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1 – 10 of 27Professor Lauri Ojala, Professor Juuso Töyli, Professor Harri Lorentz and Dr Tomi Solakivi
Tomi Solakivi, Lauri Ojala, Harri Lorentz, Juuso Töyli and Sini Laari
The size of the logistics market is typically estimated from the national accounting and market data. However, this data does not take certain in-house logistics services into…
Abstract
Purpose
The size of the logistics market is typically estimated from the national accounting and market data. However, this data does not take certain in-house logistics services into account and most likely underestimates the true size of the market. The purpose of this paper is to develop a method for estimating the potential size of the logistics market in terms of overall logistics expenditure and to also account for in-house services.
Design/methodology/approach
The research approach involves combining longitudinal industry- and firm-level turnover data, incorporating survey data from Finland on logistics outsourcing and costs, and calculating yearly logistics expenditure and the market demand for logistics services. Descriptive statistics, weighted arithmetic means and analyses of variance are employed in the estimations.
Findings
The research suggests and demonstrates a rigorous method for estimating the size of the logistics market, including both market-based demand and in-house services.
Research limitations/implications
The empirical data used to illustrate the result are limited to a single country. The methodology should be further validated with data from other countries. The quality of the survey data could be improved by targeting multiple informants from a single firm.
Social implications
One outcome of the research is that policymakers will be better able to estimate the size of the logistics market on a national level. For service providers, the results provide additional information on the market potential of logistics services.
Originality/value
The novelty of the research lies in combining multiple data sources and expanding the estimation of the logistics market to include services provided in-house.
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Harri Lorentz, Tomi Solakivi, Juuso Töyli and Lauri Ojala
The purpose of this paper is to provide evidence of how the business cycle affects net-trade-credit and its components in firms on different tiers of the value chain, including…
Abstract
Purpose
The purpose of this paper is to provide evidence of how the business cycle affects net-trade-credit and its components in firms on different tiers of the value chain, including retail, wholesale and two consecutive manufacturing tiers.
Design/methodology/approach
Data were collected by the means of four surveys in the years 2006, 2009, 2012 and 2014, representing different phases of the business cycle, that is, from strong economic growth to a deep recession and on to slow recovery and finally into decline. Descriptive statistics and three ANOVA models were used in the analysis of the data.
Findings
The distinctive profile of each value chain tier appears to have an effect on tier-specific trade credit dynamics. Overall, upstream positioned firms and small firms are likely to experience a decline in the net-trade-credit during uncertain economic times. The type of task interdependence between tiers also appears to affect trade credit dynamics in some tiers of the value chain. Furthermore, initiated by recession, certain trade credit dynamics in the value chain suggest a mechanism that transmits an increased working capital burden from customers to suppliers along the value chain.
Research limitations/implications
Results are based on survey research with a limited amount of respondents and geographical coverage, implying limited generalisability. The use of implicit measures limits the conclusiveness of the research.
Originality/value
The conventional perception of the power-based determination of trade credit policies is complemented with a value chain-related task interdependence perspective. The results of this paper also highlight that a more holistic value chain perceptive on working capital management would be more sustainable in comparison to firm-centric approaches.
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Sini Laari, Oskari Rintala, Juuso Töyli, Tomi Solakivi and Lauri Ojala
This paper aims to investigate how firms can enhance their resilience in response to the disruptions caused by the COVID-19 pandemic. Specifically, the study focuses on assessing…
Abstract
Purpose
This paper aims to investigate how firms can enhance their resilience in response to the disruptions caused by the COVID-19 pandemic. Specifically, the study focuses on assessing responsiveness as an antecedent and logistics outsourcing as a boundary condition to resilience.
Design/methodology/approach
Survey data collected from 286 manufacturing firms in Finland during 2021 are analysed to examine the relationships between supply chain responsiveness, logistics outsourcing and resilience.
Findings
Firm responsiveness is found to improve resilience, while an increasing level of logistics outsourcing weakens this relationship. Surprisingly, geographic dispersion does not significantly affect supply chain responsiveness.
Research limitations/implications
Limitations of the study include the focus on manufacturing firms in Finland and the reliance on survey data. Future research could explore additional factors influencing resilience and consider a broader range of industries and geographical regions.
Practical implications
The findings offer valuable insights for managers seeking to enhance their firms’ resilience in the face of disruptions. By understanding the importance of responsiveness and the potential drawbacks of excessive logistics outsourcing, managers can make informed decisions to improve their firms’ ability to cope with unexpected challenges.
Originality/value
This research contributes to the understanding of resilience in supply chain disruptions by addressing fundamental questions related to efficiency, responsiveness, control and complexity. By examining the interplay between responsiveness, logistics outsourcing and resilience, the study enriches the understanding of how firms can effectively navigate unexpected challenges.
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Oskari Rintala, Tomi Solakivi, Sini Laari, Juuso Töyli and Lauri Ojala
This study aims to investigate the extent to which psychological factors and the agency of decision-makers drive outsourcing decisions. Arguments based on transaction cost…
Abstract
Purpose
This study aims to investigate the extent to which psychological factors and the agency of decision-makers drive outsourcing decisions. Arguments based on transaction cost economics, the core competence approach and the theory of planned behavior are used to explain logistics outsourcing.
Design/methodology/approach
The literature was reviewed to identify constructs that are antecedents of logistics outsourcing intentions, and corresponding measures were developed. The data were gathered through a survey of supply chain professionals in Finnish manufacturing companies. A measurement model was reviewed to ensure reliability and validity and converted into a structural model for analysis. The analysis was based on partial least squares (PLS) structural equation modeling.
Findings
Supply chain managers objectively consider the characteristics of their organization's logistics identified in previous research as requiring assessment during the outsourcing process. However, and surprisingly, they also tend to rely on behavioral subjective factors such as positive attitudes, encouraging subjective norms and competence. Moreover, it seems that firms do not outsource logistics activities despite the high strategic importance of the function, but because of it.
Research limitations/implications
The constructed model is limited to the constructs chosen to represent drivers of logistics outsourcing. Further application with more samples would improve its reliability.
Practical implications
The factors proposed here with respect to assets and the capabilities of third-party partners could facilitate decision-making related to logistics outsourcing.
Originality/value
The findings emphasize the role of behavioral factors in the procurement function and therefore enhance the understanding of behavioral supply chain management.
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Sini Laari, Tomi Solakivi, Juuso Töyli and Lauri Ojala
Firms that need to address growing concerns about the environmental impact of their activities could benefit from collaborating internally and externally. The purpose of this…
Abstract
Purpose
Firms that need to address growing concerns about the environmental impact of their activities could benefit from collaborating internally and externally. The purpose of this paper is to develop and empirically test a theoretical model of the effects of internal and external environmental collaboration with customers on the firm performance of logistics service providers (LSPs).
Design/methodology/approach
Hierarchical multiple regression and generalised linear modelling are utilised to analyse 311 LSPs offering road transport services in Finland. The data set was collected from a Finnish nationwide logistics survey in 2012 and financial reports-based data.
Findings
External environmental collaboration with customers seems to be the most effective way to improve operational and financial performance, while internal environmental collaboration does not yield similar benefits.
Research limitations/implications
Research limitations include the concentrated geographic origin of the respondents and the exclusion of potential indirect effects of environmental collaboration on operational and financial performance through environmental performance.
Practical implications
Managers planning to implement environmental initiatives should extend their focus from internal operations to external partners in the supply chain.
Originality/value
This research is one of the first attempts to focus on performance outcomes with regard to the environmental activities of LSPs. The research provides quantified insights using both self-reported and financial reports-based data.
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For individual transport customers in Europe, the trend is towards smaller shipment sizes and higher frequencies. At the same time, a considerable reshaping of the transport…
Abstract
For individual transport customers in Europe, the trend is towards smaller shipment sizes and higher frequencies. At the same time, a considerable reshaping of the transport industry through mergers, acquisitions and alliances, particularly in road freight and freight forwarding industries has taken place. These changes, together with construction of new road and rail arteries, large multimodal load centers in freight transport and an ever‐increasing importance of information technology are changing the pattern of European freight transport. These issues, together with a brief look at transport policy development and implementation, and standpoints in the ongoing European Community (EC) membership negotiations are addressed in this article from a North European point of view.
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Information technology in its various forms is one key component inthe effort to increase efficiency in the transport industry. Electronicdata interchange (EDI), especially, in…
Abstract
Information technology in its various forms is one key component in the effort to increase efficiency in the transport industry. Electronic data interchange (EDI), especially, in its various forms, promises to be one of the key techniques in mastering the growing volume of information. Considers whether remotely (from the markets) situated countries will benefit after the introduction of EDI, with specific discussion of the Nordic countries. No specific data collection phase was conducted for this study, which is conceptual. However, during the last five years both researchers have conducted extensive empirical research in the field, which is covered here.
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Lotta Häkkinen, Andreas Norrman, Olli‐Pekka Hilmola and Lauri Ojala
In this article, we describe the integration of logistics after Mergers and Acquisitions (M&As) of firms within the same industry and, same industry level (i.e. horizontal M&As)…
Abstract
In this article, we describe the integration of logistics after Mergers and Acquisitions (M&As) of firms within the same industry and, same industry level (i.e. horizontal M&As). First, we present a review of the literature on M&As and conclude that operational issues, in general, and logistics issues, in particular, have received little attention. In parallel with the literature review, we conducted an exploratory survey of Swedish and Finnish manufacturers that had accomplished horizontal M&As during 1995‐2001. The aim of the survey was to find out how management perceives the importance of logistics issues in M&As and also, how difficult it is to realize synergies in logistics. Finally, we present a framework for further studies and the analysis of the interrelationship between logistics and M&As.
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