Logistic outsourcing risks management and performance under the mediation of customer service in agribusiness

ABSTRACT

This research analyses the influence of logistic outsourcing risks management on trade performance in agribusiness distribution chain. The paper scrutinises the relationship between Manufacturer – Logistic provider – Customers (distributors). We assume that outsourcing risks management can enhance trade performance. After a pre-survey on supply chain managers using individual interviews, quantitative data were collected on a sample of agribusiness managers. We performed data analysis by structural equation modelling methods. We found that the logistic outsourcing risks management is not significantly related to trade performance. However, this relation is positive and significant through the mediation of customer service, in the presence of the logistic capabilities of provider. Hence, managers in developing country consider logistic as a resource with distinctive capability, valuable, scarce and both difficult and costly to imitate. They prefer to manage it internally in order to avoid outsourcing risks. But in France, managers prefer to outsource because their internalisation does not provide a competitive advantage.

KEYWORDS:

• Outsourcing
• risk
• customer service
• trade performance
• logistics capabilities

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. Insee, Les entreprises en France, Edition 2013, Valeur ajoutée par branche d’activité 2015.

2. Ins (2012) and Le Bulletin du GICAM N° 60, (October 2014) estimates the number of agribusiness of about 7,923, which 98.10% are Medium-sized Enterprises and Very Small Enterprises.

3. Having at least one industrial production unit, possess a structure with defined functions/departments, employing more than 10 employees.

4. http://wikiagri.fr/articles/lindustrie-agroalimentaire-fran%C3%A7aise-en-25-chiffres/1807.

5. Link sent by email to managers identified in file of the Chamber of Commerce and Industry of Nord-Pas-de-Calais.

6. Length of response.

7. Frequency percentage in the text.

8. The weight is indexed to the factorial axis.

9. Direct No Med.: 0,244; Direct w/med: 0,001; IV →Med Beta: 0,290; Med →DV Beta: 0,720; IV → Med S_E: 0,071; Med → DV S_E: 0,040

10. We realised that these two last interlocutors designated by the company did not really understand the subject. That is why the interviews were limited to general information for a few minutes.

11. Length of response.

Additional information

Notes on contributors

Célestin Elock Son

Célestin Elock Son is a PhD owner, currently Attaché Temporaire d’Enseignements et de Recherches within the Commercials Technics (TC) department of the IUT of the Université Polytechnique Hauts-De-France. He is a member of the Institut de Developement et de la Prospective (IDP) laboratory. His research is under the risk management issues in the hight consumer product distribution chains. He published a book and papers on retailers behaviours, papers on downstream supply chain risks management. He currently working on the impact of customers behaviour on Drive purchasing choices within french retail sector.

Joël Müller

Joël Müller is Emeritus Professor at Université d’Artois. Member of RIME Lab. laboratory, EA 7396. Head of the research department on Consumption, Marketing and Innovation (CMI). Authors of several book chapters and papers in Management (Marketing, Human Resources, etc.).

Emmanuel Djuatio

Emmanuel Djuatio is a Professor at Institut Supérieur de Management (ISMA). Associate researcher in RIME Lab. laboratory, EA 7396, he is the author of several books and articles in Human Resources Management, Innovation, Strategy, etc …