An empirical examination of the contribution of capabilities to the competitiveness of logistics service providers: A perspective from China

Purpose ‐ This paper aims to report on an investigation of logistics service provider (LSP) capabilities and how these capabilities contribute to LSP competitiveness in the context of China. Design/methodology/approach ‐ This paper draws on work from economics and strategy on firm-level competitiveness, particularly the resource-based view, to develop and empirically examined 13 firm-specific capability constructs based on a survey of Chinese LSPs. Findings ‐ Exploratory factor analysis and factor analysis regression indicated all 13 constructs are critical to a Chinese LSP's competitiveness and are interlinked in contributing to it. The findings also revealed the most critical capability is service quality; this capability was further assessed and two sub-constructs of operations and relationship management emerged. Practical implications ‐ The results of the empirical study provide a useful way for LSP managers to identify and appraise their firm's capabilities and competitiveness. Originality/value ‐ This study contributes by addressing a gap of empirical research concerning LSP competitiveness and capabilities.