Tarik Saikouk, Nejib Fattam, Gunasekaran Angappa and Ahmed Hamdi
This paper aims to identify and explain the link between relational dynamics and the development of coordination capabilities of Fourth-Party Logistics Providers (4PL) within a…
Abstract
Purpose
This paper aims to identify and explain the link between relational dynamics and the development of coordination capabilities of Fourth-Party Logistics Providers (4PL) within a supply chain (SC). We aim to demonstrate the critical role relational dynamics can play in converting trust from interpersonal to inter-organizational level and facilitate the improvement of capabilities to coordinate customer's SC activities.
Design/methodology/approach
Using semi-structured interviews with 78 logistics managers operating in 45 different logistics service providers located in France, we developed a set of propositions and built a conceptual framework. Exploratory qualitative research in the form of propositional discourse analysis (PDA) is used to develop propositions in our research to contribute to theory in supply chain management (SCM).
Findings
Results indicate that both interpersonal and inter-organizational trust is a convertible capital. Based on their dynamic interactions, these two levels of trust endow the supply chain partners with economic benefits that would otherwise be highly costly or even practically extremely difficult to achieve through complex socio-economic transactions (meso-social level).
Research limitations/implications
Future research may test our conceptual model using primary and secondary data and conduct longitudinal case studies that are necessary to triangulate our results and thus strengthen our conclusions. The prospect of adding control variables to our model would be of considerable importance.
Practical implications
Our results suggest that “4PL” need to invest more in interpersonal relations to facilitate collaboration with their clients and enhance their capability to coordinate and manage customer's supply chain activities. The ability to convert interpersonal trust represents an invaluable capital contributing to the achievement of above-normal profits.
Originality/value
This work contributes to a better understanding of the coordination of supply chain activities through the development, mobilization and maintenance of social capital. While previous research explained the importance of trust in SCM, this paper explores and studies the process of converting interpersonal trust into social capital mobilized at the supply chain level. We add to the existing literature on structural and relational dimensions of social capital by offering a process-based explanation of the conversion of interpersonal trust into inter-organizational trust and its role in facilitating collaboration in logistics services.
Details
Keywords
Nejib Fattam, Tarik Saikouk, Ahmed Hamdi, Alan Win and Ismail Badraoui
This paper aims to elaborate on current research on fourth party logistics “4PL” by offering a taxonomy that provides a deeper understanding of 4PL service offerings, thus drawing…
Abstract
Purpose
This paper aims to elaborate on current research on fourth party logistics “4PL” by offering a taxonomy that provides a deeper understanding of 4PL service offerings, thus drawing clear frontiers between existing 4PL business models.
Design/methodology/approach
The authors collected data using semi-structured interviews conducted with 60 logistics executives working in 44 “4PL” providers located in France. Using automatic analysis of textual data, the authors combined spatial visualisation, clustering analysis and hierarchical descending classification to generate the taxonomy.
Findings
Two key dimensions emerged, allowing the authors to clearly identify and distinguish four 4PL business models: the level of reliance on interpersonal relationships and the level of involvement in 4PL service offering. As a result, 4PL providers fall under one of the following business models in the taxonomy: (1) The Metronome, (2) The Architect, (3) The Nostalgic and (4) The Minimalist.
Research limitations/implications
The study focuses on investigating 4PL providers located in France; thus, future studies should explore the classification of 4PL business models across different cultural contexts and social structures.
Practical implications
The findings offer valuable managerial insights for logistics executives and clients of 4PL to better orient their needs, the negotiations and the contracting process with 4PLs.
Originality/value
Using a Lexicometric analysis, the authors develop taxonomy of 4PL service providers based on empirical evidence from logistics executives; the work addresses the existing confusion regarding the conceptualisation of 4PL firms with other types of logistical providers and the role of in/formal interpersonal relationships in the logistical intermediation.