Classification and competition analysis of air cargo logistics providers: The case of Taiwan’s high-technology industry

This paper classifies air cargo logistics providers allowing analysis of high-technology manufacturers’ choices of providers. Data are collected from high-technology manufacturers in Taiwan’s science parks. Forwarder providers are put into three categories and nested logit model are applied to explore what service performance factors influence high-technology manufacturers when selecting third party logistics providers. Delivery is found to be the most important factor. It is found, for example, that two express providers with high levels of customer satisfaction and market share could compete more effectively by exercising differential strategies.

Research highlights
► This paper classifies air logistics providers and analyzes high-technology firms’ choice.
► Analysis of a sample of Taiwanese high-technology firms indicate that they attach importance to delivery schedules, cost, and responsiveness to their needs when selecting a third party air logistics supplier.
► Highly competitive logistics providers could compete more effectively by exercising differential strategies.