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

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

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.

Citation

Sinkovics, R. R., Kuivalainen, O., & 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 & Industrial Marketing, 33(4), 563-573. https://doi.org/10.1108/JBIM-03-2017-0082

• Journal Article Type: Article
• Online Publication Date: May 8, 2018
• Publication Date: May 8, 2018
• Deposit Date: Sep 16, 2024
• Journal: Journal of Business & Industrial Marketing
• Print ISSN: 0885-8624
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 33
• Issue: 4
• Pages: 563-573
• DOI: https://doi.org/10.1108/JBIM-03-2017-0082
• Keywords: Performance, Innovation, Collaboration, Outsourcing, Value co-creation, Resource commitment, CB-SEM
• Public URL: https://durham-repository.worktribe.com/output/2773182