3pl Financial Performance In Malaysia – Internal And External Drivers
Loading...
Date
2014-01
Authors
Chong, Chu Le
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
The global economic environment is experiencing uncertainties and the
strategic responses of third party logistics (3PL) in Malaysia are not precluded. With
the 3PL industry experiencing growing demands of 3PL users and the emergence of
more 3PL service providers, these have created further competition within the 3PL
industry to attract user firms. This requires 3PL firms to review their strategies to
become more competitive. This study focused on the evaluation of external and
internal environment followed by strategic choices made by 3PL firms in Malaysia to
produce operational performance achieving financial performance in the wake of
economic global uncertainties. The 3PL firms strategic positioning choices are low
costs and differentiation yielding operational performance of cost and service to
achieve financial performance. A composite model was studied based on both
perspectives of Resource-based view and Market-based view. The findings show
both the external and internal environment influence operations emphases and
operational performance leading to financial performance. This study has also found
10 full paths in the model beginning from either external or internal environment
through operations emphases and operational performance driving financial
performance of 3PL firms. These full paths indicate RBV and MBV are
complementary rather than competing frames. In this uncertain global economic
environment, firms exercise both cost and service capabilities as their strategies. This
finding is supported by the theory of cumulative capabilities.
Description
Keywords
3pl Financial Performance , Drivers