, France, and Greece. Group hierarchical regression models analysed the effects of each triad structure on the triad resources-firm performance relationship. Findings show that each triad structure has different effects on buying firm performance. Symmetric triads outperform other triads in operational performance. Asymmetric triads have a positive impact on financial performance. Findings also uncover significant differences among triadic resources. The study presents several novelties resulting in important theoretical and managerial implications, including exposing theoretical contradictions about the role of triad structure on firm performance and integrating the three theories to understand the links between resources-structure-performance. This study’s findings indicate that all firms in a triad can strategise their resources to yield market, financial, and operational benefits.