Browse > Article
http://dx.doi.org/10.13106/jafeb.2021.vol8.no4.0145

Critical Factors Affecting the Choice of Logistics Service Provider: An Empirical Study in Vietnam  

TRAN, The Tuan (Faculty of Transport Economics, University of Transport Technology)
DO, Quang Hung (Faculty of Information Technology, University of Transport Technology)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.4, 2021 , pp. 145-150 More about this Journal
Abstract
The trend of globalization leads an increased need for international freight transportation and accelerates the development of the international logistics industry. The objective of this paper is to identify the critical factors that affect the choice of logistics service provider (LSP). The data sample was collected through a questionnaire, responded by 218 companies that outsource logistics services. The analysis uses descriptive statistics; exploratory factor analysis (EFA) and regression analysis were conducted with SPSS. The role of capabilities, customer service, and company reputation were evaluated and tested. Our findings show that capabilities and customer service have a considerable impact on the choice of LSP. The findings also indicate that company reputation do not have significant impact on the choice of LSP. They also showed that the capabilities is the variable that has the most significant effect on the choice of LSP. An implication of this study is that the competition should not only focus on pricing, but should be extended to improving enterprises capabilities, i.e., upgrading human resources, modernizing the modes of transportation, expanding business geographically and developing new technologies. Our study provides LSP managers with insights into how to meet customer expectations in the competitive logistics service sector.
Keywords
Logistics Service Provider; Capabilities; Customer Service; Company Reputation; Customers' Choice;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Haksoz, C., Seshadri, S., & Iyer, A. V. (2011). Managing supply chains on the silk road: strategy, performance, and risk. Boca Raton, FL: CRC Press.
2 Hoa, N. D., Ngan, P. T. H., Quang, N. M., Thanh, V. B., & Quyen, H. V. T. (2020). An empirical study of perceived organizational support and affective commitment in the logistics industry. The Journal of Asian Finance, Economics and Business, 7(8), 589-598. https://doi.org/10.13106/jafeb.2020.vol7.no8.589   DOI
3 Jharkharia, S., & Shankar, R. (2007). Selection of logistics service provider: An analytic network process (ANP) approach. Omega, 35(3), 274-289.   DOI
4 Lai, K.-H., & Cheng, T. C. E. (2004). A study of the freight forwarding industry in Hong Kong. International Journal of Logistics Research and Applications, 7(2), 71-84.   DOI
5 Lai, K. (2004). Service capability and performance of logistics service providers. Transportation Research Part E: Logistics and Transportation Review, 40(5), 385-399.   DOI
6 Masudin, I., Safitri, N. T., Restuputri, D. P., Wardana, R. W., & Amallynda, I. (2020). The effect of humanitarian logistics service quality to customer loyalty using Kansei engineering: Evidence from Indonesian logistics service providers. Cogent Business & Management, 7(1), 1826718.   DOI
7 Nikbin, D., Ismail, I., Marimuthu, M., & Abu-Jarad, I. Y. (2011). The impact of firm reputation on customers' responses to service failure: the role of failure attributions. Business Strategy Series, 12(1), 19-29.   DOI
8 Parola, F., & Veenstra, A. W. (2008). The spatial coverage of shipping lines and container terminal operators. Journal of Transport Geography, 16(4), 292-299.   DOI
9 Rajesh, R., Pugazhendhi, S., Ganesh, K., & Muralidharan, C. (2011). AQUA: analytical model for evaluation and selection of thirdparty logistics service provider in supply chain. International Journal of Services and Operations Management, 8(1), 27-45.   DOI
10 Abdul, A., Memon, J. A., & Shuaib, A. L. I. (2020). Logistics Capability, Logistics Outsourcing and Firm Performance in Manufacturing Companies in Pakistan. Journal of Asian Finance, Economics and Business, 7(8), 435-444. https://doi.org/10.13106/jafeb.2020.vol7.no8.435   DOI
11 Goffnett, S. P., Williams, Z., Gibson, B. J., & Garver, M. S. (2016). Identifying critical skills for logistics professionals: Assessing skill importance, capability, and availability. Journal of Transportation Management, 27(1), 6.   DOI
12 Zhatkanbaev, E. B., Mukhtar, E. S., & Suyunchaliyeva, M. M. (2015). Innovative Mechanisms in the Procurement Logistics of Kazakhstan. The Journal of Asian Finance, Economics, and Business, 2(3), 33-36. https://doi.org/10.13106/jafeb.2015.vol2.no3.33   DOI
13 Asthana, S., Bhat, H., & Singh, R. (2015). A Study of Business Performance Measurement of Third Party Logistics (3PL) Organizations in the Indian Logistics Industry. IMS Manthan-The Journal of Innovation, X, 105-110.
14 Chen, I. S. N., Fung, P. K. O., & Yuen, S. S. M. (2019). Dynamic capabilities of logistics service providers: Antecedents and performance implications. Asia Pacific Journal of Marketing and Logistics, 31(4), 1058-1075.   DOI
15 Chin, F. C., Bae, J.-H., & Kim, G. O. (2007). A survey on the logistics service providers in Shanghai. International Journal of Physical Distribution & Logistics Management, 29(9), 588-605.   DOI
16 Gammelgaard, B., & Larson, P. D. (2001). Logistics skills and competencies for supply chain management. Journal of Business Logistics, 22(2), 27-50.   DOI
17 Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. Hoboken, NJ: John Wiley & Sons.
18 Taghizadeh, H., Taghipourian, M. J., & Khazaei, A. (2013). The effect of customer satisfaction on word of mouth communication. Research Journal of Applied Sciences, Engineering and Technology, 5(8), 2569-2575.   DOI
19 Tubis, A., & Gruszczyk, A. (2015). Measurement of punctuality of services at a public transport company. In: Proceedings of the 5th International congress Carpathian Logistics Congress 2015 (pp.1-8). Jesenik, Czech, November 4th-6th.