Does Third-Party Logistics Create a Synergy Effect on Firm Performance

Abstract

A firm with strong strategic orientations tends to perform better in the market. However, recent research findings suggested differently. Interfirm collaboration is conceived to be one of the intervening variables, which operate between strategic orientations and firm’s market performance. A firm working closely with third parties is likely to achieve a better result because of the synergy effect. Based on this proposition, this study aims to test this synergy effect arising from interfirm collaboration on firm performance in the context of outsourcing the distribution function to third-party logistics (3PLs) providers in Southern China.