An Examination of the Logistics Leverage Process: Implications for Marketing Strategy and Competitive Advantage

Based on preliminary research on logistics leverage and the lack of research on linking specific logistics capabilities and competitive advantage, it was the primary purpose of this dissertation to develop and test a theoretical model of the logistics leverage process. The model was developed based on the extant literature in logistics, marketing, and strategic management and the data from in-depth interviews with logistics professionals. The nomological network consisted of eight constructs: resource commitment, process capabilities, value-added service capabilities, relational capabilities, logistics performance, competitive advantage, firm performance, and marketing signals of value. Resource commitment and logistics performance were tested as second-order constructs in the model.

The survey method was utilized to obtain data on the eight constructs in order to test the hypothesized relationships among the constructs. Logistics professionals in manufacturing organizations were selected as target respondents based on their perceived knowledge on the constructs of interest. The recommended two-step approach was used to analyze the measurement and structural models in structural equation modeling and to test the hypotheses. Four of the nine hypothesized relationships were supported and the overall fit of the structural model was supported by the goodness of fit measures. The findings of this research provide both theoretical and managerial implications.