The impact of third-party logistics providers' capabilities on exporters' performance

Third-party logistics (3PL) services have experienced unprecedented growth. However, we are not aware of any study that explores the relationships among logistics outsourcing, competitive advantage, and business performance. We study the mediating role of logistics outsourcing as a strategy to develop firms' capabilities in the strategy-performance relationship. Drawing on the resource-based view (RBV) of the firm, we develop a research model grounded in the outsourcing-competitive advantage-performance paradigm. We apply structural equation modeling to empirically test the model using data collected from 150 exporters in Hong Kong and the Pearl River Delta region of China. The results show that there are positive relationships among exporters' strategic orientation towards third-party logistics (3PL) providers, 3PL providers' basic and augmented capabilities, exporters' competitive advantage, and exporters' export performance. We also find that 3PL providers' augmented capabilities and exporters' competitive advantage are strong mediators, supporting the theorized model underpinned by RBV.