Logistic service quality as a mediator between logistics capabilities and customer satisfaction.

AutorFernandes, Daniel Winter
  1. Introduction

    Customer satisfaction (CS) is a fundamental concept in marketing and business strategy (Bowersox et al., 2014). Kottler (2000) posits that CS consists of the feeling of pleasure or disappointment resulting from the comparison between the expectations of the buyer and perceived performance (or result) of a product. According to Sharma et al. (1995), CS arises the moment a company manages to provide a logistics service that meets or exceeds the customer's expectations. Mentzer et al. (2001) suggest that logistics service quality (LSQ) can influence CS.

    Novaes (2007) emphasizes that modern logistics seeks to fully incorporate CS by maintaining an adequate and pre-established standard of logistics service. Daugherty et al (1998) argue that logistics capabilities (LC) are associated with high levels of CS. The authors define LC as a subset of resources that enable the firm to exploit other resources more efficiently (Barney and Hesterly, 2013), and to distinguish itself from its competitors (Chase et al, 2006). Esper et al (2007) add that the search for competitive advantage can occur through the differentiation of the logistics services provided, which would influence CS.

    Nevertheless, it is important to understand some of the problems and constraints of the emphasis on CS. Bowersox et al. (2014) report three limitations: the interpretation of satisfaction; the fact that satisfied customers are not necessarily loyal customers; and the problem that what satisfies one customer may not satisfy another (completely or at all). In this sense, Christopher (1999) suggests identifying customer service needs through market research to understand the nuances of services that differentiate customers.

    Ensuring that a customer is satisfied may require the company to reinvent the way the product is manufactured, distributed or offered for sale. One way to meet the challenges of CS is to develop value-added services (Bowersox et al, 2014).

    The evolution of LSQ and LC can affect client satisfaction; however, studies about the influence of LC on the relationship between logistics quality and CS are scarce (Malgorzata and Gajewska, 2014).

    In this context, the present study has, as a research problem, the following question:

    RQ1. Does LSQ mediate the relationship between LC and CS with companies in the lubricating oil business?

    The objective was to examine the importance of LSQ as a mediating factor in the relationship between LC and CS.

    The study is structured as follows: after this introduction, Section 2 describes the theoretical foundations and hypotheses that support the study. Section 3 details the methodological procedures, followed by an analysis of data and results in Section 4. Finally, Sections 5 and 6 present the discussion, conclusion and suggestions for the continuation of the research.

  2. Theoretical rationale

    The scholarly works of Sharma et al. (1995), Mentzer et al. (2001) and Saura et al. (2008) identified that the quality of the logistics service can have a positive and significant impact on CS. Morash et al. (1996), Daugherty et al. (1998), Esper et al. (2007) and Glicor and Holcomb (2012) observed that companies that developed specific LC were able to achieve CS through them.

    Likewise, Morash (2001) and Richey et al. (2007) identified the influence of LC on LSQ. Next, we present the theoretical framework that bundles together the LC, LSQ and CS constructs, highlighting both the direct and indirect impact of LC on CS via LSQ (i.e. mediated by LSQ).

    2.1 LC and CS--direct impact

    Capabilities constitute a subset of a company's resources, and are defined as tangible and intangible assets that enable the company to fully use its other resources (Barney and Hesterly, 2013). Grant (1991) argues that capabilities are the primary sources of company profitability and competitive advantage. Capabilities, in isolation, do not allow a company to devise and implement its strategies, but allow it to marshal other resources to create and implement such strategies (Barney and Hesterly, 2013). For Helfat et al. (2007), capabilities have three functions: ability to change the resource base; ability to act on a recurring basis to modify the resource base; and ability to search for and select the modifications to be made (Helfat et al, 2007).

    By exploiting the full potential of LC, a firm can achieve high levels of CS (Daugherty et al., 1998). Morash et al. (1996) identify five logistical capabilities oriented to provide customer services that influence a firm's performance: pre-sales customer service; after-sales customer service; speed of delivery; reliability of delivery; and customer responsiveness. Convergent with the studies performed by Morash et al. (1996) is the study developed by Fawcett et al. (1997), which shows that LC that combine delivery speed and reliability together with flexibility and responsiveness are key components of the logistics service in the pursuit of CS.

    The increasing adoption of automation and information technology (IT) in firms enables them to achieve greater success in their abilities to provide, receive and integrate information with their clients to offer a differentiated logistics service (Glicor and Holcomb, 2012). Information integration can improve services and reduce costs at the same time, as well as significantly influence LC, enabling firms to invest heavily in databases to share information between customers and suppliers (Liu and Luo, 2012). This competitive advantage can be achieved through the differentiation of the logistics services provided, which, in turn, influence CS (Esper et al, 2007).

    Furthermore, studies by Lynch et al. (2000) and Morash (2001) show a relationship between LC and CS: firms actively seeking solutions to logistical problems before they occur, and with the ability to develop creative logistics solutions for specific situations or emergencies, have a positive impact on CS (Lynch et al., 2000; Morash, 2001). Hence, we have the following hypothesis:

    H1. There is a positive relationship between LC and CS.

    2.2 CS, mediated by LSQ--indirect impact

    In studies conducted in the early 1990s, Byrne and Markham (1993) showed that only 10 percent of firms achieved CS through logistics services. These authors alerted logistics managers of the importance of LSQ, since improving the quality of the logistics service had a positive impact on CS.

    Sharma et al. (1995) explained the process of generating CS using the paradigm of nonconformity of expectations: CS is generated when the performance of the logistics service is equal to or greater than the client's preconceived expectations. These authors classify the following attributes as having the highest impact on CS: product availability; after-sales service and support; efficient communication of the logistics service; documentation; and delivery time.

    Importantly, Fornell et al. (1996) pointed out that when customer expectations are met, complaints diminish and CS increases. These expectations can be achieved through logistical flexibility. Logistical flexibility is understood as a firm's ability to respond quickly and efficiently to customer needs related to the provision of logistics services (Zhang et al, 2005).

    Stopka et al. (2016) argued that CS is very important for logistics companies seeking a competitive advantage because if they do not meet the expectations of their customers, this function will be assumed by other firms. The study by Lin et al (2016) on e-commerce firms in China showed that the quality of electronic service had a positive effect on CS. Nevertheless, the quality of their logistics service negatively affected CS.

    Meidute-Kavaliausjeine et al. (2014) pointed out that LSQ increases the competitive advantage of the service provider, since it leads to consumer loyalty, in turn reducing the number of competitors and developing conditions favorable to the development of economies of scale. When selecting from the potential of the logistics service provider, consumers evaluate the quality of service, but also the cost of service, technological solutions and the set of services delivered by the provider. This leads to the following hypothesis:

    H1a. The LSQ mediates the relationship between LC and CS.

    2.3 LC and LSQ

    Lynch et al. (2000); Richey et al. (2005) and Richey et al. (2007) identify that LC influence the quality of the logistics service provided.

    The study by Liu et al. (2010), conducted among logistics service providers in China, points out that logistical capability is the most critical for quality of service. Gotzamani et al. (2010) analyze companies providing logistics services and conclude that LC have become indispensable for obtaining of LSQ, as well as improving financial performance for companies.

    Glicor and Holcomb (2014) explore the role of LC in the achievement of agility, which has contributed to the increase in LSQ, in terms of manufacturing flexibility, supply chain speed and lean production. They also point out that the level of agility can determine the extent of efficiency and effectiveness in the quality of logistics services.

    A number of academic studies have identified that the quality of logistics services and LC can influence CS. However, some studies have identified that LC have an influence on the LSQ. Hence, we have the following hypothesis:

    H2. There is a positive relationship between LC and the LSQ.

    2.4 LSQ and CS

    The LSQ is defined as a set of performance factors, measured by the ability to distribute products in accordance with customer requirements (Yang et al., 2010). Various empirical studies have shown a relationship with company performance and CS, such as those of Mentzer et al. (1999, 2001), Panayides and So (2005) and Saura et al. (2008).

    In order to improve the knowledge of logistics managers about which logistics factors affect CS, Mentzer et al. (1999, p. 84) developed a scale measuring nine concepts to determine customers' perception...

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