The impact of logistics outsourcing performance on provider commitment: an empirical study

Abstract

Since the 2000s, the relationship marketing approach starts to take place and change the philosophy of classic transactional marketing. It is a new way of marketing where customizing is the key element of the marketing action. Of particular importance is giving to building a long-term relationship allowing the company not only to have a loyal customer but also an ambassador who is spreading the company's image across the network. That is to say, building loyalty always costs less than having a new customer.

Also, commitment plays an important role in the inter-organizational relationship. For (Berry, 2002), a service performance offered by the company strengthens the customer's trust in the company and gives maintain his commitment in the relationship or even mutual commitment. Likewise, an engaged partner in the relationship is less likely to change his partner and suffers less from the effects of competitive distortions even in the case of low performance. Hence, customer commitment contributes to the stabilization and maintenance of the long-term relationship (Ulaga & Eggert, 2006).

This paper focuses on studying the impact of logistics outsourcing performance on customer commitment through an empirical study using in the analysis the PLS method. The results show a significant relationship between customer satisfaction and commitment.

JEL classification: M31

Paper type: Empirical research