Logistics digitalization and the third-party logistics blue-collar employees performance: the role of paradoxical leader behavior

Purpose This study examines the impact of third-party logistics (3PL) supervisors’ paradoxical leader behavior (PLB) on the relationship between logistics digitalization and 3PL blue-collar employee performance. 3PLs often lag in digitalization due to blue-collar employees struggling with learning paradoxes, i.e. the tension between abandoning the known methods in favor of new ones. In such situations, 3PL supervisors play a crucial role in helping their subordinates manage these tensions. By incorporating a paradox theory lens, we propose that 3PL supervisors’ PLB acts as a supportive tool, motivating blue-collar employees to address learning paradoxes, thereby improving their operational performance. Design/methodology/approach We conduct a scenario-based behavioral experiment in which participants assume the role of a package sorter in a fictional 3PL hub setting. Participants engage in a custom-designed package sorting game that mimics a real-life hub sorting operation. Findings The results indicate that digitalization combined with supervisors’ PLB significantly improves blue-collar employee performance, with the most substantial improvement observed in the high digitalization and high PLB condition than all other conditions. Originality/value Our research examines the impact of digitalization on blue-collar employees’ performance through a paradox theory lens. We demonstrate that 3PLs can maximize digitalization benefits by ensuring supervisors exhibit high PLB. Also, we introduce a package sorting game for researchers to conduct experiments related to digitalization and hub operations.