Textile and clothing exporting firms’ evaluation of LSPs’ capabilities and logistics outsourcing performance

Abstract

Using resource-based view (RBV) as the main theoretical framework, this chapter examines the impact of logistics service providers’ capabilities on logistics outsourcing performance from the perspective of textile and clothing exporting companies in Egypt. The study focuses on three resource capabilities acquired by logistics service providers (flexibility, expertise, and innovativeness) in a specific LSP-Client outsourcing relationship. The study identified flexibility and expertise as strong drivers of logistics outsourcing performance. No support was found for LSPs innovativeness as a driver of outsourcing performance. This may be because of the standardized logistics services provided by LSPs to exporters in the textile and clothing industry, which requires less service innovation within the empirical setting. Implications of the study for management are highlighted along with suggestions for further studies.