Developing relational embeddedness of logistics service provider to enhance supply chain performance in transitive triads

Abstract

PurposeThe study seeks to explore the effect of socialization mechanisms on relational embeddedness of logistics service providers (LSP), and relational performance of dyads, and finally their resulting effect on the supply chain performance in transitive triads.Design/methodology/approachTo elaborate on the major constructs of the study, the researchers use the theoretical lens specifically provided by social capital theory (SCT), and relational view (RV). Consequently, the researchers use SCT to examine the role of the socialization process, used by the supplier and customer, to develop relational embeddedness of logistics service providers in triads. Next, the researchers use the RV, complemented by the underpinnings of supply chain practice view (SCPV) to elaborate on the relational performance of dyads and supply chain performance. The study uses partial least squares structural equation modeling (PLS-SEM) to estimate the higher component model (HCM) and test the research hypotheses.FindingsThe results obtained from a sample of 350 transitive triads suggest that relational embeddedness of LSPs is only shaped by the mechanisms of formal socialization, developed by the supplier and customer. Interestingly, informal socialization appears to be insignificant for this process. The results indicate that relational embeddedness of logistics service providers has a positive effect on the relational performance of three dyads, which in turn, has a positive effect on the supply chain performance in transitive triads.Research limitations/implicationsOne of the intriguing avenues of future research is to investigate the dynamics of supply chains. It would be also worthwhile to make use of the specificity of transitive triads, formed by the supplier, customer and LSP, to explore whether and under which circumstances (e.g. reciprocity, symmetry) the strong ties encourage the transfer and integration of knowledge among actors, and the weak ties accelerate the search for information. In connection with that, the other interesting research avenue would be to investigate the information benefits derived from the nonredundant triads.Originality/valueAlthough there is a number of recent studies that show empirical evidence for developing relational embeddedness in transitive triads, to date, little research interest has been paid to how relational embeddedness of LSPs is shaped within the supply chain structures, and how it finally affects the supply chain performance.