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Int. J. Production Economics 113 (2008) 127–147


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Third-party logistics: A literature review


Alessandra Marasco
Institute for Service Industry Research, National Research Council, Via M. Schipa 91, 80122 Naples, Italy
Received 31 March 2006; accepted 3 May 2007
Available online 24 July 2007

Abstract

Third-party logistics (TPL) has attracted considerable research attention in the recent past. Despite the growing body of
literature on this topic, precious little effort has been devoted to synthesizing the overall state of art of research on TPL. In
this paper, an attempt is made to review the status of literature on TPL. A literature review scheme is presented. A total of
152 articles published between 1989 and 2006 in 33 reputable international journals are reviewed and classified into
content- and methodology-related issues. Based on the review, suggestions for future research are likewise provided.
r 2007 Elsevier B.V. All rights reserved.

Keywords: Third-party logistics; Interorganizational relationships; Literature review

1. Introduction sive review of the logistics outsourcing literature,


highlighting key research findings from journals and
In the recent past, third-party logistics (TPL), other publications. An overview of TPL research is
also referred to as logistics outsourcing (e.g. also offered by Skjoett-Larsen et al. (2003); being
Knemeyer et al., 2003; Maltz and Ellram, 1997; aimed at identifying the distinctive characteristics of
Razzaque and Sheng, 1998), has received consider- the ‘‘Nordic School of TPL’’ in terms of research
able attention from logistics scholars, resulting in a methodology, theoretical approaches or empirical
plethora of research and writing in this field. The findings, their study reviewed only the contribution
interest of researchers in TPL should continue of Nordic TPL researchers to the international
as several recent studies suggest that a steadily research agenda. More recently, Maloni and Carter
increasing number of companies across industry (2006) provided a review of the survey-based portion
sectors use third-party providers for the manage- of the TPL academic literature to assess its progress.
ment of all or part of their logistics operations (e.g. Their work is only based on 45 publications, i.e. it
Lieb and Bentz, 2004, 2005a; Lieb and Miller, 2002; does not cover all extant articles concerning TPL.
Lieb and Randall, 1999a). As an attempt to fill this gap, this paper presents a
Despite the growing body of literature on this review of the major literature and key findings on
topic, efforts to synthesize the overall state of art of TPL. An extensive literature search of academic
research on TPL have so far been rather limited. journals from 1989 to 2006 was conducted, yielding
Razzaque and Sheng (1998) provided a comprehen- a total of 152 articles. A framework is developed for
identifying the key content of the literature on TPL
Tel.: +39 081 2470961; fax: +39 081 2470956. and used to classify the articles. The existing
E-mail address: a.marasco@irat.cnr.it literature is also examined from a methodological

0925-5273/$ - see front matter r 2007 Elsevier B.V. All rights reserved.
doi:10.1016/j.ijpe.2007.05.017
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128 A. Marasco / Int. J. Production Economics 113 (2008) 127–147

point of view, providing an overview of research tures of the logistics outsourcing relationship. Among
approaches taken in the collected articles. Hope- them, Berglund et al. (1999, p. 59) emphasise the
fully, this study will serve as a roadmap of TPL supply of management support in addition to
literature for both academicians and practitioners operational activities by providers and the duration
and help stimulate further interest. of the relationship as follows: ‘‘Third-party logistics
This paper is organised as follows. In Section 2, are activities carried out by a logistics service provider
background is given on the concept of TPL by on behalf of a shipper and consisting of at least
examining the various approaches taken in the management and execution of transportation and
literature for defining TPL. The applied methodol- warehousing. In addition, other activities can be
ogy for this study is illustrated in Section 3, while included, for example inventory management, infor-
Section 4 presents the results of the literature mation related activities, such as tracking and tracing,
review. In Section 5, an overview of research value added activities, such as secondary assembly
approaches used in the examined articles is pro- and installation of products, or even supply chain
vided. Section 6 closes the paper by offering management. Also, the contract is required to contain
conclusions and an attempt to provide some some management, analytical or design activities, and
perspectives on future research. the length of the co-operation between shipper and
provider to be at least one year, to distinguish third-
2. Defining TPL party logistics from traditional ‘‘arm’s length’’ sour-
cing of transportation and/or warehousing’’. Murphy
One of the challenges in trying to evaluate the and Poist (1998, p. 26) stress the duration and
growing body of literature on TPL is the lack of a win–win nature of the relationship along with the
single consistent definition of the concept. Indeed, customization and broader range of logistics services
many definitions and interpretations of TPL can be in the arrangement. According to their definition,
found in the literature (Skjoett-Larsen, 2000; TPL involves ‘‘a relationship between a shipper and
Halldórsson and Skjoett-Larsen, 2004). Van Laar- third party, which, compared with basic services, has
hoven et al. (2000) highlight that the terminology in more customized offerings, encompasses a broader
this field is not always consistent; in some cases TPL number of service functions and is characterized by a
is used as a label for traditional ‘‘arm’s length’’ longer term, more mutually beneficial relationship’’.
sourcing of transportation and/or warehousing, By these narrower definitions, TPL appears to be
whereas in other instances the term is used to distinguished from the ‘‘traditional’’ outsourcing of
describe an outsourcing of a more complex char- logistics functions on a transaction-by-transaction
acter that can encompass the entire logistics process. basis presupposing that several features are fulfilled
Likewise, Ojala (2003) as well as Knemeyer and before the relationship between buyer and provider of
Murphy (2005a, b) point out that a number of logistics services can be characterized as TPL. These
broad and narrow approaches to defining/interpret- features include the provision of a broad range of
ing TPL have been used by researchers. Some services, a long-term duration, joint efforts to develop
examples may help illustrate the varying scope of cooperation, the customization of the logistics solu-
existing interpretations of the term TPL. tion, and a fair sharing of benefits and risks, and
According to Lieb (1992, p. 29), TPL involves ‘‘the suggest that TPL incorporates strategic and not just
use of external companies to perform logistics tactical dimensions (Skjoett-Larsen, 2000).
functions that have traditionally been performed A sort of conciliation between the alternative
within an organization. The functions performed by broader and narrower views of TPL can be found in
the third party can encompass the entire logistics the definition offered by Bask (2001, p. 474), which
process or selected activities within that process’’. In a describes TPL as ‘‘relationships between interfaces
similar vein, Coyle et al. (2003, p. 425) suggest that in the supply chains and third-party logistics
TPL involves an external organisation ‘‘that performs providers, where logistics services are offered, from
all or part of a company’s logistics functions’’. These basic to customized ones, in a shorter or longer-
‘‘broad’’ definitions appear to suggest that TPL term relationship, with the aim of effectiveness and
includes any form of outsourcing of logistics activities efficiency’’. This definition is applied in the present
previously performed ‘‘in-house’’. Alternative, ‘‘nar- article, because it clearly points out the essence of
rower’’ definitions link the TPL concept to some the TPL concept as involving business-to-business
distinctive functional and/or interorganizational fea- relationships where third parties fulfil the logistics
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A. Marasco / Int. J. Production Economics 113 (2008) 127–147 129

needs of their clients in the supply chain they are study. The search was limited to academic journals
operating in (Berglund, 2000), while recognizing the and utilized several methods.
potentially wide range of these relationships in Initially, 23 journals in the areas of logistics and
terms of scope, content and duration. It is to be transportation, operations management, business/
noted that Bask (2001) conceives TPL as a set of marketing and general management covering the
three dyadic relationships linking seller, buyer and time period 1989–2006 were searched for articles
logistics service provider in a supply chain. How- dealing with any aspect of TPL. The choice of these
ever, as the author himself and Berglund (2000) outlets was based on previous studies that identified
observe, this triadic form of relationship cannot be and ranked the journals making the highest
considered as the normal case in that most TPL contribution to the transportation/logistics disci-
relationships are limited either to the dyadic pline (e.g. Fawcett et al., 1995; Ferguson, 1983). For
relationship between seller (of the goods) and the literature search ‘‘third party logistics’’, ‘‘logis-
logistics service provider or buyer (of the goods) tics outsourcing’’, ‘‘logistics alliances’’ and several
and logistics service provider and, accordingly, most other relevant descriptors were used. The full text of
research addresses the two-way linkage between the each article was reviewed in order to eliminate those
logistics service provider and either the buyer or articles that were not really related to TPL. As a
supplier (of the goods). In this study, this con- result of this search, 97 articles were identified. An
ceptualization of TPL as a dyadic relationship additional search was conducted using the same
between shippers (buyers or sellers of the goods) descriptors in ProQuest, ScienceDirect and EBSCO
and logistics service providers in a supply chain is databases. Thereby, 48 other papers were found.
adopted. Finally, the reference sections of key articles were
scanned for additional citations; this yielded 7 other
articles. By these procedures, a total of 33 journals
3. Methodology
and 152 articles were identified. The reference list to
this paper contains all the collected articles.
When conducting an investigation of the state of
Although this search may not be exhaustive, it is
knowledge in a field or subject, three basic
believed that the journals selected and the articles
approaches have been used (Li and Cavusgil,
reviewed comprise a reasonably representative and
1995). One approach is the Delphi method through
comprehensive body of the research work being
which experts who are familiar with the area are
accomplished in this area.
surveyed. The second approach is meta-analysis in
Table 1 shows the distribution of articles in the
which empirical studies on the specific subject are
various journals from 1989 to 2006. The indicated
gathered and statistically analysed. This approach
time frame has been divided into three periods in
has been applied by Ashenbaum et al. (2005) for
order to identify trends in the chronological
estimating the TPL growth rate in the US. The third
progression of research on TPL. The figures in the
approach, the one adopted in this study, is content
table indicate that research on TPL did not begin to
analysis—a research method for systematic, quali-
appear significantly in scholarly journals until the
tative and quantitative description of the manifest
mid-to-late 1990s and has increased since. Indeed,
content of literature in an area. At a general level,
only 11 articles have been published between 1989
the procedure for conducting content analysis is
and 1994, while contributions published in the last
centred on two major steps (Li and Cavusgil, 1995;
period (2001–2006) amount to 86, representing
Seuring et al., 2005): (1) definition of sources and
about 56% of the total number of collected articles.
procedures for the search of articles to be analysed
It is to be noted that of the 11 articles published
and (2) definition of categories instrumental to the
between 1989 and 1994, there is not any contribu-
classification of the collected articles. These have
tion published in 1989 and only three articles have
been applied in the present review of TPL literature
been published in 1990. This suggests that the
and are described in detail in the following sections.
starting year of the time frame (1989) has been well
chosen. Table 1 also shows that the primary
3.1. Literature search procedures publication outlets for TPL research are Interna-
tional Journal of Physical Distribution & Logistics
The first step of the analysis consisted of Management, Journal of Business Logistics, The
searching for articles relevant to the purpose of this International Journal of Logistics Management,
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130 A. Marasco / Int. J. Production Economics 113 (2008) 127–147

Table 1
Distribution of articles by journal in the period 1989–2006

Journal 1989–1994 1995–2000 2001–2006 Total

International Journal of Physical Distribution & Logistics Management 4 13 23 40


Journal of Business Logistics 4 12 3 19
The International Journal of Logistics Management 1 7 4 12
Transportation Journal – 3 9 12
International Journal of Logistics: Research and Applications – 1 9 10
Journal of Enterprise Information Managementa – 3 3 6
Supply Chain Management: An International Journal – – 6 6
International Journal of Logistics Systems and Management – – 5 5
International Journal of Operations & Production Management 1 – 3 4
Transportation Research – 1 3 4
Transport Logistics – 4 – 4
Asia Pacific Journal of Marketing and Logistics – 1 2 3
Journal of Supply Chain Managementb – 2 1 3
European Journal of Operational Research – 1 1 2
Industrial Marketing Management – 1 1 2
International Journal of Production Economics – – 2 2
Omega – – 2 2
European Journal of Purchasing & Supply Management – – 1 1
Harvard Business Review 1 – – 1
Journal of Business & Industrial Marketing – – 1 1
Production and Operations Management 1 – 1
Transport Reviews – 1 – 1
Transportation Quarterly – 1 – 1
Transportation Science – – 1 1
Othersc – 3 6 9
Total 11 55 86 152
a
Formerly Logistics Information Management.
b
Formerly International Journal of Purchasing and Materials Management.
c
These include articles from Benchmarking: An International Journal, California Management Review, Communications of the ACM,
Computers & Industrial Engineering, Expert Systems, Expert Systems with Applications, Integrated Manufacturing Systems, Journal of
Marketing Theory and Practice, and Technovation.

Transportation Journal and International Journal of providers of logistics services in a supply chain.
Logistics: Research and Applications, collectively Given this view of TPL, the approach to literature
publishing about 61% of the total articles. The large content analysis has been centred on the key
number of articles in the International Journal of dimensions defining such a relationship. In detail,
Physical Distribution & Logistics Management is it was assumed that the basic dimensions of the TPL
partially the result of the publication of two special relationship delineating why, how and with what
issues on TPL in 2006, an event in itself indicative of results it develops and functions provide anchor
the growing relevance of the topic in logistics points to organize and analyse most of TPL issues
research. Overall, the other primary operations addressed in the literature. The key dimensions of
management, business/marketing and general man- the TPL relationship are encapsulated in the
agement journals have not served as a significant framework shown in Fig. 1, the construction of
outlet for research in this area. which was guided by a review of existing frame-
works of interorganizational relationships. In the
3.2. Definition of the content classification scheme last decades, several models and frameworks of
business relationships have been developed from
According to the working definition adopted in different literature areas and theoretical perspectives
this study, TPL is conceived as an interorganiza- (for a summary, see Cousins, 2002). Among them
tional (dyadic) relationship between shippers and the work by Van de Ven (1976) and the IMP
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CONTEXT STRUCTURE AND PROCESS OUTCOME

Relationship’s structural characteristics


Features of the: Outcomes at the:
(scope, formalization, continuity, trust, commitment, etc.)

• external context • internal level


macro environment single organization:
and supply chain shipper / provider
network Build up stage Execution stage Institutionalization of logistics services
stage
• Operations
• Partner search planning/ • Bonding
• internal context & selection organization processes
single organization: • external level
relating to
shipper/ provider • Communication/ technical, social, supply chain
of logistics services • Negotiation
information administrative, network
processing legal issues
• Contract design
• Coordination

• Control/
Monitoring

Fig. 1. The content analysis framework.

Group1 (e.g. Ford, 1980; Håkansson, 1982, 1987; The first dimension describes the context within
Håkansson and Snehota, 1995) have been particu- which the TPL relationship takes place. This refers
larly helpful in the move towards identifying the to both external and internal contextual factors.
crucial dimensions of TPL relationships and orga- Major components of the external context include
nizing concepts and variables to describe them. characteristics of the general macro environment
Fig. 1 depicts the major components of each dimen- (e.g. economic trends, regulatory framework, tech-
sion and the relationships among them. nological developments) as well as of the supply
chain representing the network2 in which the TPL
relationship is embedded (e.g. structure, processes,
1 types of business links among actors in the chain).
The International/Industrial Marketing and Purchasing
(IMP) Group was formed in the mid-1970s by European
This conceptualization of the external context is
researchers with interests in industrial markets and has now consistent with the prevailing view of dyads’
evolved into a research community concerned with industrial environment within the industrial marketing and
marketing and purchasing. Although the IMP Group has its purchasing literature according to which dyadic
origins in the marketing discipline, it also has several other relationships are embedded in a network of relation-
antecedents of scientific inspiration, including organization
theory, the new institutional economic theory and certain strands ships that is itself enveloped by a macro environ-
of sociology. Challenging existing models within the industrial ment (Anderson et al., 1994). Some of the major
marketing literature that assumed competitive and adversarial features of the internal context of the relation-
relationships as being the norm, the group developed a model of ship include organizational size, structure and
buyer–seller relationships in industrial markets—the interaction strategies of the parties involved (i.e. shipper and
model—and illustrated its applicability through comparative
studies of buyer–supplier relationships within and across a provider of logistics services). The two sets of
number of European countries. The model identifies groups of contextual factors combine to influence the ways
variables that describe and influence the interaction between in which shippers and providers structure and
buying and selling companies, thereby greatly advancing the
understanding of buyer–supplier relationships and the factors
2
influencing them. Emphasizing the embeddedness of single dyadic Several authors suggested the idea of the supply chain as a
relationships in the network of connected interfirm relationships, confederation of partners linked together as a network (e.g.
subsequent work of the group extended the focus from individual Christopher, 1992, 2000; Hertz, 2001; Lambert and Cooper,
buyer–supplier relationships to industrial networks. 2000).
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132 A. Marasco / Int. J. Production Economics 113 (2008) 127–147

manage their relationship, affecting, among others, and trust, administrative routines, procedures
those factors that determine the shipper’s logistics and legal contracts (Håkansson and Johanson,
needs and motivation to outsource, the number of 1990).
alternative relationships available for the parties,
the interaction processes between the parties, and It is to be noted that the possibilities of re-
the parties’ ability to predict and forecast changes in negotiation and/or dissolution of the relationship
the market that in turn may affect the relationship. are implicit throughout this process conceptualiza-
The second dimension relates to the structure of tion.
the relationship. TPL arrangements can vary widely The final dimension of the framework reflects the
depending on several attributes, such as scope of the outcomes that result from the TPL relationship. As
activities involved, continuity, complexity, symme- interorganizational relationships are connected,
try and degree of formalization. These are some of what is produced in a dyad has effects not only
the often recurrent structural characteristics of for the parties directly involved but also for other
business relationships (Håkansson and Snehota, relationships and organizations of the overall net-
1995). Along with them, other behavioural attri- work in which the relationship is embedded
butes are comprised in this dimension that con- (Håkansson and Snehota, 1995). Accordingly,
tribute to shaping the climate or working TPL outcomes have been divided into internal
atmosphere of the TPL relationship, such as outcomes perceived by the parties directly involved
dependence, trust, equity, commitment and conflict. (shipper and logistics service provider) and external
The developmental process of the relationship outcomes experienced at the supply chain level.
constitutes the third dimension of the framework. Over time, feedback on perceived outcomes of the
Consistently with the approach taken in many relationship is expected to influence the other
studies of developmental processes of interorganiza- dimensions in the framework.
tional relationships (e.g. Dwyer et al., 1987; Ford, The four dimensions of the framework have been
1980; Frazier, 1983; Ring and Van de Ven, 1994), used as ‘‘macro categories’’ to review and classify
TPL development process has been conceived as articles according to the primary topic addressed.
consisting of a sequence of stages, each of which More in detail, the decision rule for placing articles
goes through a number of interactions/activities. into a particular category was based on the
The different stages of relationship development are dominant or most prevalent theme addressed in
summarised as follows: the article as derived from the indicated objective(s)/
purpose(s). During the classification process, the
(a) The early build-up stage, in which potential need arose to partially revise this original four-
providers are selected by shippers to negotiate category scheme. Indeed, some of the collected
and develop a (formal or informal) contract articles were found to be multifaceted in that they
specification for the provision of logistics simultaneously address aspects of the context, the
services. structure, the process and the outcomes of TPL
(b) The execution stage, in which the commitments arrangements. Therefore, a fifth category was
and rules of action agreed upon by the parties in inserted to gather these ‘‘comprehensive’’ articles.
the previous stage are carried into effect; in this
phase, operations are organized, executed, co- 4. Classification and review of TPL literature
ordinated and monitored entailing adaptations
and increased experience between the companies In this section, the results of the content analysis
of the respective activities. of TPL literature are presented. First, the distribu-
(c) A potential long-term stage, in which routine tion of the reviewed articles that come under each of
ways of dealing tend to become institutionalized the five content categories is provided. This is
and several kind of bonds between the parties followed by a discussion highlighting some key
arise/strengthen as a consequence of extensive findings from contributions within each category.
formal and informal adaptations that have Table 2 offers a frequency distribution of the
occurred. These bonds have an important reviewed articles by content. It can be observed that
function in favouring the creation of long-term particular emphasis has been placed by researchers
relations and can relate to the technologies used on context-related issues of TPL, with about 40% of
and shared by the parties, personal knowledge the total articles addressing these issues. Another
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heavily investigated area is represented by issues of 18% of the total articles falling into this cate-
the TPL developmental process, which gathers 25% gory. Less published areas are on structure and
of total articles. Table 2 further shows that a outcomes of TPL, accounting for 6.6% and 9.9%,
considerable portion of the examined literature is respectively.
constituted by ‘‘comprehensive’’ articles, with about Table 3 shows the details of the classification by
content, providing a summary of all the reviewed
articles that come under each category. This may be
Table 2 a helpful resource for anyone in search of references
Distribution of articles by content
on specific topics.
Content category Number of articles Percentage of articles
4.1. Key findings from previous research on TPL
Context 61 40.1
Structure 10 6.6
Process 38 25.0
In the sections that follow, a review of research
Outcome 15 9.9 and key findings in each of the five categories is
Comprehensive 28 18.4 presented. Although this review is not exhaustive, it
provides some reasonable insights into the work
Total 152 100.0
being accomplished in the field.

Table 3
Summary of references under the content classification scheme of the literature

Classification References
category

Context Bask (2001), Berglund et al. (1999), Brah and Lim (2006), Carbone and Stone (2005), Chapman et al. (2003),
Daugherty and Dröge (1997), Delfmann et al. (2002), Evangelista and Sweeney (2006), Evans (2000), Fabbe-Costes
(1997), Flint et al. (2005), Foggin et al. (2004), Foulds and Luo (2006), Fung and Wong (1998), Gibson and Cook
(2001), Gunasekaran and Ngai (2003, 2004), Hertz and Alfredsson (2003), Hum (2000), Ko et al. (2006), Koh and Tan
(2005), Krumwiede and Sheu (2002), Lai (2004), Lai et al. (2005), Larson and Gammelgaard (2001a), Lemoigne and
Dagnaes (2003), Lewis and Talalayevsky (2000), Lieb and Bentz (2005b), Lieb and Kendrick (2003), Lieb and Randall
(1996b, 1999b), Lynagh et al. (2001), Makukha and Gray (2004), Maltz (1994), Maltz and Ellram (2000), Maltz et al.
(1993), Min and Joo (2006), Murphy and Poist (1998), Neo et al. (2004), Panayides (2004), Persson and Virum (2001),
Peters et al. (1998a), Piplani et al. (2004), Pokharel (2005), Rao and Young (1994), Sauvage (2003), Sheffi (1990), Sink
et al. (1996), Sinkovics and Roath (2004), Spencer et al. (1994), Stank and Daugherty (1997), Stefansson (2006), Stone
(2001), Sum and Teo (1999), Tan and Kritchanchai (2006), Tyan et al. (2003), van Hoek (2000), Wu (2006), Yeung
et al. (2006), Ying and Dayong (2005), Zäpfel and Wasner (2002)
Structure Gardner et al. (1994), Knemeyer and Murphy (2005a, b), Knemeyer et al. (2003), Moore (1998), Moore and
Cunningham (1999), Pachè (1998), Pappu and Mundy (2002), Rabinovich et al. (1999), Zinn and Parasuraman (1997)
Process Abrahamsson and Wandel (1998), Ackerman (1996), Alp et al. (2003), Andersson and Norrman (2002), Bagchi and
Virum (1996, 1998), Bienstock (2002), Bottani and Rizzi (2006), Chen et al. (2001), de Boer et al. (2006), Ding and
Stoner (2004), Gibson et al. (1996, 2002), Gutiérrez and Duran (1997), Halldórsson and Skjoett-Larsen (2006), House
and Stank (2001), Huiskonen and Pirttilä (2002), Kumar et al. (2006), Lambert et al. (1999), Leahy et al. (1995), Lim
(2000), Logan (2000), Maltz and Ellram (1997), McGinnis et al. (1995), Meade and Sarkis (2002), Menon et al. (1998),
Ratten (2004), Sankaran et al. (2002), Seth et al. (2006), Sink and Langley (1997), Skjoett-Larsen (2000), Stank and
Maltz (1996), Tate (1996), Vaidyanathan (2005), van Damme and van Amstel (1996), van Hoek (2001), Wong et al.
(2000), Yan et al. (2003)

Outcome Bhatnagar and Viswanathan (2000), Bolumole (2001, 2003), Bowersox (1990), Daugherty et al. (1996), Ellram and
Cooper (1990), Gentry (1996), Halldórsson and Skjoett-Larsen (2004), Knemeyer and Murphy (2004), Kopczak
(1997), Lai and Cheng (2003), Larson and Gammelgaard (2001b), Panayides and So (2005), Rabinovich and
Knemeyer (2006), Stank et al. (1996)
Comprehensive Aktas and Ulengin (2005), Arroyo et al. (2006), Bardi and Tracey (1991), Bhatnagar et al. (1999), Boyson et al. (1999),
Dapiran et al. (1996), Fernie (1999), Hong et al. (2004), Jaafar and Rafiq (2005), Lieb (1992), Lieb and Bentz (2004,
2005a), Lieb and Miller (2002), Lieb and Randall (1996a, 1999a), Lieb et al. (1993), Millen et al. (1997), Min (2002),
Murphy and Poist (2000), Peters et al. (1998b), Sahay and Mohan (2006), Sohail and Al-Abdali (2005), Sohail and
Sohal (2003), Sohail et al. (2004, 2006), Sohal et al. (2002), van Laarhoven et al. (2000), Wilding and Juriado (2004)
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4.1.1. Research on TPL context the large amount of contributions addressing issues
As the distribution of articles by content has of the internal context of TPL. Indeed, of the 61
shown (Table 2), context-related issues of TPL have works within the context category, over 90% are
drawn considerable attention among researchers, devoted to the investigation of the various char-
resulting in a plethora of contributions devoted to acteristics of TPL parties (buyers and sellers of
the analysis of factors of the external and internal logistics services) and their influence on the forma-
context influencing structure and development of tion of TPL arrangements.
TPL arrangements. Some of these studies examined how organiza-
With regard to the external environmental factors tional characteristics and strategies of users of
impacting TPL, a comprehensive descriptive analy- logistics services are related to the decision to enter
sis of the several economic, regulatory and techno- in TPL arrangements. Rao and Young (1994)
logical drivers behind the rise of TPL has been identified three main characteristics of shippers’
provided by Sheffi (1990). Increased global compe- business profile that drive their logistics outsourcing
tition, deregulation of the transportation industry, behaviour and influence the formation of a favour-
rising customer expectations on superior logistical able or unfavourable climate for outsourcing:
service, growing focus of companies on core (a) network complexity, referring to both the
competencies, increasing popularity of just-in-time geographic dispersion of the firm’s trading partners
(JIT), and revolution in computers and commu- as well as the intensiveness of transactions with
nication technology are indicated as the main forces selected trading partners; (b) process complexity,
causing TPL services to experience explosive referring to time and task compression (or lack
growth. Lewis and Talalayevsky (2000) further thereof) in the logistics process; and (c) product
addressed the implications of advancements in complexity, relating to the special circumstances
information technology (IT) for TPL development. required by products and materials due to the
They observed that the rapid progress in informa- complexity of the environment (temperature, hu-
tion processing and communication technology midity, etc.) governing their transportation, storage
supports the outsourcing of logistics activities to and handling. In a survey-based study of US
third-party firms as IT allows buyers and sellers of manufacturing firms, Daugherty and Dröge (1997)
logistics services to communicate directly over data- explored how organizational structure in divisiona-
rich, easy-to-use information channels, thereby lized companies is related to logistics outsourcing
reducing coordination costs and fostering strategic decisions and found differences in the anticipated
partnerships based on mutually agreed goals. usage levels of external logistics service providers
Beside the forces of the general external environ- between divisionalized manufacturers with a ‘‘line/
ment, TPL is affected by changes in the structure, staff’’ structure (line and staff logistics responsibil-
processes and strategies of the supply chain in which ities centrally consolidated at the corporate manage-
it is embedded, as highlighted in the works by Bask ment level) and those with a ‘‘staff-only’’
(2001) and Delfmann et al. (2002). Stressing the configuration (staff logistics responsibilities cen-
need for a strategic view focusing on the relation- trally consolidated and line activities decentralized
ship between supply chain strategies and TPL, Bask within business units). Murphy and Poist (1998)
(2001) proposed a normative framework for orga- investigated demographic differences (in terms of
nizing relationships between alternative supply firm type, firm size and number of activities
chain strategies and different types of TPL services. managed by the logistics department) between users
Delfmann et al. (2002) analysed implications of and non-users of TPL services, discovering that firm
changes in supply chain configurations induced by size might help to differentiate between users and
e-commerce for TPL. Their work illustrated how non-users of TPL services.
e-commerce—through the emergence of electronic While early studies have focused on users of
marketplaces in the upstream part of the chain logistics services, more recent research efforts have
and the disintermediation of the downstream turned their attention to third-party logistics service
chain—affects the structure of supply chains, there- providers (TPLPs). Indeed, the rapid expansion and
by causing challenges for TPL operations and transformation of the TPL industry during the last
strategies. years has been the subject of an increasing interest
Studies focusing on the external context of TPL to logistics scholars who have increasingly attemp-
may be found rather scanty when compared with ted to provide insights into issues on the provider
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side of the industry. These include the industry’s advantages derived from IT and the shortage of
service offerings, current status and future prospects trained personnel still hinder full-scale IT imple-
(e.g. Larson and Gammelgaard, 2001a; Lieb and mentation. Lai et al. (2005) and Evangelista and
Bentz, 2005b; Lieb and Kendrick, 2003; Lieb and Sweeney (2006) assessed IT usage in the TPL
Randall, 1996b, 1999b; Peters et al., 1998a), industry in Hong Kong and in Italy, respectively.
operational issues of TPLPs, such as network Findings from these two studies converge in
design/optimization (Ko et al., 2006; Zäpfel and indicating that, although the importance of IT for
Wasner, 2002), benchmarking (Min and Joo, 2006), improving performance is well-recognized by
quality (Brah and Lim, 2006; Fung and Wong, TPLPs, lack of IT expertise and insufficient
1998; Neo et al., 2004) and the role of these financial support prevent these operators, especially
operators in logistics set-ups (Stefansson, 2006). In small and medium companies, from moving to-
particular, by a review of the literature addressing wards its full adoption. Koh and Tan (2005) and
TPLPs, it appears that much of the research in this Ying and Dayong (2005) focused on the potential of
area has focused on the strategic behaviour of these e-commerce in TPL providers, showing that the use
operators. Berglund et al. (1999) proposed a of e-commerce applications can impact performance
strategic segmentation of TPL providers based on and competitive advantage of these companies in
two dimensions: standard services versus logistics terms of reduction of operations’ time and costs,
solutions; traditional, basic logistics activities (e.g. increase of customer service level and enhanced
transportation and warehousing) versus value- integration with business processes of other supply
added logistics. Sum and Teo (1999) examined the chain members.
different strategic postures of logistics services
providers in Singapore using Porter’s typology of 4.1.2. Research on TPL structure
competitive strategies and analysed the business As the use of TPL services increased, research
performance, technologies, operations objectives efforts have been made to gain a deeper under-
and future plans of each strategic type. Such an standing of the manner in which shippers and
approach to the analysis of TPLPs’ strategies has providers structure their arrangements, paying
also been used in the study by Yeung et al. (2006), particular attention to those exhibiting cooperative
which investigated the relationship of strategic behaviours between the parties. Characterization of
choices of pure cost, pure differentiation or a TPL arrangements has been based on conceptual
combination strategy on a composite measure of typologies (e.g. Pappu and Mundy, 2002; Zinn and
financial performance for TPLPs in Hong Kong. Parasuraman, 1997), but has primarily relied upon
Hertz and Alfredsson (2003) addressed the strategic empirical investigation. Empirical research aimed at
development of TPL providers with a focus on the providing insights into the nature and structure of
balance between general problem-solving capability these arrangements has focused on a number of
and degree of customer adaptation. Carbone and attributes, such as the scope in terms of number and
Stone (2005) examined the strategic behaviour typology of activities outsourced, duration and
adopted by 20 leading European TPLPs, paying frequency (e.g. Paché, 1998; Rabinovich et al.,
particular attention to their approach to mergers 1999). Some of the studies in this area have also
and acquisitions and logistics alliances. focused on the analysis of behavioural or relational
Recent research in this area has also focused on attributes of TPL relationships, such as trust,
the adoption of IT in these firms. Indeed, the ability commitment, dependence, conflict and equity (e.g.
to utilize IT has been increasingly considered one of Gardner et al., 1994; Knemeyer et al., 2003;
the key determinants of success for these operators Knemeyer and Murphy, 2005a, b; Moore, 1998;
(e.g. Langley et al., 2002, 2005), and several studies Moore and Cunningham, 1999). Most of these
have examined the current status of IT usage in the studies use a relationship marketing perspective as
industry along with the perceived benefits and the basis for examining differences in key beha-
barriers to IT adoption by these companies. Piplani vioural elements across different types of relation-
et al. (2004) investigated the status of IT imple- ships. Moore and Cunningham (1999) focused
mentation in the Singapore TPL industry and found on five attributes—trust, equity, commitment, conflict
that, while providers increasingly are incorporating and opportunism—to explore differences in beha-
IT in their operations or are planning to do so, vioural elements that exist between logistics alliances
concerns about the speed of obsolescence of and transactional (or non-alliance) relationships.
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Their findings suggest that trust and commitment are sented a model of partnership development and
major distinguishing behavioural characteristics of implementation based on three major elements:
logistics alliances. Knemeyer et al. (2003) found drivers (e.g. asset/cost efficiencies, enhanced custo-
statistically significant differences for the elements mer service and profit growth/stability), facilitators
of trust, commitment, investment, dependence, (e.g. corporate compatibility, similar managerial
communication and shared benefits across distinct philosophy, mutuality and symmetry) and manage-
types of partnerships previously suggested in the ment components (e.g. planning, joint operating
logistics literature. More recently, Knemeyer and controls, communications and risk/reward sharing).
Murphy (2005b) compared the perspectives of Andersson and Norrman (2002) modelled and
TPL users and providers with respect to the compared the purchasing process for advanced
relationship marketing elements of attachment, versus basic logistics services. They focused on three
communication, dependence, investment, opportu- phases identified as particularly critical in the
nistic behaviour, reciprocity, reputation, satisfac- purchase of advanced logistics services: service
tory prior outcomes and trust as well as relationship definition, request for proposal and contracting.
marketing outcomes, including customer referrals, More recently, de Boer et al. (2006) presented a
customer retention, service recovery and perfor- prescriptive model for guiding outsourcing decision
mance improvements. processes that incorporates some basic principles of
behavioural decision-making theory, in particular
4.1.3. Research on TPL developmental process the satisficing concept. The model builds on the
There has been extensive writing and model observation of some discrepancies between the
building in the area of TPL processes. Such an assumptions of existing prescriptive models and
interest by researchers may be attributed to the the processes observed in practice through two cases
problems experienced by companies in the establish- of logistics outsourcing.
ment of TPL arrangements. Indeed, while TPL Researchers’ efforts to support managers in the
relationships can yield positive outcomes for the establishment and management of TPL arrange-
parties, the path to achieving these results is not ments have also resulted in a variety of contribu-
without its difficulties (House and Stank, 2001). tions addressing issues of specific activities of the
Impediments are likely to be encountered in all the TPL developmental process, such as partner selec-
different phases of relationship development and tion, contract design, coordination, communica-
often lead to dissolution as witnessed by the failures tion/information integration. By a review of these
reported in both academic and trade press (e.g. studies, it appears that a particular emphasis has
Ackerman, 1996; Foster, 1999). In an attempt to been placed by researchers on the problems of
help companies to understand what resources and partner selection and contract design.
practices are needed in order to successfully estab- Empirically based insights into the problem of
lish and manage TPL relationships, various pre- selecting the right logistics service provider have
scriptive models and decision frameworks of TPL been provided in the studies by McGinnis et al.
development and implementation have been sug- (1995) and Menon et al. (1998), which investigated
gested in the literature. Bagchi and Virum (1996) criteria for TPL selection and how the firm’s
offered a process model for logistics alliance competitive responsiveness strategy and external
formation, management and control, which com- environment affect them. Studies in this area have
prises three phases: identification of the need for the also relied on conceptual-type research to provide
alliance; planning and management; and measure- decision-making models and frameworks for the
ment and control of operations. Sink and Langley selection process of TPL service providers. Meade
(1997) provided a conceptual model of the TPL and Sarkis (2002) offered a decision-making model
buying process with five stages: identify the need to based on the analytical network process (ANP) to
outsource logistics; develop feasible alternatives; assist the management in the selection of providers
evaluate and select supplier; implement service; and for the reverse logistics process. More recently,
ongoing service assessment. Maltz and Ellram Vaidyanathan (2005) proposed a conceptual frame-
(1997) proposed a major modification of the total work for the selection of TPL providers built
cost of ownership framework, which they call total around IT and Bottani and Rizzi (2006) presented
cost of relationship (TCR), to deal with logistics a multi-attribute approach based on the TOPSIS
outsourcing decisions. Lambert et al. (1999) pre- (Technique for Order Preference by Similarity
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to Ideal Solution) technique and the fuzzy set chain management. Gentry (1996) illustrated that
theory. closer relationships between suppliers, buyers and
As to the problem contract design, Logan (2000) carriers in the supply chain, i.e. logistics triads, lead
illustrated how the logic of agency theory can help to operating improvements that can increase the
to design the types of contracts and relationships likelihood of maximizing supply chain efficiency
necessary to provide and support an environment of and improve the competitive position of the entire
trust and mutual satisfaction. Lim (2000) developed supply chain in the marketplace. Kopczak (1997)
a game-theoretic model of how a contract may be investigated the linkages between formation of
established in order that TPL providers are encour- logistics partnerships and supply chain restructuring
aged to reveal their true capabilities. Chen et al. in the computer industry. Study findings indicated
(2001) provided a framework for analysing three that the logistics outsourcing via a partnership
forms of third-party warehousing contracts with facilitates supply chain restructuring by allowing
space commitments and adjustment options. Alp greater changes to be made more quickly and with
et al. (2003) devised an approach for designing less investment. Moreover, evidence was provided
contract parameters based on the interactions of of the beneficial effects on supply chain perfor-
three defined sub-problems: vehicle dispatching mance deriving from the restructuring of the supply
problem, inventory control and contract value chain as an inherent aspect of TPL alliances.
problem. Stressing the need to view the advantages of logistics
alliances within the overall context of supply chain
4.1.4. Research on TPL outcomes management, Bhatnagar and Viswanathan (2000)
When successful, TPL relationships can give both illustrated the benefits of a strategic alliance
parties a competitive advantage in the marketplace between a manufacturer and a global logistics
(Tate, 1996). In particular, extant literature has service provider within the context of contemporary
shown that involvement in TPL arrangements, supply chain imperatives of cost efficiency and
especially cooperative, partnership-like relation- customer responsiveness. Panayides and So (2005)
ships, can result in multiple economic, organiza- found that logistics service provider–client relation-
tional and financial benefits for shippers such as ships, through the adoption of relational exchange,
reduced logistics cost, improved service levels and can improve supply chain effectiveness and perfor-
end-customer satisfaction, improved access to and mance by promoting a positive climate for learning
application of technology, reduced capital invest- and innovation.
ment in facilities, equipment and manpower, in-
creased flexibility and productivity, improved 4.1.5. Comprehensive studies
employee morale, increased access to wider markets The distribution of the reviewed works by topic
and new competencies (e.g. Bowersox, 1990; (Table 2) indicates that a considerable portion of the
Daugherty et al., 1996; Ellram and Cooper, 1990; examined literature on TPL is constituted by
Larson and Gammelgaard, 2001b). Research in this ‘‘comprehensive’’ articles. These are empirical,
area has shown that higher levels of commitment survey-based works that provide a descriptive
and integration typical of long-term TPL arrange- picture of prevalent TPL practices in specific
ments also improve third-party providers’ perfor- countries/regions. While the range of the issues
mance. While risks exist due to capital investment in under investigation may vary across these studies,
the alliance and high customization of supplied these contributions typically focus on the following
services (Bowersox, 1990), TPL providers can issues: the extent of usage of TPL services and the
benefit from a long-term source of business volume, specific services most commonly used; the reasons
which results in a closer match between available for entering TPL; the length of contracts; the
capacity and demand, as well as from service obstacles/problems encountered in implementing
innovation and growth opportunities stemming and managing TPL relationships; the benefits of
from synergic work and knowledge sharing with using TPL services and the overall satisfaction with
the customer (Bowersox, 1990; Halldórsson and TPL service providers; and the future plans of
Skjoett-Larsen, 2004). current users of TPL services. These issues are
Research in this area has also been conducted generally explored from users’ perspective through
regarding the outcomes and benefits of TPL multi-sector surveys of the manufacturing industry.
arrangements within the overall context of supply Some of the studies falling into this area have also
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Table 4 (e.g. Croom et al., 2000; Luo et al., 2001) and allow
Breakdown of comprehensive studies by specific countries/ a reasonably comprehensive assessment of research
regions approaches taken in the current body of literature
Geographical References on the subject by highlighting both the basic
focus methodology used and the aim or focus of studies.
Within the first dimension, empirical research refers
US Bardi and Tracey (1991), Boyson et al.
to studies that report practice by means of surveys,
(1999), Lieb (1992), Lieb and Bentz (2004,
2005a), Lieb and Randall (1996b, 1999b), case studies, interviews or anecdotal information,
Lieb and Miller (2002), Min (2002), Murphy while theoretically based works primarily develop
and Poist (2000) models, concepts or conceptual frameworks. Be-
Europe Peters et al. (1998b), Van Laarhoven et al. tween these two opposites, a third category exists
(2000), Wilding and Juriado (2004) that includes articles that are both theoretical and
empirical: these works typically develop a number
Other regions Aktas and Ulengin (2005) (Turkey),
Bhatnagar et al. (1999) (Singapore), Dapiran of hypotheses and test them empirically. The second
et al. (1996) (Australia), Fernie (1999) (UK), distinction is made between prescriptive and de-
Hong et al. (2004) (China), Jaafar and Rafiq scriptive contributions, with the first type aimed at
(2005) (UK), Sahay and Mohan (2006) proposing normative models (practices that organi-
(India), Sohail and Al-Abdali (2005) (Saudi
Arabia), Sohail and Sohal (2003) (Malaysia),
zations and individuals ought to adopt) and the
Sohail et al. (2002, 2004) (Australia, Ghana) latter aimed at describing, explaining and summar-
izing current practices. The prescriptive/descriptive
Transnational Arroyo et al. (2006) (Mexico–Europe–US),
dimension is really a continuum in that many
comparisons Lieb et al. (1993) (US–Europe), Millen et al.
(1997) (Australia–US–Western Europe), articles are primarily descriptive but also give some
Sohail et al. (2006) (Singapore–Malaysia) managerial implications (Olsen and Ellram, 1997);
however, in order to simplify the classification and
create comparable groups of articles, the contribu-
tions have been only categorized as prescriptive or
attempted to regularly assess the evolution of TPL descriptive based on their main focus.
practices through longitudinal surveys (e.g. Lieb The distribution of articles by research approach
and Bentz, 2004, 2005a; Lieb and Randall, 1996a, is given in Table 5. It can be observed that the
1999a; Lieb and Miller, 2002; van Laarhoven et al., majority of reviewed articles (about 63%) fall into
2000). By a review of these works, it is observed that the empirical category, suggesting an empirical and
earlier studies have focused on developed regions more practitioner-oriented focus in the literature on
such as the US, Europe and Australia, whereas TPL. Theoretical works make up about 20% of the
recent research in this area shows more efforts to total studies, while approximately 17% of the
provide insights into TPL practices in developing reviewed articles have a theoretical and empirical
regions, especially Asian countries, which have been focus going beyond a descriptive presentation of the
shifting to an industrialized economy in recent investigated factual situations and emphasizing
decades. Some comparative analyses have also been explanation and evaluation through the refutation
undertaken to offer a cross-country view of TPL. or confirmation of specific hypotheses. Table 5
A breakdown of these comprehensive studies by further indicates that TPL literature is mostly
geographical focus is provided in Table 4.

5. Review of research approaches taken in TPL Table 5


literature Distribution of articles by research approach

Types of methodology Prescriptive Descriptive Total


In this section, the status of research approaches
taken in the literature on TPL is illustrated. Based No. % No. % No. %
on the scheme developed by Olsen and Ellram
Theoretical 18 11.8 12 7.9 30 19.7
(1997), the collected articles have been classified Theoretical and empirical 6 3.9 20 13.2 26 17.1
along two dimensions, from theoretical to empirical Empirical 7 4.6 89 58.6 96 63.2
and from prescriptive to descriptive. These dimen-
Total 31 20.3 121 79.7 152 100.0
sions have been adopted within other review works
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A. Marasco / Int. J. Production Economics 113 (2008) 127–147 139

descriptive in nature, with about 80% of the total fication scheme along with the indication of the
articles falling into this category. specific research methods used in empirical articles
Table 6 provides a summary of all the reviewed (see the letters next to the references). It can be
articles that correspond to the methodology classi- observed that empirical research on TPL is largely

Table 6
Summary of references under the methodology classification scheme of the literature

Prescriptive Descriptive

Theoretical Ackerman (1996), Alp et al. (2003), Bienstock (2002), Chapman et al. (2003), Delfmann et al. (2002), Evans
Bask (2001), Bottani and Rizzi (2000), Fabbe-Costes (1997), Lewis and Talalayevsky (2000), Pappu and
(2006), Chen et al. (2001), Ding and Mundy (2002), Stank and Maltz (1996), Ratten (2004), Wu (2006), Ying and
Stoner (2004), Ko et al. (2006), Dayong (2005), Zinn and Parasuraman (1997)
Kumar et al. (2006), Lim (2000),
Logan (2000), Maltz and Ellram
(1997), Meade and Sarkis (2002),
Min and Joo (2006), Seth et al.
(2006), Tan and Kritchanchai
(2006), Vaidyanathan (2005), van
Damme and van Amstel (1996),
Yan et al. (2003)
Theoretical/ Abrahamsson and Wandel (1998), Daugherty and Dröge (1997), Daugherty et al. (1996), Gardner et al. (1994),
empirical Bagchi and Virum (1996, 1998), de Gentry (1996), Knemeyer and Murphy (2004), Knemeyer et al. (2003),
Boer et al. (2006), Krumwiede and Kopczak (1997), Lai (2004), Maltz (1994), Maltz and Ellram (2000), Menon
Sheu (2002), Sink and Langley et al. (1998), Moore and Cunningham (1999), Murphy and Poist (1998),
(1997) Panayides (2004), Rabinovich et al. (1999), Sauvage (2003), Sinkovics and
Roath (2004), Stank and Daugherty (1997), van Hoek (2000, 2001)
Empiricala Foggin et al. (2004) I, Gunasekaran Aktas and Ulengin (2005) S, Andersson and Norrman (2002)b, Arroyo et al.
and Ngai (2003, 2004) C, Lambert (2006) S, Bardi and Tracey (1991) S, Berglund et al. (1999) S, Bhatnagar et al.
et al. (1999) I, Tate (1996) C, Tyan (1999) S, Bhatnagar and Viswanathan (2000) C, Bolumole (2001, 2003) C,
et al. (2003) C, Zäpfel and Wasner Bowersox (1990) A, Boyson et al. (1999) S+I, Brah and Lim (2006) S,
(2002) C Carbone and Stone (2005) I, Dapiran et al. (1996) S, Ellram and Cooper
(1990) S, Evangelista and Sweeney (2006) S, Fernie (1999) S, Flint et al.
(2005) I, Foulds and Luo (2006) C, Fung and Wong (1998) C, Gibson and
Cook (2001) S, Gibson et al. (1996, 2002) S, Gutiérrez and Duran (1997) S,
Halldórsson and Skjoett-Larsen (2004, 2006) C, Hertz and Alfredsson (2003)
C, Hong et al. (2004) S, House and Stank (2001) C, Huiskonen and Pirttilä
(2002) C, Hum (2000) C, Jaafar and Rafiq (2005) S, Knemeyer and Murphy
(2005a, b) S, Koh and Tan (2005) C, Lai and Cheng (2003) S, Lai et al. (2005)
S, Larson and Gammelgaard (2001a, b) S, Leahy et al. (1995) S, Lemoigne
and Dagnaes (2003) C, Lieb (1992) S, Lieb and Bentz (2004, 2005a, b) S, Lieb
and Kendrick (2003) S, Lieb and Miller (2002) S, Lieb and Randall (1996a, b;
1999a, b) S, Lieb et al. (1993) S, Lynagh et al. (2001) S, Makukha and Gray
(2004) S, Maltz et al. (1993) S, McGinnis et al. (1995) S, Millen et al. (1997)
S, Min (2002) S, Moore (1998) S, Murphy and Poist (2000) S, Neo et al.
(2004) C, Paché (1998) I, Panayides and So (2005) S, Persson and Virum
(2001) C+I, Peters et al. (1998a, b) S, Piplani et al. (2004) S, Pokharel (2005)
S, Rabinovich and Knemeyer (2006) S, Rao and Young (1994) C, Sahay and
Mohan (2006) S, Sankaran et al. (2002) I, Sheffi (1990) A, Sink et al. (1996)
F, Skjoett-Larsen (2000) C, Sohail and Al-Abdali (2005) S, Sohail and Sohal
(2003) S, Sohail et al. (2004, 2006) S, Sohal et al. (2002) S, Spencer et al.
(1994) S, Stank et al. (1996) S, Stefansson (2006) C, Stone (2001) S+I, Sum
and Teo (1999)S, van Laarhoven et al. (2000) S, Wilding and Juriado (2004)
S, Wong et al. (2000) C, Yeung et al. (2006) S
a
Includes the following methods: survey (S), case study (C), interview (I), anecdotal (A), focus group (F). The specific method is
indicated next to each reference.
b
Based on empirical material collected in research projects and action research.
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Table 7
Distribution of research approaches by content categories

Content category Theoretical Theoretical and empirical Empirical Total

No. % No. % No. %

Context 11 18.0 11 18.0 39 64.0 61


Structure 2 20.0 4 40.0 4 40.0 10
Process 17 44.7 7 18.5 14 36.8 38
Outcome – – 4 26.7 11 73.3 15
Comprehensive – – – – 28 100.0 28
Total 30 19.7 26 17.1 96 63.2 152

based on surveys (about 64% of articles). However, 6. Conclusion and research implications
results show a great use also of case studies, with
25% of total empirical articles using this methodol- In the recent past, the growing research interest in
ogy. Indeed, case studies represent a very useful and and the importance of TPL has engendered a
appropriate instrument for research on relationships plethora of contributions on this topic. This paper
as they allow an in-depth, ‘‘multi-perspectival’’ has attempted to provide a picture of the body of
analysis, i.e. to consider not just the perspective of research produced in the field of TPL during the
the actors within the study but also of the period 1989–2006. The study is not without limita-
interaction between them (Frankel et al., 2005). tions. First, only academic journal papers were
Finally, only few examples of the use of the included in the review, as they are generally
interview and anecdotal methods can be found. considered to be the highest level of research for
In Table 7, the distribution of methodologies is acquiring information and disseminating new find-
arranged under the five content categories. The ings (e.g. Ngai and Wat, 2002). Other relevant
figures reported in this table confirm the empirical knowledge concerning this topic might also be
focus of TPL literature across the content cate- found in conference proceedings papers, master’s
gories, with the exception of the process category. theses, doctoral dissertations and textbooks. Add-
Indeed, in comparison to the other content areas, ing knowledge from these sources might have
this category is characterized by a prevalence of altered the results or validated the conclusions
theoretically based articles, which typically propose made in this article. Second, some relevant articles
conceptual, normative models and frameworks of published within the specified time frame may have
TPL establishment/management. Table 7 further been missed during the literature search. This may
shows that literature on TPL context and outcomes also be due to the fact that, although the number
experienced relatively more empirical contributions was small and negligible, there were some missing
that account for 64% and 73.3% of all the articles issues of volumes of some journals (e.g. for
addressing these issues, respectively. The structure Transportation Science, there were two issues miss-
of TPL arrangements is mostly addressed through ing out of 72 issues over the 18 years, and this was
empirical-oriented and theoretical/empirical re- the highest percentage). A third potential limitation
search. The latter typically proposes hypotheses concerns the choice of terms for the literature
relating to lists/taxonomies of relationship’s fea- search. Although it is believed that the right
tures that are tested through surveys in order to descriptors have been used, it cannot be guaranteed
provide a characterization of TPL relationships. that other articles dealing with this subject do exist
Finally, it can be observed that ‘‘comprehensive’’ but under different labels. Finally, though a
studies are exclusively based on empirical methods. conscientious effort has been made to identify the
As clarified before, these contributions primarily primary topic and research approach of each article,
aim at providing a general picture of TPL practices the review and classification of the literature are to a
in specific countries/regions and information is certain extent dependent on subjective estimation.
gathered by means of quantitative methods with a Notwithstanding these limitations, it is believed that
high potentiality for descriptive purposes such as this study provides some reasonable insights into
surveys. the state of the art of TPL literature. Moreover,
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A. Marasco / Int. J. Production Economics 113 (2008) 127–147 141

based on the review, classification and analysis of maintenance over the time of TPL arrangements—
the articles, some broad suggestions for future especially of the close, partnership-like ones—as
research can be put forth. Indeed, in spite of the highlighted, for example, in the study by House and
significant development achieved over the last Stank (2001). While the influence of organizational
decade, there remain many important issues for culture on TPL relationships is not debatable, there
future investigation. Without claiming to be ex- have not yet been many attempts to capture the
haustive, four issues are identified for immediate implications of various culture dimensions on the
attention. formation and management of TPL relationships.
The first concerns implications of e-commerce for Potential advancements concerning this issue are of
TPL. The rise of e-commerce has been impressive in particular interest given the increasing internatio-
the past decade, impelled by the rapid development nalization trend in logistics outsourcing, which
of telematics and computing power. Its influence as boosts the problem of coping with cultural asym-
a driving force of change in logistics is undeniable metries within TPL relationships (Voss, 2003).
both within companies and within supply chains. It Further research within the TPL field is also
is therefore surprising that little attention has been needed to develop a deeper understanding of the
paid to investigate and assess direct as well as behavioural complexities that emerge through the
indirect implications of e-commerce for TPL. In interaction between the buyer and provider of
particular, from the review of TPL literature it logistics services. Increasingly, it is believed that
appears that extant studies have mostly focused successful and lasting relational exchanges are those
on the potential of information technologies and in which partners go beyond short-term transac-
e-commerce applications for TPL providers to tional benefits and incorporate behavioural factors
reduce costs, increase productivity and improve such as trust and commitment (e.g. Dwyer et al.,
customer service (e.g. Evangelista and Sweeney, 1987; Gundlach et al., 1995; Morgan and Hunt,
2006; Koh and Tan, 2005; Lai et al., 2005; Lynagh 1994). This belief, which strongly pervades market-
et al., 2001; Piplani et al., 2004). However, the ing thought and studies, has also informed recent
influence of e-commerce and related information TPL research such that many scholars have begun
and communication technology (ICT) developments to approach TPL from a relationship marketing
on TPL can take other paths that deserve further perspective in order to investigate behavioural
exploration. By influencing the operation and attributes of TPL arrangements and their link with
organization of supply chains, e-commerce impacts outcomes of such relationships (e.g. Knemeyer et
the demand for TPL services, in many cases creating al., 2003; Knemeyer and Murphy, 2005a, b; Moore
new demands on fulfilment. E-commerce also and Cunningham, 1999). Although these studies
provides the buyer and seller of logistics services a have generated significant knowledge on the beha-
wide array of tools and systems for communication vioural issues associated with TPL, yet little
and information management, which are expected empirical evidence exists on the dynamics of forma-
to have a substantial effect on the interaction tion of such behavioural complexities over time.
between the parties and the nature of TPL relation- Given the dynamic nature of TPL arrangements,
ships. Moreover, by offering new management deeper insights into the evolution of behavioural
tools and transparency of logistics service markets, aspects of TPL arrangements could be provided by
e-commerce gives rise to new forms of intermedia- relying on more longitudinal approaches that allow
tion for logistics services, such as the transportation to take into account the temporal dimension of
or logistics exchanges that provide one-stop web- relationships.
sites for accessing transportation and logistics A related area that needs closer investigation
services from multiple suppliers (Chow and Gritta, concerns bonding processes and philosophies within
2001). These issues of e-commerce implications for TPL arrangements. This concept, bonding, has been
TPL provide researchers with numerous opportu- identified as an important concept for examining
nities for further enhancing the field. and explaining successful buyer–seller relationships
Another area with potential for further research (e.g. Håkansson and Snehota, 1995; Wilson, 1995).
and understanding concerns the role of organiza- Stability and overall performance of TPL arrange-
tional culture in the formation and development of ments are likely to be severely affected by the
TPL arrangements. Organizational culture plays a multiplicity of economic, technical and social bonds
relevant role in the development as well as in the that develop during the relationship between the
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142 A. Marasco / Int. J. Production Economics 113 (2008) 127–147

parties. TPL studies would benefit from more Acknowledgements


research designs aimed at identifying and explaining
integrative processes that serve to bond partners The author is most grateful to the anonymous
and strengthen relationships. With an increasing reviewers for their comments that helped improving
trend towards creating, managing and enhancing readability and contents of the paper and would
long-term cooperative logistics arrangements (e.g. also like to thank Dr. Alfonso Morvillo for his
Murphy and Poist, 2000; van Laarhoven et al., guidance and support in starting and completing
2000), organizations increasingly need to learn this research.
about and invest in bonding processes.
Besides the opportunity for additional research in
the above areas, an overall suggestion for future References
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