Replicating the influence of industry characteristics on the extent of logistics outsourcing: a bounded-conceptual-extension study

Abstract

Purpose – This study examines how industry characteristics—munificence, dynamism, concentration, and capital intensity—influence the extent of logistics outsourcing. The extent of outsourcing is measured by the ratio of logistics outsourcing expenditure to logistics assets at the industry level, providing a financial-based metric of reliance on external logistics services. Design/methodology/approach – Using data from the US Bureau of Economic Analysis and Compustat, the study employs a fixed-effects panel model to analyze 64 US private sectors from 1998 to 2022. Key industry variables are measured alongside controls like logistics intensity and firm size. The analysis is theoretically framed by Resource Dependency Theory and the Structure-Conduct-Performance framework. This research performs a Bounded-Conceptual-Extension Replication of Qu et al. (2011), applying their industry-level model from the IT domain to the logistics sector to assess its generalizability. Findings – The study finds that industry munificence and dynamism positively and statistically significantly influence the extent of logistics outsourcing. This suggests that firms in resource-rich and dynamic environments are more likely to engage in outsourcing to enhance operational flexibility and manage uncertainty. In contrast to initial expectations and findings in the IT context, capital intensity does not show a significant effect on the extent of logistics outsourcing. Similarly, the main analysis reveals no statistically significant relationship between industry concentration and logistics outsourcing, though a post hoc analysis suggests a loosely negative association. Additionally, high logistics intensity encourages firms to strike a balance between in-house capabilities and selective outsourcing. Originality/value – This study fills a critical research gap by providing robust empirical insights into industry-level factors influencing logistics outsourcing. By rigorously replicating and extending an established model to the distinct, asset-heavy logistics sector, it tests the generalizability and boundary conditions of existing outsourcing theories, highlighting the need for nuanced theoretical assumptions about asset dependency across sectors. The use of a financial-based “extent” metric provides a novel contribution, capturing strategic outsourcing depth and spending priorities beyond just the number of functions outsourced. Practically, the findings offer actionable insights for managers and 3PLs to craft effective, context-sensitive logistics strategies tailored to specific industry environments.

Department(s)

Marketing

Document Type

Article

DOI

10.1108/IJPDLM-03-2024-0110

Keywords

Industry characteristics, Logistics outsourcing, Panel model, Third-party logistics

Publication Date

9-22-2025

Journal Title

International Journal of Physical Distribution and Logistics Management

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