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This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The purpose of this paper is to examine whether the two markets have become more similar or whether their logistics costs and logistics markets have developed differently over time.

The development of the logistics market is addressed through two survey-based variables. Logistics costs are used to measure the size of the logistics market, whereas logistics outsourcing is analyzed to measure the development phase as well as the market potential for logistics service provision.

Estonian logistics outsourcing market was found to be underdeveloped and small compared to the Finnish market. At the same time, the logistics costs of Finnish companies are high and rising, whereas the costs of Estonian firms are declining.

The results imply that the level of outsourcing might explain the visibility of logistics costs, which should be taken into account when making estimates on logistics costs both at the firm as well as on country level.

Logistics sector is an important source of national competitiveness and employment. This research identifies subareas for the two countries on how to develop competitiveness through the logistics market.

This research provides a unique method to estimate the size of logistics outsourcing market in these two countries. It also represents as one of the rare works to provide multiyear comparison between countries in logistics costs.

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.

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.

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.

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.

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.

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.

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.

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.

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.

The constructed model is limited to the constructs chosen to represent drivers of logistics outsourcing. Further application with more samples would improve its reliability.

The factors proposed here with respect to assets and the capabilities of third-party partners could facilitate decision-making related to logistics outsourcing.

The findings emphasize the role of behavioral factors in the procurement function and therefore enhance the understanding of behavioral supply chain management.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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 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.

Managers planning to implement environmental initiatives should extend their focus from internal operations to external partners in the supply chain.

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.

The purpose of this paper is to explore the current state of and future expectations concerning the usage of the outsourcing of logistics operations in small‐ and medium‐sized enterprises (SMEs), and to analyse and quantify the relationships between logistics outsourcing, costs and performance, financial performance, and the company context.

The data were 223 manufacturing and trading SMEs from the Finnish logistics survey combined with detailed financial report‐based data, both referring to the year 2008. Statistical analyses including ANOVA and factor analysis were applied.

Transport activities are excessively outsourced. Most companies report no outsourcing of order processing and invoicing, and half of them have not outsourced logistics IT systems. Outsourcing is expected to grow in all areas with strongest expectations in materials management, value‐added services, and in IT. The logistics costs for companies engaging in the medium level of outsourcing could be higher than those of other companies. Further research is needed to confirm this finding. No loss or gain in logistics performance due to outsourcing was observed. The more the companies are engaged in outsourcing, the more they monitor as well as collaborate internally and externally, or vice versa. In general, the results imply that management should not expect automatic gains from logistics outsourcing, and should rather analyse the company‐specific characteristics that support or in some cases suffer from the outsourcing decision.

The article explores logistics outsourcing in SMEs combining financial report data with self‐reported measures. It analyses and quantifies the relationship of logistics outsourcing to logistics costs, financial performance, logistics performance, and company context.

The purpose of this paper is to find out the current SCM skill development priorities in manufacturing firms and how the structural properties of the supply chain translate into demand for SCM skills in manufacturing firms.

An internet survey was designed and conducted. The responses of 154 manufacturing companies operating in Finland were analysed through descriptive statistics and regression analyses.

The supply chain management skills with an inter‐organisational focus tend to have a higher development priority than the skills with an intra‐organisational focus. The top five skills for development are: demand forecasting and supply planning; sourcing and supplier management; customer and distribution channel management; production planning and control; and information systems for logistics and production planning. Structural properties of the supply chain seem to have an effect on skills that are related to supply chain design and information flow infrastructure, i.e. the ability to locate the various nodes in the network, and to connect and coordinate their respective activities in the face of often uncertain demand.

The results are based on survey research with a limited sample size and geographic coverage with bias towards large firms. The research scope is further limited to investigating the influence of structural properties of the supply chain, leaving opportunities for further research on the demand for SCM skills.

The authors report original findings that provide input to the development processes of training programmes and university curricula, related to supply chain management. They also initiate theory development on the determinants of demand for SCM skills.

This article aims to quantify and analyse empirically how the geographic dispersion of a firm's supply chain impacts on intra‐firm supply chain performance.

Generalised linear modelling is utilised to analyse a sample of 95 large manufacturing companies operating in Finland.

Results indicate that the increased geographic dispersion of the upstream supply chain results in higher costs of warehousing and logistics administration. On the downstream side, inventory costs, inventory days of supply, and cash‐to‐cash cycle time tend to increase due to geographically dispersed sales network. Increased geographic dispersion in the upstream and downstream supply chain results in the decline of perfect orders, and increases order fulfilment cycle time. However, the increased dispersion of the production network reduces order fulfilment cycle time. The results also indicate that the larger the firm, the better it can alleviate the negative implications of dispersion on perfect order fulfilment. Make‐to‐stock companies suffer less from the supply chain dispersion related delays in comparison to companies that utilise more pull‐type production and inventory strategies.

Research limitations include the cross‐sectional nature of the data, the concentrated geographic origin of the respondents, and the small sample size.

Building on the multidisciplinary body of prior literature on geographic dispersion, the research provides quantified insights into the general principles of international supply chain design in the presence of a performance related trade‐off between the dispersion and centralisation of operations across the tiers of the supply chain. Contributions are made to the discussions on supply chain complexity, international sales portfolio diversification and international purchasing.