Moderation effect of client special treatment benefits on the relationship between logistics integration and logistics performance in the logistics services providers’ context

Abstract

In the face of global competition and the coronavirus disease-19 (COVID-19) pandemic, the logistics service providers (LSPs) are facing severe challenges to attain their logistics performance indicators. To continue in such a market place, LSPs need to maintain a dedicated integration relationship with their clients by enhancing client special treatment benefits. The aim of this study is to apply the relational view (RV) theory and the relationship marketing (RM) perspective to examine the moderation effect of special treatment benefits on the link between logistics integration and LSPs’ logistics performance (i.e., cost leadership and customer services innovation). Data was collected from 214 Malaysian LSPs, and analysed using partial least squares-structural equation modelling (PLS-SEM). Although the results show that logistics integration has a strong impact on both performances, further analysis shows that a high level of logistics integration has an association with high levels of special treatment benefits (moderating effect), in turn, maintaining performance at a high level. The exploring of the moderation effect of special treatment benefits contributes to the RV theory by incorporating the RM to reflect the moderation effect. Additionally, the study contributes empirically to the field of strategy and RM within the LSPs’ industry. Finally, the findings enable LSPs to better allocate resources to ensure more effective value-based strategies that emphasise on client special treatment benefits to develop financial confidence and maintain long-term dedicated relationships, so as to achieve the target outcomes.