A qualitative study on evolution of relationships between third-party logistics providers and customers into strategic alliances

Abstract

Purpose

The purpose of this exploratory study is to highlight the stages in the relationship which eventually lead to an integrated logistics alliance.

Design/methodology/approach

The stages involved in the evolutionary process have been explained with the help of concepts of mental models and knowledge-related asymmetries. The study has been justified by applying multiple case research design which involves examples of successful logistics alliances.

Findings

The analysis using case study approach provides a detailed overview how third-party logistics providers develop successful relationships with different industry firms over a period of time which eventually lead to innovations benefiting both the partners.

Research limitations/implications

In the paper, a qualitative case study methodology has been adopted which is limited in nature when compared to quantitative approach. Nevertheless, the multiple cases discussed in the paper involve organizations from diverse sectors thus providing a holistic perspective and adding value to the current strategic alliance literature.

Practical implications

The complete understanding of the concepts discussed in this paper will help companies revisit their business strategies and identify areas of improvements in their current engagement practices with third-party logistics providers.

Originality/value

Many a time, relationships fail to develop into an alliance and research related to the attributes causing these failures might be limited. In the past, though many papers have talked about strategic alliances between third-party logistics providers and customers, little has been discussed about how such relationships evolve into successful strategic alliances.

Citation

Sharma, S. and Ghosh Choudhury, A. (2014), "A qualitative study on evolution of relationships between third-party logistics providers and customers into strategic alliances", Strategic Outsourcing: An International Journal, Vol. 7 No. 1, pp. 2-17. https://doi.org/10.1108/SO-08-2013-0015