Konstantinos Selviaridis

Third party logistics: a literature review and research agenda

Purpose – To provide a taxonomy of third party logistics (3PL) research and, based on that, to develop a research agenda for this field of study.Design/methodology/approach – The proposed 3PL research classification framework is based on a comprehensive literature review, which concentrates on peer‐reviewed journal papers published within the period 1990‐2005. A total of 114 academic sources have been retrieved and analysed in terms of research purpose and nature, method employed, theoretical approach and level of analysis.Findings – The review reveals that 3PL research is empirical‐descriptive in nature and that it generally lacks a theoretical foundation. Survey research is the dominant method employed, reflecting the positivist research tradition within logistics. It identifies certain knowledge gaps and develops five propositions for future research. It suggests that focus should be directed towards more normative, theory‐driven and qualitative method‐based studies. It also argues that further empiric...

Contract functions in service exchange governance: evidence from logistics outsourcing

Abstract The logistics outsourcing literature emphasises relational governance mechanisms and has underplayed the role of formal contractual provisions. This paper empirically examines the multiple functions that contracts perform in the governance of service exchanges. Codification, safeguarding, coordination and adaptation functions are linked to contract specification schedules, payment mechanisms, (early) termination rights, performance review and communication provisions, service variations clauses and renegotiation provisions. Contracts may also embody exchange- or partner-specific learning, albeit to a limited extent. Overall, the empirical findings lend support to the functional view of contracting. The functionality of contracts extends beyond safeguarding against opportunism and financial losses. In addition to offering economic and legal safeguards, contracts are used to coordinate and adapt service exchanges in the face of complexity and uncertainty.

The governance of collaboration in complex projects

Purpose Inter-organisational collaboration is becoming increasingly important in complex projects; some project customers even formally require evidence of collaborative competence from potential providers. The purpose of this paper is to explore the governance of collaboration and the ways in which it is enacted in practice for complex projects. Design/methodology/approach The study is based on a qualitative analysis of 29 semi-structured interviews, primary data from meetings and events supported by secondary data, including standards and industry-specific contract templates. Findings The paper identifies how collaboration can be effectively governed in complex projects through the emerging role of the collaboration standard and its impact on contractual and relational governance mechanisms. The standard sets higher-level institutional guidelines that affect the way in which collaboration is governed in complex projects. It helps formalise informal relational practices whilst also providing guidelines for building flexibility in contracts by including coordination- and adaptation-oriented provisions conducive to collaboration. Originality/value The paper demonstrates the emerging role of the collaboration standard and its influence on contractual and relational mechanisms deployed in complex projects. It shows how the standard can formalise and codify informal collaborative practices and help transfer related learning across projects, thereby contributing towards the dual requirement for standardisation and flexibility in project settings.

Supply chain alignment as process: contracting, learning and pay-for-performance

Purpose The purpose of this paper is to understand how buyers and suppliers in supply chains learn to align their performance objectives and incentives through contracting. Design/methodology/approach Two longitudinal case studies of the process of supply chain alignment were conducted based on 26 semi-structured interviews and 25 key documents including drafts of contracts and service level agreements. Findings The dynamic interplay of contracting and learning contributes to supply chain alignment. Exchange-, partner- and contract framing-specific learning that accumulates during the contracting process is used to (re)design pay-for-performance provisions. Such learning also results in improved buyer-supplier relationships that enable alignment, complementing the effect of contractual incentives. Research limitations/implications The study demonstrates that the interplay of contracting and learning is an important means of achieving supply chain alignment. Supply chain alignment is seen as a process, rather than as a state. It does not happen automatically or instantaneously, nor is it unidirectional. Rather, it is a discontinuous process triggered by episodic events that requires interactive work and learning. Practical implications Development of performance contracting capabilities entails learning how to refine performance incentives and their framing to trigger positive responses from supply chain counterparts. Originality/value The paper addresses supply chain alignment as a process. Accordingly, it stresses some important features of supply chain alignment.

Me, myself and I: Non-collaborative customer behavior in service outsourcing – the key role of outcome orientation and outcome attributability

This research focuses on the role of customer behavior in service outsourcing relationships that are governed by outcome-oriented contracts. It aims to explain how non-collaborative customer behavior impedes the effectiveness of outcome-oriented contracts to align the goals and incentives of the customer and service provider, and leads to service provider opportunism. Nine hypotheses are developed regarding customer behavior and the reaction of the service provider to this. These are tested using structural equation modelling with data from 213 service outsourcing relationships. Outcome-orientated contracts in service outsourcing may have unintended consequences because they create value attribution ambiguity. This ambiguity induces non-collaborative customer behavior, which, in turn, results in service provider opportunism. This reveals a paradox, where customer behavior aimed at curbing service provider opportunism instead induces such opportunism. This chain of effects can be counteracted by increased outcome attributability, which reduces the ambiguity and, thus, the motivation for non-collaborative customer behavior. This research extends the existing literature by stressing that non-collaborative customer behavior is a key reason why outcome-oriented contracts fail in effectively governing outsourcing relationships, and that this can be counteracted by increased outcome attributability.