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.

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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
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article

Impact of BPO Outsourcing on Competitiveness in Logistics: A Structural Equation Modeling Approach in the Croatian Context

Marjan Sternad, Marko Šarić
Systems
Outsourcing and Supply Chain Management
article

Impact of BPO Outsourcing on Competitiveness in Logistics: A Structural Equation Modeling Approach in the Croatian Context

Marjan Sternad, Marko Šarić
article en

Abstract

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.

SystemsVol. 14(4)
University of Maribor (SI)
Partnerships for the goals
Openalex Percentile: Top 32%
Outsourcing and Supply Chain Management
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