An empirical study of third-party purchase: New Zealand users' perspective. Issue 56 (1st December 2016)

• Record Type: Journal Article
• Authors: Shi, Yangyan; Arthanari, Tiru; Wood, Lincoln C.
• Is Part Of: Applied economics. Volume 48:Issue 56(2016)
• Page Start: 5448
• Page End: 5461
• Publication Date: 2016-12-01
• Subjects: Third-party logistics (3PL) -- third-party purchase (3PP) -- transaction cost analysis -- structural equation modelling -- 3PL users -- New Zealand; C50 -- C42; Economics -- Periodicals; 330
• DOI: 10.1080/00036846.2016.1178847
• Languages: English
• ISSNs: 0003-6846

Abstract

ABSTRACT: This article investigates the potential for third-party purchase (3PP) services offered by third-party logistics (3PL) providers, from the perspective of 3PL users, based on transaction cost analysis. We conducted a survey of New Zealand 3PL users and received 163 usable responses. Structural equation modelling was used to test the conceptual model. We found that 3PL users are more likely to adopt 3PP service when there is greater uncertainty. Asset specificity, frequency and transaction size do not have a significant relationship with 3PP service adoption. However, 3PP service is significantly related to the value-to-client and benefit-to-3PL provider. This study is pioneering research on 3PP service as a value-added service offered by 3PL providers from the perspective of 3PL users. The findings suggest that offering 3PP service will provide mutual benefits and value for both 3PL users and their 3PL providers.