Strategic Orientation and Market Performance 3PL user perspective

This study seeks to explore the effects of strategic orientations on market performance in which firm has outsourced its logistic functions to third-parties (3PLs). A sample of 293 companies in China with experiences in 3PL services were identified for this study. Market performance was shown to be affected by firm's orientation and in what extend the third-parties mediate such relationship in structural equation modeling. Based on these findings, it is suggested that firms have to consider outsourcing non-core functions to the outsiders for getting a good result in the market. Hence, a conclusion was arrived that the collaboration with third party logistics service providers is one strategic move for firms in advancing the operations.