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The International Journal of Logistics ManagementA comparison of the effect of logistic strategy and logistics integration on firmcompetitiveness in the USA and ChinaJohn E. Spillan Michael A. McGinnis Ali Kara George Liu Yi
Article information:To cite this document:John E. Spillan Michael A. McGinnis Ali Kara George Liu Yi, (2013),"A comparison of the effect of logisticstrategy and logistics integration on firm competitiveness in the USA and China", The International Journalof Logistics Management, Vol. 24 Iss 2 pp. 153 - 179Permanent link to this document:http://dx.doi.org/10.1108/IJLM-06-2012-0045
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Users who downloaded this article also downloaded:Martha C. Cooper, Douglas M. Lambert, Janus D. Pagh, (1997),"Supply Chain Management: More Thana New Name for Logistics", The International Journal of Logistics Management, Vol. 8 Iss 1 pp. 1-14 http://dx.doi.org/10.1108/09574099710805556Divesh Ojha, Peter T. Gianiodis, Ila Manuj, (2013),"Impact of logistical business continuity planning onoperational capabilities and financial performance", The International Journal of Logistics Management, Vol.24 Iss 2 pp. 180-209 http://dx.doi.org/10.1108/IJLM-06-2012-0049Mahour Mellat-Parast, John E. Spillan, (2014),"Logistics and supply chain process integration as a source ofcompetitive advantage: An empirical analysis", The International Journal of Logistics Management, Vol. 25Iss 2 pp. 289-314 http://dx.doi.org/10.1108/IJLM-07-2012-0066
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A comparison of the effect oflogistic strategy and logistics
integration on firmcompetitiveness in the
USA and ChinaJohn E. Spillan
School of Business, University of North Carolina at Pembroke, Pembroke,North Carolina, USA
Michael A. McGinnisThe Pennsylvania State University, New Kensington, Pennsylvania, USA
Ali KaraBusiness Administration, The Pennsylvania State University, York,
Pennsylvania, USA, and
George Liu YiSchool of Economics and Management, Xian Shiyou University, Xian, China
Abstract
Purpose The purpose of this manuscript is to empirically compare logistics strategies in Chineseand US manufacturing firms and the outcomes of these strategies to test the underlying factorstructure and measurement equivalences of Bowersox/Daugherty model and its relationship withcritical success factors.Design/methodology/approach A structured questionnaire was used to gather data fromChinese and American logistics managers. Using confirmatory factor analysis (CFA), the authorscompared the three dimensions of the overall logistics strategy (OLS) process strategy, marketstrategy, and information strategy in two countries. A structural equation model (SEM) was thenused to assess the impact of OLS on perceived competitiveness in two countries.Findings Although the economic, political, and cultural dimensions of the two countries differedsubstantially, the findings were similar. Data from both countries provided strong support for the threedimensions of overall logistic strategy (OLS). In addition, it was found that OLS, when combined withlogistics coordination effectiveness (LCE) and customer service effectiveness (CSE), contributes toorganizational effectiveness (COMP).Practical implications This research provides insights into comparative logistics in two largedisparate economies and provides support for the Bowersox/Daugherty logistics/supply chainmanagement typology.Originality/value This manuscript provides insights into comparative logistics/supply chainmanagement that have not been previously reported through empirical research.
Keywords Logistics strategy, Logistics process integration, Logistics information integration,Competitive advantage, Comparative logistics/supply chain management, Distribution management,Supply chain management, United States of America, China
Paper type Research paper
IntroductionThe significance of logistics has evolved from a more passive and cost minimizationoriented activity to a key success factor for firm competitiveness. More recently it has
The current issue and full text archive of this journal is available atwww.emeraldinsight.com/0957-4093.htm
Received 18 June 2012Revised 29 November 2012
Accepted 1 March 2013
The International Journal of LogisticsManagement
Vol. 24 No. 2, 2013pp. 153-179
r Emerald Group Publishing Limited0957-4093
DOI 10.1108/IJLM-06-2012-0045
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become an integral part of a firms strategic planning process (Carter et al., 1997).Highly globalized market environments now offer significant opportunities formultinational companies to move their manufacturing and distribution activitiesthroughout the world especially among developing and emerging markets. Evenwithin this context researchers argue that the global manufacturing strategies alonemay not be effective if not supported by successful logistics/supply-chain managementstrategies. While basic logistics decisions mainly deal with physical movement ofthe products, Bowersox and Daugherty (1987) emphasized adoption of a morecomprehensive framework for logistics strategy that includes cost management,a focus on simplifying transactions faced by customers, and information exchangethroughout the channel.
Logistics is a critical success factor in international markets because of the differentcultural, legal, physical, and distribution environments. As such, cross-culturallogistics studies have significant potential to enrich the understanding forpractitioners, teachers, and researchers in terms of logistics systems and strategiesthat can be applied as a factor in a firms competitiveness in different nationalenvironments. In comparison to cross-cultural research in other disciplines, such asmanagement and marketing, Luo et al.s (2001) review suggests that the cross-culturalstudy of logistics is, at best, in its infancy stage. Two more recent studies have includedChinese subjects to examine supply-chain management operationalize internal andexternal integration. In the first study, Chen et al. (2009b) used Chinese subjects intheir research to conceptualize internal and external supply-chain management. Theyconcluded that internal process integration facilitates external process integration,which in turn increases firm performance. A simplified model was proposed asa possible model for future research. In the second study, Chen et al. (2009a) used USAand Chinese subjects to further examined the potential of a process-orientedprospective. They found that a combination of cost orientation and customerorientation have a greater impact on supply-chain integration than either doesindividually, and this process integration impacts firm performance by impactingefficiency, effectiveness, and integration. A final observation of the Chen et al. (2009a)study was that Chinese and American subjects fundamentally agreed about the natureof supply-chain integration.
The aforementioned studies relate to a thread of research that focusses onstrategy-structure-process (SSP) as an approach to understanding supply-chainmanagement. In another study, Rodrigues et al. (2004) used empirical data to assessinformation systems, measurement systems, and internal operations integration.These authors concluded that integrated systems and integrated measurementsystems contributed to internal operations integration, and that integratedmeasurement systems contributed to external operations integration. Defee andStank (2005) also used the SSP literature to postulate an internal supply-chainenvironmental model and suggested that future research test that model. Rai et al.(2006) based their research on an information technology (IT) model that focussedon supply-chain management IT and process integration to enhance firm performance.Results supported the research model.
Kim (2006) also used a SSP approach to assess supply-chain capability andcorporate competitiveness in South Korea. It was concluded that supply-chainintegration is an intervening variable that leads to improved firm performance, andthat close alignment with the supply-chain is crucial even when the firms competitiveand supply-chain capabilities are strong. Agans (2011) research sought to assess
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causal models that explain supply-chain integration, and how supply-chain integrationwill improve performance. It was concluded that supply-chain integration can be asource of competitive advantage but that an IT and a market orientation are requiredfor achieving supply-chain integration.
A second stream of research was inspired by the earlier work of Bowersox andDaugherty (1987). Both streams of research offer insights into the issues raised byStock (2002), namely that logistics (and supply-chain) management needs to developtheory-like generalizations and examine interfaces and roles of logistics (and supply-chain) management within the organization and among supply-chain members. Todate insights into the management of logistics/supply-chain management havegenerally focussed on two broad approaches, a relatively structured approach assuggested by Bowersox and Daugherty and subsequent research as well as a processapproach as suggested in the SSP framework. Both approaches offer insights intothe issues raised by Stock (2002).
The goal of this manuscript is to review ongoing series of studies that assesslogistics/supply-chain management strategies in different countries and thenempirically compare Chinese and US logistics/supply-chain management strategies.As shown by earlier research by Chen et al. (2009a,b), and Kim (2006) the processapproach to cross-cultural logistics/supply-chain management has potential. In thesubsequent paragraphs, the authors identify additional research among cross-culturallogistics/supply-chain management domains. Additionally, they provide comparativestudies regarding various aspects of Chinese and American logistics/supply-chainmanagement strategy.
Two recent studies (Kohn et al., 2011; McGinnis et al., 2012) investigate the role ofoverall logistics strategy (OLS) on logistics coordination effectiveness (LCE), customerservice effectiveness (CSE), and organizational competitive responsiveness. Usingmulti-year data collected in the USA, and multi-country data collected from Turkeyand Guatemala, their findings showed that overall logistic strategy as conceptualizedby the Bowersox/Daugherty dimensions, had significant effect on a firms competitivenessthrough logistics coordination and customer service paths. Validating the results ofthese studies in Chinas large economy should be critically valuable for practitionersand researchers alike. How well does the OLS apply to large emerging Chinese marketenvironments? This important empirical question is the focus of the research reportedin this manuscript.
The manuscript is organized into the following six sections. The next sectionprovides an overview of the characteristics of the USA and China. Next, empiricalliterature relevant to logistics/supply-chain management strategy and cross-culturalresearch is reviewed. The following two sections describe the research methodologyand the analysis and results. The final two sections discuss the relevance andimplications of this research and then provide suggestions for future research.
Two different contexts: China and the USAChina is the longest lasting continuous civilization in the world from ancient times,with evidence of farming dating back to 7000 BC and written records dating from2100 BC. Much of Chinas history can be described as a series of dynasties withalternating periods of political harmony and disharmony. Modern Chinese historydates from the Republic of China in 1912 following the upraising of 1911. The periodfrom 1911 to 1949 is characterized by internal political strife, civil war, theSino-Japanese War (which became part of second World War), and continuing civil war,
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which ended with the Chinese Communist victory and establishment of the PeoplesRepublic of China.
Although some signs of slowing down have recently been observed, Chinaseconomy has been growing at nearly double-digit rate during the last three decades.With its large population and fast economic growth rate, China has become a populardestination for manufacturing and distribution (Wang et al., 2006). Logistics anddistribution in China have also grown rapidly as a result of significant expansionof manufacturing and marketing activities by multinational companies. Although thelogistics infrastructure in China has been insufficient, recent developments and effortsby the government to encourage investment into the logistics industry have resulted insignificant improvements. The period from 1949 included involvement in a regionalwar from 1950 to 1953, internal struggles including the Great Leap Forward andthe Cultural Revolution, and a transition from a planned economy to marketsocialism. The foundation of current Chinese economic thought policy is the fourmodernizations which were formerly pronounced in 1976. The four modernizationsfocus on agriculture, industry, science and technology, and national defense. To a largeextent, in the authors opinion, the four modernizations are the basis for currentChinese business practices and the foundation for understanding the context of theresearch presented in this manuscript.
Prior to 1978, China had a three tiered distribution system ( Jiang and Prater, 2002).Within this arrangement, only the state owned wholesalers could provide logisticalservices. Their activities were limited to only warehousing and delivery. Essentially thethree-tiered system looked like this: first, Tier 1 distribution and delivery for largecities like Shanghai and other large designated cities; second, Tier 2 distributionsuppliers were located in provincial capitals and medium size cities. Within in thesearea there were regional distribution mechanisms where goods were stored andtransported to major urban areas; and third, Tier 3 distribution sites that operatedin smaller towns and cities and provided storage and delivery to retailers ( Jiang andPrater, 2002).
The tiered system was very bureaucratic and its operation limited the flows indistribution of goods and the connections with other distribution networks associatedwith the tier system. Consumer satisfaction was not a priority in this system. Gettinggoods to a point and distributing them was the main focus. The three-tiered systemhas evolved and a commodity circulation system has emerged where the government/state was involved but began to allow private enterprises to operate ( Jiang and Prater,2002). In 1984 businesses were given more autonomy and regulations were loosened.Distributors and manufacturers could now participate in the import/export activities.This enabled China to play an increasingly important role in world commerce. Chinasjoining the World Trade Organization (WTO) in 2001 eliminated some restrictions onforeign logistics investment and opened opportunities for free access to supply-chainmanagement system implementation. By 2005 all restrictions had been eliminated andthe economy was opened to a wide range of international and domestic commercialactivity. This permitted major expansions of logistical and distribution activitiesamong private, foreign, and local enterprises (Kearney, 2010). China is presentlypositioned for major growth in the supply-chain area over the next five years. Severalcompanies have begun developing more innovative strategies, which will providecompetitive advantages in the dynamic Chinese economy.
Compared to China, the USA has a well-established network of logistics systems.Economic deregulation of the transportation and warehousing industries during the
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late 1970s and early 1980s provide the opportunity for the blending of transportation,warehousing, and distribution activities so that a wide range of third-party logistics(3PL) could develop to facilitate the coordination of logistics activities throughoutthe supply chain. This resulted in the emergence of supply-chain management as aconcept that expanded on the concept of logistics management. In comparison toChina, the USA has a well-developed and integrated logistics network whose majorweaknesses are and aging infrastructure and is slow to adapt to changing markets anddistribution patterns.
However, Chinas supply-chain management industry is in early stages ofdevelopment, with fragmented and uncoordinated logistical activities that need to berationalized (Kearney, 2010). Executives have a great deal of interest in establishingstrategic logistical areas in China because they offer competitive advantage for thosewho participate (Kearney, 2010). Nearly all have the transportation and logisticaloperations in China are directing their efforts toward growth and meeting customerneeds. Many recognize that the establishment of information technology management(ITM) has become the central component in the success of the SCM in China and therewill continue to be a concerted effort to make ITM a critical component of the SCM( Jiang and Prater, 2002).
China has a shortage of logistics and supply-chain management expertise. Thiscoupled with an inadequate supply chain and logistical infrastructure and a lack of askilled workforce poses a significant challenge for future development (Kam et al.,2010). Both opportunities and threats exist but if the recent past is prologue, Chinawill move diligently forward and overcome its supply-chain management obstaclesand become a force in supply-chain management and the distribution of goods in worldmarkets. In contrast, the USA is a well-established, large, and dynamic economy.
When compared to China, the USA is a relatively new civilization with a relativelywell-established history of business practice. Business practice evolved largely fromEnglish Common Law and has been legislatively modified beginning in the late1800s. Moreover, the USA has evolved from primarily an agricultural society to amanufacturing focussed nation, and then to a service economy beginning in themid-1800s, industrialization occurred during the last half of the 1800s and early 1900s.The major change in the US economic power was a result of Second World War. By1945 most of Europes industrial base had been devastated by war, lost as warreparations (in the case of Germany), worn out (in the case of Great Britain), relocateddue to invasion and heavily focussed on military output (in the case of the USSR).In Asia, China was wrought with civil war, Japans economic base had been destroyed,and most European colonies were struggling for (or after) independence. Of theSecond World War participants, the only country to emerge with a first-rate, modern,undamaged, economic base was the USA. This resulted in the emergence of the USAas the strongest economic power in the world. This dominance continued throughthe 1950s and began to decline during the 1960s, 1970s, and 1980s as other nationsrecovered from the devastation of Second World War.
Besides the different histories of political and economic development, China, and theUSA vary in population (Chinas is over four times as large), percentage of urbanpopulation (the US is much greater), makeup of the labor force (a greater percentage ofthe US workforce is in services oriented and less is in manufacturing and agricultural),gross domestic product, and the corruption levels. Table I summarizes these results.
In addition, the cultural dimensions of these two largest economies of the worlddiffer. As shown in Table II, the cultures of China and the USA differ in many ways,
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and are similar in one way. In general, the USA culture is known to be low on powerdistance (less tolerant of unequally distributed power), high on uncertainty avoidance(more comfortable in unstructured situations), high on individualism (more likely to beconcerned with self rather than group), and low on long-term orientation (emphasison quick results rather than long-term goals). Both Chinese and US cultures aresimilar on masculinity/femininity (success driven rather concerns for caring and thequality of life).
The aforementioned discussion illustrates that the contrast between Chinese andUSA is striking. On one hand China has emerged, as a strong economic power in a fewdecades while the USA has been a dominant economic power for over half a century.Furthermore, the cultures of the two countries are considerably different. Theconsequence of these differences means that any comparisons of commercial practicesbetween these two large disparate economies could provide insights into practices thatare either common across economies and cultures or unique to countries with disparateeconomic histories and cultures.
In summary, China is a large economy that is rapidly growing but lacks the highestlevel of managerial sophistication and the other, the USA, is a large economy that ismature with a high level of sophistication. Comparing the logistics strategies of thesetwo large, but different, countries could provide insights into concepts in logistics/supply-chain management strategy that are widespread across cultures. It canalso provide an explanation or understanding those concepts that are likely to beidiosyncratic to specific countries.
The balance of manuscript empirically compares logistics strategies in China andthe USA. It is organized into four sections. The literature review examines theempirical literature relative to the Bowersox/Daugherty typology and perspectiveson Chinese logistics. The research methodology portion of the manuscript discusses of
Category China USA
Area (sq km/sq miles) 9,596,961 (slightly smallerthan the USA)
9,826,675/3,807,983
Population 1,343,239,923 est. 313,847,465 est.Percentage of population urban 47% (2010) 82%Make up of labor force Agriculture: 10.1% industry:
46.8% services: 43.1%Agriculture: 0.7% industry:20.3% services: 79.1%
Gross domestic product $6.989 trillion est. $15.06 trillion est.Climate Extremely diverse VariedRailroads (km/miles) 86,000/53,439 224,792/139,683Paved roads (km/miles) 3,056,300/1,899,147 4,374,784/2,718,4382011 Public-Sector CorruptionIndex. An indication ofdomestic public corruption
3.6: 75 of 182 countries. Highernumber 4less corrupt
7.1: 24 of 182 countries
2011 Bribery Payers Index. Anindex of likelihood to bribe inhost countries when engagingin international trade.
6.5: 27 of 28 countries. BetweenRussia and Mexico highernumber 4less bribery in theprivate sector
8.1: 10 of 28 countiesComparable to Franceand Singapore
Sources: Categories Area through Paved Roads: US Central Intelligence Agency (2012);Categories 2011 Public-sector Corruption Index and 2011 Bribery Index: TransparencyInternational (2012)
Table I.Selected comparisonsof the USA and China
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data collection techniques in both countries and the potentials and challenges of each.The data analysis and results section assesses the results of the analysis and identifiessimilarities and differences between the two countries. The discussion and conclusionsection relates the results to the literature review and presents the conclusions ofthe research. The final section, relevance addresses the significance of the findingsfor logistics/supply-chain management practitioners, researchers, and teachers; anddiscusses the implications for logistics/supply-chain theory.
Literature reviewA review of the literature has identified 11 studies that demonstrated a progression ofthought and analysis regarding the Bowersox/Daugherty typology and provided afoundation for the research reported in this manuscript are reviewed in the followingparagraphs. These 11 studies, and eight additional studies discussed earlier aresummarized in Table III.
Example attributesDimension name andbrief description Low score High score
Dimension scoresUS/Chinese
subjectsa
Power distance: theextent that those lesspowerful accept thatpower is distributedunequally
Less concentration ofauthority, flatorganization pyramids,subordinates expect tobe consulted
More concentration ofauthority, tallorganization pyramids,subordinates expect tobe told
40/80
Uncertainty avoidance:extent to whichmembers of a culture arecomfortable oruncomfortable inunstructured situations
Company rules shouldnot be broken, moreresistance to change,suspicion of foreignersas managers
Company rules may bebroken, less resistanceto change, acceptance offoreigners as managers
46/30
Individualism andcollectivism: the degreeto which individualslook after themselves orare integrated into thegroup
Employee commitmentto organization low,personal relationshipsprevail over task andcompany, less controlover job and workingconditions
Employee commitmentto organization high,task and companyprevail over personalrelationships, morecontrol over job andworking conditions
91/20
Masculinity andfemininity: the degreetoughnesstenderness withina culture
Work to live, managersexpected to useintuition, managers holdmodest careeraspirations
Live to work, managersexpected to be decisive,managers haveambitious careeraspirations
62/66
Long v. short-termorientation: The degreeto which members of aculture delaygratification of material,social, and emotionalneeds
Quick results expected,respect for traditions,emphasis on bottom line
Persistence andperseverance, adapttraditions to newsituations, buildingof relationships andmarket position
29/118
Source: Adapted from Hofstede (2001); awww.geert-hofstede.com (accessed May 7, 2012)
Table II.Summary of hofstedes
cultural dimensions
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rth
erre
sear
chis
war
ran
ted
(con
tinu
ed)
Table III.Comparison of selectedlogistics strategy studies
160
IJLM24,2
Dow
nloa
ded
by U
nive
rsita
s Mul
timed
ia N
usan
tara
At 2
1:52
02
June
201
5 (P
T)
Au
thor
sB
ack
gro
un
dM
eth
odol
ogy
Fin
din
gs
Koh
nan
dM
cGin
nis
(199
7a,b
)T
wo
stu
die
sb
ased
onfo
llow
-up
mai
lq
ues
tion
nai
res
oflo
gis
tics
man
ager
s.P
rov
ides
add
itio
nal
insi
gh
tsin
toth
eB
ower
sox
/Dau
gh
erty
typ
olog
y
Mai
lsu
rvey
sw
ere
sen
tto
resp
ond
ents
ofa
pre
vio
us
qu
esti
onn
aire
toas
cert
ain
lon
git
ud
inal
info
rmat
ion
and
furt
her
asse
ssth
eB
ower
sox
/D
aug
her
tyty
pol
ogy
Th
efi
rst
man
usc
rip
t(1
997a
)con
clu
ded
that
log
isti
csst
rate
gy
did
not
chan
ge
dra
mat
ical
lyb
etw
een
1990
and
1994
.Th
ese
con
dm
anu
scri
pt
(199
7b)
con
clu
ded
that
two
dim
ensi
ons
app
ear
tod
escr
ibe
log
isti
csst
rate
gy.
On
ese
eks
tom
anag
elo
gis
tics
flow
s,co
ord
inat
ion
,an
dco
mp
lex
ity
wit
hin
the
firm
and
wit
hex
tern
alco
nst
itu
enci
esw
hil
eth
eot
her
isa
pro
cess
orie
nta
tion
that
effi
cien
cy,
con
trol
and
cost
red
uct
ion
Fin
ally
,man
usc
rip
t(1
997b
)con
clu
ded
that
thre
ev
aria
ble
s(c
ust
omer
serv
ice
com
mit
men
t,ef
fect
ive
log
isti
csco
ord
inat
ion
,an
dco
mp
etit
ive
resp
onsi
ven
ess)
app
ear
toaf
fect
the
lev
elof
inte
gra
tion
and
pro
cess
inte
gra
tion
Sto
ck(2
002)
Rev
iew
eda
clas
sic
mar
ket
ing
arti
cle
and
dis
cuss
edit
app
lica
bil
ity
tolo
gis
tics
Rev
iew
edth
ecl
assi
sar
ticl
eM
ark
etin
gM
yop
ia
by
Th
eod
ore
Lev
itt
and
then
dis
cuss
edit
sre
lev
ance
and
imp
lica
tion
sfo
rlo
gis
tics
thou
gh
tan
dth
eory
Tw
o,am
ong
oth
er,e
xam
ple
sof
area
sw
her
elo
gis
tics
rese
arch
cou
ldb
road
enth
ep
ersp
ecti
ve
oflo
gis
tici
ans
wer
e(a
)th
en
eed
tod
evel
opth
eory
-lik
eg
ener
aliz
atio
ns
and
con
cep
tsth
atar
eap
pli
cab
leb
eyon
dth
en
arro
w
con
fin
esof
trad
itio
nal
log
isti
cs,
and
(b)
exam
ine
the
inte
rfac
esan
dro
les
oflo
gis
tics
wit
hin
and
bet
wee
nsu
pp
lych
ain
mem
ber
sM
cGin
nis
and
Koh
n(2
002)
Tes
ted
rela
tion
ship
ofB
ower
sox
and
Dau
gh
erty
var
iab
les
wit
hL
ogis
tics
Coo
rdin
atio
nE
ffec
tiv
enes
s(L
CE
)
Mai
lq
ues
tion
nai
reto
714
log
isti
csm
anag
ers
inU
SA
man
ufa
ctu
rin
gfi
rms.
On
eh
un
dre
dan
dse
ven
ty-t
wo
(24.
1%)
usa
ble
retu
rns.
Mu
ltip
lere
gre
ssio
nan
aly
sis
was
use
dto
asse
ssin
dep
end
ent
var
iab
les
that
exp
lain
var
ian
cein
LC
E
Fac
tor
anal
ysi
sid
enti
fied
two
ind
epen
den
tv
aria
ble
s,on
eco
mp
rise
dof
Pro
cess
and
Info
rmat
ion
stra
teg
ies
(P&
IS)
the
oth
erco
nsi
stin
gof
Mar
ket
Str
ateg
y(M
S).
Bot
hin
dep
end
ent
var
iab
les
wer
esi
gn
ific
ant
and
exp
lain
ed46
.5%
ofth
ev
aria
nce
inL
CE
.T
he
auth
ors
con
clu
ded
that
pro
cess
,m
ark
et,
and
info
rmat
ion
stra
teg
ies
con
trib
ute
tolo
gis
tics
coor
din
atio
nef
fect
iven
ess.
Rec
omm
end
edfu
rth
erre
sear
chto
iden
tify
inte
ract
ion
sam
ong
pro
cess
,m
ark
et,
and
info
rmat
ion
stra
teg
ies
and
how
thes
est
rate
gie
sb
len
dto
furt
her
org
aniz
atio
nal
obje
ctiv
es
(con
tinu
ed)
Table III.
161
Logistic strategyand integration
Dow
nloa
ded
by U
nive
rsita
s Mul
timed
ia N
usan
tara
At 2
1:52
02
June
201
5 (P
T)
Au
thor
sB
ack
gro
un
dM
eth
odol
ogy
Fin
din
gs
Rod
rig
ues
etal.
(200
4)T
he
auth
ors
dev
elop
edh
yp
oth
eses
bas
edon
are
vie
wof
the
stra
teg
y-
stru
ctu
re-p
roce
ss(S
SP
)p
erfo
rman
celi
tera
ture
Dat
aw
asco
llec
ted
usi
ng
am
ail
qu
esti
onn
aire
.T
wo
hu
nd
red
and
eig
hty
fou
rre
spon
ses,
an
etre
turn
of11
.3%
.S
tru
ctu
ral
equ
atio
nm
odel
ing
(SE
M)
was
use
dto
test
the
hy
pot
hes
ized
stru
ctu
ral
mod
elan
das
sess
stru
ctu
ral
mod
elp
ath
s
Tw
oh
yp
oth
eses
con
cern
ing
rela
tion
alst
rate
gy
pos
itiv
ely
rela
ted
tod
evel
opm
ent
of(a
)in
form
atio
nsy
stem
san
d(b
)m
easu
rem
ent
syst
ems.
Tw
oh
yp
oth
eses
rela
ted
pos
itiv
ely
wit
hin
tern
alop
erat
ion
sin
teg
rati
on.
Th
eyw
ere
(c)
dev
elop
men
tan
dm
ain
ten
ance
ofin
teg
rate
dsy
stem
san
d(d
)d
evel
opm
ent
and
mai
nte
nan
ceof
inte
gra
ted
mea
sure
men
tsy
stem
s.T
he
fin
alh
yp
oth
esis
that
was
sup
por
ted
was
(e)
that
dev
elop
men
tan
dm
ain
ten
ance
ofin
teg
rate
dm
easu
rem
ent
syst
ems
pos
itiv
ely
infl
uen
ced
exte
rnal
oper
atio
ns
inte
gra
tion
Hy
pot
hes
esof
rela
tion
ship
sb
etw
een
(f)
info
rmat
ion
syst
ems
and
inte
gra
ted
exte
rnal
oper
atio
ns,
(g)
inte
gra
ted
inte
rnal
oper
atio
ns
and
log
isti
csp
erfo
rman
ce,
and
(h)
inte
gra
ted
exte
rnal
oper
atio
ns
and
log
isti
csp
erfo
rman
cew
ere
not
sup
por
ted
Th
eau
thor
sob
ject
ive
was
tofa
cili
tate
ast
rate
gic
un
der
stan
din
gof
sup
ply
chai
nm
anag
emen
td
ecis
ion
mak
ing
bas
edon
the
stra
teg
y-s
tru
ctu
re-
pro
cess
(SS
P)
lite
ratu
re
Th
eau
thor
sre
vie
wed
exte
nsi
ve
lite
ratu
reon
the
SS
Pp
arad
igm
tod
evel
opa
mod
elth
atp
osit
sth
eS
PP
rela
tion
ship
sin
sup
ply
chai
nm
anag
emen
t
Th
eau
thor
sp
ostu
late
dan
inte
rnal
sup
ply
chai
nen
vir
onm
enta
lm
odel
that
incl
ud
e(a
)S
trat
egy
g
oal
alig
nm
ent
and
com
mit
men
tto
the
sup
ply
chai
na
sou
rce
ofco
mp
etit
ive
dif
fere
nti
atio
n,
(b)
Str
uct
ure
te
chn
ical
inte
gra
tion
,co
mm
un
icat
ion
,st
and
ard
izat
ion
,d
ecis
ion
mak
ing
,an
dre
war
ds,
and
(c)
Per
form
ance
re
ven
ue
enh
ance
men
t,re
du
ctio
nof
oper
atin
gex
pen
ses,
effi
cien
cyof
wor
kin
gca
pit
al,
and
effi
cien
cyof
fix
edca
pit
al.
Th
eau
thor
sst
ate
that
futu
rere
sear
chte
stth
eel
emen
tsd
escr
ibed
ind
etai
l
(con
tinu
ed)
Table III.
162
IJLM24,2
Dow
nloa
ded
by U
nive
rsita
s Mul
timed
ia N
usan
tara
At 2
1:52
02
June
201
5 (P
T)
Au
thor
sB
ack
gro
un
dM
eth
odol
ogy
Fin
din
gs
Rai
etal.
(200
6)T
he
auth
ors
bas
eth
eir
rese
arch
onin
teg
rate
dst
ream
sof
info
rmat
ion
tech
nol
ogy
(IT
)
enab
led
cap
abil
itie
san
dor
gan
izat
ion
alli
tera
ture
.T
he
auth
ors
dev
elop
eda
mod
elth
atfo
cuse
don
ITin
teg
rati
onfo
rsu
pp
lych
ain
man
agem
ent
(SC
M)
that
focu
sed
onIT
inte
gra
tion
cap
abil
ity,
pro
cess
inte
gra
tion
cap
abil
ity,
and
firm
per
form
ance
Th
em
odel
was
test
edu
sin
ga
mai
lq
ues
tion
nai
reof
110
man
ufa
ctu
rin
gan
dre
tail
org
aniz
atio
ns.
Dat
aan
aly
sis
was
by
par
tial
leas
tsq
uar
es(P
LS
).B
oots
trap
anal
ysi
sw
asco
nd
uct
edw
ith
500
sub
sam
ple
s
Th
ere
sult
sp
rov
ided
sup
por
tfo
rth
ere
sear
chm
odel
.T
he
auth
ors
con
clu
ded
that
ITin
fras
tru
ctu
rein
teg
rati
onfo
rsu
pp
lych
ain
man
agem
ent
faci
lita
tes
SC
Man
dim
pro
ves
firm
per
form
ance
inth
ear
eas
ofop
erat
ion
alex
cell
ence
and
rev
enu
eg
row
th
Kim
(200
6)T
he
auth
orex
amin
esth
ere
lati
onsh
ipb
etw
een
sup
ply
chai
n(S
C)
cap
abil
ity
and
corp
orat
eco
mp
etit
ive
cap
abil
ity.
Th
em
anu
scri
pt
hy
pot
hes
esth
at(a
)w
hen
corp
orat
eca
pab
ilit
yan
dS
Cop
erat
ion
alca
pab
ilit
yin
tera
ctfi
rmp
erfo
rman
cew
ill
imp
rov
ean
d(b
)th
isin
tera
ctio
nw
ill
dec
reas
eas
the
lev
elof
SC
inte
gra
tion
incr
ease
s
Tw
oh
un
dre
dan
dfo
rty
-fou
r(2
44)
Kor
ean
and
thre
eh
un
dre
dan
dse
ven
ty-n
ine
(379
)or
gan
izat
ion
s.C
onfi
rmat
ory
fact
oran
aly
sis
and
reg
ress
ion
anal
ysi
sw
asu
sed
toan
aly
zeth
ed
ata
Th
ism
anu
scri
pt
con
clu
des
that
SC
inte
gra
tion
asan
inte
rven
ing
var
iab
lele
ads
toim
pro
ved
firm
per
form
ance
.It
furt
her
con
clu
ded
that
clos
eal
ign
men
tw
ith
the
sup
ply
chai
nis
ind
isp
ensa
ble
even
wh
enth
efi
rms
com
pet
itiv
ean
dS
Cca
pab
ilit
ies
are
stro
ng
Au
tryetal.
(200
8)E
mp
iric
ally
dev
elop
edlo
gis
tics
stra
teg
yta
xon
omy
Mai
lq
ues
tion
nai
reto
log
isti
csm
anag
ers
from
mu
ltip
lein
du
stri
es.
Tw
oh
un
dre
dan
dfi
fty
-fou
r(3
8.0%
)u
sab
lesu
rvey
sw
ere
rece
ived
from
668
sub
ject
s
Clu
ster
anal
ysi
sw
asu
sed
toid
enti
fytw
olo
gis
tics
stra
teg
ies:
Fu
nct
ion
alL
ogis
tics
(FL
)an
dE
xte
rnal
lyO
rien
ted
Log
isti
cs(E
OL
).R
ecom
men
ded
that
furt
her
rese
arch
inv
esti
gat
elo
gis
tics
stra
teg
y
(con
tinu
ed)
Table III.
163
Logistic strategyand integration
Dow
nloa
ded
by U
nive
rsita
s Mul
timed
ia N
usan
tara
At 2
1:52
02
June
201
5 (P
T)
Au
thor
sB
ack
gro
un
dM
eth
odol
ogy
Fin
din
gs
Ch
enetal.
(200
9)T
he
pu
rpos
eof
this
man
usc
rip
tw
asto
clar
ify
the
con
cep
tual
izat
ion
ofin
tern
alan
dex
tern
alsu
pp
lych
ain
man
agem
ent
(SC
M)
and
dev
elop
am
ore
stra
igh
t-fo
rwar
dw
ayto
oper
atio
nal
ize
the
con
cep
ts
Th
eli
tera
ture
rev
iew
exam
ined
the
inte
rnal
and
exte
rnal
per
spec
tiv
esof
sup
ply
chai
nm
anag
emen
t(S
CM
)in
teg
rati
on.
Com
pon
ents
ofb
oth
per
spec
tiv
esw
ere
iden
tifi
edas
pro
cess
con
nec
tiv
ity
an
dp
roce
sssi
mp
lifi
cati
on.
Wit
hin
this
fram
ewor
k,
the
auth
ors
pro
pos
eda
mod
elof
pro
pos
edco
nce
ptu
aliz
atio
nof
SC
Min
teg
rati
onN
ine
hu
nd
red
(900
)q
ues
tion
nai
res
wer
ead
min
iste
red
tom
anag
ers
inth
eC
hin
ese
elec
tron
ics
ind
ust
ryv
iam
aila
nd
onli
ne.
Bec
ause
ther
ew
asn
osi
gn
ific
ant
dif
fere
nce
bet
wee
nth
em
ail
(141
)an
don
lin
e(1
63)
the
resp
ond
ents
(304
)w
ere
com
bin
edfo
rp
urp
oses
ofan
aly
sis
Aft
erv
alid
atin
gth
eq
ues
tion
nai
re,
dat
aan
aly
sis
was
con
du
cted
usi
ng
con
firm
ator
yfa
ctor
anal
ysi
s(C
FA).
Wid
aman
sth
ree-
com
par
ison
-mod
elap
pro
ach
was
use
dto
test
con
ver
gen
tan
dd
iscr
imin
ate
val
idit
y.T
he
pro
pos
edco
nst
ruct
sd
emon
stra
ted
ah
igh
lev
elof
inte
rnal
con
sist
ency
reli
abil
ity
Ap
rop
osed
stru
ctu
ral
mod
elw
asd
evel
oped
wh
ere
inte
rnal
pro
cess
inte
gra
tion
(th
ere
sult
ofin
tern
alp
roce
ssco
nn
ecti
vit
yan
dsi
mp
lifi
cati
on)
resu
lts
inex
tern
alp
roce
ssin
teg
rati
on,(
resu
ltin
gfr
omex
tern
alp
roce
ssco
nn
ecti
vit
yan
dsi
mp
lifi
cati
on)
resu
lts
inin
crea
sed
firm
per
form
ance
.T
his
sim
pli
fied
mod
elis
pro
pos
edb
yth
eau
thor
sas
ap
ossi
ble
mod
elfo
rfu
ture
rese
arch
Ch
enetal.
(200
9)T
he
auth
ors
rev
iew
edre
lev
ant
lite
ratu
reon
sup
ply
chai
nin
teg
rati
onan
dp
rop
ose
ath
eore
tica
lfr
amew
ork
.T
he
lite
ratu
rere
vie
wex
amin
ed(a
)in
tern
al-e
xte
rnal
per
spec
tiv
esan
d(b
)p
roce
ssv
iew
son
sup
ply
chai
nin
teg
rati
on,
and
(c)
key
ante
ced
ents
ofsu
pp
lych
ain
pro
cess
inte
gra
tion
Tw
enty
exec
uti
ves
inth
eC
hin
ese
elec
tron
ics
ind
ust
ryw
ere
inte
rvie
wed
via
tele
ph
one
and
60U
Sex
ecu
tiv
esin
wri
tten
form
at.
Sim
ilar
open
-en
ded
qu
esti
ons
wer
eu
sed
inb
oth
inst
ance
s.O
fp
arti
cula
rin
tere
st,
the
auth
ors
not
edth
at,
even
wit
hth
ew
ord
pro
cess
w
asn
otm
enti
oned
inth
eq
ues
tion
s,b
oth
Ch
ines
ean
dU
Sre
spon
den
tsin
dic
ated
that
sup
ply
inte
gra
tion
isab
out
man
agin
gp
roce
ss
Th
eou
tcom
eof
the
rese
arch
resu
lted
inth
efo
llow
ing
pro
pos
itio
ns:
Afi
rms
(a)
cost
orie
nta
tion
and
(b)
cust
omer
orie
nta
tion
hav
ea
dir
ect
pos
itiv
eim
pac
ton
its
sup
ply
chai
np
roce
ssin
teg
rati
on,
(c)
aco
mb
inat
ion
ofco
stor
ien
tati
onan
dcu
stom
eror
ien
tati
onh
ave
ag
reat
erim
pac
ton
sup
ply
chai
nin
teg
rati
onth
anei
ther
doe
sin
div
idu
ally
,a
firm
ssu
pp
lych
ain
pro
cess
inte
gra
tion
has
ap
osit
ive
imp
act
on(d
)ef
fici
ency
,(e
)ef
fect
iven
ess,
(f)
inn
ovat
ive
cap
abil
itie
sF
inal
ly,
the
auth
ors
con
clu
ded
that
the
firm
s(g
)ef
fici
ency
,(h
)ef
fect
iven
ess,
and
(i)
inn
ovat
ive
cap
abil
itie
sh
ave
ap
osit
ive
imp
act
onfi
rmp
erfo
rman
ceT
hat
the
Ch
ines
ean
dA
mer
ican
resp
ond
ents
fun
dam
enta
lly
agre
edab
out
the
nat
ure
ofsu
pp
lyin
teg
rati
onp
rov
ided
anin
sig
ht
rele
van
tto
the
fin
din
gs
ofth
ism
anu
scri
pt.
(con
tinu
ed)
Table III.
164
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T)
Au
thor
sB
ack
gro
un
dM
eth
odol
ogy
Fin
din
gs
McG
inn
isetal.
(201
0)S
tud
ied
log
isti
csst
rate
gy
from
1990
to20
08C
omp
ared
emp
iric
ald
ata
gat
her
edin
1990
,19
94,
1999
,an
d20
08Id
enti
fied
log
isti
csst
rate
gy
clu
ster
s(i
nte
nse
and
pas
siv
e)an
dth
eir
rela
tion
ship
sto
log
isti
csst
rate
gy
outc
omes
.Con
clu
ded
that
cost
effi
cien
cyis
com
mon
tob
oth
stra
teg
ycl
ust
ers,
that
red
uci
ng
com
ple
xit
yfa
ced
by
cust
omer
san
din
ter-
and
intr
a-or
gan
izat
ion
alco
ord
inat
ion
isle
ssim
por
tan
tin
pas
siv
elo
gis
tics
stra
teg
ies.
Als
oco
ncl
ud
edth
atlo
gis
tics
coor
din
atio
nef
fect
iven
ess
and
cust
omer
serv
ice
effe
ctiv
enes
sar
eg
ood
mea
sure
sg
ood
mea
sure
log
isti
csst
rate
gy
outc
omes
Sp
illa
netal.
(201
0)E
mp
iric
ally
exam
ined
log
isti
csst
rate
gie
sof
smal
lman
ufa
ctu
rin
gto
asce
rtai
nw
het
her
they
dif
fere
dfr
omth
ose
ofla
rge
man
ufa
ctu
rin
gfi
rms
Res
ult
sfr
omn
inet
y-o
ne
resp
ond
ents
toa
mai
lq
ues
tion
nai
refr
omsm
all
man
ufa
ctu
rin
gfi
rms
wer
eco
mp
ared
tofo
rty
-nin
ere
spon
den
tsto
anel
ectr
onic
qu
esti
onn
aire
from
larg
em
anu
fact
uri
ng
firm
s
Th
ere
sult
ssu
gg
este
dth
atd
iffe
ren
ces
bet
wee
nth
elo
gis
tics
stra
teg
ies
ofsm
all
and
larg
eU
Sm
anu
fact
uri
ng
firm
sd
iffe
red
ind
egre
era
ther
than
typ
e.A
mon
got
her
resu
lts
the
mea
ns
ofp
roce
ssst
rate
gy,
mar
ket
stra
teg
y,in
form
atio
nst
rate
gy,
log
isti
csco
ord
inat
ion
effe
ctiv
enes
s,an
dco
mp
etit
iven
ess
ofsm
all
and
larg
efi
rms
did
not
dif
fer
sig
nif
ican
tly
ata
0.05
Ag
an(2
011)
Th
ism
anu
scri
pt
seek
sto
iden
tify
cau
sal
mod
els
that
wil
lex
pla
insu
pp
lych
ain
inte
gra
tion
s(S
CI)
and
how
SC
Iw
ill
imp
rov
ep
erfo
rman
ce.
Pot
enti
alen
able
rsfo
rS
CI
incl
ud
ein
form
atio
nte
chn
olog
yan
dco
mm
un
icat
ion
s,op
erat
ion
sca
pab
ilit
ies,
mar
ket
ing
cap
abil
itie
s.T
he
theo
reti
cal
per
spec
tiv
eof
reso
urc
e-b
ased
vie
w(R
BV
)
Th
efo
llow
ing
wer
eh
yp
oth
esiz
edas
bei
ng
pos
itiv
ely
rela
ted
toS
CI:
sup
ply
chai
np
artn
erse
lect
ion
and
coll
abor
atio
n,
lear
nin
gfr
omp
artn
ers,
oper
atio
ns
hu
man
reso
urc
es,
and
ITin
fras
tru
ctu
re.T
he
foll
owin
gw
ere
hy
pot
hes
ized
asb
ein
gp
osit
ivel
yre
late
dto
firm
per
form
ance
:IT
infr
astr
uct
ure
,m
ark
etor
ien
tati
on,
and
SC
I.O
ne
hu
nd
red
and
nin
etee
n(1
19)
resp
onse
sw
ere
gat
her
edth
rou
gh
aco
mb
inat
ion
ofm
ail
and
emai
lsu
rvey
s.M
ult
iple
crit
eria
wer
eu
sed
tote
stth
eh
yp
oth
esiz
edm
odel
Th
ree
hyp
oth
eses
that
wer
ep
osit
ivel
yre
late
dto
SC
Iw
ere
sup
por
ted
:col
lab
orat
ion
wit
hp
artn
ers,
ITin
fras
tru
ctu
re,a
nd
mar
ket
orie
nta
tion
.Th
ree
hyp
oth
eses
that
wer
ep
osit
ivel
yre
late
dto
firm
sp
erfo
rman
cew
ere
par
tial
lysu
pp
orte
d:I
Tin
fras
tru
ctu
re,m
ark
etor
ien
tati
on,a
nd
SC
I.T
hre
ehy
pot
hes
esth
atw
ere
pos
itiv
ely
rela
ted
toS
CI
wer
en
otsu
pp
orte
d:
sup
ply
chai
np
artn
erse
lect
ion
,lea
rnin
gfr
omp
artn
ers,
and
oper
atio
ns
hu
man
reso
urc
esT
he
auth
orco
ncl
ud
edth
atS
CI
shou
ldb
eco
nsi
der
edas
one
un
inte
rru
pte
din
teg
rati
onra
ther
than
one
sid
edF
urt
her
,th
eau
thor
con
clu
ded
that
SC
Ica
nb
ea
sou
rce
ofco
mp
etit
ive
adv
anta
ge
bu
tth
atIT
infr
astr
uct
ure
and
am
ark
etor
ien
tati
onar
ere
qu
ired
for
ach
iev
ing
SC
I
(con
tinu
ed)
Table III.
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Au
thor
sB
ack
gro
un
dM
eth
odol
ogy
Fin
din
gs
Koh
netal.
(201
1)T
his
stu
dy
furt
her
exam
ines
the
rela
tion
ship
oflo
gis
tics
stra
teg
yan
dlo
gis
tics
stra
teg
you
tcom
esu
sin
gsc
ales
bas
edon
the
Bow
erso
x/D
aug
her
tyty
pol
ogy
Dat
afr
omp
rev
iou
sem
pir
ical
rese
arch
was
anal
yze
du
sin
gco
nfi
rmat
ory
fact
oran
aly
sis
and
stru
ctu
ral
equ
atio
nm
odel
ing
toas
sess
log
isti
csst
rate
gy
and
its
rela
tion
tolo
gis
tics
stra
teg
you
tcom
es
Inte
ract
ion
sam
ong
the
var
iab
les
sug
ges
tth
atth
eth
ree
dim
ensi
ons
(Pro
cess
,Mar
ket
,an
dIn
form
atio
n)
ofth
eB
ower
sox
/Dau
gh
erty
typ
olog
yco
mp
rise
Ov
eral
lL
ogis
tics
Str
ateg
y(O
LS
).T
he
auth
ors
con
clu
ded
that
ifp
roce
ss,
mar
ket
,an
din
form
atio
nco
nce
rns
are
coor
din
ated
wit
hin
OL
Sto
the
exte
nt
that
log
isti
csco
ord
inat
ion
isef
fect
ive,
and
ther
eis
acl
ear
cust
omer
focu
s,th
enlo
gis
tics
wou
ldco
ntr
ibu
teto
org
aniz
atio
nal
com
pet
itiv
ere
spon
siv
enes
sM
cGin
nisetal.
(201
2)T
his
stu
dy
emp
iric
ally
exam
ines
log
isti
csst
rate
gy
inG
uat
emal
aan
dco
mp
ares
the
fin
din
gs
toU
Sfi
rms
Ap
rev
iou
sq
ues
tion
nai
rew
astr
ansl
ated
into
Sp
anis
han
dad
min
iste
red
by
trai
ned
inte
rvie
wer
s
Th
efu
nd
amen
tals
oflo
gis
tics
stra
teg
yin
Gu
atem
ala
wer
esi
mil
arto
US
firm
s.H
owev
er,i
tw
asfo
un
dth
atG
uat
emal
anlo
gis
tics
man
ager
sp
lace
dle
ssem
ph
asis
onp
roce
ssst
rate
gy
bu
tg
reat
erem
ph
asis
onm
ark
etan
din
form
atio
nst
rate
gie
sto
ach
iev
elo
gis
tics
coor
din
atio
nef
fect
iven
ess,
cust
omer
serv
ice
com
mit
men
t,an
dor
gan
izat
ion
alco
mp
etit
ive
resp
onsi
ven
ess
Note:
aS
een
otes
for
com
ple
teci
tati
ons
Source:
Ad
apte
dfr
omM
cGin
nisetal.
(201
2)
Table III.
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The original Bowersox and Daugherty (1987) work used personal and telephoneinterviews to identify three primary logistics thrusts namely process strategy, whichstresses cost control; market strategy, which concentrates on the reduction ofcomplexity customers face; and information strategy, which centers on thecoordination of information within the firm and throughout the channel. Within thesame general time frame McGinnis and Kohn (1990) used mail questionnaires toidentify three variables (LCE, CSE, and competitive responsiveness) that could beuseful in the empirical study of logistics and logistics strategy. These three variableshave been useful in subsequent research. All six variables are scales that have beenreplicated, appear to fit the construct name, have relevant levels of reliability, and arediscussed in detail by McGinnis et al. (2010).
The studies summarized in this Table III used variables based on the Bowersox andDaugherty (1987), and some of them also used the three dimensions identified byMcGinnis and Kohn (1990). McGinnis and Kohn (1993) identified logistics strategyclusters and determined that LCE, CSE, and company/division competitiveresponsiveness varied significantly among logistics strategies. Clinton and Closs(1997) found that process, market, and channel (information) strategies have a commonobjective in managing logistics processes, as opposed to the original Bowersox andDaugherty (1987) suggestion that advanced logistics organizations have a primaryorientation of process, market, or information.
Kohn and McGinnis (1997a, b) conducted a follow-up study to assess whether theresults from earlier work was static or dynamic. They found that logistics strategy didnot change substantially between 1990 and 1994. Additionally, two strategies wereidentified. One was a blend of the Bowersox/Daugherty dimensions market andinformation and the other was primarily process. These findings were consistent withthe previously cited work by Clinton and Closs (1997). A later study by McGinnis andKohn (2002) identified two strategies, one was a combination of process andinformation items and the other was comprised solely of market items. Autry et al.(2008) used cluster analysis with Bowersox/Daugherty-based questionnaire items toidentify two types of logistics, called functional logistics and externally orientedlogistics. They recommended that further research be conducted to investigatelogistics strategy. Taken together, the research reviewed in this paragraph suggeststhat, logistics strategy is not uni-dimensional. Rather, when using the dimensions ofthe Bowersox/Daugherty typology, logistics strategy is likely to be a blend of the threedimensions (process, market, and information) and that additional research mayprovide greater insight into the nature of logistics strategy.
McGinnis et al. (2010) compared the results of four sets of empirical data on logisticsstrategy (1990, 1994, 1999, and 2008) to assess whether changes over an eighteen-yearperiod had changed substantially. One purpose of this research was to assess whetherthe variables, and their questionnaire items, were adequately stable for continuingresearch using earlier developed variables. A second purpose of this research was toascertain whether there were any common themes in logistics strategy during theperiod studied. The results indicated that the variables were adequately stable forcontinuing research and that cost efficiency was common regardless of logisticsstrategy and that reducing the complexity customers faced (market strategy) and intra-and inter-organizational coordination (information strategy) are important in intensestrategies, but less important in passive strategies.
Previous logistics research had focussed on large organizations. Spillan et al. (2010)empirically compared logistics strategies in small and large US manufacturing firms.
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They found that logistics strategies differed in degree rather than type. While somedifferences were noted, most variables did not differ between small and large firms ata 0.05. Kohn et al. (2011) examined the interactions of the Daugherty/Bowersoxvariables (process, market, and information) and the earlier identified outcomevariables (LCE, customer service commitment, and competitive responsiveness) usingconfirmative factor analysis and structural equation modeling. The results indicatedthat a blend of process, market, and information strategies resulted in OLS. Further, theresults indicated that the components of OLS were well coordinated, and that logisticscoordination is effective and there is a clear customer focus, then logistics strategy islikely to contribute to organizational competitive responsiveness.
McGinnis et al. (2012) empirically compared logistics strategies in Guatemala andthe USA. They found that, despite substantial differences in demographics, economies,and cultures, Guatemalan logistics strategies were similar to US firm. Differenceswere modest. Guatemalan logistics managers placed less emphasis strategy and moreemphasis on market and information strategies to achieve LCE, customer servicecommitment, and organizational competitive responsiveness.
After reviewing past research, the authors concluded the potential exists for furthercross-cultural logistics strategy research. The authors identified China as a countrythat could provide further insights into cross-cultural issues in logistics strategy.As discussed earlier, both China and the USA are large economies with diversehistories, demographics, cultural values, and rates of economic development. Based onthe previous research, the authors concluded that the Bowersox/Daugherty typologywould be appropriate for a continuing program of studying logistics/supply-chainmanagement in cross-cultural context.
Research methodologyMeasures and questionnaire developmentTo conceptualize the factors of our research model, we used Likert scales adapted fromMcGinnis et al. (2010). The questionnaire was divided into three parts. In the first part,the overall logistic strategies of the companies were measured by three dimensions;process strategy, market strategy and information strategy. Respondents were askedto determine their level of agreement with three statements each for process, market,and information strategies for their company/division on a five point type scale(1 definitely agree, 5 definitely disagree). In the second part of questionnairerespondents were asked to respond to three questions regarding LCE using similarLikert scale measures (1 definitely agree, 5 definitely disagree) as was done in thefirst part of the questionnaire. In the third part of the questionnaire, respondentswere asked to respond to seven questions relating to customer service commitment(three questions) and company division competitiveness (four questions). Again, Likertscales were used.
Data collectionData for the US sample were collected in 2008 using a four-page, 46-item questionnairethat was sent electronically to n 905 CSCMP members who worked for USmanufacturing firms had managerial job titles in logistics, distribution or supply-chainmanagement. One hundred and twenty-three were undeliverable for a net sampleof 782 subjects. Fifty (6.4 percent) usable responses were returned after two follow-ups.After comparing means, standard deviations, and reliability coefficients for thenineteen items used in this analysis with results from three previous samples in 1990,
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1994, and 1999 it was concluded that the results from the 2008 sample wereadequate for inclusion in this research for the purposes of comparing USA and Chineseresults.
The Chinese data were gathered under the supervision of one of the co-authorsthat is faculty member at a Chinese university, and is fluent in Chinese andAmerican English. This co-author translated the English language questionnaireinto Chinese and then trained students on how to administer the questionnaire. Thequestionnaire was then administered by students to a random sample of wide varietyof organizations, both large state-owned and small and medium enterprises (SMEs)located over a wide area of firms, mainly in northwest China. A total of 361 usablequestionnaires were obtained.
The three independent variables and three dependent variables used in thisresearch are presented as Table IV. Included in Table IV are the items for each variableand the scale reliabilities in USA and China. Previous research (Kohn and McGinnis,1997b) has concluded that the six variables are valid when studying logistics strategyusing logistics managers in manufacturing firms for subjects.
Analysis and resultsThe first step was to check the construct reliabilities for all three countries. Table IVshows comparative average construct reliabilities.
Although the reliability scores (especially in the Chinese data set) were below thesuggested levels (0.70) in the literature, in general we can make a case that these scoresare satisfactory for testing and validating the structure reported in (Kohn et al. (2011).a is not a good indicator of unidimentionality and low levels of a can be attributed tothe sample homogeneity (Bernardi, 1994) and do not put the results in question.Usually 0.70 is desired but Schmitt (1996, p. 351) states that [y] use of any cutoffvalue is shortsighted. Accordingly, when a measure has other desirable properties, thelow a scores may not be a major impediment to its use (Schmitt, 1996). In addition, ascoefficient values are relatively receptive to the number of items in the constructs,particularly when constructs have fewer than ten items, as in the case of this research,it is common to find coefficient as around 0.50 (Pallant, 2007). For instance, almostall alphas reported in Rojas-Mendez and Davies (2005) study was below the cutoffsuggested in the literature. The scale items used in our study have been previouslyused in several studies in the literature; have considered having sufficient contentvalidity (Kohn and McGinnis, 1997a) and possessing adequate levels of reliability.All constructs have been previously described and discussed by Keller et al.(2002). Previous studies that used these scales also reported low a scores (Kohnet al., 2011).
With the intention of evaluate whether the correlations among variables are suitablefor factor analysis, we examined the Kaiser-Meyer-Olkin measure of samplingadequacy (KMO-MSA) (Kaiser, 1970). Table V shows the results for KMO tests forsampling adequacy and Bartletts test for sphericity for the two data sets, USA andChina as well as the mean scores for the constructs in all three countries. The valueof KMO-MSA was 0.832, for the US sample and 0.823 for the Chinese sample indicatingthe data were appropriate for factor analysis. All KMO results were above 0.50, whichis the minimum cutoff for factor analysis. Additionally all levels of significance forBartletts test for sphericity is o0.005. KMO results along with the Bartlett resultsindicate the data is suitable for factor analysis.
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Reliability coefficients(as)
Scales/itemsa USAb China
Scale 1: Process strategy (PROCSTR) 0.609 0.4561. In my company/division, management emphasizes achieving maximum
efficiency from purchasing, manufacturing, and distribution2. A primary objective of logistics in my company/division is to gain control
over activities that result in purchasing, manufacturing, and distributioncosts
3. In my company/division, logistics facilitates the implementation of cost andinventory reducing concepts such as focused manufacturing and just-in-timematerials procurement
Scale 2: Market strategy (MKTGSTR) 0.772 0.4531. In my company/division, management emphasizes achieving coordinated
physical distribution to customers served by several business units2. A primary objective of logistics in my company/division is to reduce
the complexity our customers face in doing business with us3. In my company/division, logistics facilitates the coordination of several
business units in order to provide competitive customer serviceScale 3: Information strategy (INFORSTR) 0.699 0.4931. In my company/division, management emphasizes coordination and control
of channel members (distributors, wholesalers, dealers, retailers) activities2. A primary objective of logistics in my company/division is to manage
information flows and inventory levels throughout the channel ofdistribution
3. In my company/division, logistics facilitates the management of informationflows among channel members (distributors, wholesalers, dealers, retailers)
Logistics coordination effectiveness (LCE) 0.538 0.5511. The need for closer coordination with suppliers, vendors, and other channel
members has fostered better working relationships among departmentswithin my company
2. In my company logistics planning is well coordinated with the overallstrategic planning process
3. In my company/division logistics activities are coordinated effectivelywith customers, suppliers, and other channel members
Customer service effectiveness (CSE) 0.653 0.5061. Achieving increased levels of customer service has resulted in increased
emphasis on employee development and training2. The customer service program in my company/division is effectively
coordinated with other logistics activities3. The customer service program in my company/division gives us a
competitive edge relative to our competitionCompany/division competitiveness (COMP) 0.701 0.6951. My company/division responds quickly and effectively to changing customer
or supplier needs compared to our competitors2. My company/division responds quickly and effectively to changing
competitor strategies compared to our competitors3. My company/division develops and markets new products quickly
and effectively compared to our competitors4. In most of its markets my company/division is a (1 very strong competitor,
5 very weak competitor)Note: aExcept for item 6.4, 1 strongly agree, 2 agree, 3 neither agree nor disagree, 4 disagree,5 strongly disagreeSource: bThe US data are the 2008 data set reported in McGinnis et al. (2010)
Table IV.Scale items
17