The Effect of IT, Geographical Coverage, Services, and Managerial Competence on 3PL Service Providers’ Performance in China

Authors

Quanwu Zhao, College of Trade and Administration, Chongqing University, China
Jeff Hoi Yan Yeung, Department of Decision Sciences and Managerial Economics, Faculty of Business Administration, Chinese University of Hong Kong, Shatin, N.T., Hong Kong
Xiande Zhao, Department of Decision Sciences and Managerial Economics, Faculty of Business Administration, Chinese University of Hong Kong, Shatin, N.T., Hong Kong
Min Zhang, Department of Decision Sciences and Managerial Economics, Faculty of Business Administration, Chinese University of Hong Kong, Shatin, N.T., Hong Kong
Xiaofen Bei, Business School, Shantou University, China

Document Type

Article

Abstract

The resource-based view (RBV) indicates that firm performance is determined by the availability of rare and heterogeneous resources. It is important for third party logistics (3PL) firms to identify the core resources that will enable them to develop and maintain core competencies. In this study based on RBV theory, our objective is to test the effects of information technology (IT) infrastructure, IT capability, geographical coverage, range of services, and managerial competence on logistics service quality and financial performance among Chinese 3PL firms. Exploratory and confirmatory factor analysis and other tests were used to demonstrate the reliability and validity of our model constructs. Furthermore, the LISREL structural equation model estimation results illustrated that geographical coverage, range of services, and managerial competence have positive effects on financial performance; that information technology capability and managerial competence have positive effects on logistics service quality, and that geographical coverage and range of services have negative effects on logistics service quality

Recommended Citation

Zhao, Quanwu; Yeung, Jeff Hoi Yan; Zhao, Xiande; Zhang, Min; and Bei, Xiaofen, "The Effect of IT, Geographical Coverage, Services, and Managerial Competence on 3PL Service Providers’ Performance in China" (2009). ICEB 2009 Proceedings (Macau, SAR China). 59.
https://aisel.aisnet.org/iceb2009/59