Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives

Purpose: This paper aims to examine the opportunity for third-party logistics providers (3PLs) to develop further value-added services for their clients, focused on purchasing. The provider perspectives on third-party purchase (3PP) services are examined in conjunction with their business environmen...

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Main Authors: Shi, Y., Arthanari, T., Wood, Lincoln
Format: Journal Article
Published: 2017
Online Access:http://hdl.handle.net/20.500.11937/53724
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author Shi, Y.
Arthanari, T.
Wood, Lincoln
author_facet Shi, Y.
Arthanari, T.
Wood, Lincoln
author_sort Shi, Y.
building Curtin Institutional Repository
collection Online Access
description Purpose: This paper aims to examine the opportunity for third-party logistics providers (3PLs) to develop further value-added services for their clients, focused on purchasing. The provider perspectives on third-party purchase (3PP) services are examined in conjunction with their business environment, with a survey informed by transaction cost economics. Design/methodology/approach: New Zealand 3PL providers were surveyed, and 166 responses were received. Structural equation modeling was used to test the conceptual model. Findings: From the perspective of 3PL providers, uncertainty, frequency and transaction size, but not asset specificity, are significantly associated with client value from a 3PP service. While asset specificity in investments is not required by 3PLs, they need a high frequency of orders, sufficient order size and low levels of uncertainty as supporting conditions for the development of 3PP services. Research limitations/implications: The sample focuses on 3PL providers and therefore does not address the behavioral characteristics of users or customers of the services. Originality/value: This study shows that 3PP services may be further developed by 3PL providers to improve the value offered to their clients.
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spelling curtin-20.500.11937-537242017-11-16T06:47:54Z Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives Shi, Y. Arthanari, T. Wood, Lincoln Purpose: This paper aims to examine the opportunity for third-party logistics providers (3PLs) to develop further value-added services for their clients, focused on purchasing. The provider perspectives on third-party purchase (3PP) services are examined in conjunction with their business environment, with a survey informed by transaction cost economics. Design/methodology/approach: New Zealand 3PL providers were surveyed, and 166 responses were received. Structural equation modeling was used to test the conceptual model. Findings: From the perspective of 3PL providers, uncertainty, frequency and transaction size, but not asset specificity, are significantly associated with client value from a 3PP service. While asset specificity in investments is not required by 3PLs, they need a high frequency of orders, sufficient order size and low levels of uncertainty as supporting conditions for the development of 3PP services. Research limitations/implications: The sample focuses on 3PL providers and therefore does not address the behavioral characteristics of users or customers of the services. Originality/value: This study shows that 3PP services may be further developed by 3PL providers to improve the value offered to their clients. 2017 Journal Article http://hdl.handle.net/20.500.11937/53724 10.1108/SCM-06-2016-0189 fulltext
spellingShingle Shi, Y.
Arthanari, T.
Wood, Lincoln
Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives
title Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives
title_full Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives
title_fullStr Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives
title_full_unstemmed Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives
title_short Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives
title_sort developing third-party purchase (3pp) services: new zealand third-party logistics providers’ perspectives
url http://hdl.handle.net/20.500.11937/53724