Supply chain of service capability and its impact on business performance

Etty, Indriani (2018) Supply chain of service capability and its impact on business performance. Prosiding The 1st International Conference and Call for Paper on Insuring Sustainable Business Strategy. ISSN 979-26-0284-4

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Abstract

This study aims to verify what aspects related with organizational structure and service capability contribute to the performance of logistics providers in the business-to-business (B2B) context with client companies in supply chains. A sample of 80 logistics provider companies of the Indonesia was surveyed, from a universe of companies that develop logistics activities, such as warehousing and inventory control, transportation, scheduled deliveries, port operations and customs clearance. The survey instrument consists of multiple scales to represent the construct variables related to organizational structure, service capability, and business performance. The answers reflect the logistics providers’ perception of their work performance for the main customer in the supply chain. Resorting to multivariate statistical analysis based on structural equations modeling LV-PLS {Latent Variable - Partial Least Squares) with bootstrapping, we found that the sole attribute that contributes for a better business performance of the logistics provider is its ability to meet, both technically and operationally, the service contracted by the customer. The ability to provide logistics service is positively and significantly influenced by an organizational structure endowed with both autonomy and organization

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