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Understanding performance drivers of third‐party logistics providers in mainland China: A replicated and comparative study

Qiang Wang (School of International Trade and Economics, University of International Business and Economics, Beijing, China)
Baofeng Huo (Xi'an Jiaotong University, Xi'an, China Centre for Supply Chain Management & Logistics, Li & Fung Institute of Supply Chain Management & Logistics, The Chinese University of Hong Kong, Shatin, Hong Kong)
Fujun Lai (College of Business, University of Southern Mississippi, Long Beach, Mississippi, USA)
Zhaofang Chu (School of International Trade and Economics, University of International Business and Economics, Beijing, China)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 28 September 2010

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Abstract

Purpose

The paper's aim is to replicate and compare Huo et al.'s study to better understand performance drivers of third‐party logistics (3PL) in mainland China and to disseminate Hong Kong 3PL providers' experience to mainland China's peers.

Design/methodology/approach

A structural model is estimated to test the construct relationships using data collected from 105 mainland China's 3PL providers. The results are compared with the results of Huo et al.'s study of Hong Kong 3PL providers.

Findings

While the operations emphasis of low cost may still be effective for mainland China's 3PL providers, it may result in worse financial performance for Hong Kong 3PL providers. In mainland China, low‐ cost emphasis is affected by local competition, but not by operational challenges, while it is influenced by both local competition and operational challenges in Hong Kong. Operational challenges have a positive impact on low‐cost emphasis in Hong Kong, but no impact in mainland China.

Originality/value

The study enriches the literature on China's logistics and provides mainland China's 3PL managers valuable insights from the business practices of their Hong Kong peers.

Keywords

Citation

Wang, Q., Huo, B., Lai, F. and Chu, Z. (2010), "Understanding performance drivers of third‐party logistics providers in mainland China: A replicated and comparative study", Industrial Management & Data Systems, Vol. 110 No. 9, pp. 1273-1296. https://doi.org/10.1108/02635571011087392

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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