The role of switching costs in third-party logistics

The dynamics of logistics outsourcing relationships between partners are a crucial study area. This research investigates the power dynamics between third-party logistics (3PL) providers and customers in the UK, focusing on the impact of power on customer satisfaction, conflict, opportunism, and the influence of switching costs in business-to-business (B2B) relationships. The study employed a quantitative methodology, gathering data through a questionnaire survey. Analysis of 202 questionnaires revealed several correlations: switching costs were positively associated with non-coercive power and negatively associated with coercive power. Non-coercive power was linked to higher satisfaction, while coercive power was associated with lower satisfaction. In addition, non-coercive power was associated with reduced conflict, while coercive power increased the likelihood of conflict. Similar associations were found concerning opportunism. The exercise of coercive power, reward, and legitimate power by 3PL providers increased the possibility of opportunism, while referent and information power decreased opportunism in the relationship.