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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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