Logistics service quality in an emergent market in Latin America

Abstract

PurposeThis paper aims to determine how the level of logistics service quality facilitates logistics performance in emerging markets. The authors chose Ecuador because it is an emerging economy with relatively stable economic development, making it an attractive research platform in a challenging environment for logistics services. The authors empirically test the influence on performance and one another of five dimensions of service quality: reliability, responsiveness, empathy, assurance and tangibility.Design/methodology/approachSERVQUAL and partial least squares structural equation modeling was undertaken to test the proposed relationships empirically.FindingsThe performance was positively related to assurance, tangibility and reliability but negatively related to the responsiveness and empathy dimensions. The findings suggest the order of priority for improvement actions. The findings highlight that the existing relationships in developed markets do not apply in the same manner in emerging markets.Research limitations/implicationsAlthough representative, data were only collected in one specific market.Practical implicationsThe results reveal a mix of activities that managers should develop to improve the services they provide, relationships with customers and performance.Originality/valueFew other works have explored logistics service quality in South America's emerging markets. According to contingency theory, various combinations of service quality dimensions can influence performance, suggesting that managers should aim for optimal fit between dimensions according to internal and external situations. An efficient and effective combination in one case may be unsuccessful in another. The approaches presented can improve relationships within global supply chains, especially regarding logistics management.