A multiple case study of logistics service quality (LSQ), client satisfaction and relationship magnitude in New Zealand : A dyadic perspective : A dissertation submitted in partial fulfilment of the requirements for the degree of Master of Applied Science (Transport Studies) at Lincoln University

Abstract

This research was undertaken firstly to identify the key reasons why New Zealand firms outsource their logistics functions. Secondly, to ascertain the most important dimensions of logistics service quality (LSQ) that might impact on the client's perceptions of LSQ contributing to client satisfaction. Thirdly, to understand the role of relationship magnitude and ptjce level on the client's perceptions of LSQ. Finally, to determine the gaps between operational and relational performance as perceived by the trading parties in the third-party logistics (3PL) industry. This research uses a qualitative multiple-case study method to investigate the construct of the 3PL service quality. By conducting in-depth interviews from a matched dyadic perspective the 3PL provider and the client, this research gains deep insight into the nature of the relationship between LSQ, relationship magnitude, and price of service. This study finds that order discrepancy handling represents the largest gap of logistics performance, as perceived by the trading parties. It was found that relationship magnitude does, indeed, have an effect on the client's perceptions of LSQ and the causal order of the relationship between these two concepts is two-way. However, the analysis reveals that price of service is not important to the client's perceptions of LSQ and client satisfaction in the two supply chains, although the contrary was predicted. The analysis also demonstrates that active disclosure is one of the most important areas of relationship magnitude for improvement. Interestingly, the results show that clients with low levels of relationship still had opportunities to receive high levels of LSQ, and may even be more satisfied than the clients with higher levels of relationship. Only six cases have been used for this research, thus, this may influence the generalisability of the findings. In fact, this research makes a contribution to the 3PL literature by combining the concepts of relationship magnitude with the LSQ. The evidence collected for this research shows that combining the 'hard' operational dimensions of LSQ with the 'soft' relational dimensions offer a more complete approach to capturing the construct of LSQ.