Value co-creation in an outsourcing arrangement between manufacturers and third party logistics providers: resource commitment, innovation and collaboration

Sinkovics, R. R. , Kuivalainen, O. and Roath, A. S. (2018) Value co-creation in an outsourcing arrangement between manufacturers and third party logistics providers: resource commitment, innovation and collaboration. Journal of Business and Industrial Marketing, 33(4), pp. 563-573. (doi: 10.1108/JBIM-03-2017-0082)

Abstract

Purpose – This paper aims to explore value co-creation between manufacturing firms and third-party logistics providers (3PLs). The specific focus is on resources and value co-creation with the aim to examine a set of relationships among the 3PL’s resource commitment, collaboration and innovation, and their performance outcomes. Design/methodology/approach – Survey data consisting of 142 UK manufacturing firms are used to study the 3PL and manufacturing customer value co-creation. The confirmatory factor model (CFA) and subsequent structural equation model were tested using EQS 6.1. Findings – The findings show that collaboration between the manufacturers and the 3PLs mediates the relationship between resource commitment and innovation, and performance. 3PLs are becoming much more of a collaborative partner which support the idea of value co-creation strategy. Research limitations/implications – The study is cross-sectional; temporal evolution of value co-creation should be studied in the future. Practical implications – When manufacturers and 3PLs collaborate to target efforts strategically, the 3PL’s resource commitment can be directed towards the development of new innovative approaches. Originality/value – The study contributes to the discussion of forms of co-creation, and theoretical frameworks which would enable us to understand how customers and other actors engage with the companies in collaborative value creation activities.

• Item Type: Articles
• Keywords: Performance, Innovation, Collaboration, Outsourcing, Value co-creation, Resource commitment, CB-SEM
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Sinkovics, Professor Rudolf
• Authors: Sinkovics, R. R., Kuivalainen, O., and Roath, A. S.
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Journal Name: Journal of Business and Industrial Marketing
• Publisher: Emerald
• ISSN: 0885-8624
• Published Online: 08 May 2018
• Copyright Holders: Copyright © 2018 Emerald Publishing Limited
• First Published: First published in Journal of Business and Industrial Marketing 33(4): 563-573
• Publisher Policy: Reproduced in accordance with the publisher copyright policy