The car manufacturer (CM) and third party logistics provider (TPLP) relationship in the outbound delivery channel: A qualitative study of the Malaysian automotive industry

Abstract

This research studies the relationship between car manufacturers (CM) and third party logistics providers (TPLP), also known as the logistics partnership, in the outbound delivery channel in the Malaysian automotive industry. It focuses specifically on the dyad perspective, and demonstrates that several critical success factors are required for a successful relationship between these two parties. Five such factors emanate from the operational dimension and eight from the relational dimension. The five operational factors are: logistics service performance, investment, information sharing, information technology and communication, and price of the logistics service; and the eight relational factors are: trust, commitment, power, conflict, dependency, co-operation, informal activity, and understanding. The study also reveals that five outcomes are identified that benefit both the CM and the TPLP as a result of the win-win situation accruing to both parties. These are: renewal of the contract, company profitability, improved logistics service performance, knowledge transfer, and company branding. Such benefits enhance the supply chain relationship, and knowledge of these advantages improves current TPLP theory by deepening the understanding of how logistics partnership can succeed. In order to obtain rich data concerning the CM-TPLP relationship, the researcher adopted a different methodology from that used by previous scholars, who have concentrated on quantitative techniques. In this study, multiple case studies (seven in total) in one industry, the automotive industry, in the non-western context of Malaysia, were conducted. Three main steps in the case study protocol were followed. The first involved a review of the literature pertaining to the themes that required further exploration, together with the development of the interview questions. In the second step, data were collected using semi-structured interviews, observations, document reviews, photographs and also archival records. Qualitative content analysis was used to analyse the qualitative data. The third stage involved exploring the data until it was found that nothing new was emerging from the interviews, and hence theoretical saturation had occurred. At this point the factors in question were confirmed, and the initial model revised. Additionally, confidentiality was maintained in all respects to protect the participating organisations and individuals. The findings contribute to the understanding of the CM-TPLP relationship which enhance supply chain relationship and TPLP theory, since they shed light on the operational and relational factors in one specific industry, from a dyadic perspective, and in a non-Western context, thereby adding new dimensions to the existing body of knowledge in this field. The findings benefit practitioners via the novel LPS (logistics partnership success) model generated by the researcher. This indicates the key contributory factors to the CM-TPLP relationship success. Moreover, the study may have the capacity to generalise to other culturally-similar environments.