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

Rudolf R. Sinkovics, Olli Kuivalainen, Anthony S. Roath

Research output: Contribution to journalArticle

12 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)563-573
Number of pages11
JournalJournal of Business and Industrial Marketing
Volume33
Issue number4
DOIs
Publication statusPublished - 8 May 2018

Keywords

  • Collaboration
  • Innovation
  • Outsourcing
  • Performance
  • Resource commitment
  • Value co-creation

ASJC Scopus subject areas

  • Business and International Management
  • Marketing

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