Impact of BPO Outsourcing on Competitiveness in Logistics: A Structural Equation Modeling Approach in the Croatian Context
Purpose & Research Gap: While Business Process Outsourcing (BPO) is widely studied, there is a lack of empirical research analyzing its specific impact on competitiveness within the logistics sector of emerging markets. This study addresses the gap regarding how BPO transitions from a cost-saving tool to a strategic expertise-driven model. Methodology: Data were collected from 132 logistics companies in Croatia. Structural Equation Modeling (SEM) was applied to test the hypotheses and mediation effects, as it allows for a robust analysis of complex causal relationships between latent constructs. Key Findings: SEM results reveal that BPO engagement alone does not guarantee competitiveness. The primary finding indicates that the expertise of BPO providers and strategic partnerships exert a significantly stronger positive effect on operational efficiency and market differentiation than simple cost reduction. Contribution: The paper contributes to the literature by redefining BPO as a strategic driver of innovation rather than a mere cost-cutting measure, providing logistics managers with evidence-based insights for knowledge-oriented outsourcing.
Authors
- Marjan Sternad (ORCID: https://orcid.org/0000-0002-2891-3149)
- Marko Šarić
Institutions
- University of Maribor (SI)
Publication Details
- Journal
- Systems
- Published
- 2026-03-31
- DOI
- https://doi.org/10.3390/systems14040371
- Primary Topic
- Outsourcing and Supply Chain Management
- Type
- article
- Field-Weighted Citation Impact
- 0.00