The Effects of Resource Bundling on Third-Party Logistics Providers' Performance

Abstract

This research develops and tests a model of the effects of resources bundling on third-party logistics (3PL) providers' performance. Based on data from a survey of Malaysian 3PLs, basic and advanced technology and equipment resources, knowledge and relational resources, and demand management interfaces are identified. The bundling of advanced technology, knowledge resources, and demand management interface capability are found to enhance 3PLs' customer service innovation. Similar resource bundling (excluding advanced technology) is required to achieve cost leadership. The effects of other resources on performance are mediated mainly by the demand management interface capability and knowledge resources. This is a novel attempt to justify the interaction and mediation effects of resources and capabilities on performance. The research highlights the needs for 3PL managers to focus on developing and bundling their demand management interface capability and knowledge resources in order to achieve cost leadership, and further combine advanced technology into such bundling of resources and capabilities to achieve innovation in customer service. It advances the application of resource-based view (RBV) theory in logistics research by identifying resources that play supporting roles and examining the capabilities for enhancing 3PLs' competitive performance.